Selling Property in Spain as a Non-Resident: The 3% Retention (Modelo 211) and How to Get It Back (2026)
Selling Spanish property as a non-resident? The buyer must withhold 3% of the price and pay it with Modelo 211 as an advance on your capital gains tax. This 2026 guide explains how the withholding works, how to claim the refund when you overpaid or sold at a loss, the deadlines and a full worked example. Recover what Hacienda owes you.
By Jacob Salama, international tax lawyer (Bar no. 11.294, Málaga)
8/17/202610 min read
If you are a non-resident selling a house or apartment in Spain, there is one moment at the notary that surprises almost everyone: the buyer keeps back 3% of the sale price and pays it directly to the Spanish tax office. You walk out of the notary with 97% of what you agreed. That missing 3% is not a fee, not a penalty and not the final tax — it is a withholding on account of your capital gains tax, and in many cases you can claim part or all of it back.
After years helping foreign owners on the Costa del Sol and across Spain sell their properties, I can tell you that the 3% retention is one of the most misunderstood parts of the whole transaction — and one where sellers routinely leave money on the table, either by missing the refund deadline or by failing to document their acquisition costs. This guide explains, step by step, how the retention works, how the final tax is calculated on Modelo 210, how to get your refund, and the mistakes I see most often.
What is the 3% retention when a non-resident sells property in Spain?
The legal basis is Article 25.2 of the Spanish Non-Resident Income Tax Law (Texto Refundido de la Ley del Impuesto sobre la Renta de no Residentes, or TRLIRNR). When the seller of a Spanish property is a non-resident for tax purposes, the law obliges the buyer — whoever they are, resident or not, individual or company — to:
Withhold 3% of the agreed purchase price at completion; and
Pay that amount to the Agencia Tributaria (AEAT) using Modelo 211 within one month from the date of the sale (the date of the notarial deed).
Why does Spain do this? Simple: once a non-resident seller has been paid and has left the country, the tax office has very little practical way to collect capital gains tax from them. The 3% retention acts as a guarantee. In fact, the law goes further: if the buyer fails to withhold and pay the 3%, the property itself remains liable for the seller's tax debt. That is why no serious buyer's lawyer in Spain will ever let a purchase from a non-resident complete without the retention — it protects the buyer, not just the Treasury.
Two important clarifications:
The 3% is calculated on the full sale price stated in the deed, not on your gain. Even if you are selling at a loss, the buyer must still withhold 3%.
The retention applies whenever the seller is a non-resident. If a couple sells and only one spouse is non-resident, the retention applies to that spouse's share. If you are not sure whether you count as resident or non-resident, start with our guide on tax resident vs non-resident in Spain — the distinction drives everything in this article.
Modelo 211: the buyer's form, but the seller's money
Modelo 211 is filed by the buyer (or, in practice, by the buyer's lawyer or gestor). The seller does not file it — but the seller has a vital interest in it, because the copy of Modelo 211 is the seller's proof that the 3% was actually paid to the tax office. Without it, you cannot offset the retention against your final tax, and you cannot claim a refund.
Key facts about Modelo 211:
Who files it — the buyer, within 1 month of the deed date.
Amount — 3% of the price in the deed (as of 2026; the rate has been stable for many years).
What the seller must receive — the "ejemplar para el vendedor" (seller's copy) of the filed Modelo 211, showing the NIF references and the amount paid.
Practical tip for the notary appointment: agree in advance — ideally in the private purchase contract — that the buyer will deliver the seller's copy of Modelo 211 within a fixed period (for example, 15 days after filing). Chasing a buyer for this document six months later, when they have no incentive to help you, is an avoidable headache.
Modelo 210: how the seller declares the real gain
The 3% retention is only a payment on account. The actual tax is calculated when the non-resident seller files Modelo 210, declaring the real capital gain (or loss) on the sale. As of 2026, the rate on the gain is 19% for non-residents — the same flat rate whether you are resident in the EU, the UK, the US or anywhere else (capital gains from property are taxed at 19% regardless of country of residence, unlike rental income where EU/EEA residents get better treatment).
The deadline matters and is oddly worded in the regulations: the seller must file Modelo 210 within three months from the end of the one-month period the buyer had to pay the retention. In plain English: roughly four months from the date of the sale. Miss it and you face surcharges — or, if a refund was due, unnecessary delay and complications.
If you have never dealt with this form before, we have a full walkthrough in Modelo 210 explained step by step, and the wider picture of everything a non-resident owner must file in Spain is covered in our complete non-resident tax guide (Modelo 210, Modelo 720 and all your obligations).
How is the capital gain calculated?
The gain is the difference between the transfer value and the acquisition value, and both are adjusted:
Acquisition value — the price you originally paid, plus the taxes and costs of the purchase (ITP or VAT and AJD, notary, land registry, lawyer's fees), plus the cost of improvements and extensions ("inversiones y mejoras" — a new extension, a full renovation that adds value; not ordinary repairs or repainting), minus depreciation you were required to deduct if the property was rented out.
