Capital Gains Tax for Non Residents in Spain: How to Calculate It

If you are a non-resident planning to sell a property in Spain, it is essential to understand Capital Gains Tax for non residents in Spain, how it is calculated, and what taxes you will need to pay when selling your property. Proper planning can help you avoid mistakes and optimise your tax position.

What Is Capital Gain on the Sale of a Property?

Selling a home in Spain as a non-resident does not have to be a maze. The key is to understand what capital gain is and how it is calculated. In simple terms, the gain is the difference between what you receive on the sale and what it cost you to acquire the property, adjusted for the taxes and expenses you actually paid. In legal language, it is: transfer value minus acquisition value.

How to Calculate the Acquisition Value:

The acquisition value is not only the price you paid on the day of purchase: you add the taxes paid then (for example, ITP if it was a second transfer, or VAT + Stamp Duty (AJD) if it was a new build), the notary, land registry and admin costs and—very importantly—improvements (works that increase value or useful life: extensions, full replacement of installations…). Repairs or ordinary maintenance are not included.

The transfer value starts from the sale price, but is adjusted by subtracting the necessary selling costs borne by the owner: the agency commission, the granting of the deed at the notary, the energy performance certificate, mortgage cancellation and the municipal capital gains tax (plusvalía). With those pieces, the gain is clear and well documented.

As for non-resident taxation, the practical rule is straightforward: the gain is taxed at 19% for all non-residents, whether they live in the EU/EEA or outside the EU. In addition, at completion the buyer withholds 3% of the price and pays it as a prepayment; afterwards, the seller declares the gain and offsets that withholding.

How to Calculate the Transfer Value:

Let us look at a realistic example. Imagine you bought for €150,000 and sell for €300,000. On purchase you paid ITP (7% depending on the region) and notary + registry (1.5%), and you also made improvements of €15,000. On sale you paid the agency (3% + VAT), notary granting and the energy certificate. With invoices in hand, your acquisition value would be price + taxes + costs + improvements, and your transfer value would be sale price − selling costs. The difference between the two is the gain. You would apply 19% to that gain and subtract the 3% withholding already paid by the buyer. The result is a clear, defensible calculation backed by documents.

Let us see the example in more detail:

Base data:

Purchase price: €150,000

Sale price: €300,000

Improvements (capital investments, not repairs): €15,000

Non-Resident Income Tax (IRNR) at 19%:

Tax due = 104,315 × 19% = €19,819.85

3% withholding at completion (prepayment):

Withholding = 300,000 × 3% = €9,000.00

Amount to pay:

Item                            Amount

IRNR (19%)      −         €19,819.85

Less: 3% withholding − €9,000.00

Amount payable    −     €10,819.85

The Importance of Keeping Invoices and Documentation:

Why do we insist on keeping all documents and invoices? Because every receipt and invoice can tilt the balance in your favour: without evidence, an expense cannot be deducted. And because every case has nuances (inheritances, bare ownership and usufruct, “old” new-build declarations, rural properties without plusvalía…), where a technical approach prevents surprises and leverages every possible deduction.