Property Taxation in Spain: Buyers & Sellers

Complete tax guidance for Spanish real-estate transactions

Buying or selling property in Spain triggers several different taxes and filings. The exact combination depends on whether you are a resident or non-resident, whether the property is new or resale, and the local rules of the municipality and Autonomous Community.

At NomadTaxSpain, we provide end-to-end support so you know in advance which taxes apply, how much they are likely to be and who is responsible for paying or withholding each one. We coordinate calculations, filings and communication with the notary, registry and local authorities.

1. Taxes when you sell property in Spain

The main tax when selling is the capital-gains tax, which is treated differently for residents and non-residents.

1.1. Sellers who are Spanish tax residents

Spanish tax residents report the capital gain in their annual IRPF return (Modelo 100). The gain is calculated as:

• Acquisition value: purchase price + taxes + allowable purchase costs + improvements.
• Transfer value: sale price − allowable selling costs.

The resulting gain is taxed at the savings scale, currently:

• 19% on the first €6,000
• 21% from €6,000 to €50,000
• 23% from €50,000 to €200,000
• 27% from €200,000 to €300,000
• 28% above €300,000

In some cases, residents may benefit from main-home reinvestment exemptions or other reliefs, subject to strict conditions and timelines.

1.2. Sellers who are non-residents (IRNR)

Non-resident sellers must declare the capital gain via Modelo 210 under Non-Resident Income Tax (IRNR). A key feature is the mandatory 3% withholding:

• The buyer must withhold 3% of the purchase price and pay it to the Tax Agency via Modelo 211.
• The seller then files Modelo 210, offsetting this 3% against the actual tax due.
• If the 3% is higher than the final tax, the seller can request a refund. If it is lower, the seller must pay the difference.
• If the buyer fails to withhold and pay the 3%, they become jointly liable for the tax.

2. Taxes when you buy property in Spain

Buyers face different taxes depending on whether the property is a new build (first transfer) or a resale (second or later transfer).

2.1. Transfer Tax (ITP)

ITP (Impuesto sobre Transmisiones Patrimoniales) applies to most resale properties that are not subject to VAT:

• It is a regional tax: each Autonomous Community sets its own rates and allowances.
• Rates vary by region, property type and, in some cases, buyer profile (e.g. large families, young buyers).
• The buyer normally files and pays ITP via Modelo 600 within approximately 30 days of the notarised deed.

2.2. VAT (IVA) and Stamp Duty (AJD)

VAT applies mainly to new properties or first transfers by developers or entrepreneurs:

• New homes: usually 10% VAT.
• Garages, commercial units and certain other property types: often 21% VAT (with some exceptions).
• When VAT applies, buyers often also pay Stamp Duty (AJD) on the notarised deed at the regional rate.
• VAT is typically invoiced by the developer; professional buyers may recover it via Modelo 303 if they are VAT taxpayers.

3. Municipal taxes: Plusvalía, IBI and waste collection

3.1. Plusvalía Municipal (IIVTNU)

Plusvalía Municipal taxes the increase in the value of the urban land during the period of ownership. Key points:

• Usually paid by the seller, although some municipalities or contracts agree otherwise.
• The tax can be calculated using either the actual gain or objective values, applying the more favourable method.
• Some transfers may be exempt, such as cases where there is no increase in land value or certain family transfers.
• Filing deadlines are typically around 30 working days from the sale deed.

3.2. Property Tax (IBI)

IBI (Impuesto sobre Bienes Inmuebles) is an annual municipal tax based on the cadastral value:

• The person who owns the property on 1 January is liable for the full year.
• Buyer and seller often agree to prorate IBI in the deed, even though the legal debtor is the owner on 1 January.
• The new owner must notify the local council so that records are updated.

3.3. Waste Collection Tax (Basuras)

Many municipalities levy a waste collection tax on residential and commercial properties:

• It is normally billed periodically (annually or quarterly).
• As with IBI, buyer and seller often settle or prorate this tax at the notary on completion.

4. Key filing deadlines at a glance

Spanish property taxes have strict deadlines, and missing them can lead to surcharges and penalties. Typical timelines include:

• IRPF (residents): reported in the annual income tax campaign (for the year of sale).
• IRNR (Modelo 210 for non-residents): generally within three months of the sale if 3% withholding applies, or four months otherwise.
• 3% withholding (Modelo 211): buyer files within one month of the sale.
• Plusvalía Municipal: around 30 working days from the deed date.
• ITP / AJD (Modelo 600): typically within 30 days of the transaction.
• VAT: due on completion; professional buyers account for it in their VAT returns (Modelo 303) where relevant.
• IBI & waste tax: charged annually according to the local tax calendar.

5. Practical notes and common issues

• Non-resident sellers: must check that the buyer correctly withholds and files the 3% and must file Modelo 210 in time to avoid delays in refunds.
• Buyers: must correctly determine whether the purchase is subject to ITP or VAT + AJD, as the financial and procedural consequences differ significantly.
• Plusvalía: rules and rates vary widely by municipality; it is essential to verify local ordinances rather than assuming a standard calculation.
• IBI & waste tax: buyers should confirm outstanding balances and cadastral information before completion.
• Coordination: lack of communication between tax advisor, notary and registry often causes avoidable delays and post-completion issues.

6. How NomadTaxSpain assists buyers and sellers

We offer a complete property tax service for both residents and non-residents involved in Spanish real-estate transactions.

• Full tax analysis for residents vs non-residents.
• Calculation of capital gains, taxable bases and allowable expenses.
• Preparation and filing of IRPF, IRNR (Modelo 210), Modelo 211, Modelo 600, and related VAT/AJD forms.
• Review and filing of Plusvalía Municipal.
• Municipal notifications for IBI and waste tax.
• Guidance on exemptions, withholdings and refunds.
• Coordination with notaries, registries and local authorities to ensure a smooth closing.

Our objective is to ensure that your purchase or sale is compliant, efficient and tax-optimised, with clear numbers and no last-minute surprises on completion day.

Start your Spanish property tax consultation

Whether you are buying or selling, resident or non-resident, we can map all your tax obligations in advance and handle every filing for you.

Share the basic details of your transaction with us and we will prepare a clear, step-by-step plan covering taxes, deadlines and documentation so you can focus on the negotiation and completion itself.