In short
When a non-resident sells a Spanish property, the buyer is legally required to withhold 3% of the sale price and pay it directly to Hacienda. This is a prepayment of your capital gains tax — not a final tax. After the sale, you file a tax return (Modelo 210) to declare the actual gain. If the 3% withheld is more than your real tax, you get a refund. If it's less, you pay the difference.
The 3% withholding: how it works
Spain's 3% withholding rule (retención del 3%) exists because Hacienda cannot easily chase non-residents for capital gains tax. So the burden shifts to the buyer: they withhold 3% of the price and pay it to Hacienda within one month using Modelo 211.
Example: You sell your Mallorca apartment for €500,000.
- The buyer pays you €485,000
- The buyer pays €15,000 (3%) to Hacienda on your behalf
- You then file Modelo 210 within 4 months to settle your actual CGT liability
The 3% is the buyer's obligation — but it affects you
If the buyer fails to withhold 3%, they become personally liable for it — but Hacienda may also pursue you. Ensure your sale agreement and the notary confirm the 3% will be handled correctly.
Calculating your actual capital gains tax
Your capital gain = Sale price − (Purchase price + allowable costs)
Allowable costs that increase your purchase price:
- ITP or IVA paid at purchase
- Notary fees and Land Registry fees paid at purchase
- Capital improvements made to the property (with receipts)
- Gestoría fees related to the purchase
Costs that reduce your sale proceeds:
- Estate agent commission
- Plusvalía paid
- Notary fees on the sale
CGT rates for non-residents:
- EU/EEA residents: 19% on the gain
- Non-EU residents (UK, US, etc.): 19% on the gain (since 2021 equalisation)
Filing the CGT return: Modelo 210
After the sale, you must file Modelo 210 (the capital gains version) within 3 months of the sale date. This declares your actual gain and calculates the real tax owed.
If the 3% withheld (Modelo 211) exceeds your actual tax: Hacienda refunds you the difference. Refunds typically take 6–18 months.
If your actual tax exceeds the 3%: you pay the shortfall.
Example: full calculation
Sale price: €700,000
Original purchase price (2015): €450,000
ITP paid (8%): €36,000
Notary/registry at purchase: €3,000
Improvements (kitchen renovation): €25,000
Adjusted purchase cost: €514,000
Deductions from sale:
Agent commission (3%): €21,000
Plusvalía: €8,000
Net sale proceeds: €671,000
Capital gain: €671,000 − €514,000 = €157,000
CGT at 19%: €29,830
3% withheld: €21,000
Balance to pay: €8,830
Non-resident CGT and your home country
You will likely also need to declare the Spanish property sale in your home country. Most double taxation treaties allow Spain to tax the gain, with your home country giving a credit for the Spanish tax paid. See our Germany–Spain DTA guide or UK–Spain DTA guide.
Professional help
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Spanish tax filings and bureaucracy can be complex. A local gestoría can handle Modelo 210, NIE applications, and other filings on your behalf.
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