How to sell a flat in Madrid in 2026: documents, price, deposit contract, taxes and timings

Before you start: the Madrid market

Madrid is still a market with strong demand. According to the idealista price report, the price per square metre of homes for sale in the city stood at €6,458 in September 2026, 2.4% more than a year earlier, although with a slight 0.2% dip compared with the previous month.

The differences between districts are huge. The Salamanca district exceeds €10,800 per square metre, while Villaverde stays at €3,365. However, the biggest annual rises are now concentrated in the south and east: Villaverde (+23.7%), Puente de Vallecas (+17.9%) and Usera (+15.9%).

Source: idealista, price report for homes for sale in the city of Madrid, September 2026. These are asking prices, not final sale prices.

Step 1: gather your documents

Having your paperwork ready from day one avoids delays when a serious buyer appears and builds trust. These are the key documents:

• Nota simple (land registry extract) from the Registro de la Propiedad (Land Registry): it shows who the owner is and whether the property has any charges on it, such as a mortgage or an attachment order. You can request it at the Registry or online through the Colegio de Registradores (Association of Land Registrars).
• Escritura (title deed) of purchase or other proof of ownership: used to check details and, later, to calculate the taxable gain, because it states the purchase price.
• Energy performance certificate: compulsory both to sell and to advertise the property (Real Decreto 390/2021, Royal Decree 390/2021). A registered copy must be attached to the contract and the rating must appear in the adverts.
• Certificate of debts with the comunidad de propietarios (owners' association): issued by the secretary with the president's approval, within seven days of the request (art. 9.1.e of the Ley de Propiedad Horizontal, the Spanish law on owners' associations).
• Latest IBI (property tax) receipt and the referencia catastral (cadastral reference): the buyer and the notary will ask for them, and the cadastral reference is needed to calculate the plusvalía municipal (municipal capital gains tax).
• Building assessment report (IEE, formerly ITE), where applicable: in the city of Madrid it is required for buildings over 30 years old. It is worth asking the property manager whether the building's report is in order and whether any special levies have been approved.
• Certificate of the outstanding mortgage balance, if there is one: the bank issues it and it is used to prepare the cancellation on the day of signing.

The energy certificate is valid for a maximum of ten years, unless the rating is G, in which case it lasts five, under article 13 of Royal Decree 390/2021. If yours has expired, you must renew it before publishing the advert.

The owners' association certificate matters to the buyer because the property is liable for unpaid fees for the current year and the three previous years. The deed cannot be signed without it, unless the buyer expressly waives it.

Step 2: set a realistic price

Price is the decision that most affects how long a sale takes. A high price drags the sale out and forces later reductions; one that is too low leaves money on the table. To fine-tune it, combine several references:

• The average price in your district and, if possible, your neighbourhood, according to the property portals' reports.
• Comparable homes advertised in your area: size, floor, lift, exterior or interior-facing, condition and energy efficiency.
• A professional valuation, especially if the buyer will need a mortgage, because the bank will lend based on the appraised value.
• Room for negotiation: the portals' reports show asking prices, and the final price usually ends up somewhat lower.

An example: a 70-square-metre flat in Arganzuela, multiplied by the district's average price (€6,384 per square metre), would give a reference figure of around €446,900. From there, you would need to adjust for the specific features of the property.

Step 3: the arras contract (deposit contract)

When buyer and seller reach an agreement, the usual step is to sign a contrato de arras (deposit contract). The buyer pays a deposit, normally around 10% of the price, and both parties set a deadline for signing the deed, which usually ranges from one to three months.

There are three types of arras, and the contract should make clear which one has been agreed:

• Arras penitenciales (withdrawal deposit): the only type expressly regulated in the Código Civil (Spanish Civil Code, article 1454). They allow either party to pull out: if the buyer does so, they lose the deposit; if the seller does so, they return it doubled. They are the most common type in home sales.
• Arras confirmatorias (confirmatory deposit): they work as an advance payment on the price. If one party fails to comply, the other can demand performance or terminate the contract and claim damages.
• Arras penales (penalty deposit): they set a penalty for non-compliance, but do not release the defaulting party from their obligation, unless otherwise agreed.

Before signing the arras, the seller should have cleared up any doubts about charges or debts, and the buyer should have their financing in place. Many sales fall through because the mortgage does not arrive in time.

Step 4: the taxes the seller pays

The sale involves two main taxes for the seller: the plusvalía municipal and IRPF (Spanish personal income tax) on the capital gain. In addition, the year's IBI is usually split between the parties if they agree to do so.

The plusvalía municipal (officially the Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana, a tax on the increase in value of urban land) is paid by the seller in a sale. Following Constitutional Court ruling 182/2021, Royal Decree-law 26/2021 established two calculation methods, and the taxpayer can choose whichever gives the lower bill:

• Objective method: the cadastral value of the land multiplied by a coefficient that depends on the number of years of ownership, with maximums set by law that can be updated.
• Actual method: the difference between the sale price and the purchase price, in the proportion represented by the land value, multiplied by the municipal rate.
• If there is no gain, because the property is sold for less than it was bought for, the tax is not payable, provided this is proven with the deeds.
• The maximum legal rate is 30%; the city of Madrid applies 29%.
• For sales, the deadline to declare it is 30 working days from the transfer.

IRPF taxes the capital gain, that is, the difference between the transfer value and the acquisition value. From the first, you subtract the costs and taxes of the sale paid by the seller, such as the agency's commission or the plusvalía municipal; to the second, you add the costs and taxes of the purchase and any improvements. The gain is taxed in the savings income band with this scale, in force since 2025:

Source: Agencia Tributaria (Spanish Tax Agency), Manual práctico de Renta 2025 (state and regional savings scales, 9.5% to 15% each); Ley 7/2024 (Law 7/2024).

