Note
The three per cent retention when buying from a non-resident
Quick answer
When a non-resident without a permanent establishment sells Spanish property, the buyer must withhold 3% of the agreed consideration and pay it on model 211 within one month of the transfer. It is an advance on the seller’s tax, not an extra cost for the buyer.
Applies toBuyers purchasing from a non-resident and non-resident sellers. It does not cover the calculation of the final tax.
On this page: 8 sections
§ 1The rule
When a non-resident without a permanent establishment sells real estate in Spain, the buyer is obliged to withhold a percentage of the agreed consideration and pay it to the tax agency. The percentage is 3%. It applies whether the buyer is a resident or a non-resident, and whether the buyer is an individual or a company. The tax agency's instructions for model 211 state the rule. The chapter on the whole subject is capital gains tax on a sale for buyers.
§ 2Why it exists
The payment is an advance on the tax that the non-resident seller will owe on the gain. The agency collects part of the tax before the seller leaves the country, which is easier than chasing a seller who lives abroad. The seller still has to file the final return, and the advance is credited against it.
§ 3The deadline
The buyer pays the amount within one month of the date of the transfer of the property, which in practice is the date of the deed. The seller's own return for the gain follows a different calendar: within three months, after a wait of one month from the transfer. Because the buyer's date is earlier, the buyer's lawyer or gestor normally files model 211 soon after the signing.
§ 4How it works at the notary
The usual method is for the buyer to pay the seller the price less the withholding and to pay the withholding to the agency. The lawyer prepares the figures before the deed, and the closing statement shows the split. Some buyers pay the withholding by a bank cheque delivered at the notary, and others transfer it after the deed. Whatever the method, keep the proof of payment, since the seller will ask for it to file the return.
§ 5What the seller does next
The seller files model 210 for the gain and credits the advance. If the tax on the gain is lower than the advance, the difference is claimed through the return. If it is higher, the seller pays the rest. The seller should ask the buyer for the copy of model 211 and the proof of payment, which are the documents the adviser needs.
§ 6Risks to avoid
For the buyer, the risk is paying the whole price to the seller and forgetting the withholding. For the seller, the risk is a delay in the buyer's payment, which can complicate the return. Both are avoided by agreeing the mechanism in the contract and in the closing statement before the day of the deed.
§ 7Municipal tax and other costs
The municipal tax on the rise in land value is separate, and where the seller is an individual who is not resident, the buyer can be required to pay it as a substitute taxpayer. That rule is explained in the plusvalía section. Ask your lawyer to handle both on the same day.
§ 8Related pages
More on the over-65 exemption explains the exemption for sellers over sixty-five, and more on reinvestment relief explains the relief for reinvesting in a main home.
FAQRelated questions
Is the withholding an extra cost for me as a buyer?
No. It is part of the price, kept back from the seller and paid to the tax agency. The seller receives less cash at closing, but the price you pay does not change. Ask your lawyer to show it in the closing statement.
What happens if the buyer forgets?
The agency’s instructions say buyers are obliged to withhold and pay. A buyer who does not may face liability and penalties, so arrange the payment at the time of the deed and keep the receipt. Ask your lawyer to confirm the consequences for your case.
Can the seller get the money back?
The payment is an advance, so the seller settles the final tax on the return. If the advance is more than the tax, the excess can be claimed through the return. Ask the adviser who files the seller’s model 210.
Sources
- Agencia Tributaria: IRNR without permanent establishment: model and filing period (official source, opens in a new window), Deadlines by type of income (page updated 2 October 2026)Last checked 17 October 2026
- Agencia Tributaria: Modelo 211: instructions (withholding on purchase of property from a non-resident) (official source, opens in a new window), Who files, the retention and the deadlineLast checked 17 October 2026
Tax note. Rates depend on the region, the type of property and the buyer, and they change. Figures here are dated and sourced; examples are illustrative and show their assumptions. Confirm yours with the regional tax agency or a tax adviser.