Selling a house in Spain – How is the tax handled in Sweden?

Selling a property in Spain as a Swedish citizen raises an important question: how is the profit taxed in Sweden when the property is located abroad?

This article explains how the sale of real estate in Spain is taxed for you who are registered and resident in Sweden and not tax resident in Spain.

How is the sale taxed in Spain?

If you are non-resident in Spain (i.e. not tax resident there), the sale is taxed under Spanish rules for non-residents. The following taxes are key:

Capital gains tax

As an EU/EEA citizen, you pay 19% capital gains tax on the profit.

The profit is calculated as the difference between the sale price and the purchase price, minus approved costs, such as:

• Real estate agent fees
• Notary and property registration fees
• Documented renovations (not routine maintenance)
• Legal or tax advisory services

All deductions must be supported by official receipts and invoices.

Mortgage interest and regular maintenance costs are not deductible.

3% Retention (Withholding tax on sale)

Under Spanish law, the buyer is required to withhold 3% of the purchase price and pay this amount directly to the Spanish tax authority.

The purpose is to ensure that any capital gains tax is paid.

If the actual tax you owe is lower than 3%, you can apply for a refund using Modelo 210.

Plusvalía Municipal

This is a local municipal tax based on the increase in the value of the land (not the building itself).

The amount varies between municipalities and is calculated based on:

• How long you have owned the property
• The increase in the cadastral land value

The tax is normally paid by the seller, but this can be agreed otherwise between the parties.

What happens with the tax in Sweden?

If you are fully liable for tax in Sweden (registered and resident there), you must declare the entire capital gain in your Swedish income tax return – even if tax has already been paid in Spain.

This is because Sweden taxes global income.

Is double taxation avoided?

Yes. Sweden and Spain have a double taxation treaty that allows you to claim a credit for tax already paid in Spain.

This means that you:

1. Declare the capital gain in Sweden

2. Calculate Swedish capital gains tax (30%)

3. Deduct the Spanish capital gains tax from the Swedish tax

You therefore only pay the difference in Sweden.

Example

• Sale price: €400,000
• Purchase price + deductible costs: €300,000
• Profit: €100,000
• Spanish tax (19%): €19,000
• Swedish tax (30%): €30,000

Tax credit: €30,000 – €19,000 = €11,000 payable to the Swedish Tax Agency.

Important filing requirements after the sale

To avoid penalties and delays, make sure that:

• Modelo 210 is filed in Spain (normally within 4 months)
• Plusvalía Municipal is paid to the municipality within its deadline (often around 30 days)
• The capital gain is declared in Sweden as part of your annual income tax return

Failing to comply with these steps may result in:

• Late payment penalties
• Interest charges
• Risk that deductions or tax credits are not approved

Summary

Selling a property in Spain as a Swedish citizen involves tax obligations in both Spain and Sweden.

However, with correct handling, double taxation can be avoided. Spanish capital gains tax and municipal tax are mandatory, but they can be coordinated with Swedish taxation through the double taxation treaty.

The most important points are to:

• Keep proper documentation of all costs
• Meet all deadlines
• Seek professional advice when needed

How Estity can help

Estity helps you stay organised and prepared by:

• Storing all property documents and invoices in one secure place
• Keeping track of deductible costs over time
• Guiding you through Spanish tax filings such as Modelo 210
• Giving you a clear overview of your ownership history

With the right structure in place, the sale becomes simpler, safer and more predictable.