Capital Gains Tax (CGT) in Spain for Non‑Residents – what to know in 2025
What is Spanish Capital Gains Tax (CGT)?
Capital Gains Tax (CGT) in Spain applies when you sell a property for more than your acquisition cost. As a non‑resident, your gain is generally taxed in Spain regardless of your country of residence. The gain is the selling price minus allowable costs and deductions.
How is the gain calculated?
Your taxable gain is the sales price minus: purchase price, notary/registry fees, transfer tax or VAT you paid at purchase, legal fees, documented renovations/improvements, and agent commission at sale. Keep invoices to substantiate every deduction.
What rates apply to non‑residents?
Non‑resident individuals are taxed at Spain’s non‑resident CGT scale (flat brackets published by the Spanish government). Married couples selling jointly are each assessed on their share.
Retention at completion (3% withholding)
On most sales by non‑resident individuals, the buyer must withhold 3% of the purchase price and pay it to the Tax Agency (Modelo 211). This is a payment on account of your final CGT. You later file Modelo 210 to claim a refund or pay any balance due.
Frequently asked questions
Do renovations reduce my taxable gain?
Yes, if you can evidence capital improvements (not routine maintenance) with proper invoices and payment proofs. Examples: new kitchen/bathroom, windows, extensions.
What if I sell at a loss?
If your documented acquisition + costs exceed the selling price (net of selling costs), your CGT is zero and the 3% withholding may be refundable via Modelo 210.
Does my home country treaty affect CGT?
Most double tax treaties allow Spain to tax gains on Spanish real estate. You may offset Spanish tax in your home country according to treaty and local rules—consult a tax advisor.
Next steps
Sun Properties Marbella can coordinate with your lawyer and tax advisor to estimate CGT before listing, plan renovations that qualify as improvements, and ensure all documents are ready for completion (withholding, tax models, and refunds).
