Selling property on the Costa del Sol: the complete seller guide

By Mikael Hansen, Plexo Properties · Last updated 10 October 2026

Selling a home in Spain is straightforward once you know the order of events, but it is not the same as selling at home. A few taxes are specific to Spain, one of them is withheld by the buyer rather than paid by you, and the paperwork needs to be ready before you go to market. This guide sets out the whole process, what it costs, how the capital gains tax and the 3% retention actually work, and how to work out what you will net.

What selling in Spain involves

At its simplest, selling is three things running in parallel: presenting the property and finding a buyer, getting the legal paperwork in order, and settling the taxes that fall on a sale. The first is where a good agent earns their fee. The second and third are where most of the surprises live for an owner selling from abroad, because two of the taxes — capital gains and plusvalía — are peculiar to Spain, and the capital gains tax is partly collected at completion through a retention the buyer makes. Get the paperwork ready early and the sale itself is quick: a resale typically completes six to ten weeks after you accept an offer.

The selling process, step by step

The order matters, because a buyer who is ready to proceed will not wait while you chase a missing certificate.

1. Price it on real evidence. Not on what the neighbour is asking, but on what comparable homes have actually sold for. An overpriced home sits on the market and ends up selling for less than a realistically priced one. Ask us for a free valuation with the comparables behind it.
2. Get your paperwork and energy certificate ready. The title deed (escritura), a recent nota simple from the Land Registry, your last IBI receipt, community-fee certificate, utility bills, and the energy performance certificate, which is required before the property can be advertised.
3. Go to market with an agent. Professional photography, the right portals and database, viewings handled, and a buyer qualified before you spend time on them. Agree the commission and the terms in writing — with us there is no exclusivity lock-in.
4. Accept an offer and take a reservation. A reservation deposit takes the property off the market while the buyer’s lawyer runs their checks.
5. Sign the private contract (contrato de arras). The buyer usually pays around 10% here. If they then pull out they lose it; if you pull out you repay double. Have your lawyer draft or review it — never sign arras without legal eyes on it.
6. Complete at the notary. You sign the escritura de compraventa, hand over the keys, and receive the balance of the price. At this point the buyer withholds 3% if you are a non-resident (see below), and any outstanding mortgage is cancelled from the proceeds.
7. Settle the taxes. Plusvalía municipal is declared to the town hall within 30 days, and your capital gains position is settled with the tax office on Modelo 210. Your lawyer normally handles both.

What it costs to sell

The figures below are the costs a seller carries. The buyer pays the purchase taxes (ITP or IVA), the notary and the Land Registry, so those are not yours.

Cost	Typical amount	Notes
Estate agency commission	~5% + 21% IVA	Marketing, viewings, negotiation and paperwork through to completion.
Energy performance certificate	€60–150	Required before listing; valid for ten years.
Lawyer	~1% or a fixed fee	Contracts, checks, Modelo 210, representing you (including by power of attorney).
Plusvalía municipal	Varies by town hall	On the increase in land value; nothing if you sold at a loss.
Mortgage cancellation	~€300–1,000	Only if a mortgage is still registered against the property.
Capital gains tax	19% of the gain	On your profit, not the sale price — see below.

Capital gains tax and the 3% retention

If you sell for more than you paid, the profit is taxable. For non-residents the rate is a flat 19% on the net gain, whatever your country of residence. The 19% versus 24% split you may have read about applies to other income such as rent — not to the gain on a property sale, which is 19% for everyone.

The gain is not simply sale price minus purchase price. You start from the price you originally paid, add the costs you paid when you bought (transfer tax or IVA, notary, Land Registry, lawyer and agency), and add any major improvements you can prove with invoices. From the sale side you deduct your selling costs — agency commission, lawyer, and the plusvalía. What is left is the gain the 19% applies to. Routine maintenance does not count, and inflation indexation was removed for properties bought after 1995, so keep every invoice.

The 3% retention. When the seller is a non-resident, the buyer is required to withhold 3% of the agreed price and pay it to the tax office on Modelo 211 within one month of completion. This is not an extra tax — it is an advance against your capital gains bill, and the buyer gives you a stamped copy as proof. You (or your lawyer) then file Modelo 210 to declare the real gain, due within three months of that one-month deadline, applying the 3% as a credit. If the 3% is more than the tax due — which is common, and especially so if you made little or no profit — you reclaim the excess, though refunds can take six to twelve months. If the tax is higher, you pay the difference.

