Selling Property in Spain as a Non-Resident: 3% Retention, Modelo 211 & Capital Gains

What is the 3% retention and modelo 211?

The 3% retention is an advance payment of the non-resident seller’s capital-gains tax that the buyer must withhold from the agreed price and pay directly to AEAT. It is governed by the non-resident income tax law (TRLIRNR, Real Decreto Legislativo 5/2004) and applies whenever the seller of Spanish real estate is not a Spanish tax resident.

The buyer (or their representative) declares and pays this 3% using modelo 211, generally within one month of the date of the notarial deed (escritura). The buyer then gives the seller a stamped copy of the modelo 211 as proof — the seller needs this document to file their own return and, if applicable, claim a refund.

In practice, on the Costa Blanca and across the Comunidad Valenciana, this retention is handled at the notary’s office on completion day: the buyer pays the seller 97% of the price and retains 3% to remit to the Tax Agency. If the buyer fails to withhold and pay it, AEAT can pursue the property itself for the debt.

Capital gains tax (IRNR, modelo 210): 19% for every non-resident

The seller’s real tax liability is the capital gains tax on the profit, declared on modelo 210. The gain is broadly the difference between the sale price and the acquisition value (purchase price plus the costs and taxes paid on acquisition, and certain documented improvements).

The rate is 19% of the gain for every non-resident seller, whatever their country of residence — art. 25.1.f) of the TRLIRNR (Real Decreto Legislativo 5/2004) applies it to all capital gains from transfers of assets. The 24% general IRNR rate applies to other income (for example, rental income earned by a non-EU owner), not to the gain on a sale. What does change with residence is narrower: only EU/EEA sellers can claim the reinvestment exemption when they sell what was their habitual residence in Spain and reinvest in a new one (DA 7ª TRLIRNR), and only they deduct expenses against rental income.

The modelo 210 for the capital gain must be filed within three months once one month has elapsed from the date of the deed — a window that opens at month 1 and closes at month 4 after the sale — regardless of whether the result is a payment or a refund (art. 5.a Orden EHA/3316/2010). Because the 3% already withheld is credited against this tax, the seller either pays the difference (if the real tax is higher than the 3%) or requests a refund (if it is lower).

How to reclaim the 3% retention

If the 3% withheld is more than the capital-gains tax actually due — which is common when the property is sold at a small profit, at a loss, or after many years of ownership — the seller can reclaim the excess by filing modelo 210 and requesting the refund of the difference.

To process the refund, AEAT requires that the buyer’s modelo 211 was correctly filed and paid, that the seller is up to date with any property-related obligations (for example, the annual deemed-income IRNR on the years the property was owned), and that a Spanish bank account (IBAN) is provided for the transfer.

Refunds are not instant: the Tax Agency has a legal period to review and pay, and in practice this can take several months. Filing accurately and attaching the stamped modelo 211 and the deeds of purchase and sale reduces the risk of delay or rejection.

Plusvalía municipal: the seller’s town-hall tax

Plusvalía municipal (officially the tax on the increase in value of urban land, IIVTNU) is a separate, local tax that the seller normally pays to the town hall where the property is located. It taxes the increase in the value of the land — not the building — over the years of ownership.

Since the Constitutional Court ruling 182/2021, the law (reformed by Real Decreto-ley 26/2021) lets the taxpayer choose between two calculation methods: an objective method based on the cadastral land value and statutory coefficients, or a real-gain method based on the actual increase between purchase and sale. You may pick whichever is lower, and if there was no real gain, no plusvalía is due.

On the Costa Blanca, each municipality (Torrevieja, Orihuela, Alicante, Benidorm, Dénia and others) sets its own coefficients and deadlines within the national framework, so the amount and the filing window vary by town hall — typically the seller must declare and pay within one month of the sale for inter vivos transfers.

Proof of non-residence and required documents

Residence status determines the whole process: the 3% retention and the IRNR treatment only apply because the seller is a non-resident. AEAT and the buyer rely on documentation such as the certificate of non-residence (certificado de no residencia) or a tax-residency certificate issued by the seller’s country of residence to confirm status.

Typical documents for the sale include: the seller’s NIE and passport, the original purchase deed (escritura de compraventa), the latest IBI receipt and cadastral reference, the energy performance certificate, a community-of-owners certificate confirming no outstanding fees, and invoices evidencing acquisition costs and improvements to reduce the taxable gain.

For the tax side specifically, you will need the stamped modelo 211 from the buyer, proof you are current with prior-year deemed-income modelo 210 filings, and a Spanish IBAN for any refund. Gathering these before completion avoids last-minute problems at the notary.

Deadlines at a glance

Modelo 211 (the buyer’s 3% retention): generally filed and paid to AEAT within one month of the date of the notarial deed of sale.

Modelo 210 (the seller’s capital-gains tax or refund claim): within three months once one month has elapsed from the date of the deed, regardless of the result (art. 5.a Orden EHA/3316/2010) — the window opens when the buyer’s one-month modelo 211 period ends and closes four months after the sale.

Plusvalía municipal: typically within one month of the sale for transfers between living persons, but the precise deadline is set by each town hall’s ordinance — check with the relevant ayuntamiento on the Costa Blanca.

Missing any of these deadlines can trigger surcharges and interest, which is why most non-residents delegate the filings to a tax representative.

Why a tax representative helps non-residents

A tax representative in Spain handles the AEAT and town-hall filings on your behalf, calculates the gain correctly, optimises the plusvalía method (objective vs real gain), and manages the 3% refund — all of which require Spanish-language forms, a digital certificate and familiarity with local deadlines.

For sellers living abroad after completion, having a representative is also practical: refunds are paid into a Spanish account and AEAT may send notifications in Spanish months later. A local representative on the Costa Blanca receives and acts on these without you needing to return to Spain.

spainfiscal handles the seller’s modelo 210 capital-gains filing and 3% refund, acts as your tax representative, and coordinates the wider property-sale advisory in the Comunidad Valenciana.