Selling a home in Spain may seem like a simple process, but if it’s a second home and the seller is a foreigner, it’s essential to pay attention to tax issues. This is not only to avoid penalties, but also to plan the transaction well and avoid financial surprises.

In areas like the Costa Blanca, many foreign citizens own a second home that they use for part of the year or rent out as a holiday rental. When it comes time to sell it, common questions arise: What taxes do I have to pay? Will I have money withheld? How do I declare the transaction? At A&G Lawyers, a firm specializing in real estate law, we help resolve these questions clearly and effectively every day.

 

One of the main taxes is the municipal capital gains tax, a tax paid to the City Council that assesses the increase in land value from the moment it is purchased until the property is sold. Its calculation depends on each municipality, and although it has undergone legal modifications in recent years, it remains mandatory in most cases.

Additionally, the seller must declare the profit obtained from the sale through Non-Resident Income Tax (IRNR) if they are not a tax resident in Spain. This tax is levied at a fixed rate on capital gains. To ensure that the foreigner complies with this obligation, the law stipulates that the buyer must withhold 3% of the sale price and deposit it with the Treasury on behalf of the seller. The seller may later request a refund if no profit was made or if the withheld amount was higher than the actual tax.

Properly managing these procedures requires technical knowledge, coordination with the buyer, and good timing. In many cases, it’s also a good idea to check whether there are international agreements to avoid double taxation between Spain and the seller’s country of residence.

At A&G Lawyers, we offer comprehensive legal and tax advice on the sale. We prepare all documents, manage settlements, and file the corresponding returns, ensuring that the client complies with the regulations without complications or errors.

If you’re selling a property in Spain and it’s your second home, don’t leave taxation on the back burner.

Schedule an appointment with A&G Lawyers and let our experts guide you through the entire process in a safe and transparent manner.