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

Introduction

If you are a non-resident and plan to sell a property in Spain, you must understand the Capital Gains Tax (CGT) obligations to avoid unexpected costs and penalties. Spanish tax law imposes a flat 19% rate for both EU/EEA and non-EU/EEA citizens, making it essential to know your rights and responsibilities. In this guide, we break down the latest 2025 regulations, tax rates, exemptions, and how to optimize your tax liability when selling property in Spain.

What is Capital Gains Tax (CGT)?

Capital Gains Tax (Impuesto sobre la Renta de No Residentes – Ganancias Patrimoniales) is a tax applied to the profit made when selling a property in Spain. The taxable amount is calculated as the difference between the purchase price (including costs) and the sale price, adjusted for allowable deductions.

The Spanish tax authorities automatically withhold 3% of the sale price as an advance payment toward CGT, and the final tax amount must be settled afterward.

Capital Gains Tax Rate for Non-Residents in 2025

• All Non-Residents (EU and Non-EU): 19%

This rate applies to the net capital gain after allowable deductions, which may include purchase costs, certain improvements, and notary/legal fees.

How is Capital Gains Tax Calculated?

Formula:

(Sale Price – Purchase Price) – Deductible Expenses = Taxable Gain

Deductible expenses include:

• Purchase costs: Notary fees, legal fees, registration fees
• Selling costs: Real estate agent commission, legal fees
• Improvements: Structural work and energy efficiency upgrades
• Taxes paid at purchase: ITP (Transfer Tax) or VAT paid at the time of acquisition

Important: Renovations such as bathroom or kitchen upgrades, changing floors, or painting are not considered improvements and cannot be deducted.

Example Calculation:

3% Withholding Tax on Property Sales

Spanish law requires buyers to withhold 3% of the sale price and pay it directly to the Spanish tax authorities as an advance payment on your CGT liability.

• If your final CGT liability is lower than the withheld amount, you can claim a refund.
• If your CGT liability is higher than the withheld amount, you must pay the difference.
• The refund request must be made using Modelo 210 within four months after the sale.

No Exemptions for Non-Residents

Unlike Spanish residents, non-residents do not qualify for exemptions such as:

• Reinvestment exemption: Non-residents cannot reinvest in another EU/EEA property to reduce CGT liability.
• 65+ Exemption: The exemption for sellers over 65 years old does not apply to non-residents.

However, Taxadora will assess possible further reductions in CGT based on the age of the property to ensure you pay the lowest tax legally allowed.

How to Pay Capital Gains Tax as a Non-Resident

Filing and paying CGT in Spain can be complex, and errors can lead to fines or delays in refunds. To ensure accurate filing, it is strongly recommended to use a professional tax service.

Taxadora is the easiest and most secure way to file your Spanish Capital Gains Tax. We handle all the paperwork, ensure accuracy, and check for additional reductions based on the property’s age.

File Your Spanish Capital Gains Tax with Taxadora

Key Deadlines for 2025

• 3% Withholding Tax Payment: The buyer must submit this amount to the Spanish tax office within one month of the sale using Modelo 211.
• Final CGT Declaration: The seller must file a Modelo 210 declaration within four months after the sale to claim any refund or pay the remaining tax due.

Difference Between Capital Gains Tax and Plusvalía Tax

Many sellers confuse Capital Gains Tax (CGT) with the Plusvalía Municipal Tax. These are two separate taxes:

• Capital Gains Tax (CGT): Based on the profit from selling the property.
• Plusvalía Tax: A municipal tax based on the increase in the land’s value since the purchase.

Both taxes must be paid when selling a property, and they are calculated differently. Taxadora can assist you in determining and filing both correctly.

Consequences of Not Paying Capital Gains Tax

Failure to declare and pay CGT on time can result in:

• Late payment fines and interest charges
• Difficulties in selling other Spanish assets in the future
• Issues with Spanish tax authorities, which may lead to legal action

To avoid these risks, always seek professional tax assistance when selling property in Spain.

Summary

• Capital Gains Tax (CGT) applies to all property sales by non-residents in Spain.
• A 3% withholding tax is automatically deducted from the sale price.
• The CGT rate is 19% for all non-residents, regardless of EU or non-EU status.
• Only structural improvements and energy efficiency upgrades are deductible—cosmetic renovations are not.
• Reinvestment and age-related exemptions do not apply to non-residents.
• Taxadora offers the easiest way to file your tax return correctly and will calculate any further reductions based on the property’s age.
• CGT is different from the municipal Plusvalía tax, which must also be paid upon sale.

Need help filing your Capital Gains Tax? Let Taxadora handle everything for you! Learn more here