Selling Property in Mallorca as a Non-Resident: Taxes, Costs and the Complete Process

Selling property in Mallorca as a non-resident involves a set of legal and tax obligations that differ significantly from the process for Spanish tax residents, and understanding them in advance removes the surprises that can otherwise make a straightforward sale feel complicated. The core elements are three: a 19% capital gains tax on any profit made from the sale, a 3% retention withheld at the notary on the total sale price as an advance payment against that liability, and the plusvalia municipal tax charged by the local town hall. On top of these, the costs of the sale itself — agency commission, notary, gestoria — need to be factored into any net proceeds calculation. This guide covers each element clearly, with the verified figures that apply in 2026.

One important note before the detail: Spain's Golden Visa programme, which previously offered residency rights to non-EU buyers purchasing property above 500,000 euros, ended in April 2025. Selling a property in Mallorca no longer affects any residency pathway in either direction. The tax and legal framework for a non-resident sale is unaffected by this change.

Capital Gains Tax for Non-Residents

When a non-resident sells a property in Mallorca, any profit on the sale is subject to the Impuesto sobre la Renta de No Residentes (IRNR) — the non-resident income tax. The rate in 2026 is 19% for EU and EEA residents and 24% for non-EU, non-EEA residents. In practice, because of the double taxation treaties Spain maintains with the United Kingdom, the United States, Germany and most other countries from which Mallorca's international buyer base comes, most sellers pay the 19% rate regardless of nationality — your tax adviser will confirm your specific position based on your country of tax residence.

The taxable base is the net gain: the difference between the sale price and the original purchase price, adjusted for eligible costs on both sides. You are entitled to deduct from the gain the following expenses, provided they are documented: the purchase price paid, the ITP transfer tax or VAT paid at the time of purchase, notary and land registry fees from the original purchase, legal fees from both purchase and sale, the agency commission on the current sale, the cost of any documented improvements or extensions to the property (not routine maintenance), and the plusvalia municipal tax if paid by the seller. Keeping all original purchase documentation and invoices for any works carried out on the property is therefore genuinely valuable at the point of sale — every euro of documented cost reduces the taxable gain by a euro.

The 3% Retention at Source

The 3% retention is the mechanism by which the Spanish tax authorities ensure that a non-resident seller does not complete a property sale and leave the country without settling their capital gains liability. At the notary signing, the buyer withholds 3% of the total sale price and pays it directly to the tax authorities on Form 211 within one month of the sale. The seller receives 97% of the agreed price at completion.

The 3% is not an additional tax — it is an advance payment against the final capital gains liability. Within four months of the sale, the seller (or their appointed tax representative) must file Form 210 to calculate the actual capital gains position. There are three possible outcomes: if the 3% retention exactly covers the 19% liability on the gain, no further action is needed; if the 3% withheld exceeds the liability — which happens when the gain is modest relative to the sale price, or when the property is sold at a loss — the excess is refunded to the seller; if the 3% is less than the full liability, the balance must be paid. Refunds from the Spanish tax authority typically take between six and twelve months to arrive, so sellers should plan their cash flow accordingly.

A worked example: if a property is sold for 500,000 euros, the buyer withholds 15,000 euros (3%) at the notary. If the taxable gain on the sale is 60,000 euros after deductions, the 19% liability is 11,400 euros. The seller files Form 210, the liability of 11,400 euros is set against the 15,000 retained, and a refund of 3,600 euros is due — subject to the processing timeline.

Plusvalia Municipal

The plusvalia municipal is a local tax levied by the Calvia town hall (or whichever municipality the property is in) on the increase in the value of the urban land on which the property sits. It applies to the land element only, not the building, and it is calculated based on the cadastral land value and the number of years the property has been owned. The longer the ownership period, the higher the coefficient applied, up to a maximum period. The tax must be paid within 30 days of the sale.

A significant change introduced in 2021 and now fully in effect allows sellers to choose between two calculation methods: the traditional coefficient-based method using the cadastral value, or an objective method based on the actual increase in the land's value. Where the land has not increased in value, the seller can challenge the plusvalia or request exemption — this is an important protection that was not available before 2021. Your gestoria or solicitor will calculate both methods and advise which produces the lower liability. The standard rule under Spanish law is that the seller pays plusvalia, though as with all costs it can be negotiated between parties in the sales contract.

Other Selling Costs

Beyond the tax obligations, the seller bears several practical costs in a Mallorca property sale. Estate agency commission is the largest: in the Mallorca market the standard commission is typically 5% plus IVA (VAT at 21%), charged on the agreed sale price. This is fully deductible from the capital gains calculation, which reduces the effective cost. The notary fee for the sale deed is typically paid by the buyer under standard Spanish practice, though this can vary by agreement. The seller's own legal and gestoria fees for managing the tax filing and post-sale formalities are typically in the range of 1,000 to 2,000 euros and are also deductible from the gain.

A net proceeds table for a non-resident selling a 700,000 euro Mallorca property:

Selling Without Being in Mallorca

A non-resident seller does not need to travel to Mallorca to complete the sale. It is standard practice — and highly recommended — to grant a power of attorney (notarised and apostilled in your country of residence) to a trusted Spanish solicitor or gestoria. The power of attorney authorises them to sign the deed at the notary on your behalf, manage the tax filing on Form 210, receive the 3% refund if applicable, and handle all post-sale formalities. The full sale process can be conducted remotely, with the funds transferred to your bank account outside Spain. For sellers based in the UK, the US, Germany, Scandinavia or elsewhere, this is the standard approach and it works efficiently provided the representative is well-briefed and experienced in Mallorca property transactions.

Double Taxation Protection

Most sellers from the UK, Germany, the US, France, the Netherlands, Scandinavia and the other major buyer countries have protection against paying tax on the same gain twice — once in Spain and once at home — through Spain's network of double taxation agreements. Under most of these treaties, the capital gains tax paid in Spain is credited against any liability in the home country. Your tax adviser in your country of residence should be consulted before the sale completes to understand the precise interaction between Spanish CGT and your home country's tax on the gain.

Typical Timeline

A Mallorca property sale from offer agreement to completion typically takes between four and twelve weeks. The sequence runs: offer and reservation deposit, private purchase contract (contrato de arras) with 10% deposit, due diligence and preparation period, notary signing with balance payment and 3% retention. After completion, the seller has four months to file Form 210. The plusvalia must be paid within 30 days. Any retention refund arrives from the Spanish tax authority within six to twelve months of the Form 210 filing.

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