What the withholding is
The withholding is a safeguard: the Spanish tax office wants to be sure of payment before a seller who lives abroad leaves the country with the proceeds. The obligation lies with the buyer, not with the notary or the estate agent. The buyer pays the amount within one month of completion using form Modelo 211, in your name.
The basis is the agreed price, with no deduction for costs or a mortgage being redeemed. Where a property is jointly owned, only the share of the owner who is not resident in Spain is subject to withholding. There are just two exceptions: you prove with a certificate from the Spanish tax office that you are taxable in Spain, or the property is contributed to a Spanish company. A loss, an NIE (Spanish tax identification number) or a Spanish bank account do not exempt you.
Because the gain is taxed at 19% as of 2026 and the withholding is 3% of the price, the two match at a gain of about 15.8% of the sale price. At a price of €250,000, €7,500 is withheld and you pay extra above a gain of around €39,500; at €335,000 the figures are €10,050 and around €52,900. Below that, you are due a refund.
If the buyer withholds nothing, the property remains liable for the lower of the withholding and the tax due, and the registrar records this in the land register. You remain the taxpayer. It is therefore in your interest too that the buyer withholds correctly.
Reclaiming through Modelo 210
You reclaim any excess through your own return, Modelo 210. The deadline is three months after the buyer's month ends, so around four months after completion. Do not file before the buyer's withholding has been processed. What you need:
- Your NIE, exactly as on the original certificate. One wrong digit and your return will not be matched to the withholding.
- The copy of Modelo 211 intended for the seller. Record in the preliminary contract (arras) and in the deed that the buyer sends you a copy within five days of payment.
- The purchase and sale deeds, proof of taxes and costs on purchase, and invoices for improvements.
- Sale invoices: agency commission, energy certificate and, where applicable, the plusvalía municipal (municipal tax on the rise in land value).
- Proof of the account into which you want the refund. A foreign account is allowed if it is in your own name. Keeping a Spanish account open until the refund arrives usually causes the least delay.
A tax representative is not compulsory for an EU-resident individual selling a home. A representative in Spain is nonetheless sensible, because queries from the tax office are served in Spain and come with short deadlines. How the gain itself is calculated is explained in capital gains tax for non-residents.
Worked example: three possible outcomes
A flat in Fuengirola is sold in 2026 for €335,000. After selling costs, the transfer value is €311,122.50, and €10,050 is withheld. The outcome depends on when and for how much the owner bought. The amounts are illustrative.
| Bought | Acquisition value incl. costs and improvements | Gain or loss | Tax at 19% | Modelo 210 result |
|---|---|---|---|---|
| 2021 for €268,000 | €303,460 | +€7,662.50 | €1,455.88 | €8,594.12 refunded |
| 2015 for €195,000 | €230,950 | +€80,172.50 | €15,232.78 | €5,182.78 to pay |
| 2007 for €340,000 | €366,150 | −€55,027.50 | €0 | €10,050 refunded |
In the first case, the withholding was almost seven times the actual tax. Without the invoices for €14,500 of improvements, the refund would also have been €2,755 lower. With a loss you get the full withholding back, but again only by filing a return.
How long it takes
The Spanish tax office has six months from the end of the filing period to pay a refund. After that, interest accrues automatically. In practice, our local partners see refunds three to eight months after filing when the file is complete; with additional queries it can take twelve to eighteen months. This reflects experience, not an official statistic. Plan on the 3% being unavailable for a good part of a year.
The most common causes of delay: the buyer's form is missing or unpaid, the NIE is wrong, the bank account is not evidenced, or queries from the tax office go unanswered. The right to a refund lapses after four years.
The municipal plusvalía
Where the seller is a non-resident individual, the buyer also pays the plusvalía municipal, and this is often withheld at the notary as well. On completion day, 4% to 5% of the price may therefore be held back. Agree the amount in advance in the preliminary contract. The filing deadline with the town hall is thirty working days. See also our costs page.
This information is general; have your situation reviewed by an independent tax adviser. CostaVista guides you, together with our local partners, in preparing the sale, the contractual arrangements and the coordination with your adviser. Get in touch.
General information, as of October 2026. This is not legal, tax or financial advice; for your own situation, consult an independent specialist.