Selling property in Spain as a non-resident
If you live outside Spain and sell a Spanish property, you will not receive the full price on completion day. By law, the buyer must withhold 3 % and pay it to the Spanish Tax Agency. Here is how it works — and how to get it back.
The 3 % retention
When a property in Spain is sold by a non-resident, the buyer is legally obliged to retain 3 % of the agreed price and pay it to the Spanish Tax Agency using form Modelo 211, within one month of the transfer.
This is not an additional tax. It is an advance payment of the Non-Resident Income Tax (IRNR) due on your capital gain. Spain applies it as a guarantee, since the seller usually leaves the country after completion.
What you will actually pay
| Item | Who handles it | Deadline |
|---|---|---|
| 3 % retention (Modelo 211) | Buyer pays it, deducted from your price | 1 month from completion |
| Capital gains tax (Modelo 210) | You, the seller | Within the months following the sale |
| Plusvalía municipal (local land value tax) | You, the seller (general rule) | 30 working days |
How the capital gain is calculated
Broadly, your gain is the sale value minus the acquisition value:
- Sale value: the price, less the costs and taxes you paid on the sale.
- Acquisition value: what you originally paid, plus purchase costs, taxes and any structural improvements (not routine maintenance).
Residents of the EU, Iceland and Norway benefit from a lower rate than residents of third countries, and may deduct certain expenses. Keep every invoice: they reduce the taxable gain.
Claiming your refund
The 3 % is calculated on the full sale price, not on your profit. So if your gain was small — or if you sold at a loss — the retention will usually be more than you owe.
You can claim the excess by filing Modelo 210, attaching the Modelo 211 receipt provided by the buyer. Refunds are common, but the Spanish Tax Agency may take several months to process them.
Selling your Spanish property?
We handle the Modelo 211 filing and advise on the capital gains return. We assist clients in English.
Get in touch →Common mistakes
- Assuming that holding an NIE makes you a Spanish tax resident. It does not: only a tax residency certificate issued by the Spanish Tax Agency avoids the retention.
- Leaving completion without the Modelo 211 receipt.
- Forgetting the plusvalía municipal, which is handled separately by the town hall.
- Discarding the original purchase paperwork and renovation invoices.
Frequently asked questions
Do I need to travel to Spain?
Not necessarily. These filings can be handled by an authorised representative on your behalf.
What if I sell at a loss?
The 3 % is still withheld, but you can request a refund by proving there was no gain.
How long does the refund take?
It varies, but it commonly takes several months from the date the claim is filed.
Do I need a fiscal representative in Spain?
Not always mandatory, but strongly advisable so that notifications reach you and the refund is properly followed up.