When you live in the UK and sell a property in Spain, the buyer withholds 3% of the price for the Spanish tax office, you pay Spanish capital gains tax on the real gain, and the same gain is reportable to HMRC. Here is how the 3% retention, the 19% non-resident CGT, plusvalía and the UK–Spain double tax treaty fit together — so you are not overcharged and not taxed twice.
Selling a home in Spain is never quite as simple as selling one in the UK, and when you are a UK resident selling a Spanish property the differences multiply. You are dealing with a Spanish completion before a Spanish notary, taxes calculated under Spanish rules, a buyer who is legally obliged to hold back part of your money, and — because you live in the UK — a parallel reporting obligation to HMRC on the very same gain. Get any one of these wrong and you can lose weeks waiting for a refund, leave money sitting with the Spanish tax office, or face a tax bill on both sides of the Channel.
The single most important fact is your tax status. Because you are not tax resident in Spain, you sell as a non-resident, and a specific non-resident regime applies: the buyer must retain 3% of the agreed price and pay it to the Spanish tax authority on your behalf, you settle Spanish capital gains tax at the flat non-resident rate on your actual gain, and the municipality levies its own plusvalía tax on the increase in land value during your ownership. None of this stops the sale, but all of it needs handling correctly and in the right order. This page is about selling as a UK resident. If you are at the other end of the transaction, our guide for British buyers of Spanish property covers the purchase side.
Three separate Spanish taxes touch your sale. They are calculated differently, paid to different authorities, and interact in ways that catch sellers out.
The buyer withholds 3% of the sale price and pays it to the Spanish tax office on Modelo 211 within a month of completion. It is not a tax in itself — it is an advance payment against your capital gains tax, designed to stop a non-resident leaving Spain without settling up.
You pay Spanish capital gains tax at a flat 19% on the actual gain — broadly the sale value less your acquisition cost and allowable expenses. This is declared on Modelo 210H, and the 3% already retained is offset against it.
The town hall taxes the increase in the land value (not the building) over your period of ownership. As the seller, this is your liability. Where there was genuinely no land-value gain, it can be challenged and reduced or removed.
It is worth being clear that the 3% retention and the 19% capital gains tax are not two separate bills — they are two steps in settling one liability. The 3% is taken first, as a holdback; the 19% CGT is the real tax; and the 3% already paid is then credited against it. Depending on your actual gain, you may owe more, owe nothing further, or be due a refund of part of the 3%. Plusvalía sits entirely apart from this and is a separate municipal charge. Treating these as one undifferentiated "Spanish tax" is where most miscalculations begin.
When a non-resident sells Spanish property, Spanish law obliges the buyer to retain 3% of the agreed purchase price and pay it directly to the Agencia Tributaria, the Spanish tax authority. The buyer (or, in practice, the buyer's lawyer) files Modelo 211 and pays the 3% over within one month of completion, and gives you the stamped proof of payment. From your point of view as the seller, you receive the sale proceeds minus that 3% on the day of completion — the money is not lost, but it is parked with the tax office.
The reason for the retention is simple enough. A resident seller stays in Spain and can be pursued for any unpaid tax; a non-resident can complete the sale and be on a flight home the same afternoon. The 3% is the Spanish state's security deposit against your capital gains tax. It is calculated on the full declared price regardless of whether you actually made a gain, which is exactly why so many UK-resident sellers end up owed money: if your real gain is small, or you sold at a loss, the 3% withheld will usually exceed the tax you genuinely owe.
Spanish non-resident capital gains tax is charged at a flat 19% on the gain, and the gain is the sale value less the acquisition value, after allowable adjustments. That sounds simple, but the detail is where money is won or lost, and it is precisely the area UK sellers tend to underestimate. The acquisition value is not just the price you paid years ago — it includes the costs you incurred buying the property: the Transfer Tax (ITP) or VAT and Stamp Duty paid on purchase, notary and Land Registry fees, and the lawyer's fees on the acquisition. All of these increase your acquisition value and therefore reduce the taxable gain.
On top of that, the cost of capital improvements — a new kitchen, an extension, a pool, structural works, anything that genuinely added to the property rather than simply maintaining it — can be added to the acquisition value if you can evidence it with proper invoices. The sale value, in turn, can be reduced by the costs of selling, including estate agent commission and the plusvalía if you bore it. The closer the gain figure tracks reality, the lower your tax and the larger your refund of the 3%. This is why keeping every invoice from your original purchase and from major works matters so much, and why our detailed guidance on capital gains tax in Spain is worth reading alongside this page.
Separate from capital gains tax, the plusvalía municipal (more formally the Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana) is a tax levied by the local town hall on the increase in the value of the land — not the building — during the years you owned it. As the seller, you are the one liable for it. It is calculated using the cadastral land value and the number of years of ownership, under a method set by each municipality, so the amount varies considerably from one town to another.
