Selling inherited Spanish property triggers multiple taxes: capital gains tax, plusvalía municipal and possibly Spanish income tax depending on your residency. We explain what you will pay, how the inherited value (rather than original purchase price) affects the calculation, and how to plan the sale to minimise tax.
Three taxes are normally relevant when selling inherited Spanish property:
The key insight: capital gains is calculated from the inherited valuation (the value declared in inheritance tax filings), not the deceased's original purchase price. So if the property was valued at €300,000 when inherited and sold at €320,000, your capital gain is €20,000 — not the much larger increase from when it was originally bought decades earlier.
Non-resident sellers pay capital gains tax at a flat rate. For EU/EEA nationals: 19% on net gain. For non-EU including UK post-Brexit and US: 19%-24% depending on the autonomous community and other factors. The buyer is required to withhold 3% of the sale price and pay it directly to the Spanish tax office as a deposit against the seller's CGT.
Spanish residents pay CGT under the savings income scale: 19% up to €6,000 of gain, 21% to €50,000, 23% to €200,000, 27% to €300,000, 28% above. Main-residence exemptions may apply if the inherited property was your main home and proceeds are reinvested.
Plusvalía is a separate local tax on the increase in cadastral land value (not building value) between the previous transfer (the inheritance) and the sale. It is paid by the seller, typically within 30 days of the sale notarisation. Amounts vary widely by municipality, but it is often a few thousand euros on standard residential property.
Since the 2021 Constitutional Court ruling, plusvalía cannot be charged if there is no real capital gain. If the property has sold at the same or lower value than its inherited valuation, you can apply for plusvalía exemption.
The valuation declared in your Spanish inheritance tax filing (Modelo 650) becomes the “acquisition cost” for future capital gains purposes. A higher inherited valuation means:
For heirs who plan to sell soon, this tradeoff matters — a lower inherited valuation may save inheritance tax but result in a much larger capital gains bill on sale. In regions with 99% inheritance tax reductions for direct family (Madrid, Andalucía, Murcia), declaring a higher market valuation often costs very little in IHT but saves significantly on future CGT.
This is a planning decision that should be made at the time of inheritance, with future sale plans in mind — not afterwards.
If the seller is non-resident, the buyer's solicitor withholds 3% of the sale price and pays it to the Spanish tax office (Modelo 211) as a deposit against the seller's CGT liability. The seller then files Modelo 210 within four months to either claim a refund (if actual CGT is less than 3%) or pay the balance (if more).
For inherited property sold soon after inheritance, the 3% withholding often significantly exceeds the actual CGT — a refund of several thousand euros is typical. We handle the Modelo 210 filing and refund claim as part of the sale process.
Inheritance valuation, plusvalía exemption, 3% withholding refund — we plan and execute the sale to minimise your total tax.
Book a Consultation Contact UsThis page provides general information about selling inherited Spanish property and does not constitute legal or tax advice. For advice on your specific situation, please book a consultation.