Transfer value — the sale price, minus the costs of the sale that you paid (estate agent's commission, your lawyer, the municipal plusvalía tax if you as seller bore it, energy certificate, etc.).
Every euro of documented cost reduces your gain and therefore your tax. This is why invoices matter enormously — more on that in the mistakes section below.
What happens if the 3% retention is more than the final tax? The refund
This is the scenario most sellers care about. If 19% of your real gain is less than the 3% that was withheld — and especially if you sold at a loss, so the tax due is zero — the difference must be refunded to you.
How the refund works in practice:
File Modelo 210 within the deadline, declaring the real gain or loss, offsetting the 3% retention (you will need the data from the buyer's Modelo 211), and ticking the refund option.
Provide a bank account. The AEAT pays refunds by transfer. As of 2026 refunds can be paid to foreign (SEPA and certain non-SEPA) accounts, but the process is smoother with a Spanish account — and the account must be in the taxpayer's name and must stay open until the refund arrives.
Attach supporting documentation — typically the purchase and sale deeds, the seller's copy of Modelo 211, and a certificate of tax residence in your country if a treaty position is relevant. The AEAT very frequently opens a verification procedure and asks for the invoices behind your acquisition costs and improvements.
Wait. The law gives the tax office six months from the filing deadline (or from the filing date, if you filed late) to pay. In real life, as of 2026, non-resident refunds typically take between 6 and 12 months, sometimes longer if a verification is opened.
Late-payment interest. If the AEAT pays after the six-month legal period, it must add interés de demora (late-payment interest, around 4% annually as of 2026) automatically — you do not need to request it, but it is worth checking that it was actually included.
One more point sellers often miss: the right to claim the refund does not vanish the day after the Modelo 210 deadline. A late filing claiming a refund is still possible within the general four-year limitation period — but late filing invites complications, so treat the four-month window as the real deadline.
What if the final tax is more than the 3% retention?
The retention is a floor of collection, not a cap on your tax. If your gain is large, 19% of the gain can easily exceed 3% of the price. In that case, when you file Modelo 210 you simply pay the difference. Sellers with big historic gains — think an apartment bought in the 1990s or early 2000s — should budget for this from day one, because the money left at the notary will not cover the bill.
Don't forget the municipal plusvalía (IIVTNU) — a separate tax
The 3% retention and Modelo 210 concern state capital gains tax. Completely separate from it, the town hall charges the Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana (IIVTNU, "plusvalía municipal") on the increase in the value of the land.
Legally the seller is the taxpayer, but when the seller is a non-resident the buyer becomes substitute taxpayer — which is why buyers usually retain an additional amount for plusvalía at the notary.
Since the Constitutional Court rulings and the 2021 reform, if there was no real increase in value there is no tax: if you can prove (deeds in hand) that you sold for less than you bought, you can claim non-liability ("no sujeción"). You can also choose between the objective method and the real-gain method, whichever is lower.
Deadline: 30 working days from the sale in most municipalities (check the local ordinance).
Can a non-resident use the main-home reinvestment exemption?
Yes — but only some. Residents of another EU member state, or of an EEA state with effective exchange of tax information (Norway, Iceland, Liechtenstein), can apply the same exemption Spanish residents enjoy: if the property sold was your habitual residence and you reinvest the proceeds in a new habitual residence (in Spain or in your country), the gain is exempt in proportion to the amount reinvested. Conditions to watch:
The Spanish property must genuinely have been your habitual residence (generally, lived in for a continuous period of at least three years, with exceptions for justified changes).
Reinvestment must happen within two years before or after the sale.
The 3% retention is still withheld at the notary — the exemption is claimed afterwards via Modelo 210, requesting the refund.
Residents of the UK, the US and other non-EU/EEA countries cannot use this exemption. This is one of the quiet costs of Brexit (see below).
Two worked examples (2026)
Example 1 — Margaret sells at a loss: full refund of the 3%
Margaret, retired and resident in Ireland, bought an apartment in Estepona in 2007, at the top of the market, for €310,000, paying around €26,000 in ITP, notary, registry and legal fees (total acquisition value: €336,000). In 2026 she sells for €300,000, paying €12,000 in agency and legal fees (net transfer value: €288,000).
Retention at the notary — 3% × €300,000 = €9,000, paid by the buyer via Modelo 211 within one month.
Real result — €288,000 − €336,000 = a loss of €48,000. Tax due: €0.
Modelo 210 — Margaret files within the deadline, declares the loss, attaches both deeds and the Modelo 211 copy, and claims the full €9,000 refund.
