Most guides to Spanish property are written for buyers. When it is your turn to sell, the process runs the other way and nobody explains it properly, which is where the surprises come from. This guide covers the whole thing: getting the property ready, agents and their commissions, the reservation and arras stage, completion at the notary, the 3% retention if you live abroad, capital gains tax, plusvalía, and what to do in the weeks after you hand over the keys.
It is written for foreign owners, whether you live in Spain full time or are selling a holiday home from abroad. Where residents and non-residents are treated differently, we say so.
The short version
You put the property on the market, a buyer reserves it with a small deposit, and within a couple of weeks you both sign a private arras contract with a deposit of around 10%. Completion happens at a notary a few weeks or months later: the buyer pays the balance, you hand over the keys and the deed is signed. If you are not tax resident in Spain, the buyer keeps back 3% of the price and pays it to the tax office on your account. Afterwards you have 30 working days to pay plusvalía to the town hall, and four months to file your capital gains return. Residents declare the gain in their annual income tax return instead.
The seller’s legal work is smaller than the buyer’s, but it is not nothing. Problems with your own title, an old mortgage that was never cancelled at the Land Registry, an unregistered extension or a missing licence all surface when the buyer’s lawyer starts checking. Our job as your lawyers is to find and fix them before you have a buyer waiting, run the contracts and completion, and deal with the tax office afterwards.
Resident or non-resident: what changes when you sell
Your tax residency on the day of the sale decides how the gain is taxed and whether the buyer withholds 3%. You are tax resident in Spain if you spend more than 183 days a year here or your main economic interests are here. Holding residency paperwork (a TIE or a green certificate) is not the same test, but in practice the two usually line up. If you are unsure, sort it out before you sign the arras, because the notary will ask.
| Item | Resident seller | Non-resident seller |
|---|---|---|
| Tax on the gain | IRPF savings bands: 19% to 30% | IRNR flat 19%, whatever your country |
| 3% retention at completion | No (you prove residency with a tax office certificate) | Yes, buyer pays it to the tax office via Modelo 211 |
| How the gain is declared | Annual income tax return the following spring | Modelo 210, within four months of completion |
| Main home exemption | Reinvestment in a new main home, or over 65 selling the main home | Reinvestment only, and only for EU or EEA residents |
| Plusvalía municipal | Seller pays | Seller pays, but the buyer is legally liable if you do not, so it is usually retained at completion |
| Home country tax | Usually none, unless you are also taxed elsewhere | Often yes; Spanish tax is credited under the double tax treaty |
The selling process, step by step
This is how a sale runs when we act for you. You make the decisions on price, agent and timing; we do the legal work at every stage so nothing is left for you to chase.
We review your title before you list
Send us your deed and we pull a fresh nota simple and the Catastro record and check them against the property. A paid-off mortgage still showing, a pool or extension that is not on the deed, a mismatch between registry and Catastro: these are what the buyer’s lawyer will find later, and every one of them is quicker to fix now than with a buyer waiting. We tell you what needs doing, how long it takes and what it costs, and we do it.
Energy certificate
You cannot legally advertise without an energy performance certificate and the rating must appear in the listing. We arrange a registered technician if you do not have one; budget roughly €60 to €150 for an apartment, more for a large villa. It is valid for ten years (five if the rating is G).
Price and agent: your call, our review
Get two or three agent valuations and look at what has sold nearby, not asking prices. Exclusive with one agent, open with several, or private sale is your choice. Before you sign an agency agreement (the nota de encargo), send it to us: we check the commission, whether IVA is on top, how long it runs, and whether the agent can claim commission on buyers introduced after it ends.
Power of attorney if you are abroad
If you will not be in Spain for the signings, we set up a power of attorney in our favour now, so it is ready before there is a buyer. Signed at a notary in Spain if you are visiting, at a Spanish consulate, or at a local notary in your country followed by an apostille and sworn translation, which we organise. From this point you do not need to travel for anything.
Offer and reservation
The agent brings an offer. Once you accept, the buyer pays a reservation deposit, typically €3,000 to €6,000, and the property comes off the market for two to four weeks while their lawyer checks it. We draft or review the reservation document so it is clear what happens to the deposit if the buyer’s checks turn up a problem, and we answer the buyer’s lawyer’s questions with the paperwork we prepared in step one.
The arras contract
The binding private contract. The buyer pays a deposit, normally 10% of the price including the reservation, and both sides commit to a completion date. Under the usual arras penitenciales, a buyer who pulls out loses the deposit and a seller who pulls out returns it doubled. We draft or negotiate it for you: a completion date that gives you room if there is a mortgage to cancel, a clear list of what is included in the sale, and a cost split that follows the law rather than the buyer’s wish list. Our full guide is here: the arras contract explained.
We prepare completion
Between arras and completion we gather everything the notary and the buyer need: your bank’s certificate of the exact mortgage balance on completion day (or of zero balance), the community administrator’s certificate that no fees are owed, the latest IBI receipt and confirmation there are no arrears, recent utility bills and the energy certificate. We agree the retention figures with the buyer’s lawyer in advance so there are no arguments at the notary’s table.
Completion at the notary
We attend with you, or for you under the power of attorney. The notary reads the deed, checks identities and the registry status that morning, and the buyer pays the balance by banker’s draft or certified transfer. If you have a mortgage, the buyer pays your bank directly from the price and you receive the difference. If you are non-resident, 3% of the price is withheld, and the estimated plusvalía is usually retained too. Keys change hands and the sale is done.
The first 30 working days
We file and pay plusvalía at the town hall within the 30 working day deadline (or check that the buyer’s lawyer has, if they retained it) and send you the receipt. We sign the mortgage cancellation deed with your bank and file it at the Land Registry so the retained funds are released. We notify the community and transfer the utilities to the buyer, and remind you to cancel your direct debits.
Your tax return
For non-residents we prepare and file Modelo 210 within four months of completion, with every deductible cost documented, and offset the 3% already paid. If the retention was more than the tax we claim the refund and chase it. For residents we give you the gain calculation and the supporting paperwork for your annual return, or hand it to your accountant.
The documents you will need
| Document | Where it comes from | When |
|---|---|---|
| Title deed (escritura) and nota simple | Your original deed; nota simple from the Land Registry online | Before listing |
| Energy performance certificate | Registered technician, registered with the regional authority | Before listing (legally required to advertise) |
| Passport and NIE for every owner | You already have them if you bought | Arras and completion |
| Latest IBI receipt and proof no arrears | Town hall or your bank statement | Completion |
| Community fees certificate | The community administrator, signed by the president | Completion (must be recent) |
| Mortgage balance or zero-balance certificate | Your bank | Completion (dated for the completion day) |
| Recent utility bills | Electricity and water suppliers | Completion |
| First occupation licence, or DAFO for rural builds | Town hall, or already in your purchase file | Buyer’s lawyer will ask during due diligence |
| Tax residency certificate | Spanish tax office (residents only, to avoid the 3% retention) | Completion |
| Power of attorney | Spanish notary, or Spanish consulate, or local notary plus apostille and sworn translation | Before completion if you will not attend |
| Rental contract, if tenanted | Your file | Before listing (tenants have rights the buyer inherits) |
What it costs to sell
By custom in Spain the buyer pays the notary, the Land Registry and the transfer tax on the purchase. The seller’s costs are the agent, the paperwork, cancelling the mortgage, and the taxes on the gain.
