The figure that appears in a seller's head when they think about capital gains tax is almost never the real figure they pay. It is usually higher — because the costs of the original purchase, the improvements, the commission and the plusvalía municipal are not deducted. Properly documented, a sale that looks like an €80,000 gross gain often taxes on €40,000 or less. Poorly documented, it taxes on the full €80,000.
What counts as a capital gain
In tax terms, the capital gain is the difference between the transfer value and the acquisition value. It is not simply "sale price minus purchase price" — it is more nuanced, and this is where the deductions that move the bill come in.
The actual formula
The legal IRNR calculation for non-residents is:
- Transfer value = sale price − costs inherent to the sale (commission, plusvalía municipal, energy certificate).
- Acquisition value = purchase price + purchase costs (notary, registry, ITP or VAT, gestoría) + improvements with VAT.
- Capital gain = transfer value − acquisition value.
- IRNR liability = taxable gain × 19% (flat, all non-residents).
Purchase vs sale price
Both are the figures recorded on the deeds, not amounts agreed verbally or paid partly off the books. If you purchased at €180,000 in 2010 and sell at €260,000 in 2026, the gross difference is €80,000. But that figure is not yet the fiscal gain — every deductible cost still has to be subtracted.
Deductible costs from the purchase
- Notary and registry fees on the original purchase deed.
- ITP (Transfer Tax) if it was a resale, or VAT if it was new-build.
- Gestoría that handled the purchase.
- Valuation, if required by the mortgage.
- Mortgage opening commissions associated with the purchase.
Justified improvements
This is where half of the fiscal benefit is won or lost. Structural improvements — full refurbishment, extensions, new installations, replacing systems — are deductible provided they are evidenced with a formal invoice and VAT breakdown. What is not deductible: paint, furniture, appliances, ordinary maintenance, gardening, cosmetic repairs.
In real Costa Blanca South transactions, we routinely see sellers who invested €40,000 refurbishing an apartment — but only €12,000 is documented with formal VAT invoices. The other €28,000 is not deductible. The difference in IRNR at 19%: around €5,300 lost simply for not having asked for a formal invoice at the time.
Agency commission
The commission paid to the agency handling the sale is fully deductible provided it is invoiced with VAT. On a €280,000 sale with a 4% + VAT commission, approximately €13,500 is deducted from the transfer value and reduces the tax base. Without a formal invoice — cash payment, receipt without VAT — the deduction is lost.
Plusvalía municipal
Plusvalía municipal paid to the town hall is also a deductible cost. It is one of the most automatic deductions when paperwork is organised — and one of the most missed when form 210 is filed without a complete file. To understand how much it may be in your specific case, see the plusvalía calculator.
Non-resident tax rate
- 19% of the taxable gain — the rate for capital gains arising from the transfer of Spanish property, for every non-resident seller: EU and EEA residents (Sweden, Norway, Iceland) and equally residents of the UK, Switzerland, the United States, the UAE, Andorra and elsewhere.
- 3% of the sale price — the buyer's withholding via form 211. This is a payment on account of your IRNR liability, not a tax rate, and it is reconciled with the 19% calculation when form 210 is filed.
The general 24% IRNR rate that applies to certain other categories of non-resident income does not apply to the gain on a property sale. Basis: Non-Resident Income Tax Law, Article 25.1(f). A fiscal residency certificate from your country is still worth obtaining — it evidences your status to Hacienda and supports double-tax relief at home.
Worked example — Orihuela Costa
German seller, resident in Munich. Apartment bought in 2011 at €165,000, sold in 2026 at €245,000.
- Acquisition value: 165,000 + 18,500 (purchase costs) + 14,000 (refurbishment with invoice) = €197,500.
- Transfer value: 245,000 − 11,800 (4% commission + VAT) − 720 (plusvalía) = €232,480.
- Capital gain: 232,480 − 197,500 = €34,980.
- IRNR liability at 19% (EU): €6,646.
- 3% retention at the notary: €7,350.
- Estimated refund: +€704 via form 210.
Link to the 3% retention and form 210
This is the full circuit. The buyer retains 3% at the signing (form 211). The seller files form 210 within four months calculating the real gain. If the liability is lower than what was retained, Hacienda refunds the difference 6–12 months later. If higher, the balance is paid with form 210. The capital gain is the engine of the whole calculation — the 3% is only the advance.
The real gain almost never matches what the seller assumes. When we close the file before going to market — refurbishment invoices, original purchase deed, mortgage costs — the liability drops naturally. It is not aggressive optimisation; it is basic accounting that many sellers simply never complete.
— Mauricio
How we handle it
At the initial valuation we estimate the capital gain with the deductible costs you can document — and, more usefully, identify what you still need to gather before the sale begins. You arrive at the notary with a real estimated liability, not a gross number. And at form 210, with a complete file.
Selling as a non-resident?
We help you document every deduction before the property goes to market.
The difference between a sale with a closed file and one with incomplete paperwork is often several thousand euros in tax.
This guide is indicative and does not constitute tax or legal advice. Each transaction has particularities — especially around exemptions, reinvestment relief and double-taxation treaties — that a qualified gestor or tax adviser should review with the exact figures of your case.
