Selling a Property on the Costa del Sol as a Non-Resident: Taxes and Steps in 2026

Buying on the Costa del Sol is well documented; selling as a non-resident, far less so. And that is exactly where the questions pile up: which taxes you pay, who files what, how you recover any over-withholding and how you sign if you live in London, Stockholm or Munich. This guide walks through the whole sale process for a non-resident owner in 2026, with the rates and deadlines in force, the exemptions that save the most and the mistakes that eat into your net proceeds. If you are also weighing up market timing, you may find our view of the best areas to invest in Málaga in 2026 useful.

The taxes on a sale, at a glance

Selling a property in Andalusia as a non-resident involves three fronts to manage. This table summarises them; we look at each one below:

Item	What it taxes	Who files it	Rate / deadline
Capital gain (IRNR)	The real profit on the sale	The seller	19% (non-resident). Form 210 within the 3 months following the retention month (~4 months from the sale)
Municipal plusvalía (IIVTNU)	The increase in urban land value	The buyer, as substitute taxpayer (cost usually passed back to the seller)	Depends on the town hall. Around 30 working days
3% retention	Payment on account of the seller’s IRNR	The buyer (form 211)	3% of the price. 1 month from the deed

The 3% retention: what confuses people most

This is the standout quirk of selling as a non-resident. The law obliges the buyer to withhold 3% of the agreed price or consideration and pay it to the tax authority using form 211, within one month of the deed. The logic is simple: if the seller does not live in Spain, it is hard for the tax authority to pursue them once they have been paid and left, so it secures part of the tax up front.

Two key points worth internalising:

• It is not an additional tax. It is an advance on your capital gain. You then file form 210 with the real gain and settle up: if your tax is lower than that 3% (or you sold at a loss), you claim the excess back; if it is higher, you pay the difference.
• The buyer is the one obliged to pay it in. Responsibility always sits with the buying party, resident or not. If they fail to pay it in, the property itself can be liable for the debt.

On deadlines: the buyer files form 211 within one month of the deed and, from that point, the seller has three months to file form 210 with the real gain. In practice, the seller’s window runs to roughly four months from the transfer. Any refund of the excess is not immediate: several months can pass between filing and payment, so factor it into your cash-flow planning.

The capital gain (IRNR): how it is calculated

The main tax on a sale is charged on your real profit, not the total price. In simplified terms:

• Transfer value (sale price, less the costs and taxes of the sale borne by you).
• less the acquisition value (what you paid, plus transfer tax or VAT, notary, registry and any capital investments and improvements you can evidence).
• = capital gain, on which the non-resident is taxed at the general rate of 19%.

Indicative example: you bought for €250,000 and sell for €350,000. If the deductible costs and taxes on purchase and sale come to €30,000, your gain is €70,000, and the IRNR at 19% would be €13,300. Since the buyer will already have withheld 3% of €350,000 (€10,500), on filing you would pay the difference (€2,800). This is a simplified example: the real calculation depends on your documentation and circumstances.

What reduces the gain (and what doesn’t)

Keeping your paperwork is what lowers the bill most, but the distinctions matter:

• Capital investments and improvements (extensions, new elements that increase the value or extend the life of the property): these can be added to the acquisition value and reduce the gain, with invoices.
• Maintenance and repair costs (painting, replacing existing elements, upkeep): these are not automatically added to the acquisition value.
• Depreciation if the property was let. Watch this one: the tax depreciation deductible while letting — including the minimum depreciation — reduces the acquisition value and therefore increases the gain on sale. It is highly relevant for anyone who has rented the property out.

Rollover relief (tax residents in the EU/EEA)

If you sell your main home and reinvest the proceeds in another main home, you may be able to claim rollover relief on the capital gain. It applies to those who are tax resident in the EU, Iceland, Norway or Liechtenstein and meet the requirements. The reinvestment can be full or partial (if you reinvest only part, the relief is proportional) and, as a general rule, must take place within the two years before or after the transfer; where it comes later, there is a specific procedure. It is not automatic, so validate it with an adviser before selling.