Two points matter for UK-resident sellers. First, because the buyer holds back the 3% retention and the plusvalía is your liability, the practical handling of who pays what at completion needs to be set out clearly in the contract and managed by your lawyer — you do not want a dispute on the notary's table. Second, following changes to the law after court rulings, where there has genuinely been no increase in the land value over your ownership — for example if you are selling for less than you paid — there is scope to challenge or avoid the plusvalía, because a tax on a gain that did not occur should not be due. Establishing that requires the right evidence and a timely objection, and it is one of the points we check on every sale rather than letting a town-hall demand go unquestioned.
Here is the part that UK-resident sellers most often miss: because you are tax resident in the UK, you are taxed in the UK on your worldwide gains, which includes the gain on your Spanish property. The fact that you have paid Spanish capital gains tax does not remove the UK reporting obligation — the same disposal has to be reported to HMRC, typically through your Self Assessment tax return, and UK capital gains tax may be due on the gain calculated under UK rules.
The protection against being taxed twice comes from the UK–Spain Double Taxation Convention. Under the treaty, Spain has the primary right to tax a gain on Spanish real estate, and the UK gives relief for the Spanish tax you have paid by way of a foreign tax credit — the Spanish CGT is credited against your UK liability on the same gain, so in most cases you do not pay the full tax twice. The mechanics matter: the UK gain is computed under UK rules (different allowable costs, a different acquisition value where the property was held before certain dates, and conversion of euro figures into sterling at the relevant exchange rates), so the UK figure is rarely identical to the Spanish one. Where the UK tax is higher than the Spanish tax, you may have a top-up to pay in the UK; where it is lower, the credit covers it. This is the join between the two systems, and it is why we coordinate the Spanish filings with your UK accountant rather than working in isolation.
A Spanish sale runs on documentation, and gathering it is often the slowest part — so it is started early, not in the final week. As the seller you will generally need to produce an energy performance certificate (the certificado de eficiencia energética), the habitation certificate or licence of first occupation (the cédula de habitabilidad, where the region requires it), a recent community of owners certificate confirming your service charges are paid up to date, and proof that your IBI and utilities are settled. If there is a mortgage on the property, it must be cancelled at or before completion, and the cancellation registered — a step that takes coordination with the lender and can hold up a sale if left late.
With the paperwork in order, the sale completes before a Spanish notary, where the deed (escritura) is signed, the price is paid less the 3% retention, and the keys change hands. Your lawyer then attends to the post-completion tax filings — your Modelo 210H, the handling of the buyer's Modelo 211, the plusvalía and the registration steps. Because the sequence is fixed and the deadlines are short, having the documents assembled in advance is what keeps a sale on track. Our wider page on Spanish property legal services sets out how we run a transaction end to end, and our overview of buying and selling property in Spain puts the sale in context with the purchase side.
You do not have to be in Spain to sell your property. Most UK-resident sellers complete remotely by granting a power of attorney (a poder) to their Spanish lawyer or a trusted representative, who then signs the deed and attends the notary on their behalf. This is entirely normal practice and avoids the cost and disruption of flying out for a single appointment whose date can shift at short notice.
The power of attorney itself can be signed in the UK before a notary public and then apostilled under the Hague Convention so that it is recognised in Spain, or it can be granted before a Spanish consulate, or signed in Spain if you happen to be there. The wording must be precise — it needs to authorise the specific acts of sale, the tax filings and the handling of funds — which is why we draft or review it rather than relying on a generic template. Done properly, a power of attorney lets the entire sale, from signing the deed to filing the taxes and reclaiming the 3% retention, be handled while you stay in the UK. As a non-resident seller you will also need a valid NIE (your Spanish tax identification number), which must be in place before completion. We can be the people on the ground in Spain managing all of this, and our note on using an independent lawyer explains why acting only for you, not the other side, matters just as much when selling as when buying.
Selling Spanish property as a UK resident is rarely difficult in principle, but it is unforgiving in practice. The 3% retention has to be filed and tracked, the Modelo 210H has to be submitted within months with the gain properly evidenced, the plusvalía has to be checked rather than simply paid, and the whole Spanish position has to dovetail with what you report to HMRC under the double tax treaty. A single missed filing or a poorly documented gain can cost you a refund you were entitled to or trigger a query you could have avoided.
Our role is to run the Spanish side cleanly and join it up with your UK adviser. We obtain and check your documents, manage completion before the notary, handle the buyer's Modelo 211 and your Modelo 210H, calculate the real gain with every allowable cost and improvement, claim and chase any refund of the 3% retention, and review the plusvalía for grounds to challenge it. We coordinate directly with your UK accountant so the foreign tax credit is applied correctly and the same gain is not taxed twice. With extensive experience helping expats with Spanish property and tax, we act for English-speaking clients across Spain, we sell remotely under power of attorney where that suits you, and we explain everything in plain English. Where work falls outside a clear initial scope we tell you what it involves and quote for it — extras may apply depending on the complexity of your sale.
