When selling property in Spain, non-residents must consider not only national capital gains tax, but also the local Municipal Capital Gains Tax, known as Plusvalía Municipal (IIVTNU).
This tax is charged by the local town hall and applies specifically to the increase in the value of the land during the period of ownership.
Plusvalía Municipal is a local tax on the increase in value of urban land only (not the building).
Applies when a property is sold, inherited, or gifted
Managed by the local municipality (not AEAT)
Applies to both residents and non-residents
Importantly, the tax is linked to the land value, not the overall profit from the property.
Since legal changes in recent years, two calculation methods are available. The taxpayer can generally apply the lower result.
Based on the cadastral value of the land
Uses coefficients set by each municipality
Adjusted based on years of ownership (up to a maximum period)
Based on the actual increase in land value between purchase and sale
If there is no increase, no tax is due
This method was introduced to ensure taxation only applies when there is a real gain.
This is a key point and often misunderstood.
In most cases, the seller is the taxpayer
However, when the seller is a non-resident, the buyer becomes responsible for paying the tax to the municipality
This mechanism ensures the tax is collected, but the economic burden remains linked to the seller.
These are two separate taxes that apply on sale.
| Tax | Applies To | Based On | Rate | Who Handles It |
|---|---|---|---|---|
| Plusvalía (IIVTNU) | Land value | Cadastral or real land increase | Set by municipality | Buyer pays (for non-residents) |
| Capital Gains Tax | Full property | Actual profit | 19% (non-residents) | Seller files via Modelo 210 |
Additionally:
The buyer withholds 3% of the sale price as an advance payment for capital gains tax
The seller must file Modelo 210 to calculate final tax and claim any refund
Plusvalía can apply even when overall profit is low (depending on land value increase)
Using the correct calculation method can significantly reduce the tax
Responsibility between buyer and seller must be clearly understood
Errors can delay the sale or create legal issues
Deadlines vary by municipality, but generally:
The tax must be declared and paid shortly after the sale (often within 30 days)
It is important to confirm the exact deadline with the local town hall.
If there is no increase in land value, no plusvalía should be payable
If the property was held for a short period, the tax may be lower
Local reductions or rules may apply depending on the municipality
Taxadora focuses on the national tax side of the sale, including:
Calculating correct gains and deductions
Recovering excess 3% withholding
Handling communications with the tax authorities
We ensure your non-resident tax obligations are handled correctly after the sale.
Selling property in Spain involves two separate taxes: municipal plusvalía and national capital gains tax. Both must be handled correctly to avoid issues and unnecessary costs.
For non-residents, understanding who pays and how each tax is calculated is essential.
Taxadora can help you manage the tax process and ensure everything is filed correctly and on time.
Expert in international taxation for private individuals. He combines deep advisory experience with a passion for building technology that simplifies the complexities of Spanish tax compliance. As the founder of Taxadora, he’s on a mission to modernize cross-border taxation with smart, accessible solutions.
Contact us for assistance with a wide range of tax procedures, tailored to your needs
