How to Sell Property in Spain as a Foreigner: Step-by-Step Guide

If you’re a non-resident or expat looking to sell property in Spain, you’ll need to navigate a number of legal, tax, and administrative steps — many of which differ from your home country.

This guide walks you through the full process, including:

✅ Required documents
✅ Capital gains tax and retentions
✅ Selling remotely with Power of Attorney
✅ Buyer due diligence and closing procedures

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📄 Step 1: Gather the Required Documents

Before listing your home, prepare these essential documents:

📌 Your lawyer will update the Nota Simple and ensure the property is free from embargos, mortgages, or liens.

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🧑‍⚖️ Step 2: Appoint a Spanish Lawyer (Abogado)

A local real estate lawyer ensures:

• Legal compliance with national and regional laws

• Preparation of reservation and deposit contracts

• Coordination with the buyer’s legal team

• Representation if you’re selling from abroad

✅ You can also grant your lawyer a Power of Attorney to manage the entire process remotely.

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📋 Step 3: Pre-Sale Checks and Legal Review

Before listing:

• Confirm the property is correctly registered

• Update or legalize any unregistered renovations

• Settle community debts or outstanding taxes

⚠️ These issues often delay or kill deals when discovered late.

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✍️ Step 4: Sign the Reservation and Arras Contracts

The buyer usually signs two key agreements before closing:

1. Reservation Agreement (Contrato de Reserva):

   • Removes the property from the market

   • Buyer pays a holding deposit (typically €3,000–€6,000)

2. Deposit Contract (Contrato de Arras Penitenciales):

   • Binding agreement with penalty clauses

   • Deposit = 10% of sale price

   • Seller must pay double the deposit if they back out

📌 Have your lawyer draft and review these contracts carefully.

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💶 Step 5: Understand Seller Taxes & Retentions

1. Capital Gains Tax (CGT)

• Non-residents pay 19% on net gain

• Residents may pay 19–26%, depending on gain amount

• Deductible expenses: notary, agent, legal fees, renovations

2. Plusvalía Municipal (Local Land Value Tax)

• Tax on increased value of land (not building)

• Calculated by the local council

• Usually the seller pays, unless agreed otherwise

3. Non-Resident Withholding Tax (3% Retention)

• Buyer is required to withhold 3% of sale price

• Paid directly to Agencia Tributaria

• You can claim a refund if overpaid (within 4 years)

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🧾 Example: Sale of a €300,000 Property by a UK Seller

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🏛️ Step 6: Sign the Sale Deed (Escritura de Compraventa)

• Signed before a Spanish notary

• Buyer pays full amount minus 3% retention

• Seller provides keys, documents, and proof of tax payments

🔑 If you’re not in Spain, your lawyer can sign on your behalf via Power of Attorney.

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🧑‍💼 Step 7: Final Settlements & Deregistration

After the sale:

• Cancel any standing utility contracts

• Notify the Land Registry and Tax Agency of the sale

• File for 3% retention refund (Modelo 210 form)

• Declare capital gains in your home country, if required

💡 Your lawyer can handle this entire process remotely and ensure full tax compliance.

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🌍 Can I Sell Property in Spain From Abroad?

Yes — and many foreign owners do.

All you need is:

• A trusted Spanish lawyer

• A notarized and apostilled Power of Attorney

• Digital NIE and tax certificate access

👉 At Borderless Lawyers, we help foreign owners sell their Spanish property without returning to Spain.

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🔎 Bonus: What If My Buyer Asks for a Price Reduction?

Common reasons buyers request price drops:

• Urban planning irregularities

• Unregistered extensions or pool

• Pending repairs or structural concerns

• Discrepancies between catastro and deed

• Absence of occupancy certificate

💼 Our legal team can anticipate these risks and prepare counterarguments or resolve them before the buyer finds them.

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📞 Ready to Sell Your Spanish Property Stress-Free?

Let Borderless Lawyers handle the legal, tax, and notarial process — even if you’re abroad.