Selling Property in Spain as a UK Resident: A Complete 2025 Guide

Are you a UK resident selling a property in Spain? Whether it’s a holiday home or an investment, it’s important to know your tax responsibilities when selling Spanish property as a non-resident.

After Brexit, the rules for UK residents changed — and Spanish tax authorities have increased their controls. In this guide, we’ll explain everything you need to know, including capital gains tax, the 3% retention, and how Taxadora.com can help you handle your Spanish taxes easily.

Do UK Residents Pay Capital Gains Tax (CGT) in Spain?

Yes.
If you are a UK resident and sell property in Spain, you are subject to Spanish Capital Gains Tax (CGT) as a non-resident.

Capital gains tax is charged on the profit made — the difference between the sale price and the original purchase price, adjusted for costs like:

• Legal fees
• Notary costs
• Real estate agent commissions
• Improvements made to the property (not maintenance)

For UK residents, the tax rate on the capital gain is 24%. This is because the UK is now considered a non-EU country.

Important:

• The gain is calculated in Euros. Currency fluctuations between GBP and EUR may affect your calculations.
• Spain does not allow non-residents to apply tax exemptions like reinvesting in another primary residence (available to Spanish residents).

3% Retention (Withholding Tax) at Sale

When you sell your Spanish property, the buyer is legally required to withhold 3% of the sales price and pay it directly to the Spanish tax office (Hacienda).

This 3% retention acts as an advance payment of your capital gains tax.

After the sale, you must:

• File a Modelo 210 return within 4 months of the sale date.
• Calculate your actual capital gain.
• If your final CGT due is less than the 3% withheld, you can claim a refund.
• If more tax is due, you must pay the difference.

Plusvalía Municipal Tax (Local Capital Gains Tax)

In addition to national CGT, you must also pay the Plusvalía Municipal, a local tax charged by the town hall where the property is located.

This tax is based on the increase in the land’s cadastral value over the time you owned the property — not on the property’s market value.

Note:

• Even if you sell at a loss, some municipalities still require payment.
• You can contest or appeal if the valuation is incorrect.

Other Selling Costs in Spain

Besides taxes, sellers usually face the following costs when selling Spanish property:

• Lawyer fees (optional but recommended)
• Notary and registry fees (depending on the contract)
• Estate agent commissions (typically 3–5%)
• Mortgage cancellation fees (if applicable)

Common Mistakes to Avoid When Selling Spanish Property

• Not declaring the sale properly: Always file your Modelo 210, even if you made a loss.
• Missing the refund deadline: Late or missing Modelo 210 filing can cause you to lose the 3% refund.
• Ignoring Plusvalía Municipal: Even if your sale was at a loss, the local council may still issue a Plusvalía bill.
• Assuming UK rules apply: Spanish tax rules are different, and Brexit has changed the situation for UK residents.

How Taxadora.com Can Help

At Taxadora.com, we specialize in helping non-residents navigate Spanish tax obligations quickly and easily.

Our services include:
✅ Preparing and filing your Modelo 210 return after sale
✅ Claiming back the 3% retention refund
✅ Handling annual non-resident tax declarations (even if you are not selling)
✅ Advising on capital gains tax and property tax matters in Spain

We work 100% online, offering fast and efficient support wherever you live.
Transparent pricing. No stress. Full support in English and Spanish.

Conclusion

Selling a property in Spain as a UK resident is perfectly manageable — but you need to be aware of the specific Spanish tax rules for non-residents.

Dealing with Capital Gains Tax, the 3% withholding, and local taxes can seem complicated, but with the right advice, you can save time, avoid fines, and claim any refunds you’re entitled to.

If you’re planning to sell, or have already sold your Spanish property, contact Taxadora.com today for expert help with your Spanish tax returns.

Frequently Asked Questions About Selling Property in Spain as a UK Resident

1. Do I have to pay taxes in the UK as well when I sell my property in Spain?

If you are a UK tax resident, you must report the sale of your Spanish property to HMRC too.

• You may have to pay UK Capital Gains Tax (CGT) on the sale.
• However, because Spain and the UK have a Double Taxation Agreement, you can usually offset the Spanish tax you paid against your UK liability.
  Always consult a UK tax advisor for your specific situation.

2. How do I claim the 3% retention refund from Spain?

You must file a Modelo 210 form with the Spanish tax office within four months of the sale.

• If the final tax due is less than the 3% withheld, you are entitled to a refund.
• Delaying the filing can risk losing your right to claim the money back.
  Taxadora.com can handle the entire process for you, ensuring your refund is properly requested.

3. What happens if I sell my property at a loss?

If you sell the property for less than you bought it, you may not owe any Spanish capital gains tax.

• However, you still need to file a Modelo 210 declaration to report the sale and you will get a refund of the 3 % preliminary taxes paid by the buyer.
• You may also need to challenge the Plusvalía Municipal if the local council demands it even though you made a loss.

4. Do I still need to pay non-resident tax (Modelo 210) after I sell the property?

Yes, sometimes. 

Once you have sold the property and finalized your capital gains taxes, you are no longer liable for annual non-resident property tax on that property for future years, but you still have to file a last tax return for the current year. 

For example if you sell during 2025, you will have to file the 2024 non-resident tax which is due 2025 (not affected by the sale) and also a last Non-Resident tax return for 2025 which is due 2026 (not to forget!).

If you still own any another property in Spain, you must continue filing annual returns for that one even in the future.

5. How long does it take to get the 3% refund from the Spanish tax office?

Refunds typically take 6 to 12 months after filing the correct Modelo 210 return.

• Processing times can vary depending on the tax office.
• Having a professional handle your filing helps avoid delays caused by errors or missing documents.