Tax on property sale in Spain – IRNR, 3% retention and plusvalía 2026

If you sell a property in Spain as a non-resident, you pay 19% capital gains tax on the profit plus a municipal plusvalía tax on the increase in land value. The buyer automatically withholds 3% of the sale price as an advance on your tax — money you can claim back if your actual tax is lower. In addition to the Spanish tax, you must also declare the sale in Sweden, where the profit is taxed at 22% after apportionment.

In practice, a Swede selling an apartment on the Costa Blanca with a €50,000 profit pays approximately €9,500 in Spanish capital gains tax, plus plusvalía and potentially a remaining amount in Sweden. With the right deductions — purchase costs, renovations and estate agent fees — you can significantly reduce your taxable profit.

This guide walks through each tax step by step: capital gains tax, plusvalía municipal, 3% retention, deductible costs, exemptions and how to file in Sweden. We do not provide tax advice — rules change and your situation may require assessment by a qualified asesor fiscal.

What taxes do you pay when selling?

When selling a property in Spain, two separate taxes are triggered regardless of your nationality. In addition, there is a mandatory retention if the seller is not a tax resident in Spain.

As a non-resident Swede with a holiday property, you therefore pay three items: capital gains tax, plusvalía and the temporary 3% withholding (which is offset against your final tax). In Sweden you must also declare the same profit — but with a credit for the Spanish tax.

How does capital gains tax (IRPF/IRNR) work?

Capital gains tax — formally Impuesto sobre la Renta de No Residentes (IRNR) for those not living in Spain — is calculated on the difference between your adjusted sale price and your adjusted acquisition cost.

Tax rate for non-residents (most Swedes)

As an EU/EEA citizen who is not a tax resident in Spain, you pay a flat rate of 19% on the capital gain. If you are resident outside the EU/EEA, 24% applies instead.

The tax is calculated as follows:

1. Sale price minus selling costs (estate agent fee, notary, plusvalía)
2. Minus acquisition cost (purchase price plus purchase costs: ITP, notary, land registry, lawyer)
3. Minus capital improvements (renovations with invoice)
4. = Taxable gain × 19%

Tax rate for tax residents in Spain

If you live in Spain (more than 183 days per year), the capital gain is taxed progressively as savings income (renta del ahorro) at 19–30% depending on the size of the gain. The bands are cumulative: 19% on the first €6,000, 21% up to €50,000, 23% up to €200,000, 27% up to €300,000 and 30% above. A gain of €100,000 generates approximately €22,630 in tax — more than double what a non-resident pays on the same gain (€19,000).

What is plusvalía municipal?

Plusvalía municipal — formally Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana (IIVTNU) — is a municipal tax on the increase in land value since you purchased the property. All sellers pay it, regardless of nationality or whether they live in Spain.

How is plusvalía calculated?

Since the 2022 reforms, you can choose between two calculation methods — and use the one that results in the lower tax:

1. Objective method: The land's cadastral value (valor catastral del suelo) × standard coefficient (based on years of ownership) × the municipality's tax rate (max 30%).

2. Real increase in value: The tax is based on the actual difference in land value between purchase and sale, proportionally based on the cadastral value.

What happens if you sell at a loss?

Since 2022: if you sell at a loss, you pay no plusvalía. But you must still declare the sale within 30 days at the town hall (Ayuntamiento) to demonstrate that no increase in value has occurred. If you do not, the municipality may still issue a tax demand based on the objective method.

How much does plusvalía cost in practice?

The amount varies considerably depending on municipality, years of ownership and cadastral value. A typical apartment may generate €500–€3,000 in plusvalía. Villas with high cadastral values and long ownership periods can be higher.

What is the 3% retention for non-residents?

When a non-resident sells property in Spain, the buyer is obliged to withhold 3% of the entire sale price and pay the amount directly to the Agencia Tributaria via Modelo 211 — within one month of the purchase. This is not an extra tax but an advance on your capital gains tax.

The system exists to ensure the tax authority receives the tax — a safeguard against the seller leaving the country without filing.

If your actual tax is lower than 3% of the sale price, you claim a refund via Modelo 210 within four months. Processing time is usually three to six months. If you sell at a loss, you are entitled to reclaim the full amount.

Worked example: You sell for €200,000. The buyer withholds €6,000. Your capital gains tax is €4,750. You reclaim €1,250.

What costs can you deduct?

The more deductible costs you can substantiate, the lower your taxable gain — and therefore your tax. Here is what the Agencia Tributaria accepts as deductions:

Costs that increase the acquisition value

Costs that reduce the sale price

You can deduct the estate agent fee, notary fee on the sale, plusvalía municipal and energy certificate.

What cannot you deduct?

Routine maintenance (painting, minor repairs), community fees, IBI (property tax) and work without an invoice. The Agencia Tributaria only accepts costs you can substantiate with a factura — always keep all receipts for up to four years after the sale.

What exemptions and reliefs exist?

There are legal ways to avoid or reduce capital gains tax — but most apply only to tax residents in Spain. As a non-resident with a holiday property, your options are limited.