Exemptions that can save you income tax

There are two situations in which the gain from selling your main home can be exempt:

• Reinvestment in another main home: if the amount obtained is reinvested in buying a new main home within two years, the gain is exempt. If the reinvestment is partial, only the proportional part is exempt. Where the home sold had a mortgage, the amount to be reinvested is reduced by the outstanding capital that is paid off.
• Over-65s: the gain from selling the main home is exempt with no need to reinvest. For the property to count as a main home, you generally need to have lived in it continuously for at least three years.
• Life annuity: over-65s can make the gain from selling other assets exempt if they put the amount, up to a maximum of €240,000, into an insured life annuity within six months.

Complete worked example

Suppose a flat in Madrid bought in 2012 for €255,000, with €20,000 in purchase costs and taxes, is sold in 2026 for €430,000. The seller pays the agency 4% plus VAT and a plusvalía municipal which, for the purposes of the example, we assume to be €3,500. It is not their main home, or they will not reinvest, so no exemption applies.

Illustrative example prepared with the Agencia Tributaria's savings scale. The plusvalía municipal is an assumption: the actual amount depends on the cadastral value of the land and the years of ownership. It does not include mortgage cancellation or other minor costs.

The example shows how much the commission weighs: with a traditional agency, the difference between paying 3% and 7% on €430,000, VAT included, ranges from €15,609 to €36,421. And because the commission reduces the gain, it also slightly reduces the income tax.

How much agencies charge in Spain

Estate agency fees are not regulated by law in Spain, so each agency sets its own. According to Consumer, traditional agencies usually charge between 3% and 7% of the sale price, plus 21% VAT. In areas such as the Canary Islands or the Balearic Islands, the commission can be at the top end of the range.

Commission range according to Consumer (updated in February 2025). Our own calculations.

Beyond the percentage, it is worth asking what the service includes (photos, buyer screening, managing viewings, document review, accompanying you to the notary), whether the agreement ties you to that one agency and for how long, and whether anything is charged if the property does not sell.

Step 5: an indicative timeline

According to a study by Tecnocasa and the Universitat Pompeu Fabra, in 2024 a home took on average around 60 days to sell in Madrid, compared with 73 days across Spain as a whole. To that marketing period you need to add the time between the arras and the deed.

• Weeks 1 and 2: documents, energy certificate, photos and setting the price.
• Weeks 2 to 10: publication, viewings and negotiation, with an average of around 60 days in Madrid.
• Signing the arras: the buyer pays the deposit, usually 10%.
• One to three months later: signing the deed before a notary, receiving the rest of the price and cancelling the mortgage if there is one.
• Within the following 30 working days: declaring the plusvalía municipal.
• In the following year's income tax return: paying IRPF on the capital gain.

Common mistakes when selling

• Advertising without an energy certificate or without stating the rating in the advert.
• Signing arras without specifying which type they are.
• Forgetting that the plusvalía municipal has its own deadline and does not wait for the income tax return.
• Not keeping invoices for improvements and purchase costs, which reduce the gain for IRPF purposes.
• Taking the reinvestment exemption for granted without meeting the two-year deadline or without reinvesting the full amount.

An alternative: selling with Llavely

At Llavely we do everything for you: valuation, photos, video and virtual tour, buyers screened and verified by us, the viewings, specialised lawyers who go with you in person to the notary, and a private online area to follow the sale. You only pay 2.5% plus VAT, all included, if the sale goes through, on the day of signing at the notary.

This article is for information only and is not a substitute for professional advice: each tax and legal case should be reviewed with an adviser, notary or lawyer.

Frequently asked questions

Sources

1. Trend in the price of homes for sale in Madrid, September 2026 (idealista, in Spanish)
2. House prices in Madrid: the most and least expensive districts (idealista, 02/10/2026, in Spanish)
3. Real Decreto 390/2021 (Royal Decree 390/2021), basic procedure for the energy performance certification of buildings (BOE, Spain's Official State Gazette)
4. The energy performance certificate requirement (OCU, 26/08/2024, in Spanish)
5. Ley 49/1960, de Propiedad Horizontal (Owners' Associations Act), consolidated text (BOE)
6. Código Civil (Spanish Civil Code), consolidated text (BOE)
7. The arras contract: types and key points (Tinsa, 24/11/2025, in Spanish)
8. Homes have to pass an inspection: ITE and IEE deadlines (Xataka Home, 11/02/2026, in Spanish)
9. La plusvalía (municipal capital gains tax) (Consumo Responde, Junta de Andalucía, 12/12/2025)
10. Plusvalía municipal in the Comunidad de Madrid after Constitutional Court ruling STC 182/2021 (Guía Fiscal, 22/08/2026, in Spanish)
11. Income tax impact of late payment of the plusvalía (Gómez-Acebo & Pombo, in Spanish)
12. Manual práctico de Renta 2025 (Income Tax Practical Guide 2025): state tax on the savings base (Agencia Tributaria)
13. Manual práctico de Renta 2025 (Income Tax Practical Guide 2025): regional tax on the savings base (Agencia Tributaria)
14. Tax changes for 2025 (Fieldfisher, in Spanish)
15. Sale of the main home by people over 65 (Agencia Tributaria, specific Income Tax 2025 guide)
16. Over-65s leaflet, Income Tax 2025 (Agencia Tributaria)
17. Capital gains and losses: reinvestment in a main home (Agencia Tributaria)
18. How much do estate agencies in Spain charge to sell a flat? (Consumer, updated 25/02/2025, in Spanish)
19. Homes sell in 73 days: data from Tecnocasa and the UPF (Xataka, 13/02/2025, in Spanish)