Do you own an apartment in Madrid and are thinking about selling it? The Spanish capital is experiencing exceptional growth in the real estate market in 2026, cementing its position as Europe’s leading destination for real estate investment.
With prices expected to rise by 17.5% in 2025 (Idealista) and strong international demand, now is the perfect time to sell. Whether you’re a tax resident or non-resident, selling in Madrid requires expertise in the local market, a thorough understanding of Spanish administrative procedures, and careful tax planning.
Terreta Spain, a French-speaking real estate agency based in Madrid, guides you through the entire process—from appraisal to the signing at the notary’s office—entirely in French. Discover why Madrid attracts so many investors, how to maximize the value of your sale, and what the tax regulations are in the Spanish capital.
| In a nutshell: In a hurry? Here’s the lowdown. The Madrid marketAverage price: €5,820/sq. m. (+17.7% by 2025) Time to sell: Themarketis strong; a property can sell in a matter of weeks. Average: a few months. Demand > Supply: market extremely favorable to sellers European leader: Madrid, investment capital of 2026 Neighborhoods with high potential Salamanca: €10,000/sq. m – high-end, international clientele Chamberí: €9,800/sq. m – elegance, affluent families Malasaña: €7,630/sq ft – trendy, high rental demand Chueca: €9,000/sq ft – artistic, young clientele Tetuán: €5,700/sq ft – gentrification underway Villaverde: €2,750/sq ft – up-and-coming, good investment Puente de Vallecas: €3,211/m² – up-and-coming, good investment Carabanchel: €3,560/m² – ongoing consolidation Taxation Non-residents: 19% (EU) or 24% capital gains tax | 3% withholding by the buyer Residents: IRPF (income tax) 19–26% depending on the amount of capital gainsAll: Municipal capital gains tax based on the increase in the value of your property Required documents Property title deed | Energy certificate | Community certificate | IBI receipts Madrid Bonus: ITP at 6% (vs. 10% in Valencia) = Madrid is more attractive to buyers, making sales easier Support from Terreta Spain Free and realistic estimate Complete file managed from A to Z Remote sale possible (power of attorney) French-speaking support (notary + tax advisor) Fees: 3% excl. VAT (+ 21% VAT) For more information, check out our practical guide:“Selling Your Property in Spain.” |
Why sell in Madrid in 2026?
The Madrid real estate market is breaking all records and offers exceptional selling conditions for homeowners.
Record growth
Madrid saw a dramatic increase of 17.7% in 2025, outpacing all other major Spanish cities. The average price per square meter now stands at €5,820/m², with significant variations across different neighborhoods. This performance can be attributed to Madrid’s status as Spain’s economic and financial capital, attracting corporate headquarters, startups, international talent, and investors from around the world.
Madrid, Europe's investment capital
Since 2023, Madrid has established itself as THE leading destination for real estate investment in Europe. The city is attracting a massive influx of investment funds, family offices, and high-net-worth individuals. This institutional and high-end demand is driving prices upward and ensuring exceptional market liquidity: well-located properties sell within two to three months on average.
Caption: Trends in the Madrid real estate market
Source: Idealista
Explosive growth in rental demand
Madrid’s economic growth is driving strong demand for rental properties. International companies, expatriates, Erasmus students, and young professionals—they’re all looking for a place to live in the capital. Well-located furnished apartments boast occupancy rates of 95% or higher and attractive rental yields. You’ll have no trouble selling your property.
Madrid's Most Popular Neighborhoods
The Madrid market is highly segmented by neighborhood:
Premium neighborhoods:
- Salamanca: The ultimate upscale neighborhood. Average price: €10,000 per square meter. High-end international clientele. Very strong demand, limited supply.
- Chamberí: Madrid elegance. Average price: €9,800/sq. m. Affluent families, expatriate executives. Renovated traditional architecture.
- Malasaña: The trendy neighborhood. Average price: €7,630/sq. m. Young professionals, digital nomads, bohemian vibe. High demand for rentals.
- Chueca: The gay-friendly, artsy heart of the city. Average price: €9,000 per square meter. Nightlife, culture, tolerance. Young, international clientele.
Up-and-coming neighborhoods (rapidly appreciating):
- Tetuán: Undergoing a major transformation. Average price: €5,700 per square meter. Double-digit price increases have been observed, and gentrification is underway.
- Carabanchel: The up-and-coming southern neighborhood. Average price: €3,560 per square meter. Sharp rise expected in 2025; good potential for sellers who purchased before 2022.
- Villaverde: €2,750/sq. m. – up-and-coming area, good investment
- Puente de Vallecas: €3,211/sq m – up-and-coming, good investment
- Carabanchel: €3,560 per square meter – consolidation underway
For more information, read our experts’ in-depth analysis:“Where to buy in Madrid? The most affordable neighborhoods inside and outside the M30.”
Favorable macroeconomic environment
Stable interest rates and Spain’s economic growth (projected at around 2% to 2.5% in 2026) are supporting Madrid’s real estate market. Buyers have easier access to credit, which is facilitating transactions and keeping upward pressure on prices.
In early 2026, interest rates in Spain were generally around 3% (Bank of Spain). Sometimes slightly lower. Variable-rate loans are typically based on the 12-month Euribor (approximately 2.25% in mid-January 2026), to which the bank adds a margin, often bringing the final rate close to 3%.
How Terreta Spain helps you sell in Madrid
Selling property in Madrid requires in-depth local expertise and meticulous coordination. Terreta Spain is with you every step of the way.