The municipal plusvalía: who files it and when it isn’t payable

The municipal plusvalía (IIVTNU) is a local tax on the increase in value of urban land — not the building, and not the total price — over the period you owned it. And here is the point that surprises almost every foreign seller:

• The buyer is the substitute taxpayer. As a general rule the seller files the plusvalía, but when the seller is a non-resident individual, the law (art. 106.2 of the consolidated text of the Local Finance Act) makes the buyer the substitute taxpayer: they are the one who must file or settle it with the town hall. Economically, the amount is usually deducted from or passed back to the seller, and it is common to retain it from the price and set this out in the deed.

As to when it is payable, Constitutional Court judgment 182/2021 and Royal Decree-Law 26/2021 changed the rules in the taxpayer’s favour:

• If there is no increase in land value, it is out of scope. That said, in a property comprising land and building the comparison is not made against the total price: it is determined on the portion of value attributable to the land, applying the corresponding cadastral proportion, and evidenced with the purchase and sale deeds. For that comparison, the costs and taxes of the transaction are not included.
• Two calculation methods. The objective method (a coefficient applied to the cadastral land value according to years of ownership) and the real method (the actual increase attributable to the land). The real method applies at the taxpayer’s request where it is evidenced to be lower than the objective method — not always automatically.

The cadastral land value needed for the calculation appears on the IBI (council tax) bill, separated from the value of the building. Since the plusvalía is administered town hall by town hall, check the by-law and the specific deadlines of the municipality where the property is located.

Special cases that can reduce the tax

Depending on when and how you bought, certain regimes may reduce the gain. Worth reviewing with your adviser:

• Properties acquired between 12 May and 31 December 2012. A 50% exemption on the gain exists for certain urban properties bought in that window, where the requirements are met.
• Properties acquired before 31 December 1994. The transitional regime with tapering coefficients may apply, reducing the part of the gain generated up to 2006 (subject to limits).
• The effect of depreciation. As noted, if you let the property, the depreciation deducted (and the minimum) reduces the acquisition value and increases the gain. Factoring it in avoids surprises.

Selling from abroad: power of attorney and representation

You do not need to be in Spain to sell. Most of our international sellers sign through a power of attorney granted in their country and legalised with the Hague Apostille (with a sworn translation where required). With that power, your lawyer can represent you at the signing, obtain your NIE if you don’t have one, coordinate the 3% retention with the buyer and file the relevant forms. It is also worth appointing a tax representative for communications with the tax authority. In practice, a well-advised seller rarely needs to set foot in Spain to close the transaction.

Estimate your net proceeds

Before you list, the most useful exercise is working out what you actually keep after taxes and costs. Here is the framework (using the earlier example for illustration):

Item	Amount (example)
Sale price	€350,000
Outstanding mortgage to redeem	− (your case)
Agency fees	− (your case)
Capital gain (IRNR 19%)	−€13,300
Municipal plusvalía	− (by municipality and method)
Other costs (redemption, certificates…)	− (your case)
Approximate net proceeds	= to be calculated

Thinking of selling your Costa del Sol property? Request a personalised calculation of your net sale proceeds and we’ll tell you the realistic asking price and what you would keep after tax.

How to sell as a non-resident, step by step

1. Gather the documentation. Title deed, Land Registry extract (nota simple), energy performance certificate, IBI bills, community certificate and the invoices for the purchase and for capital investments and improvements.
2. Price it at market value. A realistic valuation sells faster and with fewer reductions than an inflated price.
3. Calculate your net proceeds. Estimate the capital gain (19%) and the plusvalía under both methods, and factor in the effect of depreciation if you let the property.
4. Appoint a lawyer and, if you’re not travelling, grant a power of attorney. An apostilled power of attorney and a tax representative to handle everything remotely.
5. Sign the deposit contract and the deed. The buyer withholds 3% (form 211, one month) and, as substitute taxpayer, deals with the municipal plusvalía; agree the retention of that amount in writing.
6. Settle the IRNR and claim any refund. File form 210 within the three months following the retention month (~4 months from the sale); if you were over-withheld, claim the excess.

