November 18, 2025
The sale of a real estate property in Spain as a non-resident implies compliance with specific tax obligations that differ substantially from those applicable to residents. The non-resident seller must be subject to taxation on the patrimonial gain obtained through the Income Tax for Non-Residents (IRNR), submit specific self-assessments, and manage a regulatory complexity that includes different regimes depending on the location of their tax residence. This updated guide provides the essential steps, mandatory documentation, and differentiated tax treatment between EU/EEA residents and non-EU residents, including recent court rulings that have modified the tax landscape.
Tax Comparison: EU/EEA Residents vs. Non-EU Residents in Real Estate Sales Spain 2025
Concept of Non-Resident: Legal Definition and Accreditation
The determination of the condition of non-resident constitutes a fundamental element for knowing the tax obligations applicable in Spain. In accordance with the Law of Income Tax for Individuals (Law 35/2006), a person is considered a tax resident in Spain if they remain more than 183 days per year in Spanish territory, or if they have in the country the principal center of their economic activities or vital interests (such as their spouse and dependent minor children).
Conversely, anyone who does not meet these criteria shall be considered a non-resident for tax purposes. This condition bears no relation to administrative residence permit or municipal registration, but constitutes a matter of fact determined by economic and personal criteria. To accredit non-residence before the Spanish Tax Agency, the taxpayer must provide a tax residence certificate issued by the tax authority of their country of domicile, with validity of one year from its issuance.
This certificate is essential for applying bilateral double taxation treaties that Spain has signed with more than 100 countries, thus avoiding double taxation on the same income. Without this document, the Tax Agency may consider that the taxpayer has the obligation to be subject to taxation as a Spanish resident, which would generate very serious tax consequences.
Tax Distinction: EU/EEA Residents vs. Non-EU Residents
Although progress is being made in this matter, important differences still persist between the regime of citizens of the European Union/European Economic Area (EU/EEA) and residents in third countries.
In the case of the sale of a real estate property, the tax rate is identical for both groups: 19% on the gain obtained, calculated as the difference between the transmission price and the acquisition price, plus expenses and taxes on the purchase, minus sales expenses. This equalization constitutes an important advance, since previously there were discriminations in other aspects of taxation.
For rental properties (rental income), the difference persists although it has been mitigated: EU residents are subject to 19% and can fully deduct operating expenses (municipal property tax, community fees, insurance, mortgage interest, etc.), while non-EU residents were historically subject to 24% with no right to deduction. However, the 2025 ruling of the National Audience has extended to non-EU residents the right to deduct expenses when they accredit their direct and inseparable relationship with the income, bringing de facto tax treatment into parity.
For properties for personal use (not rented), both groups must be subject to taxation on presumed income calculated as 1.1% or 2% of the cadastral value, with the 19% rate being applied to EU residents and 24% to non-EU residents historically, although recent case law introduces uncertainty about the validity of this difference.
Step-by-Step Process: Sale of Real Estate by Non-Resident in Spain
Prior Obligations: The NIE as an Indispensable Requirement
Before proceeding with the sale, every foreign non-resident must obtain the Foreigners’ Identification Number (NIE), a mandatory document for any transaction with tax significance in Spain.
The NIE does not constitute a residence permit nor does it imply an obligation to remain in Spain, but is exclusively an administrative identifier that the General Police Directorate assigns to foreigners who carry out economic, professional or social acts in Spanish territory.
For citizens of the European Union, the so-called temporary NIE is obtained, which has administrative character and limited validity. For non-EU citizens, the non-resident NIE is processed, which has identifying character and may have indefinite validity depending on the need. In both cases, the application can be made in Spain (General Police Directorate or police stations) or in Spanish consular offices in the country of origin. The obtaining process usually takes between two and three weeks, which is why it is recommended to start it with sufficient advance notice. Without a NIE it is not possible to formalize the purchase and sale before a notary nor to comply with the tax obligations arising from the sale.
Necessary Documentation for the Sale
The sale of a real estate property by a non-resident requires gathering documentation both from the seller and from the real estate property object of transmission. The seller must provide a series of documentation that from [Velora Realty], our real estate branch, could be gathered and provided facilitating both the search for buyers and real estate management as well as the contractual documentation of the purchase and sale.
In the event that the non-resident cannot personally travel to Spain to sign the deed, they must grant a notarial power of attorney to a legal representative. This power can be formalized before a notary in the country of origin and must be legalized with Apostille of The Hague if it comes from a signatory country of the Hague Convention of 1961, or through traditional diplomatic legalization otherwise.
In all cases, the signature must take place before a Spanish public notary, who verifies the legitimacy of the signatories, verifies that there are no hidden liens on the property, calculates and retains 3% on the sale price (form 211), and formalizes the public deed of purchase and sale.
Form 210: Capital Gain Form
The Form 210 is the self-assessment form of Income Tax for Non-Residents through which the non-resident seller declares the patrimonial gain obtained in the sale of their real estate property.
