Note
Who pays plusvalía: buyer or seller
Quick answer
On a sale the seller is the taxpayer. On an inheritance or gift the person who receives the land is. If the seller is an individual who does not live in Spain, the buyer is the substitute taxpayer and the town hall can claim from the buyer. Put the allocation in the contract.
Applies toBuyers purchasing from a seller who lives abroad, sellers who want to know their duty, and heirs. It does not cover the state tax on the sale profit.
This area of Spanish law is complex. We could not open the legal text behind the point below in full on the official site, so we state it as it is generally understood and have not checked it word for word. Before you rely on it, ask an independent Spanish lawyer who acts for you to confirm it for your case.
- Where the seller is an individual who is not resident in Spain, the buyer is the substitute taxpayer (art. 106 TRLRHL).
- On a transfer without payment, such as an inheritance or gift, the taxpayer is the person who receives the land or right (art. 106 TRLRHL).
- On a transfer for payment, such as a sale, the taxpayer is the seller (art. 106 TRLRHL).
On this page: 6 sections
§ 1The default rule on a sale
The law starts from a simple rule. When land is transferred for payment, as in a sale, the taxpayer is the person who transfers it. In plain terms, the seller owes the municipal tax on the increase in value. When land is transferred without payment, as in an inheritance or a gift, the taxpayer is the person who receives it. These are the two default rules, and both come from the consolidated local tax law.
Most sales between residents follow the first rule, and the tax is settled between the notary day and the self-assessment deadline. The seller pays, or the notary or lawyer deducts it from the proceeds if the contract says so. The overview of the tax is in the full plusvalía chapter.
§ 2The rule for a seller who lives abroad
The rule that matters to international buyers is the substitute taxpayer. Where the seller is an individual who is not resident in Spain, the law makes the buyer liable in the seller's place. That means the town hall may collect from the buyer, and the buyer's remedy is to recover the money from the seller. Many foreign owners sell homes they bought years ago, so the case is common on the resale market.
The practical answer is to plan for it before the deed. A lawyer can ask the seller for an estimate of the tax, hold back an agreed part of the price until the town hall confirms the amount, and make sure the deed or the contract records the arrangement. A buyer who pays the price in full and later receives a bill has a claim against the seller, but chasing someone in another country is slower than withholding the money at the start.
§ 3What a private agreement can and cannot do
Parties may agree that the buyer pays a tax the seller owes, and some contracts do. The agreement is valid between them. It does not change who the law makes liable, so the town hall still looks to the legal taxpayer, and the person who paid for another has a civil claim only. Read the clause on taxes and costs in your contract with this in mind, and remember that the costs of the deed are a separate matter from this tax.
§ 4Inheritance and gifts
On an inheritance, each heir pays for the land they receive, and the same applies to a donee on a gift. The town may grant a bonus when the property is a main home and the heirs are close relatives, but that is a local choice. The state tax on inheritance and gifts is a different tax, with its own section, and does not replace this one.
§ 5How the amount is calculated
The calculation, with the land value and the holding period, is in the calculation, and the route to a refund is in how a refund works. Because the national rules have been amended and we have not verified the current text, ask the town hall for the figure and keep its written working.
§ 6Questions to ask before signing
Ask whether the seller lives in Spain, in tax terms. Ask who will pay and when. Ask what happens if the town hall bills the buyer. Ask the lawyer to put the answers in the contract.
FAQRelated questions
Can the contract make the buyer pay?
Yes between the parties, because they are free to agree who bears the cost. But the town hall is not bound by it, so the person the law makes liable remains liable, and the other side must repay under the contract.
What if the seller lives abroad?
Then the law makes the buyer the substitute taxpayer on a sale by an individual who is not resident in Spain. The buyer can be asked to pay, and may then try to recover it from the seller. Ask your lawyer to plan for that.
Who pays on an inheritance?
The person who receives the land or the right pays. The heirs each answer for what they receive. The ordinance of the town may grant a bonus for some family transfers, so ask the town hall before the deadline.
Sources
- Ministerio de Hacienda: Real Decreto-ley 26/2021, text published in the Hacienda bulletin (arts. 104.5, 107 and 110 of the TRLRHL as rewritten) (official source, opens in a new window), Arts. 104.5 and 107Last checked 18 October 2026
- Boletín Oficial del Estado: Texto refundido de la Ley Reguladora de las Haciendas Locales (RDLeg 2/2004, BOE-A-2004-4214) (official source, opens in a new window), Arts. 60 to 77 (IBI) and 104 to 110 (municipal tax on the increase in value of urban land)Last checked 17 October 2026
Tax note. Rates depend on the region, the type of property and the buyer, and they change. Figures here are dated and sourced; examples are illustrative and show their assumptions. Confirm yours with the regional tax agency or a tax adviser.