When a non-resident sells Spanish property, the buyer must hold back 3% of the price and pay it to the Spanish tax office as an advance on the seller's capital gains tax. Here is how the retención works, when you get money back, and how we file the reclaim.
The 3% retention — the retención del 3 por ciento — is a withholding tax that applies in one specific situation: a seller who is not tax-resident in Spain disposing of a Spanish property. When that happens, the buyer keeps back 3% of the declared sale price and pays it directly to the Spanish tax authority (the Agencia Tributaria) on the seller's behalf, so the seller receives only the remaining 97% at completion.
It is not an extra tax or a fee. It is a payment on account — an advance instalment against the capital gains tax the non-resident seller may owe on the profit. The full liability is calculated separately, on the actual gain; the 3% simply ensures the tax office has something in hand before the seller, who lives outside Spain, has taken the money home and become much harder to chase.
Three things have to happen around completion, on opposite sides of the table. Knowing who does what avoids surprises at the notary.
At completion the buyer pays you 97% of the declared price and retains 3%. It is a legal obligation imposed on the buyer whenever the seller is a non-resident, calculated on the price stated in the deed.
Within one month of the sale, the buyer pays the withheld 3% to the tax office using Modelo 211, then gives the seller a stamped copy — the proof the seller needs to reclaim later.
The seller files a non-resident capital gains return, Modelo 210 in its H variant (Modelo 210H), declaring the real gain. If the 3% exceeds the tax due, the seller claims the difference back; if it falls short, the seller pays the balance.
The two filings are made by different people on different deadlines. The buyer's Modelo 211 comes first and is time-critical — one month from the date of the deed — while the seller's Modelo 210H follows, its clock running from the buyer's payment rather than from completion. The stamped Modelo 211 receipt is therefore the single most important document the seller leaves the notary with: without it, the reclaim cannot be properly evidenced.
Where the 3% has overpaid the tax, the reclaim is made through Modelo 210H, the capital gains variant of the non-resident income tax return. It sets out the acquisition value, the sale value, the allowable costs and the resulting gain or loss, calculates the 19% due on any gain, and offsets the 3% already paid; if the 3% exceeds the tax, the form requests a refund of the difference.
Two timing points matter. The return is generally filed within around three months of the buyer paying over the retention — not three months from completion, a distinction that trips people up — and the refund is not instant: the tax office reviews the return and, in the ordinary course, pays within a several-month window, longer if the file is queried. We track the deadlines, file correctly, and chase the refund where it stalls.
The whole regime turns on one question: is the seller tax-resident in Spain or not? The 3% applies only to non-resident sellers. A Spanish tax-resident is outside this system entirely — their capital gains go through the ordinary resident income tax return and the buyer withholds nothing — so the seller's status has to be pinned down correctly first.
Tax residence is not about nationality or whether you own a home here. Broadly, you are tax-resident if you spend more than 183 days in Spain in a calendar year, or your main economic interests are centred here. Establish status with evidence well before completion. The wider distinction is set out on our resident vs non-resident guide.
Although the retention is the seller's tax, the legal obligation to withhold and pay it falls squarely on the buyer — which makes it a real risk if handled badly. If the buyer fails to withhold the 3%, or withholds but does not pay it over via Modelo 211, the tax office can pursue the unpaid amount against the buyer, and crucially, the property itself can be treated as security for the debt — so a buyer who lets the seller walk away with the full price can find the home they have just bought encumbered by the seller's unpaid tax.
The protection is simple but must be done correctly: confirm the seller's residence status before completion, retain exactly 3% at the notary, and pay it through Modelo 211 within the one-month deadline. Done properly, the buyer discharges the obligation in full and the seller has the stamped receipt they need — one of the reasons both sides benefit from their own representation, as our property legal services page explains.
It is easy to forget that selling Spanish property usually triggers a second, separate tax: the municipal plusvalía (plusvalía municipal). This is a local tax charged by the town hall on the increase in the value of the land over the period you owned it, and it has nothing to do with the 3% retention or the national capital gains tax — it is calculated differently, paid to a different authority, and follows its own timetable.
It is an additional cost to budget for on top of the capital gains position, and responsibility for it is, by default, the seller's. It can be reduced or eliminated where there was no real increase in land value. We cover how it is calculated and challenged on our dedicated plusvalía municipal page; the takeaway here is not to assume it is covered by the 3% retention.