Common mistakes when selling as a non-resident

• Thinking the 3% is the final tax. It is a payment on account; if you don’t file form 210, you lose any refund due.
• Not keeping documentation. Without evidence of the purchase, costs and capital investments, you pay more capital gains tax than necessary — and not every repair counts as an improvement.
• Overlooking the effect of depreciation. If you let the property, it reduces your acquisition value and raises the gain; build it into your numbers.
• Not setting out the plusvalía in the deed. As the buyer is the substitute taxpayer, agree the retention of the amount in writing to avoid disputes later.
• Attempting it without an international adviser. Errors in calculations, deadlines or the double taxation treaty are expensive and hard to fix from abroad.

Frequently asked questions

What taxes does a non-resident pay when selling a property?

Principally capital gains tax (IRNR), at the general rate of 19% for non-residents on the real profit. There is also the municipal plusvalía, which taxes the increase in land value; when the seller is a non-resident individual, the buyer files it as substitute taxpayer. And there is the 3% retention on the price to manage, which is a payment on account of the IRNR, not an additional tax.

Who pays the municipal plusvalía if the seller is a non-resident?

As a general rule the seller files the plusvalía, but if they are a non-resident individual, article 106.2 of the Local Finance Act makes the buyer the substitute taxpayer: they are the one who must file or settle it with the town hall. The economic cost is usually passed back to the seller, so it is common to retain the amount from the price and set this out in the deed.

What is the 3% retention and how long does it take to recover?

When the seller is a non-resident, the buyer withholds 3% of the price and pays it in using form 211 within one month of the deed. It is a payment on account of the capital gain: the seller then files form 210 within the following three months (around four months from the sale) and, if the 3% exceeds their actual tax or they sold at a loss, claims the refund. Repayment can take several months.

How much capital gains tax is payable and what reduces it?

The non-resident is taxed at 19% on the real gain: transfer value less acquisition value, including the taxes and costs of the purchase and any evidenced capital investments and improvements. Maintenance and repair costs are not automatically added, and if you let the property, the depreciation deducted reduces the acquisition value and increases the gain. Keeping all your documentation is key.

Do I pay the municipal plusvalía if I sell at a loss?

If there is no increase in the value of the land, the transfer is out of scope. But in properties comprising land and building, the comparison is made on the portion of value attributable to the land (cadastral proportion), not on the total price, and is evidenced with the purchase and sale deeds. There are two calculation methods, and the real method applies where the taxpayer evidences that it is lower than the objective one.

Can I sell from abroad without travelling to Spain?

Yes. With a power of attorney granted in your country and legalised with the Hague Apostille, your lawyer can represent you at the signing and handle the formalities (NIE, tax forms, coordination with the buyer). It is the usual route among our international sellers, who rarely need to travel to close the transaction.

Do I need an energy performance certificate to sell?

Yes. The energy performance certificate is mandatory in order to advertise and sell a property in Spain, and it must be handed to the buyer. Have it ready before putting the property on the market, along with an up-to-date Land Registry extract, the IBI bills and the certificate confirming community fees are up to date.

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Keep reading

• Taxes when buying property in Andalusia
• Guide to buying property on the Costa del Sol
• The best areas to invest in Málaga in 2026
• The cost of living on the Costa del Sol in 2026
• Moving to the Costa del Sol from the UK after Brexit
• Emerging areas of the Costa del Sol with still-reasonable prices

Sources and methodology

Data cross-checked in July 2026 with the Spanish tax authority (IRNR and forms 210 and 211), the municipal plusvalía rules — the consolidated text of the Local Finance Act (Royal Legislative Decree 2/2004), in particular art. 106.2 on the buyer as substitute taxpayer, Constitutional Court judgment 182/2021 and Royal Decree-Law 26/2021 — and law firms specialising in non-residents. The rates (19% capital gains for non-residents, 3% retention) and the deadlines correspond to the rules in force as at 2026; the municipal plusvalía depends on each town hall’s by-law, so the amounts and some specific deadlines must be verified locally. The worked examples are illustrative and do not constitute a personalised calculation.

Updated and reviewed in July 2026 by the SolProp team (Fuengirola, Málaga). This article is for information only and does not constitute tax or legal advice: non-resident taxation on sales and municipal by-laws change, so we recommend verifying the current amounts and deadlines and engaging a lawyer and a tax adviser specialising in international taxation before selling.