Outcome — the AEAT opens a routine check, asks for the purchase invoices, and pays the €9,000 about nine months later. Because payment arrived after the six-month legal period, it comes with a small amount of late-payment interest.
Plusvalía municipal — since she sold below the purchase price, she claims non-liability with both deeds and pays nothing.
Example 2 — Henrik sells with a large gain: the 3% is not enough
Henrik, resident in Sweden, bought a townhouse in Nerja in 2002 for €150,000 (acquisition value with costs: €162,000). In 2015 he built an extension with proper invoices for €40,000 (adjusted acquisition value: €202,000). In 2026 he sells for €480,000, with €22,000 of selling costs (net transfer value: €458,000).
Retention at the notary — 3% × €480,000 = €14,400.
Gain — €458,000 − €202,000 = €256,000.
Tax at 19% — €48,640.
Modelo 210 — Henrik offsets the €14,400 already withheld and pays the difference: €34,240.
Notice the role of the €40,000 extension: because Henrik kept the builder's invoices (with VAT, and matching bank transfers), it reduced his gain by €40,000 and his tax by €7,600. Without invoices, the AEAT would have disallowed it.
What documents should you ask for at the notary?
Seller's copy of Modelo 211 — proof the buyer actually paid the 3% to the AEAT. Agree a delivery deadline in writing.
Copy of the sale deed (escritura) — the notary provides a simple copy; you will attach it to Modelo 210.
Breakdown of any additional retention for plusvalía municipal — and proof it was paid to the town hall.
Your own file — purchase deed, ITP/VAT receipts from the purchase, all invoices for improvements, agency and legal invoices from the sale, energy certificate invoice. Gather these before completion, not when the AEAT asks.
If you are on the other side of the table — buying from a non-resident — your obligations mirror all of this; our guide on taxes when buying property in Spain (ITP, VAT and AJD) covers the buyer's side in detail.
The most frequent (and expensive) mistakes
Not keeping invoices for renovations — cash payments to builders with no invoice are invisible to the AEAT. Years later, the seller cannot deduct tens of thousands of euros of genuine investment. Keep invoices and pay by bank transfer.
Missing the Modelo 210 deadline — roughly four months from the sale. If tax was due, late filing means surcharges; if a refund was due, it means delay and a higher chance of a full verification.
Closing the Spanish bank account too soon — many sellers close their account when they "wrap up" their affairs in Spain, then the refund transfer bounces 10 months later. Keep an account open (or provide a valid foreign account and monitor it) until the refund lands.
Never obtaining the Modelo 211 copy from the buyer — without it, offsetting the retention becomes an evidentiary battle.
Assuming the 3% is the final tax — and being caught out by a five-figure additional bill when the real gain is calculated.
Forgetting plusvalía municipal — or paying it automatically when a no-increase claim was available.
Ignoring the home-country side — your country of residence will usually also tax the gain, with a credit for the Spanish tax under the applicable treaty. Coordinate both filings.
UK sellers after Brexit: what changed and what didn't
British owners are the largest group of non-resident sellers on the Costa del Sol, so this deserves its own section. As of 2026:
Unchanged — the 3% retention and Modelo 211 work exactly the same; the capital gains rate on property remains 19% for UK residents (property gains were never subject to the EU/non-EU rate split that affects other income types); the refund mechanism is identical; the Spain–UK double tax treaty continues to apply, with the UK giving credit for Spanish tax paid.
Changed — UK residents lost the main-home reinvestment exemption, which is reserved for EU/EEA residents. A British seller who lived in their Spanish home for years and reinvests in a new home in the UK pays the full 19% on the gain. Also, for any Spanish-source rental income up to the sale, UK residents can no longer deduct expenses and pay 24% instead of 19% — relevant when settling the final landlord filings before selling.
Key deadlines at a glance
Modelo 211 (buyer) — 1 month from the deed of sale · 3% of the price.
Modelo 210 (seller) — 3 months from the end of the buyer's 1-month period (≈ 4 months from the sale) · 19% on the real gain, minus the retention.
Plusvalía municipal — usually 30 working days from the sale · check the local ordinance.
AEAT refund — legal period 6 months · realistic 6–12 months · late-payment interest beyond the legal period.
Selling as a non-resident? Get the 3% back without the headaches
I am Jacob Salama, a lawyer focused on international taxation (Bar no. 11.294, ICA Málaga). My firm handles the whole cycle for non-resident sellers: reviewing the retention at completion, preparing and filing Modelo 210 with a fully documented cost base, claiming the refund, answering AEAT verification requests, and coordinating the plusvalía municipal and your home-country filing.
WhatsApp: +34 644 12 18 02
Book a video call: Schedule a consultation with Jacob Salama
Email: taxlegalspain@gmail.com
Disclaimer: this article is general information as of September 2026, not legal or tax advice. Rates, deadlines and administrative practice change; always obtain advice on your specific situation before acting.