| Cost | Typical amount | Notes |
|---|---|---|
| Estate agency commission | 3% to 5% + IVA | 5% + IVA is standard on the Costa del Sol and in most international resort markets. Negotiable on higher prices. |
| Energy certificate | €60 to €150 | More for large or rural properties. Valid ten years, five for a G rating. |
| Mortgage cancellation at the registry | €400 to €1,000 | Notary deed plus registry fee plus gestoría. Scales with the original loan amount. |
| Bank early repayment fee | 0% to 2% | Capped by law for mortgages signed since June 2019: variable 0.25% in years 1 to 3 (or 0.15% in years 1 to 5), fixed 2% in years 1 to 10 then 1.5%. Older loans follow the contract, often 0.5% or less. |
| Community certificate | €0 to €100 | Some administrators charge a small fee. |
| Power of attorney | €60 to €150 in Spain | Signed abroad, add the local notary, apostille and sworn translation, often €250 to €500 in total. |
| Lawyer | Quoted up front | Fixed fee agreed before we start. Ask us. |
| Plusvalía municipal | Varies | Based on the land value and the years held. Worked example below. |
| Capital gains tax | 19% of the gain (non-res) | 19% to 30% in bands for residents. Worked example below. |
| IBI for the year of sale | Pro rata | Legally the owner on 1 January pays the whole year; in practice the deed usually splits it by days. |
Capital gains tax when you sell
The gain is the difference between what you paid and what you sold for, after costs. Getting the costs right is where many sellers leave money on the table.
What counts as the purchase price
The price in your purchase deed plus everything you paid to buy: transfer tax (ITP) or IVA and stamp duty on a new build, notary and registry fees, your lawyer’s fee and any agency fee you paid as a buyer. Documented improvements to the property (a new kitchen, a pool, an extension with a licence) are added too. Repairs and maintenance are not.
What counts as the sale price
The price in the sale deed minus the costs of selling: the agency commission, your lawyer’s fee, the energy certificate, and the plusvalía you paid. Mortgage cancellation costs are generally treated as costs of the loan rather than of the sale, so do not count on them.
The rates
| Seller | Taxable gain | Rate |
|---|---|---|
| Non-resident (any country) | Whole gain | 19% |
| Resident | First €6,000 | 19% |
| €6,000 to €50,000 | 21% | |
| €50,000 to €200,000 | 23% | |
| €200,000 to €300,000 | 27% | |
| Above €300,000 | 30% |
Non-resident rate: Ley del IRNR, confirmed on the Agencia Tributaria site. Resident bands: 2025 and 2026 savings income scale.
Worked example: a non-resident selling a €400,000 apartment
| Line | Amount |
|---|---|
| Bought in 2016 for | €280,000 |
| Plus purchase costs paid then (ITP 8%, notary, registry, lawyer) | €26,400 |
| Acquisition value | €306,400 |
| Sold in 2026 for | €400,000 |
| Less selling costs (agency 5% + IVA, plusvalía, energy certificate) | €26,400 |
| Transfer value | €373,600 |
| Taxable gain | €67,200 |
| Tax at 19% | €12,768 |
| Already paid by the buyer as the 3% retention | €12,000 |
| Balance to pay with Modelo 210 | €768 |
If the same seller had kept no invoices from 2016 and could not prove the purchase costs, the taxable gain would rise to €93,600 and the tax to €17,784. That is what the paperwork is worth. A resident selling the same property would pay €14,336 under the banded scale (19% on the first €6,000, 21% on the next €44,000, 23% on the remaining €17,200), with no retention at completion.
The 3% retention explained
When the seller is not resident in Spain, the buyer is legally obliged to withhold 3% of the price and pay it to the tax office within one month of completion using Modelo 211. It is not a tax in itself, it is a payment on account of your capital gains tax, and it exists because the tax office cannot easily chase a seller who has left the country. The buyer gives you a copy of the filed 211, and you use it when you file your own return.
You then file Modelo 210 within four months of completion. If your tax works out at less than 3% of the price, which is common when the gain is small or you sold at a loss, you claim a refund. Refunds are paid by transfer and commonly take from six months to a year. The tax office will normally check that your annual non-resident returns for the years you owned the property were filed, and may hold the refund or ask for the missing returns first, so if you never filed the annual imputed income return, expect that to come up.