Accurate appraisal of your property
We provide a realistic estimate based on an analysis of recent sales in your building and on your street. Our in-depth knowledge of the Madrid market (we track transactions neighborhood by neighborhood) allows us to set the right market price—neither too low (which would mean you lose money) nor too high (which would leave your property on the market for months and make it less attractive).
Complete sales package
We gather all the required documents:
- Certificate of No Encumbrances : Extract from the Property Registry (Registro de la Propiedad) proving your ownership and the absence of encumbrances
- Energy Performance Certificate (EPC) : Required for all sales, valid for 10 years
- Certificate of Co-ownership: Certifies that you are up to date on your co-ownership fees
- Property Tax Receipts : Proof of payment of property tax
Optimized marketing
Your apartment enjoys maximum visibility:
- Professional HD photos: Virtual home staging if needed
- Multi-channel distribution: Spanish real estate portals (Idealista, Fotocasa), social media, and especially our (wonderful) Terreta customer database
- Videos and virtual tours: To attract international buyers who cannot visit in person right away
Buyer Qualification
We screen buyers to ensure that only serious, financially qualified candidates are presented. In Madrid, there are many foreign buyers: we verify their purchasing power, their bank approval, and their motivation. This helps avoid unnecessary viewings and false promises.
Expert Negotiation
The Madrid real estate market is competitive. We negotiate firmly to secure the best price while ensuring a smooth transaction. Our goal: to maximize your selling price and minimize the time it takes to sell.
Coordination between notaries, attorneys, and tax specialists
We coordinate all parties involved. A Spanish notary authenticates the deed of sale. Our partner tax attorneys calculate your taxable capital gains, optimize your deductible expenses, and handle your IRNR tax return. All in French, from start to finish.
Distance selling
If you live abroad, you can sell your property through a notarized power of attorney. We handle viewings, negotiations, and coordination with the notary. You can track the progress in real time. Remote signing is available.
Timelines and Taxation for Selling in Madrid
Average time to sell
In Madrid, expect to wait a few weeks for a well-located property. On average: a few months. The Madrid market is the most liquid in Spain.
Taxation for Non-Residents
If you are a non-resident for tax purposes:
- 3% Withholding: The buyer is required to withhold 3% of the sale price and pay it to the Spanish tax authorities (Hacienda). This withholding serves as an advance payment on your capital gains tax.
- Statement IRNR : You must report the sale within 90 days of signing (Form 210). The tax rate on the net capital gain is 19% for EU/EEA residents, or 24% for others.
- Calculation of taxable capital gains : Sale price – Purchase price – Justified deductible expenses (initial purchase costs, invoiced renovation costs, selling expenses).
- Refund of overpayment: If your actual tax liability is less than the 3% withholding, you will receive a refund for the difference after filing your return.
Taxation for Residents
If you are a tax resident in Spain, capital gains are included in your annual income tax return. Progressive tax rates: 19% on amounts up to €6,000, 21% on amounts between €6,000 and €50,000, 23% on amounts between €50,000 and €200,000, and 26% on amounts above that.
Municipal capital gains tax
The Madrid City Council levies the municipal capital gains tax (IIVTNU), a local tax on increases in land value. Since 2021, an exemption is possible if you sell at a loss or without any actual increase in land value.
A major bonus: Madrid’s unique feature—a lower ITP than elsewhere
If a buyer purchases a resale property, they pay a 6% property transfer tax (ITP) in Madrid (compared to 10% in Valencia until June 2026, then 9%). This difference makes Madrid more attractive to buyers, which makes it easier for you to sell.
Terreta Spain and its tax attorneys will optimize your tax return to minimize your tax liability and avoid costly mistakes.
They sold with Terreta Spain
"I sold two apartments, one with a Spanish agency and the other with Terreta Spain. The difference is clear: their customer service is methodical and transparent. That's everything a customer needs to feel secure about their transaction. They make reselling simple and post-purchase tax matters easy with their partner lawyers. You can trust them completely."
— Romain Aldeghi
"My wife and I don't speak Spanish very well, so selling with Terreta Spain was very reassuring for us. Maxime handled everything from A to Z with great professionalism, including a problem with the buyer on the day of the sale. As a result, we gave Terreta power of attorney and they signed on our behalf."
— Eric Bernardini
Are you ready to sell?
FAQ: Selling Your Property in Madrid
How long does it take to sell a property in Madrid?
It depends on the property and the area, but if it’s in a good location, a property can sell in a matter of weeks. On average: a few months.
Can you sell online from France?
Yes, with a notarized power of attorney. You sign the power of attorney at a French notary’s office, and then Terreta Spain handles everything: viewings, negotiations, and coordination with the Spanish notary. You can complete the sale without returning to Spain.
What are the tax rules for a non-resident French seller?
19% Spanish tax on net capital gains (EU residents). 3% withholding tax upon signing. IRNR tax return due within 90 days. Spanish tax paid is deductible in France (under the Franco-Spanish tax treaty).
What documents are required to sell a property?
Certificate of Title (property registry), Energy Performance Certificate (EPC), Certificate of Co-ownership, and property tax receipts. Terreta Spain coordinates the procurement of all these documents.
Does Terreta Spain provide assistance with selling in Madrid?
Yes, comprehensive support in French: free appraisal, sales package, professional marketing, buyer screening, negotiation, coordination with the notary and tax advisor, and remote sales. Fees: 3% of the sale price (excluding VAT ) + 21% VAT. BUTTON: Get your property appraised in Madrid
