What tax do non-residents pay on the capital gain when selling a Spanish property?

One rate for everyone: 19 %

Unlike the yearly tax on an empty home, where UK and Swiss residents pay more than EU residents, the tax on a capital gain from a sale is 19 % for every non-resident. Where you live changes the procedure for your home country, not the Spanish rate.

How the gain is worked out

The taxable gain is:

sale price − selling costs − (purchase price + purchase costs + improvement works − depreciation if the property was let)

• Selling costs: agency commission, the seller's legal fees, energy certificate and similar.
• Purchase costs: notary, Land Registry, transfer tax or VAT paid when you bought, legal fees.
• Improvements: works that added value (an extension, a new kitchen), not routine maintenance.
• Depreciation: if you let the property and deducted depreciation, it reduces the acquisition value.

Keep the invoices: without them, costs and works are hard to justify.

A worked example

An owner living in Scotland bought a villa for 200,000 €, paid 20,000 € of purchase costs and spent 10,000 € on a new bathroom and kitchen. Ten years later, it sells for 300,000 €, with 10,000 € of agency and legal fees.

• net sale proceeds: 300,000 − 10,000 = 290,000 €
• acquisition value: 200,000 + 20,000 + 10,000 = 230,000 €
• gain: 60,000 €
• tax at 19 %: 11,400 €

At completion, the buyer withheld 3 % of 300,000 €, that is 9,000 €, and paid it to the tax office. The seller files Modelo 210 and pays the balance of 2,400 €. Had the retention been higher than the tax, the difference could be reclaimed. The capital gains simulator runs this with your own figures.

The other taxes on a sale

• The plusvalía municipal, a town-hall tax on the rise in land value, is a separate charge for the seller (what is the plusvalía).
• Imputed income is still due for the part of the year of sale before completion.
• Your home country may also tax the gain, with relief for the Spanish tax under the treaty.

For the timing, see deadline to declare a sale, and our guide to selling and the Modelo 211.