When a non-resident sells a Spanish property, the buyer withholds 3% of the price and pays it to the tax agency using Modelo 211, so the seller receives 97% at closing. The capital gain is taxed at 19% in the first band, and the seller files Modelo 210 within four months of the sale to settle the tax and reclaim any excess. The town hall also charges the plusvalía municipal, which is a separate tax on the increase in value of the land. This guide explains each step with a worked example, the documents you need, the timeline and the mistakes that cost sellers money. It is general information, not tax or legal advice, and your home country may also tax the gain.
What is the 3% retention?
The buyer withholds 3% of the agreed price and pays it to the tax agency within one month of completion. It is a payment on account against your final capital gains tax, not an extra tax. If the actual tax is lower than 3%, you claim a refund; if it is higher, you pay the difference. According to one guide, you must file Modelo 210 within four months of the sale, and missing that deadline means the 3% is effectively lost. The refund typically takes 6 to 12 months to process.
How is the capital gain calculated?
The gain is the sale price minus the acquisition cost. According to a law-firm guide, the acquisition cost includes the purchase price, the purchase costs (notary, registry, ITP or VAT and stamp duty, original legal fees) and documented improvement works, but not routine maintenance. Sale costs such as notary and registry fees and the plusvalía you pay can also be deducted. The inflation correction was abolished in 2015, so you can owe tax on a nominal gain even if the real gain is zero. On the rate: one guide says non-residents pay a flat 19% on the gain, while another gives a scale starting at 19% and rising in bands, so confirm the rate for your case with a tax adviser or the tax agency.
A worked example
Suppose you bought for €200,000, paid €12,000 of purchase costs, spent €10,000 on documented improvements and sell for €280,000, with €5,000 of sale costs and €2,000 of plusvalía. This is an illustration at a flat 19%.
| Item | Amount |
|---|---|
| Sale price | €280,000 |
| Acquisition cost (price + costs + improvements) | €222,000 |
| Deductible sale costs and plusvalía | €7,000 |
| Taxable gain | €51,000 |
| Tax at 19% | €9,690 (≈ £8,200 / $10,900) |
| 3% retained by the buyer | €8,400 |
| Still to pay with Modelo 210 | €1,290 |
Conversions are approximate and use the European Central Bank reference rates of 14 October 2026 (€1 = £0.844 = $1.120). Rates move every day.
Now suppose the sale price is €215,000. The gain is €0, the tax €0, and the 3% retention is €6,450, so you claim back €6,450 through Modelo 210. If you sell at a loss, no capital gains tax is due, but you should still file Modelo 210 to recover the 3%, and you need the original documents to prove the loss. According to the guide, a non-resident cannot offset a capital loss against other Spanish-source income.
What is the plusvalía municipal?
It is a tax charged by the town hall on the increase in value of the urban land, not the building. The seller normally pays it, within 30 days of the deed. Since a Constitutional Court ruling and a 2021 royal decree-law, the taxpayer can choose the lower of two methods: an objective method based on the cadastral land value, a coefficient and the municipal rate, capped at 30%, or a real-gain method on the land portion. No plusvalía is due if the sale price does not exceed the purchase price, and you need both deeds to prove it. Ask your lawyer to model both methods.
Which documents do you need?
- The original deed and a recent nota simple (under 30 days old).
- The latest IBI receipt and the cadastral reference.
- The community of owners’ certificate of no debt, which the notary requires unless the buyer waives it, and which must be issued within seven days of the request.
- The energy certificate, valid for 10 years.
- Utility receipts, your NIE and, if there is a mortgage, a cancellation certificate.
- If you live abroad, a Spanish power of attorney, translated and apostilled.
How long does a sale take?
The same guide gives these typical times: 4 to 8 months from listing to signing; 2 to 4 weeks to gather the documents; 30 to 60 days for the buyer’s mortgage approval; 1 to 3 weeks to book a notary in busy coastal areas; 6 to 10 weeks from accepted offer to keys without a mortgage; and 15 to 30 days for the registry. After the sale, the deadlines are 30 days for the plusvalía, one month for Modelo 211, four months for Modelo 210, one week to transfer utilities and one month to change the IBI owner.
What about the money?
If you move the proceeds abroad, a high-street bank transfer can cost 1.5% to 2% of the sale price in currency losses, according to the guide. On €280,000, that is €4,200 to €5,600. Compare the rate, not just the fee; see how to transfer money. Your home country may also tax the gain, with credit for the Spanish tax paid under a treaty, so ask your home adviser. Early mortgage cancellation fees are typically 0% to 0.5%, according to the guide.
What is the step-by-step plan?
- Gather your purchase documents and invoices for improvements before you list.
- Ask a lawyer to check the legal status and the community debts.
- Agree the price and sign the contract; see the arras contract guide.
- Sign the deed; the buyer withholds 3% and pays Modelo 211.
- Pay the plusvalía within 30 days.
- File Modelo 210 within four months and claim any refund.
- Move the money and report the gain at home.
What are the common mistakes?
- Missing the four-month deadline for Modelo 210.
- Forgetting to file when you sell at a loss.
- Failing to keep invoices for improvements.
- Selling with community debts or planning problems; see illegal builds in Spain.
- Paying the plusvalía without comparing both methods.
- Using a high-street transfer for the proceeds.
How can you keep more of the proceeds?
- Keep every invoice for improvements and every document from the purchase. Without them you cannot prove the acquisition cost, and the gain looks larger.
- File Modelo 210 on time, even when you expect a refund, because the four-month deadline is strict.
- Compare both methods for the plusvalía before paying it.
- Use a regulated currency provider for the proceeds rather than a high-street wire.
- Ask about your home-country tax before the sale, since a treaty may give credit for the Spanish tax, and the timing of the sale can matter.
Should you use an agent?
The sources I used did not give agent fee figures, so ask for the commission in writing, and check whether it includes VAT and for how long the agency contract is exclusive. A lawyer can review the agency agreement before you sign it.
What happens in your home country?
Spain taxes the gain on a Spanish property, but your country of residence may also tax it, usually with credit for the Spanish tax under a double tax treaty. Whether a gain is taxed twice, partly or not at all depends on the rules of that country, on the way it calculates the cost basis and on the exchange rates of the purchase and sale dates. Ask your home adviser for a calculation before you accept an offer, and keep the Spanish Modelo 210 and the receipt of payment, since you will need them as evidence.
Frequently asked questions
What is the 3% retention when selling in Spain?
The buyer of a non-resident’s property withholds 3% of the price and pays it to the tax agency. It is a payment on account against the capital gains tax, not an extra tax.
What is the capital gains tax rate for non-residents?
The sources I read give 19% in the first band; one says flat 19% and another cites a scale. Confirm the current rate with a tax adviser.
When do I file Modelo 210 after a sale?
Within four months of the sale, according to one guide. Missing the deadline can mean you lose the 3%.
Do I pay tax if I sell at a loss?
No capital gains tax is due, but file Modelo 210 to recover the 3% retention.
Who pays the plusvalía municipal?
The seller normally pays it, within 30 days of the deed, and can use the lower of two methods.
This is general information, not legal or tax advice. Rules and rates change, and your situation may differ. Confirm the figures with the tax authority and a qualified lawyer or tax adviser before you commit. Facts last checked on 16 October 2026.
Sources
Official sources (check these for the current rule):
Also cross-checked against published guides, because practice varies between notaries, registries and banks:
