Selling Property in Spain as a Non-Resident: 3% Retention, Modelo 211 & Capital Gains
When a non-resident sells property in Spain, the buyer is legally required to withhold 3% of the sale price and pay it to the Spanish Tax Agency (AEAT) using modelo 211 — this is a payment on account of the seller’s non-resident income tax (IRNR) on the capital gain. The seller then declares the actual gain on modelo 210 within roughly three to four months of the sale, paying 19% (EU/EEA residents) or 24% (non-EU residents) on the profit, and can reclaim the 3% if it exceeds the tax actually due. The seller also pays plusvalía municipal to the town hall. This guide explains every step, the deadlines, the documents, and why a fiscal representative matters — with a Costa Blanca / Comunidad Valenciana focus.
Reviewed by
Valery Grinkevich
Licensed economist · tax adviser · 20+ years of experience · Torrevieja, Costa Blanca
Key takeaways
- The buyer withholds 3% of the sale price and pays it to AEAT on modelo 211 — it is an advance on the seller’s tax, not an extra cost to the buyer.
- The seller’s real liability is capital-gains tax under IRNR on modelo 210: 19% of the gain for EU/EEA residents, 24% for non-EU residents.
- If the 3% withheld exceeds the actual capital-gains tax (sale at a loss, small gain or after many years), the seller reclaims the excess by filing modelo 210.
- Plusvalía municipal (the tax on the land-value increase) is the seller’s, paid to the town hall; since TC 182/2021 you choose the objective or real-gain method and pay the lower.
- Deadlines: modelo 211 within ~1 month of the deed; modelo 210 within ~3-4 months of the sale; plusvalía typically ~1 month (set by each town hall).
- You cannot recover the 3% without filing modelo 210 — no return, no refund.
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% or 24%
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% for sellers resident in the EU, Iceland, Liechtenstein or Norway (EEA), and 24% for sellers resident outside the EU/EEA. EU/EEA sellers may also deduct expenses directly linked to the transaction under the conditions allowed by law; non-EU sellers generally cannot.
The modelo 210 for the capital gain must be filed within approximately three to four months following the sale. 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).
Example
Quick math: sell for €250,000 and the buyer withholds 3% = €7,500. If your actual gain is €40,000 and you are an EU resident, the real tax is 19% × €40,000 = €7,600 — so you top up just €100. If your gain were only €20,000, the tax would be €3,800 and you reclaim €3,700 of the €7,500 withheld.
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.
Watch out
If you never file modelo 210, you cannot reclaim the excess 3% — the withholding simply stays with AEAT. No return means no refund, even when you sold at a loss.
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): generally filed within approximately three to four months following the sale; confirm the exact window for your transaction, as it runs from the buyer’s modelo 211 deadline.
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 fiscal representative.
Why a fiscal representative helps non-residents
A fiscal 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 fiscal representative, and coordinates the wider property-sale advisory in the Comunidad Valenciana.
| Item | Who pays / files | Model | Rate |
|---|---|---|---|
| 3% retention (advance) | Buyer withholds, files | Modelo 211 | 3% of the sale price |
| Capital-gains tax (IRNR) | Seller | Modelo 210 | 19% EU/EEA · 24% non-EU on the gain |
| Plusvalía municipal | Seller | Town-hall form | Set by each ayuntamiento (objective or real gain) |
| Seller resident in | IRNR rate on the gain | Deduct transaction expenses? |
|---|---|---|
| EU / EEA (Iceland, Liechtenstein, Norway) | 19% | Yes, under the conditions allowed by law |
| Outside the EU/EEA | 24% | Generally no |
- What is the 3% retention when selling property in Spain?
- The 3% retention is an amount the buyer withholds from the sale price of a non-resident seller and pays to AEAT using modelo 211, as an advance on the seller’s capital-gains tax. The seller later files modelo 210 to settle the real tax and can reclaim the 3% if it exceeds the tax due.
- Who pays the 3% — the buyer or the seller?
- The buyer withholds and pays the 3% to the Tax Agency, but it is the seller’s money: it is deducted from the price the seller receives and credited against the seller’s capital-gains tax. The buyer must file modelo 211 within about one month of the deed and give the seller the stamped copy.
- What is modelo 211?
- Modelo 211 is the AEAT form the buyer uses to declare and pay the 3% withheld from a non-resident seller. It is generally filed within one month of the notarial deed, and the stamped copy is the seller’s proof to file modelo 210 and claim any refund.
- How much is non-resident capital gains tax on Spanish property?
- Non-resident capital gains tax is 19% of the profit for sellers resident in the EU/EEA (Iceland, Liechtenstein, Norway) and 24% for sellers resident outside the EU/EEA. The gain is broadly the sale price minus the acquisition value and allowable costs, declared on modelo 210.
- How do I reclaim the 3% retention in Spain?
- You reclaim the 3% by filing modelo 210 for the capital gain and requesting a refund of the amount withheld that exceeds your actual tax. You need the stamped modelo 211, the purchase and sale deeds, a Spanish IBAN, and to be current with prior IRNR obligations; refunds can take several months.
- Do I pay plusvalía municipal as the seller?
- Yes, the seller normally pays plusvalía municipal to the town hall on the increase in the land value during ownership. Since the Constitutional Court ruling 182/2021 you can choose the objective or the real-gain calculation method and pay the lower one — and if there was no gain, no plusvalía is due.
- What happens if the buyer does not pay the 3% retention?
- If the buyer fails to withhold and pay the 3% via modelo 211, AEAT can claim the amount from the property itself, which becomes liable for the debt. This is why buyers always retain the 3% at the notary and why sellers should confirm the modelo 211 was filed before requesting any refund.
- What is the deadline to file modelo 210 after selling?
- The seller generally files modelo 210 for the capital gain within approximately three to four months following the sale, with the period running from the buyer’s one-month modelo 211 deadline. Confirm the exact window for your transaction, as missing it triggers surcharges and interest.
- Do I need a fiscal representative to sell property in Spain as a non-resident?
- A fiscal representative is not always legally mandatory but is strongly recommended, as the modelo 210 filing, the 3% refund and the plusvalía are in Spanish and require a digital certificate and a local point of contact. For non-EU residents in particular, appointing a representative is the practical way to handle AEAT and the town hall.
- Can I sell at a loss and still recover the 3%?
- Yes. If you sell at a loss or a small gain, the capital-gains tax due is lower than the 3% withheld, so you file modelo 210 and request a refund of the excess. You must still complete the filing and prove the figures with the purchase and sale deeds; AEAT pays the refund to your Spanish bank account.
Sources
- AEAT — Modelo 210 (non-resident income tax)
- AEAT — Modelo 211 (3% retention on non-resident property sales)
- AEAT — Non-residents: tax on the sale of property
- BOE — TRLIRNR (Real Decreto Legislativo 5/2004, non-resident income tax)
- BOE — Real Decreto-ley 26/2021 (plusvalía municipal reform after TC 182/2021)
Last updated: 2026-05-29