If you sell a home in Spain and live abroad, the first surprise is that you will not receive the full price. The buyer is required to keep a 3% retention and pay it to the Spanish tax authorities on your behalf. It is not a fine or an extra tax: it is an advance payment of the capital gains tax you owe on the sale.
The good news is that this 3% is not always what you end up paying. If the sale produces no gain, or less tax than was retained, you can recover the difference by filing your own return. And if there is a gain, that same return is how you pay the rest.
In this guide from Sol-4 Gestión we explain, based on the Spanish Tax Agency and the official gazette (BOE), how the retention works, what the buyer does with Modelo 211, how the gain is calculated in Modelo 210 and what to do to claim a refund if too much was retained.
What is the 3% retention when a non-resident sells a property?
When the seller is not a Spanish tax resident, the buyer must retain and pay 3% of the agreed price. The retention is a payment on account of the tax that you, as the seller, owe on the gain from the sale.
In practice, at the notary the buyer pays you the price minus that 3%, and pays the retained amount to the tax authorities directly. For example, if you sell for €300,000, the buyer retains €9,000 and you receive €291,000 (before any other agreed deductions, such as an outstanding mortgage).
The obligation to retain comes from article 14 of the Non-Resident Income Tax Regulations. The buyer is responsible for it whether they are resident or not, and whether they are an individual or a company.
When there is no retention
The same article 14 says there is no obligation to retain when the seller proves, by means of a certificate, that they are subject to Spanish personal income tax or corporate tax. There is also none when the property is contributed to set up or increase the capital of a Spanish resident company.
Modelo 211: what the buyer pays and by when
The buyer pays the retention using Modelo 211. These are the basic rules:
- The deadline is one month from the date of the sale.
- One self-assessment is filed for each property bought.
- The buyer must give you a copy of the form, which is your proof that the retention has been paid.
Keep that proof: you will need it for your own return. And if the buyer does not pay the retention, the Tax Agency states that the property is liable for the lower of the retention and the tax due, something that can be noted in the Land Registry.
Capital gain for non-residents: how it is calculated
The retention is only an advance. The real tax depends on the capital gain, which is calculated in a way similar to Spanish income tax: selling value minus acquisition value.
The acquisition value includes the price you paid, the cost of improvements and the expenses and taxes linked to the purchase. Selling costs, for their part, reduce the selling value. That is why it pays to keep your deeds and the invoices for any renovation work.
| Item | Illustrative example |
| Selling price | €300,000 |
| Documented selling costs | €6,000 |
| Purchase price plus costs and improvements | €220,000 |
| Capital gain | €74,000 |
This is an example to understand the mechanism, not a calculation for your case. Your real gain will depend on your deeds, your documented costs and the rules that apply to your transaction.
Which rate applies: 19% or 24%
The tax on that gain is not the same for every seller. The general rate is 24%, and it falls to 19% if you live in the European Union, Iceland, Norway or Liechtenstein.
| Your tax residence | Rate on the gain |
| European Union, Iceland, Norway and Liechtenstein | 19% |
| Rest of the world | 24% |
| United Kingdom (since 1 January 2021) | 24% |
If you live in the United Kingdom, Brexit has moved you from 19% to 24%, a change that affects British owners. If you live in another country not listed in the table, check your case before assuming the rate.
With the figures from the example, a gain of €74,000 would mean tax of €14,060 at 19% or €17,760 at 24%. After deducting the €9,000 already retained, you would pay the difference: €5,060 in the first case and €8,760 in the second.
How to recover the retention if too much was retained
If the 3% retention is higher than the tax you actually owe, you can ask for the excess to be refunded using Modelo 210. It is the same form in which you declare the gain, even if the result is zero or negative.
An example: you bought for €320,000 and you sell for €300,000. There is no gain, so there is no tax, and the €9,000 retained can be fully recovered. The Tax Agency refunds the amount by bank transfer to the account you indicate.
Deadline for filing Modelo 210 for the sale
Order EHA/3316/2010 sets the deadline for declaring the sale of a property at three months once the month the buyer has to pay Modelo 211 has passed, whatever the result. In other words, you have up to four months from the date of the sale.
| Moment | What happens |
| Day of the sale | The buyer retains 3% at the notary |
| Up to one month later | The buyer pays Modelo 211 |
| Up to three months after that month | You file Modelo 210 |
For more detail on how it is filed, see our guide to the Modelo 210 filing deadline. As the exact last day can vary depending on the date of sale, the safest approach is not to leave it to the last minute.
What happens if you live outside the EU: the tax representative
If you live outside the European Union and the European Economic Area, the rules require you to appoint a tax representative before the filing deadline ends. It is best to plan for this when you sign the sale so that you are not caught out at the end of the period.
Reinvesting in a main home: an exception for European residents
If you live in the EU or the EEA (with effective exchange of information) and you reinvest what you obtain in buying your main home, there may be a full or partial exemption. The 3% retention still applies at the time of the sale and the refund is requested afterwards, so it pays to plan ahead.
Common mistakes when selling as a non-resident
- Writing off the 3%. If there is no gain or it is small, you can recover it, but only if you file Modelo 210.
- Not asking for the Modelo 211 proof. Without it, your return loses the backing of the retention that was paid.
- Applying 19% out of habit. It is the rate for residents of the EU, the EEA and some other countries, but not for everyone.
- Not gathering your deeds and invoices. Without them it is hard to justify the acquisition value and the deductible costs.
- Waiting until the last day to file Modelo 210, especially if you need to appoint a representative.
Selling with peace of mind from abroad
Selling a home in Spain as a non-resident is a routine process, but it has its own deadlines and paperwork. At Sol-4 Gestión we support you in the sale of your property in Spain and go through the tax side with you so you know what to expect before you sign. Our non-resident tax service includes preparing Modelo 210.
Official sources: Non-Resident Income Tax Regulations (BOE) and retention by the buyer of a property (Tax Agency).
Frequently asked questions about the 3% retention when selling property as a non-resident
The buyer pays it to the tax authorities, but it comes out of your sale price: they pay you the price minus that 3% and hand the amount to the Tax Agency in your name.
Yes, if it is higher than the tax you owe. You claim it with Modelo 210, which is used both to declare the gain and to request a refund of the excess.
It is the self-assessment the buyer uses to pay the 3% retention. It is filed within one month of the sale, one for each property.
The buyer files Modelo 211 to pay the retention. You file Modelo 210 to declare the gain, pay the difference if there is one, or ask for a refund if too much was retained.
Three months once the month allowed for Modelo 211 has passed, that is, up to four months from the date of sale. It is filed even if there is no gain.
19% if you live in the European Union, Iceland, Norway or Liechtenstein, and 24% in all other cases. If you live in the United Kingdom, it is 24% since 1 January 2021.
The property is liable for the lower of the retention and the tax due. Always ask for the copy of Modelo 211 as proof.
This article is for guidance only and does not replace personal advice: each case depends on your deeds, your tax residence and the terms of the transaction, so check yours with your advisor before acting.
Date of regulatory review: 15/10/2026. Data checked against the BOE and the Spanish Tax Agency’s online office on that date.