The calculation of the gain is carried out as follows: from the sale price (transmission value) are subtracted both the original purchase price and all tax expenses and expenses inherent to the acquisition (notarial fees, registration fees, tax advisory expenses, transfer or succession taxes if it was an inheritance, etc.), and sales transmission expenses associated with the sale (real estate agency commissions if any, although these usually are borne by the seller but if deducted, must appear in the deed) are also subtracted.
The deadline for submitting Form 210 is four months counted from the date of the sale. More specifically, this period is calculated as: three months from the end of the one-month period that the buyer has to pay the 3% retention (Form 211). For example, if the sale is formalized on March 15, the buyer has until April 15 to pay the retention; the seller will have until July 15 to submit Form 210.
In case of patrimonial loss (sale at a lower price than it was purchased), the seller does not have to pay any tax, but must submit Form 210 accrediting this circumstance to request the full or partial return of the 3% retained and paid by the buyer.
Special case: Exemption for reinvestment in habitual residence (applicable only to EU residents). If the EU non-resident seller sold their habitual residence in Spain and reinvests the amount obtained in the acquisition of a new habitual residence, they may take advantage of an exemption from patrimonial gain, stating in Form 210 the income type 33 or 34 as applicable.
Form 211: 3% withold at the Charge of the Buyer Form 211 is the instrument through which the buyer declares the mandatory 3% retention of the purchase and sale price and pays it directly to the Spanish Tax Agency.
This retention constitutes an advance payment of the tax that the non-resident seller must pay for the patrimonial gain. It is not delivered to the seller, but is retained at the time of signature before the notary, is expressly specified in the deed that it has been made, and is paid separately to the Tax Authority.
The deadline for submitting Form 211 is 30 calendar days (including weekends and holidays) counted from the date of formalization of the public deed of purchase and sale before the notary.
In case of multiple sellers or co-ownership, the buyer must submit one Form 211 for each non-resident seller, retaining 3% only on the portion of the price that corresponds to each one according to their ownership percentage.
Non-compliance with the deadline: If the buyer does not submit Form 211 on time, they incur a serious tax infraction with possible sanctions of 50%-75% on the amount not paid, plus late-payment interest calculated from the expiration of the deadline.
Municipal Appreciation: The Buyer’s Responsibility
The Tax on the Increase in Value of Urban Land (IIVTNU), popularly known as municipal appreciation, is a local tax that taxes the increase in value of the land from its acquisition to its transmission.
Since 1999, when the seller of a real estate property is a non-resident taxpayer, Spanish law has exempted the seller from the payment of this tax, but transfers the payment obligation to the buyer, who acts as “substitute passive subject of the taxpayer”.
This implies that, although historically the seller was the one who had to pay the IIVTNU, in case of sale by non-resident it is the buyer who must calculate, declare and pay the tax before the corresponding city council, using the form of each municipality.
The calculation of IIVTNU can be carried out using two methods: the objective formula (multiply the cadastral value of the property by annual coefficients approved by law) or the real formula (difference between sale price and original purchase price). If the real appreciation is less than the objective one, the taxpayer can choose the real method providing the original acquisition deed and verification of values that the seller would have received.
Cooperation of the seller: In order to apply the real formula with precision, it is essential that the non-resident seller provides the buyer with a copy of the original acquisition deed and, where applicable, the verification of values that Tax Authority had notified them, as these data are necessary to avoid paying IIVTNU on non-existent gains.
Right to claim: Although legally the buyer is the one who pays, the General Tax Law allows the buyer to claim to the non-resident seller the reimbursement of the tax paid. In practice, this amount is usually retained together with the 3% withold or a price reduction is agreed upon in the deed that compensates for the payment of appreciation.
Problems in the claim: Given that the seller is non-resident, judicially requiring reimbursement presents significant difficulties (address abroad, application of international agreements, execution of sentences). Therefore it is highly advisable to agree in writing in the deed of purchase and sale the manner in which the seller will compensate the buyer for the appreciation paid.
Need for a Legal Representative: When it is Mandatory
Although Spanish legislation does not formally make the appointment of a legal representative mandatory for non-residents, practice strongly advises this appointment, especially when the seller cannot physically travel to Spain. Our law firm, in collaboration with [Velora Realty,] can assume this representation of the non-resident facilitating thus the entire transaction.
For residents outside the European Union (non-EU), it is advisable to appoint a tax representative who acts before the Tax Agency. This representative can be a lawyer, tax advisor or specialized tax consultancy, and significantly facilitates the correct completion of forms 210 and 211, as well as the management of any claims or corrections.