Exemptions and reductions
Selling your main home and buying another. Residents who sell their habitual residence and reinvest the proceeds in a new habitual residence within two years pay no tax on the reinvested share of the gain. Since 2015 the same relief is available to sellers who are tax resident in another EU or EEA country, provided the Spanish property was their habitual residence. Residents of the UK, the US and other non-EU countries cannot use it.
Over 65 selling the main home. Residents aged 65 or over pay nothing on the gain from selling their habitual residence, with no reinvestment needed. The property must normally have been the main home for at least three years. This is a residents-only relief.
Bought before 1995. Properties acquired before 31 December 1994 qualify for the old abatement coefficients on the part of the gain accrued up to January 2006, limited to a lifetime €400,000 of sale value. It can be a meaningful reduction on long-held properties, so check it.
Sold at a loss. No tax. Residents can offset the loss against other gains in the same year or the following four years.
Plusvalía municipal
The town hall’s tax on the increase in the value of the land under the property while you owned it. It has nothing to do with your actual profit on the building, which is why it confuses people. Since the 2021 reform there are two ways to calculate it and you are entitled to whichever is lower.
Objective method
Real gain method
Worked example, same apartment: cadastral land value €60,000, held ten years, town hall rate 29%. Objective method with the current maximum coefficient for a ten year hold, 0.12: €60,000 × 0.12 = €7,200 base, tax about €2,088. Real method: gain in deed prices €120,000, land is 40% of the cadastral value so €48,000 base, tax about €13,920. You pay the objective figure, €2,088. On a smaller gain the real method would win. The state can update the coefficients each year (it did not for 2025 or 2026) and each town hall sets its own rate and any reductions, so treat these as illustrations; we run both calculations for your municipality.
The deadline is 30 working days from completion and late filing carries surcharges. The seller pays, but where the seller is non-resident the law makes the buyer the substitute taxpayer, which is why the buyer’s lawyer will retain the estimated plusvalía from the price and pay it. Make sure you get the receipt: it is a deductible selling cost for your capital gains tax.
Tax back home
Spain taxes the gain first because the property is here. Your home country may tax it as well, with credit for the Spanish tax under the double tax treaty, so you normally pay any difference rather than paying twice. Two things catch people out: your home country will usually calculate the gain in its own currency, so exchange rate movements between purchase and sale can create a gain (or a loss) that does not exist in euros, and reporting deadlines and tax years differ from Spain’s. Get advice in your home country early, ideally before you agree a completion date.
What slows a sale down
Almost every delayed completion we see traces back to one of these, and almost all of them could have been dealt with before the property was listed.
Unregistered building work
A pool, an extra bedroom, a closed-in terrace or a garage conversion that does not appear on the deed. The buyer’s lawyer will spot the mismatch between the registry, the Catastro and the property. Depending on the age of the work and the local planning rules, the fix ranges from a declaration of new build at the notary (needs an architect’s certificate and, for older work, proof it is out of time for enforcement) to a full legalisation. Allow one to three months.
Rural property without a DAFO
Many country houses in Andalucía were built or extended on rustic land without a licence. A DAFO (declaration of assimilated out of ordination) from the town hall is what buyers’ lawyers and banks look for. Obtaining one takes months, so start before you list.
A paid-off mortgage still on the registry
Paying the last instalment does not remove the mortgage from the Land Registry. You need a cancellation deed signed by the bank and filed at the registry. Banks are slow to issue the zero-balance certificate, so ask on the day you instruct your lawyer.
Inheritance not registered
If a co-owner has died and the inheritance was never formalised, the survivors cannot sell until the inheritance deed is signed and registered and inheritance tax is settled. It is one of the commonest reasons a sale never completes.
Missing first occupation licence
Not legally required to sell, but a buyer with a mortgage will usually be asked for it by their bank. If the developer never obtained one, or the town hall never issued it, a buyer’s lawyer may advise walking away or renegotiating.
Debts attached to the property
Community fee arrears follow the property (the buyer inherits the current year plus the three previous years), so they will be deducted from the price. Unpaid IBI, an embargo from an old debt, or an unpaid tourist rental fine all appear on the nota simple and must be cleared or retained for at completion.