The 3% retention is simple in principle and surprisingly easy to get wrong in practice: the mechanics span two parties, two forms and two deadlines, and the reclaim fails quietly if a form is incomplete or the Modelo 211 receipt was never collected. We handle the whole sequence: confirming residence status before completion, making sure the 3% is correctly withheld and Modelo 211 filed on time, collecting the stamped receipt, then preparing and filing the Modelo 210H to reclaim the excess (including the full amount on a loss-making sale) or settle any balance, and following the refund through to payment. With extensive experience helping expats with Spanish property and tax, our team of bar-registered solicitors and legal specialists explains every step in plain English. Where a matter is more complex than a standard sale we will quote for it; extras may apply.
It is a withholding that applies when a non-resident sells Spanish property. The buyer keeps back 3% of the declared sale price and pays it to the tax office on the seller's behalf, as an advance against the seller's capital gains tax. The seller receives the remaining 97% at completion and reconciles the final position afterwards.
The buyer does. It is the buyer's legal obligation to withhold the 3% from the price and pay it to the Agencia Tributaria using Modelo 211 within one month of the sale. The buyer then gives the seller a stamped copy of the Modelo 211 as proof, which the seller needs in order to reclaim any excess.
Modelo 211 is the form the buyer uses to declare and pay the 3% retention to the Spanish tax office. It must be filed and paid within one month of the date of the sale. The stamped Modelo 211 receipt is the document the non-resident seller relies on to evidence the payment when reclaiming the difference later.
The 3% is an advance payment on account. Your real capital gains tax is 19% of the actual gain — broadly the sale price less your acquisition cost and allowable expenses. The 3% already paid is then offset against the bill: if it is more than the tax due you reclaim the difference, and if it is less you pay the balance.
You file a non-resident capital gains return, Modelo 210 in its H variant (Modelo 210H), declaring the real gain, calculating the 19% due, and offsetting the 3% already paid. If the 3% exceeds the tax, the form requests the refund. It is generally filed within around three months of the buyer paying the retention, and the refund follows within a several-month window.
You need proof of the original acquisition cost (your purchase deed and the taxes paid on buying), evidence of allowable expenses and improvements, and the stamped Modelo 211 receipt showing the 3% was paid. The Modelo 211 proof is essential — without it the refund cannot be properly substantiated.
Tax residence is a tax test, not about nationality or owning a home. Broadly, you are tax-resident in Spain if you spend more than 183 days in the country in a calendar year or your main economic interests are centred here. The 3% applies only to non-resident sellers; residents deal with their gains through the ordinary resident return and the buyer withholds nothing.
The obligation falls on the buyer, so if they fail to withhold or fail to pay the 3% over, the tax office can pursue the unpaid amount against the buyer — and the property itself can be treated as security for the debt. That is why buyers should confirm the seller's status, withhold exactly 3%, file Modelo 211 on time, and keep the proof.
Yes. The 3% is calculated on the sale price, not on any profit, so it is withheld even when you sell for less than you paid and owe no capital gains tax. The upside is that you can reclaim the entire 3% back through Modelo 210H, because there is no tax for it to be set against — but the refund still has to be claimed and evidenced.
No. The plusvalía municipal is a separate local tax charged by the town hall on the increase in the land value over the period you owned the property. It is calculated and paid differently from the 3% retention and the national capital gains tax, and it is an additional cost the seller usually has to budget for on top.
Yes. We confirm residence status, make sure the 3% is correctly withheld and Modelo 211 is filed on time, collect the stamped receipt, prepare and file the Modelo 210H to reclaim any excess (including the full amount on a loss-making sale) or settle any balance, and follow the refund through to payment. We act for English-speaking clients across Spain and quote clearly for the work involved.
From confirming your status before completion to filing Modelo 210H and chasing the refund, we run the whole 3% retention process so your money comes back without the paperwork stalling. In plain English, across Spain.
The information on this page is general guidance only and does not constitute legal or tax advice. The 3% retention, the non-resident capital gains tax rate, the procedures for Modelo 211 and Modelo 210H, and the rules on tax residence and the municipal plusvalía are set out in legislation that changes over time and can vary in application. Always obtain advice on your specific property and circumstances before acting. Platinum Legal Spain is an independent English-speaking legal practice serving clients across Spain.