Selling Property in Spain as a Non-Resident: 3% Retention, Plusvalía and Capital Gains Tax

If you sell a Spanish property while living abroad, the buyer must hold back 3% of the price and pay it to the Spanish Tax Agency on your behalf. That 3% is an advance on your capital gains tax, not the final bill: you settle the real amount, or claim money back, with a separate tax return. On top of that comes the municipal plusvalía, plus a handful of certificates the notary will ask for before anyone signs.

TL;DR:

• The buyer withholds 3% of the sale price and pays it to the Agencia Tributaria with modelo 211 within one month of completion.
• Non-residents pay capital gains tax at a flat 19% on the profit, declared on modelo 210. If the 3% retention exceeds the tax due, you can claim the difference back.
• The plusvalía municipal taxes the increase in land value. Since 2021 you can use the cheaper of two calculation methods, and nothing is due if you sold at a loss.
• When the seller is non-resident, the buyer is legally responsible for the plusvalía, so it is usually deducted at completion as well.
• An energy certificate, paid-up IBI and community fees, and in the Balearics a valid cédula de habitabilidad are needed to sign without delays.

Table of Contents

• How does the 3% retention work?
• How much capital gains tax do non-residents pay?
• When do you file modelo 210?
• What about the plusvalía municipal?
• Which documents do you need to sell?
• Can you sell without travelling to Spain?
• Common mistakes that delay the sale
• Get a vetted lawyer to handle your sale
• Sources
• FAQ

How does the 3% retention work?

When the seller is not tax resident in Spain, Spanish law obliges the buyer to withhold 3% of the agreed price at completion and pay it to the Agencia Tributaria using modelo 211, within one month of signing. If the buyer fails to do so, the property itself remains liable for the unpaid amount, which is why buyers’ lawyers never skip this step.

The retention applies whether you sell at a profit or at a loss. It is simply a guarantee for the Tax Agency. Make sure you receive a copy of the stamped modelo 211: you will need it to file your own return and, if relevant, to recover any excess.

How much capital gains tax do non-residents pay?

Non-residents pay Non-Resident Income Tax (IRNR) at a flat 19% on the capital gain. The gain is the difference between two figures:

• Acquisition value: what you paid for the property, plus the taxes and costs of buying it (ITP or VAT and AJD, notary, land registry, lawyer) and documented improvements.
• Transfer value: the sale price, minus the costs of selling (estate agent commission, the plusvalía municipal you pay, legal fees).

A simplified example: you bought for €400,000 and paid €40,000 in purchase costs. You sell for €600,000 with €20,000 in selling costs. Your gain is €580,000 − €440,000 = €140,000, and the tax at 19% is €26,600. The buyer already withheld 3% of €600,000, which is €18,000, so you pay the remaining €8,600 with modelo 210.

Keep every invoice. Improvements you cannot document with invoices and payment records will not reduce the gain. Most reliefs available to Spanish residents, such as reinvestment in a main home, do not apply in the same way to non-residents, so check your specific situation with a lawyer, especially if you were Spanish tax resident at some point. You will usually also need to report the sale in your country of residence, where a double taxation treaty normally lets you credit the tax paid in Spain.

When do you file modelo 210?

The return for the gain is filed on modelo 210 within three months after the end of the one-month period the buyer has to pay the retention. In practice, that gives you roughly four months from completion.

• If the tax due is higher than the 3% withheld, you pay the difference.
• If the tax due is lower, or you sold at a loss, you request a refund of the excess. Refunds are paid into a bank account and can take several months, so plan for it.

What about the plusvalía municipal?

The plusvalía municipal (Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana) is a local tax on the increase in value of the land the property stands on. It is set and collected by the town hall.

Since the 2021 reform, the gain can be calculated in two ways and you pay the lower result:

• Objective method: the cadastral value of the land multiplied by a coefficient that depends on how many years you owned the property.
• Real gain method: the actual increase in value of the land, based on the purchase and sale deeds.

If you sold for less than you paid, no plusvalía is due, but you must prove it with the deeds. The tax is normally due within 30 working days of the sale. When the seller is non-resident, the buyer becomes the sustituto del contribuyente and is legally responsible for paying it, so the amount is usually retained from the price at the notary.

Which documents do you need to sell?

• Your title deed (escritura) and passport or NIE.
• Energy performance certificate: legally required to advertise and to sell.
• The last IBI receipt, showing the property tax is paid.
• A certificate from the community administrator confirming there are no outstanding community fees.
• A valid cédula de habitabilidad. In the Balearic Islands it is generally required to sell a home, and an expired one is a common cause of delay.
• Recent utility bills, so supplies can be transferred to the buyer.
• If the property has a holiday rental licence (ETV), its registration details. A valid, transferable licence adds value and the buyer will want it confirmed in the contract.

The buyer’s lawyer will also check that the registry and cadastral descriptions match reality. Pools, extensions or annexes built without permission are the most frequent problem, especially on rustic land.

Can you sell without travelling to Spain?

Yes. You can grant a power of attorney to your lawyer, signed before a notary in your country and legalised with the Hague Apostille, or signed at a Spanish consulate. If it is not in Spanish, it will need a sworn translation. With it, your lawyer can sign the deposit contract and the completion deed, receive the funds and file your tax returns.

Common mistakes that delay the sale

• No energy certificate or an expired cédula de habitabilidad when an offer arrives.
• Unregistered works: the registry description does not match what is built.
• Unpaid annual non-resident tax: owners who never filed the yearly modelo 210 for the imputed income of the property can find the buyer’s lawyer asking for it to be regularised first.
• Losing the modelo 211, which makes it harder to claim a refund.
• No Spanish bank account or tax representative to receive refunds and notifications.

Get a vetted lawyer to handle your sale

An independent lawyer can prepare the documents before you list, negotiate the deposit contract, calculate your tax in advance, sign on your behalf and recover any excess retention. Find a vetted, English-speaking property lawyer in the area where your property is located.

Sources

• Agencia Tributaria: Non-Resident Income Tax, modelo 210 and modelo 211.
• Boletín Oficial del Estado (BOE): Real Decreto Legislativo 5/2004 (Non-Resident Income Tax Law) and Real Decreto-ley 26/2021 (plusvalía municipal reform).

FAQ

Do I pay the 3% retention if I sell at a loss?

Yes. The buyer must withhold it in every sale by a non-resident. If there is no gain, you claim the full amount back through modelo 210.

What capital gains tax rate applies to non-residents in Spain?

A flat 19% on the capital gain, calculated as the sale price minus selling costs, less the purchase price plus purchase costs and documented improvements.

Who pays the plusvalía if the seller is non-resident?

Legally, the buyer is responsible as substitute taxpayer, so the amount is normally deducted from the price at completion.

How long does the refund of the 3% take?

It varies, but several months is common. Filing modelo 210 promptly and having a Spanish bank account helps.

Can my lawyer sign the sale for me?

Yes, with a notarised and apostilled power of attorney, or one signed at a Spanish consulate.

Sophie

Sophie Gutenberg is a legal content specialist focused on Spanish property law, real estate transactions, conveyancing, due diligence and tax issues affecting international property buyers in Spain. She works alongside qualified Spanish property lawyers .