Key Takeaways
- ✓ Capital gains tax for non-residents: 19% (EU/EEA) or 24% (non-EU) on the profit after allowable deductions.
- ✓ The buyer withholds 3% of the sale price and pays it to Hacienda — you reclaim the excess if your actual tax is lower.
- ✓ You’ll need an energy certificate, nota simple, IBI receipt, community fee certificate and habitation certificate.
- ✓ Selling costs total approximately 5–8% of the sale price (agency, taxes, certificates, legal fees).
- ✓ The plusvalía municipal (land value increase tax) is payable by the seller within 30 days of completion.
The Sales Process: Step by Step
1. Valuation. Get a realistic market valuation from 2–3 agents. Online portals (Idealista, Fotocasa) give you a baseline, but local agents with active buyer databases will give you the most accurate figure. Overpricing by 10–15% is the single biggest reason properties sit unsold for months.
2. Prepare the property. First impressions matter enormously in Spain’s competitive market. Declutter, deep clean, fix minor defects (leaking taps, cracked tiles, stiff shutters), and consider painting walls in neutral tones. Professional photography is essential — 80%+ of buyers search online first.
3. Gather documents. Start collecting these immediately (see the full list below). The energy certificate alone takes 1–2 weeks to arrange. Missing documents delay or collapse sales.
4. List and market. Your agent will list on Idealista, Fotocasa, their own website and international portals. Expect viewings to start within 1–2 weeks of listing. Be flexible with viewing times — many buyers fly in for short property tours.
5. Receive and negotiate offers. Offers are typically 5–10% below asking price. Your agent should present every offer in writing. Don’t be offended by low offers — counter at a level you can accept.
6. Reservation deposit. The buyer pays a small reservation deposit (€3,000–€6,000) to take the property off the market while their lawyer conducts due diligence. This deposit is deducted from the final price.
7. Arras contract. The formal private purchase agreement, signed by both parties. The buyer pays 10% of the sale price. You’re bound by the penalty clause: if you withdraw, you must return double the deposit. If the buyer withdraws, they lose their 10%.
8. Notary completion (escritura). Both parties (or their authorised representatives) sign the public deed of sale before a notary. The buyer pays the balance (usually by banker’s draft), keys are handed over, and the notary registers the transfer. The buyer withholds 3% of the price for Hacienda (see below). The whole process takes 4–12 weeks from arras to notary.
Capital Gains Tax (Impuesto sobre la Ganancia Patrimonial)
As a non-resident seller, you pay capital gains tax on the profit from the sale — the difference between what you paid and what you sell for, adjusted for allowable costs.
Tax rates:
- EU/EEA residents: 19% on the net gain
- Non-EU residents: 24% on the net gain
Allowable deductions that reduce your taxable gain:
- Original purchase price plus purchase costs (ITP/IVA, notary, legal fees, land registry)
- Cost of permanent improvements (renovations, extensions — keep all invoices)
- Selling costs (agency commission, energy certificate, legal fees)
- Inflation adjustment coefficients (for properties purchased before 1995)
Example: You bought an apartment for €120,000 (total cost including taxes: €134,000). You spent €15,000 on renovations. You sell for €180,000 with €9,000 in selling costs. Your taxable gain: €180,000 − €134,000 − €15,000 − €9,000 = €22,000. Tax at 19% (EU): €4,180.
The 3% Retention (Retención)
This is the mechanism that catches many foreign sellers by surprise. When a non-resident sells property in Spain, the buyer is legally required to withhold 3% of the total sale price and pay it directly to the Spanish tax authority (Hacienda) using form 211. This is not an additional tax — it’s an advance payment towards your capital gains tax liability.
How it works in practice:
- On a €200,000 sale, the buyer withholds €6,000 and pays it to Hacienda within one month of completion.
- You receive €194,000 at the notary (minus any mortgage balance).
- Your lawyer then files your capital gains tax return (form 210) within four months.
- If your actual capital gains tax is less than the 3% retained, Hacienda refunds the difference. Refunds typically take 3–6 months.
- If your actual tax is more than 3%, you pay the balance.
Selling at a loss? If you sell for less than you paid (including all costs), your capital gains tax is zero, and you can reclaim the entire 3% retention. This happens more often than you’d think with properties bought at peak prices in 2006–2008.
Required Documents
Gather these before listing. Missing documents delay or collapse sales:
| Document | What It Is | Cost / Time |
|---|---|---|
| Escritura (title deed) | Your original purchase deed proving ownership | Already in your possession |
| Nota simple | Fresh land registry extract showing ownership, charges, boundaries | €10–20, 2–5 days |
| Energy certificate (CEE) | Mandatory energy efficiency rating (A to G). Must be displayed in listings | €100–200, 1–2 weeks |
| IBI receipt | Proof of property tax payment for the current year | From your bank or town hall |
| Community fee certificate | Certificate from the community administrator confirming you’re up to date on fees | €50–100, 1–2 weeks |
| Cédula de habitabilidad | Habitation certificate confirming the property meets minimum living standards | €50–150, 2–4 weeks (varies by municipality) |
| Utility bills | Recent water, electricity and gas bills showing contracts are active and paid | From your suppliers |
| NIE | Your foreign identification number (already obtained at purchase) | Already in your possession |
Costs of Selling
Here’s what selling a €200,000 property typically costs:
| Selling Cost | Typical Amount |
|---|---|
| Estate agency commission | €6,000–€10,000 (3–5%) |
| Plusvalía municipal | €500–€2,000 |
| Capital gains tax (19% EU) | Varies (see calculation above) |
| Legal fees | €1,000–€2,000 |
| Energy certificate | €100–€200 |
| Mortgage cancellation (if applicable) | €500–€1,000 |
| Total selling costs (excl. CGT) | €8,100–€15,200 (4–8%) |
The Plusvalía Municipal Tax
The plusvalía is a municipal tax on the increase in land value since you purchased the property. It’s calculated by the town hall based on the catastral land value, the number of years you’ve owned the property, and a municipal coefficient. Since a 2021 Constitutional Court ruling, you are not required to pay plusvalía if you sell at a loss (i.e., the sale price is lower than the purchase price). Your lawyer should check and file an exemption request if applicable.
The tax must be paid within 30 working days of the notary signing. For a property held for 10 years, expect €500–€2,000 in most Costa Blanca municipalities. Your lawyer or gestor can calculate the exact amount before you list.
Tips to Maximise Your Sale Price
Price it right from day one. Properties that sit on the market for months get stigmatised. Buyers assume something is wrong. Research comparable sold prices (not asking prices) and list at a realistic level. You can always nudge up if demand is strong.
Time the market. Spring (February–May) and autumn (September–November) are peak buying seasons on the costas. International buyers often fly out during these periods for viewing trips. Summer is quieter as everyone is on holiday.
Invest in presentation. A €2,000–€5,000 investment in cosmetic improvements (paint, lighting, minor repairs, garden tidy) can increase your sale price by €10,000–€20,000. Professional staging is increasingly common and effective. See our renovation guide for what adds value.
Professional photography. Properties with professional photos sell 32% faster on average (Idealista data). Most good agents include this in their commission — if yours doesn’t, insist or hire a photographer independently (€150–€300).
How OceanHome Can Help
Our team in Torrevieja and Fuengirola handles every aspect of the sales process for foreign owners. We provide free valuations, professional photography, multilingual marketing on Idealista, Fotocasa and international portals, and coordinate with your lawyer, community administrator and energy assessor. Our commission is competitive at 3–4%, and we only charge on completion. Contact us for a free valuation.
For information on buying rather than selling, see our complete buying guide. For annual ownership costs, read our property taxes guide.