Selling Property in Spain: The Complete Process for International Owners
Selling a Spanish property is in many ways the mirror image of buying one, but with different obligations on the seller side. The seller must arrange the marketing, negotiate with the buyer, provide the documentation, sign the public deed, and handle the tax consequences (capital gains tax through IRNR for non-residents). The 3% retention by the buyer on the gross price is one of the distinctive features of the sale, with implications for the seller’s cash flow at closing. This article explains the complete sale process for international owners: preparation of the documentation, marketing strategies, negotiation, contract phases, public deed, tax filings, and repatriation of the proceeds. A dedicated real estate lawyer coordinates the entire process on behalf of the seller.
Preparation phase: documentation and pricing
Before listing the property, the seller should prepare the documentation that buyers and their lawyers will request: nota simple from the Land Registry; cadastral information; ITP receipt from the original purchase; IBI receipts (current and previous years); community fees status; energy efficiency certificate (current); cédula de habitabilidad or licence of first occupation; any improvement invoices for capital improvements. Detailed treatment is in our guide to selling property in Spain.
The pricing of the property should reflect the current market conditions and the specific characteristics of the property. The seller can engage a professional valuation (tasación) for an independent assessment, or rely on the market comparables provided by real estate agents. The asking price should be realistic; an overpriced property typically sits on the market for longer and eventually sells at a lower price.
Marketing strategy
The marketing strategy depends on the property and the target buyer. For properties in mainstream price ranges, listing with multiple real estate agents and on online portals (Idealista, Fotocasa) is the standard approach. For higher-end properties, exclusive listing with a specialised luxury agency may be more effective. For properties with specific characteristics (tourist licence, unique features), targeted marketing through specialised channels can attract the right buyer.
The seller pays a commission to the real estate agent (typically 3-5% of the sale price, plus VAT). For multi-agent listings, the commission is paid to the agent who introduces the buyer. The commission is paid at the closing and is one of the major selling costs.
Negotiation with buyers
When an interested buyer makes an offer, the negotiation phase begins. The standard process is for the buyer to make a written offer, the seller to respond, and the parties to negotiate the final terms. The negotiation typically covers: price; closing date; fixtures and fittings included in the sale; any specific conditions (subject to mortgage approval, subject to buyer’s due diligence, etc.).
The lawyer assists the seller in the negotiation, particularly on the legal and procedural aspects. The seller should be cautious about non-binding offers that may not lead to a closing — only the option contract with the 10% deposit creates a binding commitment from the buyer.
Reservation and option contract phases
The reservation contract (if used) locks the property off the market for a defined period (2-4 weeks) while the buyer conducts due diligence and arranges financing. The reservation deposit (€3,000-€10,000) is typically refundable to the buyer if title defects are discovered, but not if the buyer simply changes their mind.
The option contract is the binding agreement, signed after the buyer’s due diligence is complete. The buyer pays 10% of the price as the option deposit. The terms are locked in. If the seller fails to complete by the agreed date, the seller must return the deposit plus an equivalent amount. The lawyer drafts and reviews the option contract from the seller’s perspective.
Documentation for closing
For the closing, the seller must provide several documents: nota simple updated (less than 7 days old); cédula de habitabilidad if requested; energy efficiency certificate; IBI receipts; community fees clearance certificate; mortgage cancellation arrangement (if the property has an outstanding mortgage); proof of title (the original public deed of purchase).
For properties with outstanding mortgages, the seller arranges with their bank for the mortgage cancellation at closing. The buyer typically delivers a bank cheque for the outstanding mortgage amount directly to the seller’s bank, which then issues the cancellation deed. The lawyer coordinates this arrangement to ensure smooth execution at closing.
The public deed of sale
The public deed is signed by both parties at the notary. The buyer delivers the bank cheques for the price (less the 3% retention for non-resident sellers and less any mortgage cancellation amount). The seller hands over the keys and the property is transferred. The notary certifies the deed.
For non-resident sellers, the 3% retention by the buyer is made at the public deed: the buyer retains 3% of the gross price and pays it to the tax authority within 30 days using Model 211. The buyer provides the seller with a copy of the Model 211 receipt, which the seller uses for the subsequent IRNR filing.
Capital gains tax filing (IRNR for non-residents)
Within 3 months of the sale, the non-resident seller files an IRNR return (Model 210) for the capital gain. The return calculates the actual tax due (19% for EU/EEA residents, 24% for others, on the net gain) and credits the 3% retention made by the buyer. If the actual tax is less than the retention, the seller is entitled to a refund. If more, the seller pays the difference.
The lawyer prepares the Model 210 with proper deductions: acquisition costs (ITP from original purchase, notary, registry, legal fees); capital improvements during ownership (with invoices); selling costs (agent commission, notary, lawyer). A well-prepared return minimises the tax due and may produce a refund of the retention.
Municipal plusvalía
The municipal plusvalía is paid to the town hall on the increase in the cadastral value of the land during the seller’s holding period. For non-resident sellers, the buyer is legally responsible for retaining the plusvalía amount from the price and paying it to the town hall. The plusvalía should be calculated and arranged at closing.
Since the constitutional reform of 2021, the seller can choose between the objective method (based on cadastral coefficients) and the real-gain method (based on the actual increase in land value). For properties with modest cadastral value increases, the real-gain method may produce a lower tax.
Repatriation of the proceeds
After the sale, the non-resident seller typically wants to transfer the proceeds from the Spanish bank account to their home-country account. The Spanish bank handles the international transfer with standard documentation: the sale deed, the IRNR return, the proof of tax payments, the original purchase documents. The transfer typically takes 3-7 business days depending on the receiving bank.
For large transfers (above €50,000), the seller should compare exchange rates between the Spanish bank, the receiving bank, and specialist FX providers. The differences can be material (1-2% of the transfer amount) and worth comparing. The lawyer can recommend trusted FX providers if needed.
Action steps for a sale
First: engage a Spanish lawyer at the start of the sale planning. Second: prepare the documentation pack and address any outstanding issues (mortgage cancellation, debts, certifications). Third: arrange the marketing and pricing strategy. Fourth: negotiate with prospective buyers and proceed to the reservation and option contracts. Fifth: prepare for the public deed with all documents in order. Sixth: ensure the 3% retention is properly made and the Model 211 receipt is received. Seventh: file the Model 210 within 3 months and claim any refund or pay any balance. Eighth: handle the plusvalía and the proceeds repatriation. For a full consultation on a sale, contact our team.
Selling a Spanish property as a non-resident is a procedurally complex transaction with tax implications on both sides. The professional handling of all aspects ensures that the sale completes smoothly and that the tax obligations are properly managed.