How much capital gains tax when a non-resident sells property in Spain? (the 3% retention explained)

The 19% tax on the gain

The capital gain is broadly the sale price minus your acquisition cost (including the purchase taxes and documented improvement works you paid). For a non-resident that gain is taxed at a flat 19% under the IRNR, and — unlike some other Spanish taxes — the 19% rate is the same whether you are an EU or a non-EU resident. That is your real tax liability on the sale.

Why the buyer keeps 3% — and how you reclaim it

The 3% retention is a collection mechanism, not a second tax. Because a non-resident seller can leave the country, Spain makes the buyer withhold 3% of the agreed sale price and pay it to the Agencia Tributaria via Modelo 211 within one month of completion. The seller receives only 97% of the price at the notary; the missing 3% is sitting with the tax office as a credit against the seller's actual tax.

The seller then files Modelo 210 within four months of the sale to declare the real 19% gain. Two outcomes: if 19% of your gain is less than the 3% withheld — common when the property has not appreciated much or was held a long time — you claim the excess back as a refund; if your 19% liability exceeds the 3%, you pay the shortfall. The frequent confusion is treating the 3% as 'the tax'; it is only an advance. Have your lawyer or asesor fiscal reconcile the two for your exact sale.