Selling a home in Spain: the taxes you meet
A seller in Spain faces capital gains tax on the profit, municipal plusvalía on the increase in land value, and, if not resident, a 3 per cent retention of the price that the buyer pays to the tax office on account of the gain.
gelisted editorial team · Updated 15 August 2026
The short version
- Non-resident sellers face a 3 % retention of the sale price at completion.
- Purchase costs and improvement works reduce the taxable gain.
- Plusvalía is a separate municipal tax on the land value increase.
- The energy certificate must be available before the property is marketed.
Sellers plan for the agent's commission and are surprised by everything else. There are 3 tax items and all of them can be estimated months in advance.
Capital gains
The gain is the transfer value less the acquisition value. Both are adjusted: the acquisition value rises by the transfer tax, notary, registry and legal fees paid on purchase, plus documented improvement works, while the transfer value falls by the agent's commission and the selling costs. That adjustment routinely reduces a headline gain of 100,000 € by 30,000 € or more, provided the invoices exist.
| Item | Effect | Evidence needed |
|---|---|---|
| Transfer tax paid on purchase | reduces gain | self-assessment receipt |
| Notary and registry on purchase | reduces gain | invoices |
| Legal fees on purchase | reduces gain | invoice |
| Improvement works | reduces gain | invoices with VAT and licences |
| Routine maintenance | no effect | |
| Agent commission on sale | reduces gain | invoice |
| Non-resident retention | 3 % of the price | paid by the buyer |
| Plusvalía | separate municipal tax |
The 3 per cent retention
Where the seller is not tax resident in Spain, the buyer must withhold 3 % of the price and pay it to the tax office on account of the seller's gain. On a 500,000 € sale that is 15,000 € the seller does not receive at completion. If the actual tax due on the gain is lower, the excess is reclaimed by filing the corresponding return, and the refund typically takes 6 to 12 months.
The documents to have ready
The purchase deed and every invoice from that transaction. Invoices for improvement works with their building licences. A current energy certificate, which must exist before marketing begins. The last IBI receipt. A certificate from the community administrator confirming there are no arrears. The occupancy certificate where the municipality requires it. And, for a non-resident, evidence that the annual non-resident returns have been filed.
Gathering these before listing rather than during the 30 day run to completion is what keeps a sale on schedule.
Relief for main homes
Spanish tax residents may qualify for relief where the proceeds are reinvested in a new main home within 2 years, and there is a separate exemption for sellers over 65 disposing of their habitual residence. Neither applies to a non-resident selling a second home, which is the situation of most foreign owners on the island, so those figures should not be built into a net proceeds calculation without advice.
Frequently asked
+What taxes does a seller pay?
Capital gains tax on the profit and municipal plusvalía on the land value increase.
+What is the 3 per cent retention?
Where the seller is non-resident, the buyer withholds 3 % of the price and pays it to the tax office on account of the gain.
+What reduces the taxable gain?
Purchase taxes and fees, documented improvement works, and the selling costs including agent commission.
+Do routine repairs count?
No. Only improvements with invoices and, where required, building licences reduce the gain.
+How long does a refund of the retention take?
Typically 6 to 12 months after filing the corresponding return.
Sources
- 1Boletín Oficial del Estado, BOE (August 2026)
- 2Govern de les Illes Balears, Govern de les Illes Balears (August 2026)