The main functions of the representative include: advising on the structure of the transaction for tax optimization; interpretation of the purchase and sale contract and calculation of the tax to be paid; granting of notarial power if the non-resident cannot attend in person; submission of the Form 210 at the Tax Agency within four months; monitoring of the 3% withold and management of any refunds; and negotiation with the buyer regarding municipal appreciation. Notarial power abroad: If the non-resident seller cannot sign in person before a Spanish notary, they must grant a notarial power of attorney in their country of origin before a notary or notarial office, which must be legalized through Apostille of The Hague (if the country is a signatory of the Hague Convention of 1961) or through traditional diplomatic legalization otherwise, and will probably require official translation into Spanish.
Special Procedures: Accreditation of Residence and Double Taxation Treaties
For favorable tax rates provided in double taxation treaties that Spain has signed with more than 100 countries to be applied, the non-resident must reliably accredit their tax residence in the destination country by means of a tax residence certificate.
This certificate must be issued by the tax authority of the country where the taxpayer is resident for tax purposes (Tax Agency in Spain, IRS in the USA, Bundeszentralamt für Steuern in Germany, etc.) and has validity of one year from its issuance. The certificate must explicitly indicate that it is issued “for purposes of the Double Taxation Treaty with the Kingdom of Spain” so that it is fully recognized.
Special case: Foreign states, governments and local entities. If the taxpayer is a foreign state or any of its political subdivisions or local entities, the validity of the certificate will be indefinite, as their tax situation does not vary.
Without a valid tax residence certificate, the Tax Agency will consider that the taxpayer cannot benefit from international treaties, being able to apply higher tax rates (24% for non-EU in rentals, for example) or prevent deductions of expenses.
Frequently Asked Questions (FAQ) Sections
What is the difference in taxation if I am a German citizen versus a Canadian citizen when selling a real estate property in Spain?
Both are subject to 19% on the patrimonial gain from the sale. The historical difference is more notable in rentals 19% for EU citizens with deduction of expenses vs. 24% for non-EU citizens without deduction, but since the 2025 National Audience ruling, a path has been opened for non-EU citizens to be able to deduct expenses if they accredit their relationship with the income, reducing the substantial difference. It must be taken into account that as of the current date of this article, it is NOT possible to apply 19% for non-EU citizens.
Can I sell my property in Spain being a non-resident without appointing a legal representative?
Yes legally, but it is highly advisable to appoint a representative if you cannot travel to Spain. You must grant notarial power legalized through Apostille of The Hague. Velora Realty handles the search for buyer or seller, drafting and review of contracts, due dilligences, fullfilment and submitance of the forms 210 and 211, avoiding costly errors and managing municipal appreciation.
What happens if the 3% withold is greater than my net patrimonial gain?
You have the right to the return of the excess retained. You will submit Form 210 declaring your actual gain (or loss), and the Tax Agency will return the difference within six months following. Example: if you retain 9,000 euros but your actual gain generates tax of 5,000 euros, you recover 4,000 euros.
What is the exact deadline for submitting Form 210 after the sale?
Four months total from the date of the sale. Specifically, three months counted from the end of the one-month period that the buyer has to pay Form 211 (3% withold). If you sell on March 15, the deadline expires on July 15.
Can I recover the municipal appreciation that the buyer paid? R: Legally yes, but it is very difficult in practice. The best strategy is to agree in writing in the deed of purchase and sale how appreciation will be compensated (price reduction, cost sharing, etc.). Without written agreement, the buyer can claim against you judicially, but being non-resident, the claim presents procedural and execution difficulties.
Special Considerations: 2025 Ruling and Normative Evolution
The ruling of the National Audience of July 28, 2025 (rec. no. 636/2021) has recognized that non-EU non-residents have the right to deduct expenses related to the rental of real estate in Spain when calculating their IRNR, bringing their treatment into parity with EU residents.
This ruling has transcendental importance, as for years the position of the Administration had been discriminatory: it allowed deductions to EU residents (19% on net income) but obliged non-EU citizens to declare gross income (24% without deduction). The National Audience considered this distinction discriminatory with respect to the freedom of movement of capital recognized in EU Law, applied extensively to residents of third countries by virtue of the principle of non-discrimination.
Consequently, although the tax rate for non-EU remains potentially 24% in rentals (versus 19% for EU), the deductibility of expenses has been judicially recognized, creating opportunities for tax optimization. It is anticipated that further Supreme Court rulings will consolidate this doctrine and possibly also bring tax rates into parity.
Conclusion
The sale of a real estate property in Spain being a non-resident requires managing multiple tax, administrative and documentary aspects. Through the appointment of, legal representative, from our law firm and hand in hand with [Velora Realty], we offer 360-degree advisory including the marketing of the asset, search for buyer or seller, drafting and contractual review, obtaining the mandatory NIE, submission of the 3% retention by means of Form 211 by the buyer, submission of the patrimonial gain self-assessment by means of Form 210 within four months, compliance with the municipal appreciation obligation (at the charge of the buyer).
The final recommendation is not to attempt to carry out this transaction without specialized professional advice on international taxation, as errors in calculations, deadlines or procedures can generate significant sanctions, late-payment interest, and administrative problems that are difficult to resolve from abroad.