Taxes and Costs When Selling Your Property in Spain

Selling a property in Spain involves several legal, fiscal, and administrative obligations. At Nelemans Housing Solutions, we ensure that our clients are fully informed throughout the entire sales process.

As a licensed API Real Estate Agency (Agente de la Propiedad Inmobiliaria) and an established real estate company active on the Costa Blanca and Costa Cálida since 2007, we provide professional guidance to international property owners looking to sell their Spanish property safely and efficiently.

Capital Gains Tax (Capital Gains Tax on Property Sales)

When you sell your property for a higher amount than your acquisition value, you may be liable for Spanish Capital Gains Tax.

For non-resident property owners, the current tax rate is generally 19% of the net capital gain.

The taxable gain is not simply calculated as the difference between the purchase price and the sale price. Various acquisition and ownership costs may be deducted, including:

• Real estate agency fees;
• Documented improvements and renovations that increase the value of the property;
• Certain mandatory certificates and administrative costs.

As a result, the final taxable gain is often significantly lower than the apparent profit on the sale.

3% Retention for Non-Residents

If you are not a Spanish tax resident, Spanish law requires the buyer to withhold 3% of the total purchase price and pay this amount directly to the Spanish Tax Authorities (Agencia Tributaria).

This is known as the 3% Retention Tax (Retención).

It is important to understand that this is not an additional tax, but rather an advance payment towards any Capital Gains Tax that may be due.

As a seller, you will therefore receive:

97% of the agreed sale price at completion.

Following the sale, a tax declaration must be submitted to determine the final tax liability.

Possible outcomes include:

• The retained 3% exceeds the tax due → you may claim a refund.
• The retained 3% is insufficient → the remaining balance must be paid.
• No taxable gain exists → the full 3% may be reclaimed.

Municipal Capital Gain Tax (Plusvalía Municipal)

In addition to Capital Gains Tax, the seller may also be liable for the:

Municipal Capital Gain Tax (IIVTNU)

Officially known as:

Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana

This tax is levied by the local municipality and relates to the increase in the cadastral value of the land during the ownership period.

Following recent legislative changes in Spain, this tax can only be charged when there is a demonstrable increase in the value of the land. If no gain has been generated, in many cases no Plusvalía Municipal is payable.

The amount depends on:

• The cadastral land value;
• The period of ownership;
• The municipality’s applicable rates and calculation method.

Additional Selling Costs

Depending on the property and circumstances, additional costs may include:

• Plusvalía Municipal;
• Energy Performance Certificate;
• Occupancy Certificate (where applicable);
• Power of Attorney costs;
• Legal representation;
• Administrative and documentation fees;
• Mortgage cancellation costs (if applicable).

Many of these expenses may be taken into account when calculating the taxable gain.

Selling Your Property with Nelemans Housing Solutions

Nelemans Housing Solutions has been helping international clients buy and sell property in Spain since 2007 and is registered as an official API Real Estate Agency (Agente de la Propiedad Inmobiliaria).

Our experienced multilingual team provides complete support throughout the sales process, including:

• Property valuation;
• International marketing;
• Viewings and negotiations;
• Legal and administrative guidance;
• Coordination with lawyers, notaries and tax advisors;
• Assistance with all tax-related obligations following completion.

If you are considering selling your property in Spain and would like professional advice regarding the value of your property and the associated taxes and costs, our team will be delighted to assist you.

Nelemans Housing Solutions
Your trusted API Real Estate Agency on the Costa Blanca and Costa Cálida since 2007.