Are you a UK resident selling a property in Spain? Whether it’s a holiday home or an investment, it’s important to understand your tax obligations as a non-resident.
Since Brexit, UK residents are treated as non-EU taxpayers in Spain. At the same time, Spanish tax authorities have increased control and data cross-checking, making compliance more important than ever.
In this guide, we explain capital gains tax, the 3% retention, key deadlines, and how to stay compliant.
Yes.
If you are a UK resident selling property in Spain, you are subject to Spanish Capital Gains Tax as a non-resident.
19% on the capital gain (applies to all non-residents)
This is an important update — the rate is no longer different for EU vs non-EU residents when it comes to property capital gains.
Capital gain = Sale price – Purchase price – deductible costs
You can deduct:
Legal and notary fees
Estate agent commissions
Transfer tax (ITP) paid when buying
Improvement works (not maintenance)
Important:
The calculation is done in euros
Currency fluctuations (GBP/EUR) can affect your real gain
Non-residents cannot apply exemptions available to residents (e.g. reinvestment in main residence)
Learn more about capital gains tax here:
👉 https://taxadora.com/capital-gains-taxes/
When selling property in Spain as a non-resident, the buyer must withhold 3% of the purchase price and pay it to the Spanish tax authorities.
This acts as an advance payment of your capital gains tax.
File Modelo 210 within 4 months
Calculate your actual capital gain
Claim a refund if the 3% exceeds your tax
Pay additional tax if required
Failing to file on time can result in losing your refund.
In addition to national capital gains tax, you may also be liable for Plusvalía Municipal, a local tax charged by the town hall.
Based on the increase in land value (not market price)
Rules vary by municipality
No tax may be due if there is no real gain, but this must be proven
When selling property in Spain, you may also face:
Estate agent fees (typically 3–5%)
Legal fees
Mortgage cancellation costs
Notary-related costs (depending on agreement)
Not filing Modelo 210 after the sale
Missing the 4-month deadline
Not claiming back the 3% retention
Assuming UK tax rules apply in Spain
Ignoring Plusvalía Municipal
At Taxadora, we help non-residents handle Spanish property taxes efficiently:
Filing Modelo 210 after sale
Calculating capital gains correctly
Recovering the 3% retention
Managing ongoing non-resident tax obligations
If you also own property and need help with annual taxes:
👉 https://taxadora.com/rental-income-taxes-in-spain/
Selling property in Spain as a UK resident is straightforward if handled correctly—but mistakes can be costly.
Understanding capital gains tax, the 3% retention, and filing deadlines is essential to avoid penalties and recover any overpaid tax.
With proper guidance, the process is smooth and efficient.
Yes, if you are a UK tax resident.
You must report the sale to HMRC. However, under the UK–Spain Double Taxation Treaty, you can usually offset Spanish tax paid against your UK liability.
By filing Modelo 210 within 4 months of the sale.
If too much tax was withheld, you can claim a refund from the Spanish tax authorities.
No capital gains tax is due
You can reclaim the full 3% retention
You must still file Modelo 210
Yes.
You must still file:
The previous year’s return (if not already filed)
A final return for the year of sale (pro rata ownership)
Typically 6–12 months, depending on the tax office and accuracy of the filing.
Contact us for assistance with a wide range of tax procedures, tailored to your needs
