Taxation in Madrid
2026-10-19
IRNR in Madrid: What Non-Residents Pay When Selling Their Home
IRNR, or Non-Resident Income Tax, is what individuals and companies without Spanish tax residence pay in Spain on the income they earn here. For a foreign owner with a home in Madrid, the most common case is a sale: the gain is taxed at 19% and the buyer withholds 3% of the price as an advance payment.
This guide summarises how it works according to the Spanish Tax Agency. If you are thinking of selling, you can request a confidential property valuation and learn about our service for selling a property in Madrid.
What IRNR is and who it affects
IRNR applies to those who are not tax resident in Spain and who earn income in Spanish territory. Capital gains arising from the sale of real estate located in Spain are treated as income obtained in Spanish territory and are therefore taxed here.
If you are a buyer wondering what to expect as an owner, we also recommend our guide to buying property in Madrid as a non-resident.
Selling a home in Madrid as a non-resident
The gain is calculated, in general, under personal income tax rules: the difference between the transmission value and the acquisition value. The latter includes the price paid, investments and improvements, and the expenses and taxes inherent to the purchase (notary, Land Registry, ITP or VAT and AJD, among others). The applicable rate is 19%.
Simplified example: a home bought for €800,000 (including costs and taxes) and sold for €1,000,000 generates a gain of €200,000, on which €38,000 of IRNR is payable.
To compare prices before deciding, browse the properties for sale in Madrid in your area, such as the Salamanca district or Recoletos.
The 3% withholding and form 211
The person who buys the property, whether resident or not, must withhold and pay 3% of the agreed consideration. This withholding is an advance payment of the seller’s tax. The buyer pays it using form 211, within one month of the transfer, and gives the seller a copy.
In the example above, the buyer would withhold €30,000 (3% of €1,000,000); the seller would deduct that amount from the €38,000 due and file the difference using form 210. If the withholding exceeds the tax due, the seller may request a refund of the excess.
Reinvestment in a main home
Residents of a European Union or European Economic Area member state with effective exchange of tax information may exclude from tax the gain on the sale of what was their main home in Spain, provided they reinvest the total amount obtained in the purchase of a new main home. If only part is reinvested, the proportional part of the gain is excluded.
Even when this exemption applies, the buyer’s withholding and the filing of form 210 remain mandatory. This is a case with specific requirements, so it should be checked with an adviser.
While you keep the property
Non-resident taxation is not limited to the sale. Anyone who keeps a home in Madrid may have obligations in relation to any rental income and, in certain cases, to their own use of the property, in addition to local taxes such as IBI. The rates and treatment depend on your country of residence, so you should verify them with the Tax Agency or your adviser.
If you live outside Spain and wish to delegate the management of your home, you can learn about our property management service and the options for luxury rentals in Madrid.
How to plan the transaction
Before selling, it is worth gathering the purchase documentation (deed, invoices for works and improvements, taxes paid), since it determines the acquisition value. Municipal capital gains tax, a separate local tax that we explain in what municipal capital gains tax is in Madrid, must also be taken into account.
To prepare a go-to-market strategy with realistic pricing, see our guide to selling a luxury apartment in Madrid. And to speak with our team, contact BARNES Madrid.
Frequently asked questions
What rate applies to the gain on selling property in Spain as a non-resident?
The applicable rate on capital gains from the sale of real estate is 19%.
Who withholds the 3%?
The buyer, whether resident or not, withholds and pays 3% of the consideration using form 211, within one month of the transfer.
Which form must the non-resident seller file?
Form 210, in which the gain is declared and the withholding made by the buyer is deducted.
Can the tax be avoided by reinvesting in another home?
Residents of the EU or EEA may exclude from tax the gain on the sale of their main home if they reinvest the full amount in a new main home. The withholding and form 210 are still required.
Discover exclusive properties in Madrid
How BARNES Madrid can help
At BARNES Madrid we support owners and international buyers before, during and after the transaction. If you wish to sell your home, you can request a property valuation; for any enquiry, contact BARNES Madrid.
We welcome you at 15 Calle Velázquez, in the heart of the Salamanca district.
The information in this article is indicative, is drawn from data published by the Spanish Tax Agency (consulted on 6 October 2026) and does not replace personalised tax or legal advice. Numerical examples are simplified and do not take into account other costs or circumstances.
