Selling your property in Spain: capital gains, 3% withholding (Modelo 211) and Modelo 210

When a non-resident sells a property in Spain, a particular mechanism applies: part of the price is not paid to you. The buyer withholds 3% and pays it directly to the Spanish tax authority. You must then file your own capital gains return, which lets you pay the balance or, very often, recover some or all of that withholding. On top of this comes a municipal tax, the plusvalía. Here is how it all fits together.

Fiscasa is a private service, independent of the Agencia Tributaria. The rules described relate to the common regime; the Basque Country and Navarre have their own forms.

Step 1: the 3% withholding on completion

The principle

When the seller is a non-resident, the buyer must withhold 3% of the agreed price and pay it to the tax authority using Modelo 211, within one month of the sale. This sum is a payment on account of the seller's tax. If the buyer fails to pay it, the property itself remains liable for the tax: that is why notaries keep a close eye on it.

Example

You sell for €230,000. The buyer pays you €223,100 and withholds €6,900, which they pay to the tax authority with Modelo 211.

What to get hold of

Ask the buyer, or their notary or lawyer, for a copy of the Modelo 211 and its proof of payment. Without it, the next steps are much more complicated. Check that your NIE and the amount are correct on it: a mistake on the 211 cannot be corrected in your own return.

Step 2: your capital gains return (Modelo 210)

The deadline

You have three months after the end of a one-month period from the sale, i.e. about four months. A sale completed on 15 March 2026 must be declared by 15 July 2026 at the latest. This deadline is not changed by the 2027 reform.

This return is compulsory even if you make a loss: it is what lets you claim back the withholding. Each seller files their own for their share. Payment by direct debit is not available for this type of return.

Calculating the gain

Capital gain = transfer value − acquisition value

• Transfer value: sale price less the selling costs you bear (estate agent, lawyer, municipal plusvalía, energy certificate…).
• Acquisition value: purchase price plus purchase costs and taxes (notary, land registry, transfer tax ITP or VAT and AJD), plus improvement works backed by invoices.
• If the property was let, depreciation must be deducted from the acquisition value, taking at least the depreciation that could have been claimed.

Tax = capital gain × 19%, whatever your country of residence — UK residents included. The 3% withholding is credited against this tax.

Example 1: a gain

Peter bought a flat in Málaga in 2012 for €150,000, with €15,000 of purchase costs. He sells it in 2026 for €230,000. Selling costs: estate agent €8,000, municipal plusvalía €1,200. He never let it.

• Transfer value: 230,000 − 9,200 = €220,800
• Acquisition value: 150,000 + 15,000 = €165,000
• Capital gain: €55,800
• Tax: 55,800 × 19% = €10,602
• Withholding already paid by the buyer: €6,900
• Balance to pay: €3,702

Example 2: a loss

Catherine bought in 2007 for €260,000 plus €25,000 of costs. She sells in 2026 for €240,000.

• Negative gain: no tax.
• 3% withholding: €7,200.
• Refund claimed: €7,200.

Example 3: a couple

If Peter owned the property 50/50 with his wife, each declares half: gain of €27,900, tax of €5,301, withholding of €3,450, balance to pay of €1,851 each.

Step 3: getting the refund

When the withholding exceeds the tax, the capital gains return shows an amount to be refunded. The refund can be paid into an account abroad. You will need:

• the copy of the Modelo 211 and its payment;
• the purchase and sale deeds (escrituras);
• invoices for costs and improvements;
• a certificate of account ownership for the refund bank account.

Processing times are often counted in months. The tax authority may ask for further supporting documents: a quick and complete reply avoids delays.

The other tax on a sale: the municipal plusvalía

What is it?

The Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana (IIVTNU), known as the plusvalía municipal, taxes the increase in value of the land during ownership. It is owed to the municipality, separately from Modelo 210.

The calculation

Since 2021, two methods have coexisted and the taxpayer can choose the more favourable:

• the objective method: cadastral value of the land × a coefficient based on the number of years of ownership (capped at 20 years), × the municipal rate (30% maximum);
• the actual method: the gain actually made on the land portion.

If there is no gain (sale at a loss), you can claim non-liability, provided you declare and prove it.

Who pays when the seller is a non-resident?

The seller is the taxpayer, but when they are non-resident, the buyer acts as a substitute: in practice, the amount is withheld from the price at the notary's office and paid by the buyer. The declaration deadline is 30 working days after the sale. The plusvalía paid is then a deductible selling cost in your Modelo 210.

Don't forget the year of sale

If the property was not let, you still owe imputed income for the year of sale, from 1 January to the completion date, pro rata (see imputed income). For a sale on 15 March 2026, that is 74 days of 2026 imputed income, to be declared between 1 April and 31 December 2027.

The previous years must also be in order: the buyer and the notary may ask for proof. If you have missing years, put them right before the sale: see filing late years.

What about the UK or Ireland?

As a UK or Irish resident, you must also declare the gain at home. In the UK, it goes on the Capital Gains Tax pages of your Self Assessment return, with the Spanish tax claimed as a credit on the SA106; in Ireland, capital gains tax applies at 33%, with a credit for the Spanish tax. The home calculation (in pounds for the UK, annual exempt amount, rates, reliefs) differs from the Spanish one. See declaring Spanish property income in the UK and Ireland and get professional help for this step.

What Fiscasa does

We prepare your capital gains return, check your Modelo 211, calculate the balance to pay or the refund expected and prepare the imputed income for the year of sale. The price is fixed and stated before you order: see our pricing.

FAQ

Is the 3% withholding the final tax?

No, it is a payment on account. The final tax is 19% of the gain, calculated in your own return. The difference is either payable or refundable.

I'm selling at a loss. Do I still need to file?

Yes. Without a return, the tax authority keeps the 3% withholding. The return is what lets you get it back.

The buyer hasn't paid the 3%. What happens?

The buyer is in default, and the property sold remains liable for the tax. Your own obligation to file still stands. Tell your notary.

Can I deduct works carried out?

Yes, improvement works backed by invoices increase the acquisition value. Simple repairs and routine maintenance don't count.

Are capital gains taxed at 24% for non-EU residents such as UK residents?

No, the 19% rate applies to all non-residents for capital gains.

How long does the refund take?

There is no guaranteed timescale; it is generally counted in months. A complete file from the outset limits requests for documents.