Capital Gains Tax Spain for Non-Residents:
Complete Guide (2026)

Selling a property in Spain as a non-resident means paying capital gains tax on the profit. The rate is a flat 19%, and there is a mandatory 3% retention that the buyer withholds at completion regardless of what you actually owe. Get the calculation wrong, miss the filing window, or ignore the retention mechanism entirely, and you will either leave money on the table or face a penalty from the Spanish tax authorities.

This guide covers exactly how capital gains tax Spain works for non-residents: how to calculate your gain, what you can deduct, the difference between resident and non-resident treatment, and how the UK, US and Irish double taxation treaties affect what you pay in total.

Non-EU owners should also be aware of the separately proposed 100% property tax on non-EU buyers, which would apply at purchase rather than sale.

The Basics: CGT Rate and Who It Applies To

Capital gains tax in Spain is charged on the profit you make when you sell a Spanish property. For non-residents, the rate is a flat 19% on the net gain, regardless of your nationality. This rate applies to UK nationals, US nationals, Irish nationals, and all other non-residents equally.

Residents of Spain pay CGT at progressive savings-income rates depending on the size of the gain: 19% on the first 6,000 euros, 21% on gains between 6,000 and 50,000 euros, 23% on gains between 50,000 and 200,000 euros, 27% on gains between 200,000 and 300,000 euros, and 30% above 300,000 euros. So for non-residents with significant gains, the flat 19% rate is actually more favourable.

The 3% Retention Rule Explained

This is the mechanism most non-resident sellers are not expecting. When a non-resident sells a Spanish property, Spanish law requires the buyer to withhold 3% of the agreed sale price and pay it directly to the Spanish tax authority (Agencia Tributaria) as an advance payment against the seller's capital gains tax liability.

The key word is "advance." The 3% retention is not the final tax. It is a prepayment. What happens next depends on your actual gain:

• If the 3% withheld is more than the tax you owe - you file Modelo 210 and claim a refund from the Spanish tax authorities. Refunds typically take 6 to 18 months to arrive.
• If the 3% withheld is exactly what you owe - you still need to file Modelo 210 to confirm this. You do not owe anything further but the filing is mandatory.
• If the 3% withheld is less than the tax you owe - you must pay the difference within 4 months of completion.
• If you made a loss on the sale - you file to reclaim the entire 3% retention. You need to demonstrate the loss with purchase and sale deeds.

Your property lawyer or tax adviser manages the retention mechanism and files Modelo 210 on your behalf. The deadline is 4 months from the date of completion.

How to Calculate Your Capital Gain

The taxable gain is not simply "sale price minus what you paid for it." Spain allows several categories of deduction that can substantially reduce the figure.

The formula is:

Taxable gain = Sale price - (Purchase price + allowable purchase costs + improvement costs + selling costs)

What counts as the purchase price

The purchase price is the price stated in the original escritura (title deed). If you bought in a foreign currency, Spain uses the exchange rate at the date of purchase - not today's rate - which can significantly affect the gain calculation for UK and US sellers.

Allowable purchase costs (deductible)

You can deduct the costs you paid when you originally bought the property:

• ITP (property transfer tax) or IVA and AJD if you bought a new-build
• Notary fees paid on purchase
• Land registry fees paid on purchase
• Legal fees paid to your property lawyer on purchase
• Any NIE costs if paid as part of the purchase process

Improvement costs (deductible)

Capital improvements to the property - structural work, extensions, new kitchens, bathroom renovations - are deductible if you have invoices. Routine maintenance and repairs are not deductible. The distinction matters. Keep all invoices from any significant work done on the property.

Selling costs (deductible)

• Estate agent commission
• Legal fees paid to your property lawyer on the sale
• Plusvalia Municipal (the separate local land-value tax paid to the town hall)
• Certificate costs (energy performance certificate, etc.)

Residents vs Non-Residents: Key Differences

The distinction between resident and non-resident status affects both the CGT rate and the exemptions available to you.

