Selling a House in Spain – What Are the Tax Implications 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 property sales in Spain are taxed for those registered in Sweden and not tax residents in Spain.

How is the Sale Taxed in Spain?

If you are a non-resident in Spain (i.e., not tax resident there), the sale is taxed according to Spanish rules for non-citizens. Here are the main taxes involved:

1. 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 selling price and the purchase price, minus approved costs.

For example:

• Broker fees
• Notary and registration fees
• Documented renovations (not regular maintenance)
• Legal or tax advisory services

Deductions must be supported by official receipts and invoices. Neither mortgage interest nor regular maintenance is deductible.

2. 3% Retention (withholding tax on sale)

According to Spanish law, the buyer is required to withhold 3% of the selling price and pay it directly to the Spanish tax authority (Agencia Tributaria). The purpose is to ensure that any capital gains tax is paid. If the actual tax you owe is less than 3%, you can apply for a refund via form Modelo 210.

3. Plusvalía Municipal

This is a local tax based on the increase in land value (not the property). The amount varies between municipalities and is calculated based on the number of years you have owned the property and the increase in land value. The tax is usually paid by the seller, but this can be agreed upon between the parties.

What Happens with the Tax in Sweden?

If you are fully liable for tax in Sweden, the sale must be declared in your Swedish income tax return, even if you have already paid tax in Spain. This is because Sweden taxes income and capital gains from all over the world.

Is Double Taxation Avoided?

Yes. Sweden and Spain have a double taxation agreement which means you can request a credit for the capital gains tax you have already paid in Spain.

If the property is considered a private residence according to Swedish rules, 22/30 of the capital gain must be declared for taxation in Sweden. The quoted amount is taxed at 30%, which corresponds to an effective tax of 22% of the total capital gain. Other countrys my have diffrent tax rules regarding capital gain.

This means you:

• Declare the capital gain in Sweden.
• Quote the gain to 22/30.
• Pay 30% tax on the quoted amount.
• Request a credit for the capital gains tax paid in Spain.

You thereby normally only pay the difference in Sweden.

Example

Selling price: 400,000 €

Purchase price and deductible costs: 300,000 €

Capital gain: 100,000 €

Spanish capital gains tax:

100,000 € × 19% = 19,000 €

Swedish capital gains tax:

100,000 € × 22/30 = 73,333 €

73,333 € × 30% = 22,000 €

Credit:

22,000 € − 19,000 € = 3,000 € to pay in Sweden

Note that credit is only granted for Spanish tax that has actually been paid and can be documented. The calculation is simplified. In the Swedish tax return, all amounts must be converted to Swedish kronor, which may mean that the Swedish capital gain differs from that calculated in Spain.

Important Declaration Requirements After the Sale

To avoid penalties and delays, you should be careful with the following steps:

• Declare property tax in Spain, for example, by submitting Modelo 210 within 4 months
• Plusvalía Municipal must be paid to the municipality within their specific timeframe (usually within 30 days)
• The gain must be declared in Sweden in connection with your annual income tax return

Missing any of these steps can lead to:

• Late fees
• Interest costs
• Risk that deductions or credits are not approved

Selling a property in Spain as a Swede involves tax liability in both Spain and Sweden, but through proper handling, double taxation can be avoided. The most important thing is to document everything correctly, meet deadlines, and seek help if needed.

How Estity Can Help You

Estity helps you stay organized and prepared by:

• Collecting all property documents and receipts in a secure place
• Keeping track of deductible costs over time
• Providing guidance on Spanish declarations such as Modelo 210
• Giving you a clear overview of your entire ownership

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