When a non-resident sells Spanish property, the buyer is required to withhold 3% of the sale price and pay it to the Spanish tax office on Modelo 211 within one month of completion. It is not a separate tax — it is an advance payment on account of your capital gains tax, held back because as a non-resident you could otherwise leave Spain without settling up. If your actual tax is lower than the 3%, the excess is refundable.
You file Modelo 210H, the non-resident capital gains return for the sale, within four months of completion. It declares the real gain, applies the 19% rate, and offsets the 3% already retained. If the tax due is less than the 3% withheld, you claim the difference back on the same return, providing bank details for the refund. The repayment can take several months, so filing cleanly with full evidence matters.
Non-residents, including UK residents, pay Spanish capital gains tax at a flat rate of 19% on the gain. The gain is broadly the sale value less the acquisition value, after adding the costs of buying (ITP or VAT and Stamp Duty, notary, registry and legal fees) and evidenced capital improvements, and deducting the costs of selling.
It is the sale value minus the acquisition value. The acquisition value includes the original price plus the taxes and costs you paid when buying — Transfer Tax or VAT and Stamp Duty, notary and Land Registry fees, and legal fees — and the cost of capital improvements you can evidence with invoices. The sale value can be reduced by selling costs such as agent commission. The better documented these are, the lower the taxable gain.
Yes. As a UK resident you are taxed on your worldwide gains, so the disposal of your Spanish property is reportable to HMRC, normally through Self Assessment. Paying Spanish tax does not remove the UK obligation, but the UK–Spain Double Taxation Convention lets you credit the Spanish tax paid against your UK liability on the same gain, so in most cases you are not taxed twice.
In most cases, no. Under the UK–Spain double tax treaty, Spain has the primary right to tax a gain on Spanish real estate, and the UK gives relief by way of a foreign tax credit — the Spanish capital gains tax is credited against your UK liability on the same gain. If the UK tax computed under UK rules is higher, you may have a top-up to pay; if it is lower, the credit usually covers it.
Plusvalía municipal is a local tax on the increase in the value of the land (not the building) during your ownership, levied by the town hall. As the seller you are liable for it. The amount depends on the cadastral land value, the years of ownership and the municipality. Where there was genuinely no increase in land value — for example a sale at a loss — there is scope to challenge or avoid it with the right evidence.
Yes. Most UK-resident sellers complete remotely by granting a power of attorney to their Spanish lawyer, who signs the deed before the notary and handles the tax filings on their behalf. The power of attorney can be signed in the UK before a notary public and apostilled, or granted at a Spanish consulate. The entire sale, including reclaiming the 3% retention, can then be handled while you stay in the UK.
You generally need an energy performance certificate, the habitation certificate (cédula de habitabilidad) where the region requires it, a recent community of owners certificate confirming charges are paid, and proof your IBI and utilities are up to date. If there is a mortgage, it must be cancelled and the cancellation registered. You also need a valid NIE in place before completion.
The refund of the excess 3% is not instant. After Modelo 210H is filed, the tax office reviews it and can take several months to repay, sometimes longer if it queries the figures. Filing cleanly, with full evidence of the gain and a valid bank account — ideally Spanish — for the refund is the biggest factor in being repaid without delay.
Yes. As a non-resident seller you need a valid NIE — your Spanish tax identification number — in place before completion, as it is required for the deed and the tax filings. If yours has lapsed or you never obtained one, it needs to be arranged in advance, which we can handle as part of preparing the sale.
After completion your net proceeds sit in euros, usually in a Spanish account. There is no Spanish tax simply on moving your own money out, but converting to sterling is a transaction in its own right — the exchange rate matters, a specialist currency provider often beats high-street rates, and large transfers attract anti-money-laundering checks where you evidence the source of funds. The euro and sterling figures and rates used also feed into the HMRC calculation.
Yes. We run the Spanish side end to end — gathering documents, managing completion before the notary, handling the buyer's Modelo 211 and your Modelo 210H, calculating the real gain, claiming and chasing any 3% refund, and reviewing the plusvalía. We coordinate with your UK accountant on the double tax treaty position and can act remotely under power of attorney. We act for English-speaking clients across Spain and quote clearly for the work; extras may apply depending on complexity.
We handle the 3% retention, the Modelo 210H, the plusvalía and the notary completion, claim back what you are owed, and coordinate with your UK accountant on the treaty position. In plain English, across Spain, remotely if you prefer.
The information on this page is general guidance only and does not constitute legal or tax advice. The 3% non-resident retention, the rates and procedures for non-resident capital gains tax (Modelo 210H) and plusvalía municipal, and the operation of the UK–Spain Double Taxation Convention are set out in legislation that changes over time and varies between Spain's autonomous communities and municipalities, and UK tax treatment depends on your individual circumstances. Always obtain advice on your specific property and situation before acting. Platinum Legal Spain is an independent English-speaking legal practice serving clients across Spain.