You are a Spanish tax resident if you spend more than 183 days per year in Spain, or if Spain is the centre of your economic interests. If you are on the Non-Lucrative Visa or another residency route and spend the majority of the year in Spain, you are likely a tax resident - and the rules above change materially. If you are unsure of your status, a tax adviser can confirm it before you sell.

Double Taxation Treaties: UK, US and Ireland

Spain taxes the gain where the property is located - in Spain. Your home country may also want to tax the same gain. Double taxation treaties exist to prevent you paying twice. Here is how each of the main treaties works in practice.

UK sellers

The UK-Spain Double Taxation Convention (updated post-Brexit) gives Spain the primary right to tax gains on Spanish property. If you are UK tax resident, the gain normally needs to be reported to HMRC through your UK tax return. The Spanish CGT you paid is credited against your UK capital gains tax liability. UK CGT rates are currently 18% for basic rate taxpayers and 24% for higher rate taxpayers on residential property. Because Spain taxes at 19%, most UK higher-rate taxpayers will owe a small top-up to HMRC; basic-rate taxpayers may owe nothing additional, depending on total gains in the year.

US sellers

The US-Spain tax treaty similarly allows Spain to tax gains on Spanish real estate first. US citizens and green card holders must report all worldwide income and gains to the IRS regardless of where they live. The Spanish CGT paid is taken as a foreign tax credit on your US return, reducing your US tax liability dollar-for-dollar. US long-term capital gains rates are 0%, 15%, or 20% depending on income. Most US sellers will find the Spanish 19% credit covers or exceeds the US liability, but this depends heavily on your total income in the year. A US tax adviser familiar with cross-border real estate sales is worth the cost for any significant gain.

Irish sellers

Ireland and Spain have a double taxation agreement under which Spain taxes the gain on Spanish property first. Irish CGT is currently charged at 33%. The Spanish CGT paid at 19% is offset against your Irish liability, leaving a 14% top-up payable in Ireland in most cases. Irish sellers should file in both jurisdictions. Revenue in Ireland requires a CGT return regardless of whether tax is owed.

For a broader picture of all taxes attached to Spanish property ownership - not just on sale but on purchase and ongoing ownership - see our guide to Spanish property taxes for foreign owners.

When Do You Actually Need a Tax Lawyer?

If your Spanish property sale is straightforward - you bought at a clear price, made no major improvements, have all your original purchase documents, and your gain is modest - you could in theory manage the filing yourself using Modelo 210. In practice, most non-resident sellers use a Spanish tax lawyer or fiscal adviser for the following reasons.

You need professional help if any of these apply:

• You bought the property over 10 years ago and original purchase receipts are incomplete
• You carried out substantial renovation or improvement work and want to maximise deductible costs
• The sale involves a loss and you need to recover the full 3% retention
• You are selling jointly (inheritance, divorce, co-ownership) and the gain must be apportioned
• You need to coordinate the Spanish filing with a UK self-assessment, US tax return, or Irish CGT return
• The buyer's notary has questions about the retention calculation before completion

The 4-month deadline for filing Modelo 210 after completion is strict. Missed filings attract a penalty of 50-150% of the unpaid tax, depending on how late the filing is. A tax adviser tracks the deadline and files on your behalf.

Frequently Asked Questions

Summary

Capital gains tax Spain for non-residents is a flat 19% on the net gain. The 3% retention mechanism means 3% of the sale price leaves your proceeds at completion and sits with the Spanish tax authorities until you file Modelo 210 - which must happen within 4 months. Get the deductions right and file on time, and you either settle a smaller bill or recover a refund. Miss the deadline and the penalties compound quickly.

If you are planning a sale and want to understand the full tax picture - including what you will owe on both sides of the Channel or Atlantic - an English-speaking tax lawyer in Spain is the most straightforward way to avoid a costly mistake. You can search verified firms by city and specialty on ExpatLawyerSpain, or read our guide on what to look for when choosing one.

Also worth reading before you sell: our full guide to buying property in Spain as a foreigner covers the purchase side in detail, and our Spanish property taxes guide covers IBI, IRNR and Plusvalia alongside CGT in one place.