What is the 3 % retention when a non-resident sells a property in Spain?

Why the buyer pays part of your price to the tax office

Spain cannot easily chase a seller who has left the country with the proceeds. The law therefore makes the buyer responsible: when the seller is not tax resident in Spain, the buyer deducts 3 % from the price at the notary and pays it to the Agencia Tributaria using Modelo 211, within one month of the sale. A buyer who forgets can end up answering for that amount, which is why notaries and buyers' lawyers insist on it.

In practice, at completion you receive 97 % of the price. The notary deed records the retention, and the buyer's representative gives you a copy of the paid Modelo 211.

What 3 % means in figures

Sale price	Retention (3 %)	You receive at the notary
150,000 €	4,500 €	145,500 €
250,000 €	7,500 €	242,500 €
400,000 €	12,000 €	388,000 €

The retention is calculated on the price, not on your gain. That is why it is often far from the tax you finally owe.

It is not the final tax

The real tax is 19 % of your gain. After the sale you file your own Modelo 210 and compare:

• if 19 % of the gain is higher than the 3 % retained, you pay the difference;
• if it is lower, or you made a loss, you ask for the excess back.

For instance, a 250,000 € sale with a gain of 20,000 € gives a tax of 3,800 €. The buyer retained 7,500 €, so 3,700 € can be reclaimed. The capital gains simulator shows the balance in your case, and how to recover the 3 % explains the claim.

Documents to keep from the sale

• the sale deed showing the retention;
• the paid Modelo 211 provided by the buyer;
• your purchase deed and the invoices for costs and improvements;
• a certificate of tax residence from your home country, which can help with the refund.

Without the Modelo 211, you cannot credit the retention on your own return, so ask for it at signing.