Can Foreigners Sell Property in Spain?
Yes — there are no restrictions on foreign nationals selling property in Spain. The process follows the same legal steps as for Spanish sellers, with one important addition: if the seller is a non-resident, the buyer is legally required to withhold 3% of the purchase price and pay it directly to the Spanish tax authority on the seller's behalf.
Understanding this retention, the capital gains tax calculation, and the other costs involved will help you plan the sale effectively and avoid surprises.
Preparing to Sell
Documents you'll need
Before listing, gather the following:
- Title deed (escritura) — your proof of ownership, signed at the notary when you bought the property
- Nota simple — a current extract from the Land Registry confirming ownership and any charges. Your lawyer can request this.
- Energy Efficiency Certificate (CEE) — mandatory for all property sales. If yours has expired (they're valid for 10 years), you'll need a new one (€100–300).
- Latest IBI receipt — proves the annual property tax is paid up to date
- Community fee certificate — from the building administrator, confirming no outstanding community charges
- Habitation certificate (Cédula de Habitabilidad) — required in some regions. Check with your lawyer.
If there is an outstanding mortgage on the property, it must be cancelled or paid off at the time of sale. The notary can arrange for the mortgage cancellation to happen simultaneously with the sale.
Setting the right price
Pricing well is the single biggest factor in how quickly your property sells. Start by comparing similar properties on Idealista, Fotocasa, and with local agents. A professional valuation (tasación) from a certified surveyor costs €300–500 and provides an independent market assessment.
On the Costa del Sol, properties in popular areas like Marbella, Estepona, and Fuengirola often sell within 2–4 months if priced realistically. Overpriced properties can sit on the market for a year or more.
The Selling Process
- List the property — through an estate agent, on property portals, or privately. Agent commissions on the Costa del Sol typically range from 3–5% of the sale price (plus IVA). This is usually paid by the seller.
- Accept an offer and sign the Contrato de Arras — the buyer pays a 10% deposit. If you as the seller withdraw after signing, you must return double the deposit to the buyer.
- Completion at the notary — the buyer pays the remaining balance, the deed is signed, and ownership transfers. If there's an outstanding mortgage, the notary arranges for it to be cancelled from the sale proceeds.
Taxes When Selling
Capital gains tax
The profit from your property sale (selling price minus purchase price, minus allowable costs) is subject to capital gains tax. Rates depend on your tax residency:
| Seller Status | Capital Gains Tax Rate |
|---|---|
| Spanish tax resident | 19% on first €6,000 of gain; 21% on €6,001–€50,000; 23% on €50,001–€200,000; 27% on gains above €200,000 |
| Non-resident (EU or non-EU) | 19% flat rate on the full gain |
Allowable deductions from the gain include: the original purchase costs (taxes, notary, registry, legal fees), the cost of any documented improvements (not maintenance), and the selling costs (agent fees, legal fees, energy certificate).
Worked example
Suppose you bought a property in 2018 for €250,000 with €28,000 in purchase costs, and you're selling it for €340,000 with €15,000 in selling costs.
- Total acquisition cost: €250,000 + €28,000 = €278,000
- Net sale price: €340,000 − €15,000 = €325,000
- Taxable gain: €325,000 − €278,000 = €47,000
- Tax (non-resident at 19%): €8,930
The 3% non-resident retention
When the seller is a non-resident, the buyer must withhold 3% of the total sale price (not 3% of the profit) and pay it to the Agencia Tributaria within one month of the sale. This acts as an advance payment against your capital gains tax.
In the example above, 3% of €340,000 = €10,200 is retained. Your actual tax liability is €8,930, so you're entitled to a refund of €1,270. Your tax advisor files Modelo 210 to reclaim the difference — this typically takes 3–6 months.
If the 3% retention exceeds your actual tax liability, you are entitled to a refund. If it's less, you must pay the difference. A Spanish tax advisor should handle this filing to ensure it's done correctly and on time.
Plusvalía municipal tax
The plusvalía (Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana) is a municipal tax on the increase in land value during the time you owned the property. It's calculated by the town hall based on the cadastral value and the number of years of ownership.
After a 2021 Constitutional Court ruling, plusvalía is only payable when there has been a real gain. If you're selling at a loss, you should not owe this tax — but you may need to formally claim the exemption.
Tax Reduction Strategies
- Document all improvement costs — receipts for renovations, new kitchens, bathrooms, pools, etc. reduce your taxable gain. Keep invoices from licensed contractors.
- Residents over 65 selling their primary home are exempt from capital gains tax entirely.
- Reinvestment exemption — Spanish tax residents who reinvest the full sale proceeds into a new primary residence within two years can defer or eliminate the capital gains tax (Art. 38 of the IRPF law).
- Deduct selling costs — agent commissions, legal fees, energy certificate costs, and mortgage cancellation fees are all deductible from the gain.
For an overview of the buyer side, see our buying guide. For detail on the taxes and fees buyers face, that article covers the other side of the transaction.