Tenants
A long-term tenant has the right to stay for the minimum statutory term (five years, or seven if the landlord is a company) whether or not the contract is registered, and in many cases a right of first refusal to buy. A tourist rental licence, on the other hand, is an asset to some buyers and worth transferring properly.
Selling from abroad
You do not need to be in Spain for any part of the sale. A power of attorney lets your lawyer sign the arras, attend the notary for completion, collect the proceeds into your Spanish account and cancel the mortgage. You can sign it at a notary in Spain if you are visiting, at a Spanish consulate abroad, or at a local notary in your own country, in which case it needs an apostille and a sworn translation before it can be used here. Allow two to four weeks for the foreign route.
Two practical points. Keep your Spanish bank account open until the tax refund has arrived; refunds can be paid to a foreign account in your name, but a Spanish account avoids delays and rejected transfers. And if you plan to send the proceeds home, compare a specialist currency broker with your bank before completion day; on a €400,000 sale the difference can run to several thousand euros.
How we help sellers
Foxes is an independent Spanish law firm and mortgage broker based near Málaga, working with international clients since 2015. On the buying side we act for the purchaser; when you sell, we act for you.
Selling in Spain? Let us handle the legal side
Independent English-speaking Spanish lawyers. A fixed fee agreed before we start, and one point of contact from listing to tax refund. If the buyer also needs a mortgage, our brokerage is registered with the Bank of Spain (D470).
Frequently asked questions
How long does it take to sell a property in Spain?
Finding a buyer depends on the market and the price. Once you have one, reservation to completion is typically six to twelve weeks: two to four weeks of buyer due diligence before the arras, then four to eight weeks to completion, longer if the buyer needs a mortgage or you have paperwork to fix.
Do I need a lawyer to sell a property in Spain?
It is not a legal requirement; the notary formalises the deed. But the notary does not act for you, does not fix title problems, does not negotiate the arras and does not file your taxes. Most foreign sellers use a lawyer for the same reason they did when buying. Who does what in a Spanish property transaction explains the roles.
What is the 3% retention when selling in Spain?
If the seller is not tax resident in Spain, the buyer must withhold 3% of the price and pay it to the tax office within a month as a payment on account of the seller’s capital gains tax. The seller then files Modelo 210 within four months and either pays the balance or claims a refund.
How much capital gains tax do I pay when selling in Spain?
Non-residents pay 19% of the gain whatever their nationality. Residents pay 19% on the first 6,000 euros of gain, 21% to 50,000, 23% to 200,000, 27% to 300,000 and 30% above that. The gain is the sale price less selling costs, minus the purchase price plus purchase costs and documented improvements.
Who pays plusvalía, the buyer or the seller?
The seller. If the seller is non-resident the buyer becomes liable if it goes unpaid, so the buyer’s lawyer normally retains the estimated amount at completion and pays it. It is due within 30 working days of the sale.
Can I sell my Spanish property without being there?
Yes. A power of attorney in favour of your lawyer covers the arras, completion, collecting the money and the post-sale filings. Sign it at a Spanish notary, a Spanish consulate, or a local notary with an apostille and sworn translation.
What if I still have a mortgage on the property?
The buyer pays your bank the outstanding balance directly from the purchase price at completion and you receive the rest. The mortgage then has to be cancelled at the Land Registry with a separate deed, which costs roughly 400 to 1,000 euros and is usually paid from funds retained at completion.
Do I pay tax in my own country as well?
Often yes. Spain taxes the gain first, and your home country usually gives credit for the Spanish tax under the double tax treaty, so you pay any difference rather than tax twice.
Sources: Agencia Tributaria (IRNR gains, Modelo 210 and 211), Ley 5/2019 on mortgage early repayment limits, Real Decreto-ley 26/2021 on plusvalía, Ley de Propiedad Horizontal on community debts. Figures for agency commissions, certificates and cancellation costs are market ranges as at September 2026.
