Why did the buyer withhold 3% when I sold my property as a non-resident?

Non-resident sellers automatically have 3% of the sale price withheld by the buyer and paid to the Agencia Tributaria as a payment on account of your final tax bill. You still need to file the final settlement (Modelo 210) to pay any additional amount owed or reclaim any excess.

Property Taxes

Taxes when selling a property in Spain

The taxes that apply when you sell Spanish property, including the special rules for non-resident sellers.

Last reviewed: 2026-06-15The non-resident settlement (Modelo 210) generally has a filing window starting about a month after the sale; any refund owed from excess withholding commonly takes several months to be processed.

This guide is not yet verified by Tuchati's editorial review — treat it as a helpful starting point, not a final legal answer.

Overview

Selling property in Spain generally triggers two separate taxes: Capital Gains Tax on any profit, and a municipal tax called Plusvalía. Non-resident sellers also face an additional buyer withholding that catches many people by surprise.

Requirements

Applies to anyone selling property in Spain, resident or non-resident

Step-by-step process

Calculate your capital gain (sale price minus acquisition price and allowable costs) — see our detailed guide to Capital Gains Tax for the rates and exemptions that may apply
Pay the municipal Plusvalía tax (Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana, IIVTNU), which taxes the increase in the land's value during your ownership — this is legally owed by the seller, calculated using whichever of two available methods gives a lower result
If you're a non-resident seller, be aware the buyer is legally required to withhold 3% of the sale price and pay it directly to the Agencia Tributaria on your behalf, as a payment on account of your final tax bill
File your final tax settlement — residents declare the gain on their annual return; non-residents file the specific Modelo 210 form, which also lets you reclaim any excess over what you actually owed from the 3% withholding

Required documents

Deed of purchase and deed of sale
Proof of allowable costs and improvements, to calculate the gain accurately
NIE

Common mistakes

Non-resident sellers not realising the 3% withholding is only a payment on account, not the final tax — a separate filing is still required to settle the actual amount owed, and to reclaim any excess
Forgetting the municipal Plusvalía tax entirely, since it's separate from Capital Gains Tax and easy to overlook when budgeting a sale

Practical tips

Since 2021, you can choose whichever of the two Plusvalía calculation methods results in a lower tax, and in some cases where there's been no real increase in value, the tax may not be owed at all — worth checking carefully rather than assuming it's always due
Keep every receipt for improvements made to the property during your ownership, since they can reduce your taxable capital gain

How Tuchati can help

If you're selling property and want to understand what you'll owe and by when, particularly as a non-resident, Tuchati can help you understand the process before you complete the sale.