Capital gains tax
The taxable gain is not simply sale price minus purchase price. Spanish rules define transfer value, acquisition value and documented costs. Residence and reliefs may change the result.
Municipal plusvalía
This local tax relates to the increase in value of urban land under municipal rules. Ask the town hall or adviser how the current calculation and deadlines apply.
Non-resident 3% withholding
The buyer generally withholds 3% of the consideration from a non-resident seller and pays it to the Tax Agency. It is a payment on account; a refund or balance may follow.
Records to gather
Tax calculations depend on evidence. Gather the records early and keep proof of payment, because an unsupported estimate may not be accepted when the return is prepared.
- Keep the purchase deed and the invoices connected with the original acquisition.
- Retain evidence of the taxes, notary costs and registry fees paid when buying.
- Collect invoices and payment records for improvements that may qualify under the applicable rules.
- Keep the sale contract, completion statement and evidence of selling expenses.
- Prepare documents supporting tax residence and any relief that may be claimed.
Questions for your adviser
A written pre-sale estimate helps prevent surprises and makes it easier to compare an offer with the owner’s required net proceeds. Ask the adviser to state the assumptions used.
- What is the estimated taxable gain based on the documents currently available?
- Which purchase, improvement and selling costs may be taken into account?
- Does any exemption, relief or special rule apply to this seller?
- How much is expected to be withheld or paid at completion?
- Which tax returns must be filed, by whom, and before which deadlines?