The sale of a property in Spain by a non-resident is subject to the Spanish Non-Resident Income Tax regime (Impuesto sobre la Renta de no Residentes – IRNR), in accordance with applicable Spanish tax legislation. This regime imposes specific reporting, withholding, and settlement obligations that must be strictly complied with.
We provide comprehensive legal and tax advisory services throughout the entire conveyancing process, from preliminary negotiations through to completion and final tax settlement.
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- Required documentation for sellers
- Tax obligations of non-resident sellers
- Capital gains tax calculation
- 3% withholding on the sale
- Remote transactions and legal representation
- Post-Brexit considerations for UK nationals
- Ongoing legal assistance throughout the process
Before proceeding with a sale, it may be advisable to review succession planning, including the drafting of a Spanish will, particularly in cross-border estate structures.
Selling Property in Spain as a Non-Resident
The Spanish property market remains highly active among international investors, particularly in regions such as Alicante and Valencia.
Non-resident sellers are subject to IRNR, which requires the declaration of any capital gain obtained from the sale, and, where applicable, payment of the corresponding tax liability to the Spanish Tax Agency.
Proper compliance is essential in order to avoid penalties, tax reassessments, or delays in the transaction process.
Required Documentation to Sell a Property in Spain
In order to formalise a property sale before a Spanish notary, the following documentation is generally required:
- Title deed (Escritura pública de propiedad)
- Valid passport and Foreign Identification Number (NIE)
- Latest property tax receipt (IBI)
- Certificate confirming payment of community fees
- Energy Performance Certificate
Failure to provide any of the above may delay or prevent completion of the transaction.
Capital Gains Tax for Non-Residents
Capital gains are calculated as follows:
Transfer value – Acquisition value = Capital gain
The acquisition value includes the purchase price plus associated costs and taxes, including:
- Taxes paid on acquisition (Transfer Tax or VAT and Stamp Duty, where applicable)
- Notary and Land Registry fees
- Legal fees
- Real estate agency commissions
- Capital improvements to the property, provided they are properly documented and constitute structural or value-enhancing works
The transfer value generally corresponds to the sale price, less any costs directly incurred in the sale by the seller.
Applicable Tax Rate
Capital gains obtained by non-residents are generally subject to a flat rate of 19%, regardless of the taxpayer’s country of residence.
This rate applies to both EU/EEA residents and third-country residents, including United Kingdom nationals following Brexit.
3% Withholding on Sale
In property transactions involving non-resident sellers, the purchaser is legally required to withhold 3% of the purchase price and remit it directly to the Spanish Tax Authorities using the relevant tax form.
This withholding is treated as an advance payment of the seller’s final capital gains tax liability:
- If the final tax due is lower than 3%, the seller may claim a refund
- If the final tax exceeds 3%, the difference must be paid within the statutory deadline
Remote Sales and Legal Representation
The physical presence of the seller in Spain is not required to complete the transaction.
A duly executed Power of Attorney, properly notarised and apostilled where necessary, allows a legal representative to act on behalf of the seller before the notary and relevant authorities.
Post-Brexit Considerations for UK Nationals
Following the United Kingdom’s withdrawal from the European Union, UK nationals are treated as non-EU tax residents for Spanish tax purposes.
This entails:
- Application of the standard 19% capital gains tax rate under IRNR
- No access to certain EU/EEA-linked tax advantages applicable in other tax contexts
Legal Assistance in Property Sales
We act as legal and fiscal coordinator throughout the entire transaction process, including:
- Review and negotiation of sale contracts
- Capital gains tax calculation and planning under IRNR
- Management of the 3% withholding and refund process where applicable
- Coordination with notaries, estate agents, and purchasers
- Mortgage cancellation and charge removal, where relevant
The sale of Spanish property by non-residents requires strict compliance with Spanish tax and legal regulations.
Proper legal and fiscal structuring allows for risk mitigation, tax efficiency within the legal framework, and a smooth and secure completion of the transaction.
Legal Nest Group supports international property owners throughout the entire process, ensuring legal certainty, tax compliance, and operational efficiency at every stage.
