If you're selling a home on the Costa del Sol, it helps to know which taxes and costs come off the top before you think of the sale price as money in hand. None of it is dramatic, but knowing it up front lets you plan properly — especially if you're a non-resident. Here's the honest picture.
Plusvalía municipal (IIVTNU)
The main local tax on a sale is the plusvalía municipal — a tax on the increase in the value of the urban land your property sits on during the years you've owned it. It's set by the local council within legal limits, so it varies by municipality, and it's calculated from the land's value and how long you've held the property. The rules changed with the 2021 reform: you can now choose between the council's standard method and your property's real land gain, whichever is lower — and crucially, if there's no gain on the land, there's no tax to pay. The method genuinely matters, which is exactly why it's worth running properly.
Capital gains
If you sell for more than your adjusted purchase price, the gain may be taxable. For residents it's part of personal income tax (IRPF); for non-residents a flat rate of 19% applies on the gain under non-resident income tax (IRNR), for EU and non-EU sellers alike.
The 3% retention for non-resident sellers
If you're a non-resident, there's one mechanic worth knowing early: the buyer is required to withhold 3% of the sale price and pay it directly to the tax authority, as an advance against your potential capital-gains liability. After the sale you file your return — you have four months to do so — and if you've overpaid, you claim the difference back; if there's more to pay, you settle it. It's a protective measure, not an extra tax, but it affects your cash at completion, so plan for it.
Other costs
Don't forget the practical extras — for example, the cost of cancelling an existing mortgage on the property, if you have one. Small, but real.
For both residents and non-residents, understanding this up front is simply good planning — it's how you avoid surprises and keep the sale clean. And the necessary caveat: this is a general guide, not tax advice. Spanish property tax is genuinely intricate, so on any real sale I'll connect you with a specialist tax adviser to run your exact numbers. Getting that right is part of what I'm here to make easy.