Spanish tax residents are taxed differently: the gain goes on the savings scale, from 19% on the first €6,000 up to 30% on the slice above €300,000, and reliefs such as the main-home reinvestment exemption or the exemption for owners over 65 can apply. Some of these can reach EU/EEA non-residents in limited cases. These are case-specific, so confirm your own position with a lawyer. The national rules are published by the Agencia Tributaria (non-residents).

Plusvalía municipal explained

Plusvalía municipal (its official name is IIVTNU) is a separate, local tax on the increase in the value of the urban land — not the building — during the years you owned it. It is paid to the town hall, and it is legally the seller’s tax. Where the seller is a non-resident, though, the buyer becomes the substitute taxpayer, so in practice it is usually settled out of the proceeds at completion.

Since the 2021 reform there are two ways to work it out. The objective method takes the land’s cadastral value and multiplies it by a coefficient the town hall sets according to how many years you owned the property. The real method takes the actual increase in the land value between what you paid and what you sold for. You are entitled to pay whichever is lower, and if there was no increase at all — you sold at a loss — the tax is not due, provided you declare the sale and show the deeds. The amount varies between municipalities, so Mijas, Marbella and Estepona each set their own coefficients and rates; the cadastral value behind it comes from the Dirección General del Catastro. Regional taxes on the sale are overseen by the Agencia Tributaria de Andalucía.

Working out your net proceeds

What you actually walk away with is the sale price, less any mortgage still owed, less the costs above, less the capital gains tax on your profit. For a typical sale with a modest gain that usually means keeping well over 90% of the price, but the exact figure depends on your purchase cost, the plusvalía in your municipality and how much profit there is.

Rather than estimate it on the back of an envelope, run it through our Costa del Sol cost calculator, which works out both sides of a transaction, and ask us for a free valuation so the starting price is realistic and the net-proceeds figure means something.

Common mistakes to avoid

A handful of avoidable mistakes cost sellers real money. Overpricing is the big one: a home launched too high gets stale and sells for less than a well-priced one would have. Going to market without the paperwork is next — a ready buyer will not wait for a missing energy certificate or community-fee statement. Many non-residents never reclaim the 3% retention they were owed, because no one filed the Modelo 210; that is money left with the tax office. Owners also forget that purchase costs and documented improvements reduce the taxable gain, so they overpay capital gains for want of a few old invoices. And no one should sign an arras contract without a lawyer reading it first.

Questions people ask

How much does it cost to sell a property in Spain?

Budget roughly 5 to 7% of the sale price for fees and local taxes — mainly estate agency commission (about 5% plus 21% IVA), the energy certificate, plusvalía municipal and legal fees — plus capital gains tax of 19% on any profit you make. If you sold at little or no gain, the capital gains element is small or nil.

How much capital gains tax do non-residents pay when selling?

A flat 19% on the net gain, whatever your nationality or country of residence. The gain is the sale price less your original purchase price and costs, less your selling costs, less documented improvements — not 19% of the whole sale price.

What is the 3% retention when selling as a non-resident?

When the seller is a non-resident, the buyer withholds 3% of the agreed price at completion and pays it to the tax office on Modelo 211 within a month. It is an advance against your capital gains tax, not an extra cost. You then file Modelo 210 to declare the real gain and either reclaim the excess or pay any difference.

What is plusvalía municipal and who pays it?

It is a town-hall tax on the increase in the value of the land during your ownership. It is the seller’s tax, but when the seller is a non-resident the buyer is the substitute taxpayer, so it is usually settled from the proceeds. If you sold at a loss there is nothing to pay, provided you declare it.

Do I need an energy certificate to sell?

Yes. A registered energy performance certificate is required before the property can be advertised, and its rating must appear in the listing. It costs roughly €60 to €150 and is valid for ten years.

Can I sell my Spanish property from abroad?

Yes. You can give your lawyer power of attorney (poder) to sign the deed and handle the taxes on your behalf, so you do not have to travel for completion. Many of our sellers complete entirely remotely.

This guide is general information on selling residential property on the Costa del Sol in 2026, not tax or legal advice. Rates, coefficients and rules change and every situation differs, so confirm your own position with an independent lawyer or gestor before acting. Sources: Agencia Tributaria (non-residents) on capital gains, Modelo 210 and the 3% retention (Modelo 211); Dirección General del Catastro on cadastral value; Agencia Tributaria de Andalucía on regional transfer tax. Checked 10 October 2026.