Why does the buyer retain 3% when I sell property in Spain?

By law, when the vendor is a non-resident in Spain, the buyer must retain 3% of the purchase price and pay it to the tax authorities as an on-account payment of the seller's capital gains tax.

How do I claim back the 3% retention if I sold at a loss?

By submitting Modelo 210 to the tax office within 3 months. By substantiating the loss with deeds and expenditure invoices, the tax office refunds the 3% directly to your bank account.

How long does the Spanish tax office take to pay the 3% refund?

The tax agency has an official statutory window of 6 months from the filing of Modelo 210 to issue the refund without incurring late-payment interest.

Property sales taxation in Spain

Taxes on Selling a Property in Spain as a Non-Resident

When a non-resident sells real estate in Spain, the buyer is legally obligated to withhold 3% of the purchase price for the tax office. At Asistenio, we settle your capital gains tax (Modelo 210), claim back the 3% retention if you sold at a loss or overpaid, and calculate municipal plusvalía tax.

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Taxes on selling property in Spain non-resident — Asistenio

Key Tax Obligations

The 3 taxes when selling Spanish property as a non-resident

1. The 3% Withholding Tax (Modelo 211)

Under Article 25.2 of the Spanish Non-Resident Income Tax Act, the buyer must deduct 3% of the agreed selling price at completion before the notary and remit it to the Spanish Tax Agency (AEAT) within 1 month using Modelo 211. This retention operates as an advance payment on the seller's capital gains tax.

2. Final Capital Gains Tax Return (Modelo 210)

The vendor has a strict 3-month statutory window (commencing 1 month after deed signing) to lodge Modelo 210. A flat 19% capital gains tax rate applies to the net gain (for both EU and non-EU resident sellers).

If the final tax payable is lower than the 3% withheld, or if you sold at a loss, the Spanish Tax Agency refunds the excess balance straight into your European bank account.

3. Town Hall Capital Gains (Plusvalía Municipal - IIVTNU)

A local council tax based on the increase in cadastral land value during ownership. It must be settled within 30 working days. If you can prove the property was sold at a net financial loss, no Plusvalía is legally payable under Spanish Constitutional Court case law.

Statutory Calculation Formula

How net capital gains are computed in Spain

We maximize all legally eligible deduction offsets to decrease taxable profits or maximize your 3% retention refund.

Element	What is Included	Tax Effect
Transfer Value (Valor de Transmisión)	The notarised sales price, minus selling costs paid by the vendor: estate agency commission (with formal invoice), legal representation fees, notary costs and paid municipal plusvalía.	Lowers the gross proceeds subject to tax.
Acquisition Value (Valor de Adquisición)	The original notarised purchase price, plus purchase taxes paid (ITP/VAT), original notary and Land Registry fees, plus demonstrable structural home improvements backed by official invoices.	Increases your deductible base cost, reducing net gains.
Net Capital Gain	Real Transfer Value minus Real Acquisition Value.	Taxed at a flat 19% rate.

From €250 + VAT

Request your sale tax review & 3% rebate claim

Send us your purchase and sale details to calculate your capital gains tax and file for the refund of your 3% retention.