Are you a Non-Resident Selling your Property in Spain? This You Should Know
Selling a property in Spain as a non-resident carries specific tax obligations. This guide details the taxes when selling property as a non-resident in Spain and how to manage them correctly.
Who is considered a non-resident?
According to the Tax Agency, non-residents are those who:
✔ Do not spend more than 183 days a year in Spain.
✔ Do not have their main economic activity in the country.
✔ Their spouse and minor children do not live in Spain.
Key Taxes When Selling as a Non-Resident
1. IRNR (Non-Resident Income Tax).
Tax the capital gains from the sale:
- Calculation:
- (Sale price) – (Purchase price + notary fees + justified improvements) = Profit.
- If the property was rented, the tax depreciation is deducted.
- Tax rates:
- 19% for citizens of the EU, Norway and Iceland.
- 24% for other countries.
Key exemption (since 2015):
EU/EEA citizens can avoid the tax if they reinvest the total in their primary residence in their country of residence.
2. Municipal Capital Gains Tax (IIVTNU)
Local tax on the increase in value of urban land:
- It is paid by both residents and non-residents.
- The buyer can retain the amount to guarantee payment.
- If it is not settled, the property is liable for the debt, affecting the new owner.
Special Procedures for Non-Residents
✅ 3% withholding:
The buyer usually withholds this percentage of the sale price to cover possible unpaid taxes. Exception: If the seller presents a certificate from the Tax Agency accrediting his fiscal solvency.
Model 210:
The seller must declare the gain on this form within 4 months of the sale. In this way he can recover part of the withholding or pay the outstanding amount.
Recommendations for a Trouble-Free Sale
- Include clear clauses in the earnest money contract about:
- Tax withholdings.
- Payment of capital gains, IBI and municipal taxes.
- Keep all documentation: Invoices for improvements, deeds, etc.
- Get expert advice: A specialised agent avoids costly mistakes.
Do you need help with the taxes for selling your property as a non-resident?
At Hernán Bustos – Real Estate Experts:
🔹 We explain your tax obligations step by step.
🔹 We manage procedures such as Form 210.
🔹 Available languages: Our staff speaks the main European languages.
📞 Contact us today for a personalised consultation.
