If you are a tax resident in another country and are selling a property in Spain, you must pay taxes here, even if you don’t live in the country. This is regulated through the Non-Resident Income Tax (IRNR), which applies to the capital gain: the difference between the sale price and the purchase price, minus deductible expenses such as Property Transfer Tax (ITP)/VAT, renovations, and notary or registry fees.
The tax rate depends on your residence: 19% if you are an EU resident and 24% if you are a non-EU resident. Additionally, the buyer must withhold 3% of the sale price as an advance on the tax.
Key tip: keep all receipts and documents to calculate your gain correctly and minimize taxes.
At MDG, we help you comply with regulations and pay taxes correctly, avoiding mistakes and penalties.