Exemptions for tax residents

1. Over 65 years old — primary residence If you are a tax resident in Spain, over 65 and sell your primary residence (vivienda habitual), you are completely exempt from capital gains tax — with no reinvestment requirement. The condition is that you have lived in the property for at least three years.

2. Reinvestment in a new primary residence If you sell your primary residence and reinvest the entire profit in a new property within two years, you can obtain complete tax exemption. If you reinvest only part of the profit, the exemption applies proportionally. The new property can be located anywhere within the EU/EEA.

3. Over 65 years old — annuity If you sell any asset at 65+ you can exempt up to €240,000 if you reinvest in a qualifying annuity (renta vitalicia) within six months.

What applies to non-residents?

These exemptions do not apply to you as a non-resident. As a Swede with a holiday property on the Costa del Sol or Costa Blanca, there is no way to completely avoid capital gains tax. However, you can minimise it by deducting all purchase costs, documented renovations and selling costs.

How do you file in Sweden?

As a Swedish tax resident, you must declare the sale of your Spanish property in your Swedish tax return — in addition to the Spanish declaration.

Tax rate in Sweden

Profit on the sale of a private property is taxed at 22% in Sweden. Technically the gain is apportioned to 22/30 and then taxed at 30% as capital income — but the end result is 22%.

Which form do you use?

• K5: Single-family home (house, terraced house)
• K6: Tenant-owned apartment
• K7: Property that is not a single-family home

Credit for Spanish tax

Thanks to the double taxation agreement between Sweden and Spain (from 1976), you are entitled to offset the tax you paid in Spain against your Swedish tax. You pay 22% in Sweden, deduct 19% paid in Spain and pay the difference (often 3 percentage points).

Worked example: Profit €50,000 (approximately SEK 575,000). Swedish tax (22%): SEK 126,500. Credit for Spanish tax (19%): SEK 109,250. To pay in Sweden: SEK 17,250.

The credit can never exceed the Swedish tax. If you pay more in Spain than you would have in Sweden, the excess disappears.

Sweden also allows deferral of capital gains if your Spanish property was your primary residence and you purchase a new property within the EU/EEA — but this rarely applies to holiday properties.

What does a complete worked example look like?

Let us calculate a concrete situation: a Swedish non-resident sells an apartment in the Torrevieja area that was purchased for €150,000 and sold for €220,000 after eight years of ownership.

Step 1: Calculate adjusted acquisition value

Step 2: Calculate adjusted sale price

Step 3: Calculate capital gain and tax

Step 4: Offset 3% retention

Step 5: Plusvalía and Swedish tax

Plusvalía varies by municipality — estimate €800–€1,500 with eight years of ownership in Torrevieja. In Sweden, the profit is taxed at 22%: €32,950 × SEK 11.50 = SEK 379,925. Swedish tax: SEK 83,584 minus credit for Spanish tax (SEK 71,996) = SEK 11,588 to pay in Sweden.

Total tax cost: Approximately €6,260 (capital gains tax) + €1,007 (Swedish remaining amount) + €800–€1,500 (plusvalía) = €8,067–€8,767 in total. This corresponds to an effective tax rate of 24–27% of the profit.

What timeline applies after the sale?

The deadlines are absolute — miss them and automatic late filing penalties apply. Here is the order:

Late filing penalties in Spain: 5% (up to 3 months), 10% (3–6 months), 15% (6–12 months) and 20% (over 12 months), plus late payment interest.

What mistakes do Swedes make when selling?

Having followed hundreds of sales, we see the same mistakes over and over. Here are the most common — and how to avoid them.

1. Not keeping receipts for renovations The most common and most expensive mistake by far. If you renovate the bathroom for €8,000 but have no invoice (factura) with your NIE number, you cannot deduct the cost. The difference in tax: €1,520 (€8,000 × 19%). Always keep every invoice.

2. Forgetting the plusvalía deadline You have only 30 days after the sale to declare and pay plusvalía municipal at the town hall. Many people focus on Modelo 210 and miss the shorter deadline. Late filing penalties apply automatically.

3. Not reclaiming the excess 3% If your tax is less than 3% of the sale price, you have money to reclaim — but you must actively request it via Modelo 210. If you do nothing, the money stays with the Agencia Tributaria. This often amounts to €1,000–€3,000.

4. Missing the Swedish filing Spanish tax and Swedish tax are two separate systems. If you pay in Spain but forget to file in Sweden, you risk tax surcharges. And without the credit, you effectively pay double.

5. Not engaging an asesor fiscal A Spanish tax advisor costs €200–€500 for the entire sale declaration. You recoup the cost through correct deductions and avoiding late filing penalties.

6. Being unable to substantiate purchase costs The Agencia Tributaria only accepts deductions you can document. Dig out the original invoices from the purchase — the notary can provide a copy of the escritura and your lawyer should have all documents archived.

Frequently asked questions about tax on property sales in Spain

Last updated: April 2026. Tax rules and amounts can change — always consult a qualified asesor fiscal for your personal situation. This guide does not constitute tax advice.