If you sell a property in Spain and you are not a tax resident here, there is one figure you should know before signing: 3%. The buyer is obliged to withhold the 3% withholding for non-residents on the sale price and pay it to the Tax Agency as an advance on your taxes. It is not an extra tax: it is an advance — and very often it can be recovered. Here’s how it works.
Why it exists and how it is applied
The Tax Agency cannot easily pursue a seller who lives in another country, so it secures collection by withholding at source: the buyer deducts 3% from the notarised price and pays it using form 211 within one month of signing. You receive 97% of the price plus a copy of the 211, which you will need for the next step. This applies whoever the buyer is: Spanish or foreign, private individual or company.
The step that decides whether you get money back: form 210
After the sale, you must declare the actual gain using form 210 (deadline: three months from the end of the month in which the 211 was paid). The gain is calculated as sale price minus purchase price and justified expenses and investments, and is taxed at 19%. That amount is then compared with the 3% withheld:
— If 19% of your gain is less than the amount withheld (or you sold at a loss), the Tax Agency refunds the difference. This is the most common outcome in sales without a large capital gain: you can recover thousands of euros simply by filing the 210 correctly with its supporting documents.
— If it is greater, you pay the difference. The withholding will have covered only part of it.
The other withholding nobody tells you about: the municipal capital gains tax (plusvalía)
As a non-resident seller, the person liable to the town hall for the municipal capital gains tax is the buyer (as substitute), so in practice it is also deducted from the price at the notary. Ask for the calculation before accepting an offer: it forms part of your real net proceeds.
How to minimise surprises (and maximise the refund)
Keep and provide everything that increases your acquisition price: deed of purchase with its taxes, invoices for renovations with permits, notary and registry costs. Have your NIE and a representative or adviser who files the 210 on time. And above all, calculate the full net before selling: realistic market price, minus 3%, minus municipal plusvalía, minus mortgage cancellation if applicable. At Mayrasa we prepare that calculation with each valuation and support international sellers through the entire sale of their home, in their language and without them having to travel more than strictly necessary. Selling as a non-resident? We do the full numbers for you free of charge.
