Skip to content
GCT1

Guide · Non-resident tax

Selling property in Spain as a non-resident: the 3% retention explained

Three percent of your sale price goes straight to the tax office on day one. Here is why, what happens next, and how to get back what is yours.

Step 1 — The buyer withholds 3% (Form 211)

When the seller of a Spanish property is a non-resident, the law makes the buyer withhold 3% of the agreed price and pay it to the Tax Agency using Form 211, within one month of the sale. It is not optional and it does not depend on whether you are making a profit: it is an advance payment on account of your final tax. The buyer must hand you a copy of the filed Form 211 — keep it, because you will need it for your own return and for any refund.

If the buyer fails to withhold, the property itself remains liable for the seller’s tax — which is why every notary and every buyer’s lawyer insists on it at completion.

Step 2 — You declare the real gain (Modelo 210)

The 3% is an estimate; the real tax is calculated on your actual gain. You file Modelo 210 within three months of the end of the buyer’s one-month window — roughly four months from the notary appointment. The gain is the transfer value (price minus your selling costs, such as agency fees and the plusvalía) less the acquisition cost (what you originally paid, plus the taxes and expenses of that purchase and documented improvements). Non-residents pay 19% on the gain.

  • If the final tax exceeds the 3%: you pay the difference with the return.
  • If the 3% exceeds the final tax — or you sold at a loss: you claim the difference back in the same return, attaching the buyer’s Form 211.

Step 3 — Don’t forget the municipal plusvalía

Separate from the state tax, the town hall charges the plusvalía municipal on the increase in the land’s value while you owned it. As a non-resident seller it falls on you, it has its own short deadline, and since the 2021 reform it can be calculated two ways — objective or by real gain — so it is worth checking which produces the lower bill, and whether any charge is due at all when there was no real increase.

The paperwork that makes or breaks the refund

Refund claims live or die on documentation: both deeds, the Form 211 copy, invoices for the purchase costs and improvement works, the plusvalía receipt, and a certificate of tax residence from your home country when the tax office asks for it. Gathering this before completion day is the single best way to shorten the wait for your money.

We handle the whole sale, refund included: coordination with the notary, the Modelo 210, the plusvalía and the follow-up with the tax office until the money is in your account.

FAQ

Frequently asked questions

I sold at a loss. Do I get the 3% back?
Yes — but not automatically. You must still file Modelo 210 declaring the loss within the deadline, attaching proof of the buyer’s 3% payment (Form 211). The refund is claimed in that return. Expect the tax office to take its time and possibly ask for the purchase and sale deeds, invoices for improvements and the plusvalía receipt before paying out.
What costs reduce my taxable gain?
The acquisition cost includes the price you originally paid plus the taxes and expenses of that purchase (transfer tax or VAT, notary, registry) and documented improvement works. The transfer value is the sale price minus the costs you bear as seller, such as agency fees and the plusvalía. Keeping the invoices is what turns these into deductions.
Does the buyer always have to withhold 3%?
Whenever the seller is a non-resident, yes — the buyer pays it to the tax office with Form 211 within one month of the sale. If the buyer fails to withhold, the property itself remains liable for the seller’s tax, which is why every notary and buyer’s lawyer insists on it. The withholding applies regardless of whether the sale produces a gain or a loss.

Selling soon — or waiting for a refund?

Tell us where you are in the process and we’ll take it from there. First consultation free, in English.