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The 3% retention when a non-resident sells property in Spain
When a non-resident sells, the buyer keeps back 3% of the price and pays it to the tax office. Here is why — and how to get it back.
What the retention is
When the seller is a non-resident, Spanish law requires the buyer to withhold 3% of the agreed price and pay it directly to the tax office (via Modelo 211), on account of the seller's capital-gains tax. It is not an extra tax — it is an advance payment against the gain.
Why it exists
It guarantees the Spanish treasury can collect capital-gains tax from a seller who lives abroad and might otherwise be hard to pursue after the sale. So if you are buying from a non-resident, applying the retention correctly protects you too — fail to withhold and the liability can attach to the property.
Getting it back when you sell
If your actual capital gain is small — or you sold at a loss — the 3% withheld may exceed the tax due. You can reclaim the difference by filing the appropriate return after the sale, usually within a set window, provided your tax affairs (including past Modelo 210 filings) are in order. This is exactly why keeping your annual returns current matters.
Plan for it before you sell
We calculate the expected gain, make sure the retention is handled correctly at the notary, and prepare the reclaim where too much has been withheld. Knowing the net figure in advance avoids the unpleasant surprise of seeing 3% disappear on completion day with no plan to recover it.
This guide is general information, not legal advice for your specific case, and tax and planning rules in Spain change frequently. For advice on a particular property, get in touch for a free consultation.
