Where taxpayers get caught out
If the buyer does not withhold and pay the 3%, the buyer becomes liable for the amount and the property itself is affected by the seller's unpaid tax. Notaries check it, but the responsibility remains with the buyer.
Step by step
| Step | Who | When |
|---|---|---|
| Check the seller's residence status | Buyer's lawyer | Before signing |
| Withhold 3% at completion | Buyer | At the notary |
| Pay with modelo 211 | Buyer | Within one month of the deed |
| Send proof to the seller | Buyer | After payment |
| File modelo 210 to settle or claim | Seller | Within three months after that month |
For buyers
Withhold the 3% at completion, usually by issuing a separate bank cheque or keeping the amount for your lawyer to pay. File the modelo 211 within one month with the seller's details and a copy of the deed. Give the seller proof of payment, which they need to file their own return.
For sellers
The 3% is an advance on your capital gains tax at 19%. If the real tax is lower, as often happens, you claim the difference back; if higher, you pay the rest. See capital gains tax for non-residents and the modelo 210.
Sellers who are resident
If the seller is tax resident in Spain, there is no 3% retention; the seller declares the gain in the annual income tax return. The seller's residence must be proved with a tax residence certificate if there is any doubt.
Practical tips
Agree in the contract who pays the 3% to the tax agency and how proof is shared. Non-resident sellers who live abroad benefit from appointing a tax representative to receive the refund and any notices.
An illustrative example
Based on situations we commonly see; not a specific client. A buyer in Ciutadella bought from an English seller and paid the 3% on time, but the seller never claimed a refund. Two years later the seller asked us for help; we filed the late modelo 210 within the limitation period and recovered most of the 3%, since the gain had been small.
How Castell.tax can help
We file the Spanish taxes of non-resident owners every year: imputed income, quarterly rental returns, the tax on a sale and the refund of the 3% retention. We work in English and German, by email and video call, so you never need to travel to Spain. We also check past years and correct them before the tax agency writes to you. See our non-resident tax service or contact us for a fixed-fee quote.
This page is published by Castell.tax, the tax practice of Castell.law in Palma de Mallorca. It is general information; tax rules and rates change, so check your case with us before filing.
Not sure what you owe? Ask before the deadline
Send us your situation or the letter you received. A tax adviser will tell you what applies, what it could cost and what to file.
Frequently asked questions
Who pays the 3%?
It is deducted from the price by the buyer and paid to the tax agency on the seller's account.
What if the buyer does not pay it?
The buyer becomes liable and the property secures the seller's tax.
Can the seller get the 3% back?
Yes, if the tax due is lower, by filing the modelo 210.
Does it apply to residents?
No, only when the seller is not resident in Spain.