Municipal Capital Gains Tax in Spain for Non-Residents: A 2025 Guide

If you’re a non-resident selling property in Spain, you’re likely familiar with the national Capital Gains Tax (IRNR), but don’t overlook the Municipal Capital Gains Tax—locally known as Plusvalía Municipal or IIVTNU. This tax targets the increase in urban land value and is owed separately to the local town hall where the property is located. Here’s everything you need to know.

What Is Municipal Capital Gains Tax (IIVTNU)?

The Plusvalía Municipal (IIVTNU) is a local tax levied on the increase in urban land value (excluding buildings) during the time you owned the property. It applies regardless of whether you’ve made a profit. Both residents and non-residents are liable when transferring such properties.

Two Ways It’s Calculated

1. Objective (Coefficient-Based) Method
   Calculated using pre-set municipal coefficients applied to the cadastral (assessed) value of the land, multiplied by years of ownership (up to 20 years).
   Formula:
   Tax Base = Cadastral Value × Coefficient × Years of Possession
   Tax rates are set by each municipality and capped at 30% (often between 20%–30%).
   
   
2. Real Gain (Actual Value Increase) Method
   Compares the land’s purchase value to its sale value, disregarding buildings.
   Formula:
   Tax Base = Land Value at Sale – Land Value at Purchase
   If there’s no real gain—or a loss—you may pay zero tax.
   
   

Buyer As Taxpayer: A Crucial Mechanism

For non-resident sellers, the buyer becomes the substitute taxpayer. They must withhold and pay the municipal tax on behalf of the seller—unless the seller proves they are taxable in Spain via a permanent establishment.
This safeguard ensures proper tax collection and places legal responsibility on buyers.

National Capital Gains Tax vs Municipal Tax: Quick Comparison

Purchase withholding for CGT: buyers must withhold 3% of the sale price, serving as a prepayment on behalf of the non-resident seller. A reconciliation is filed within 2–4 months.

Why It Matters for Non-Residents

• You cannot avoid paying if the land value has increased—even if you’ve incurred a loss overall.
• The buyer will withhold tax; ensure they do so correctly to prevent legal complications.
• Filing properly using the more favorable method can significantly reduce your tax burden.
• Some municipalities offer reductions or exemptions for family transfers or if there’s no increase in value, but these vary widely.
  
  

How Taxadora Can Help You Navigate This Hassle-Free

At Taxadora, we specialize in Spanish property sale taxation for non-residents. Here’s what we offer:

• Modelo 210 Filing: We take care of your national capital gains tax return and secure your refund if the 3% withholding overpaid your liability.
• We can help you sort out possible deductions from the capital gains tax at sale. We can also answer any communications from the tax agency regarding the capital gains tax and in general help you if you have received a letter from the tax agency. 
• If you sell in 2025, you are also obliged to file the yearly non-resident tax in 2026 which is for the period until the date of sale 2025.

Final Thoughts

Selling property in Spain comes with dual tax responsibilities—municipal plusvalía and national capital gains tax. As a non-resident, correctly handling these taxes is essential to compliance and maximizing your net sale proceeds.

Let Taxadora guide you through both, expertly, in English, with full peace of mind. Contact us today for a tailored tax filing plan.