When a non-resident sells Spanish property, a two-step tax mechanism applies: the buyer withholds 3% of the sale price, and the seller must file Modelo 210 within 3 months. This guide covers the full gain calculation, every deductible cost, what to do when you sell at a loss, and how to claim a refund of excess withholding.
Selling a Spanish property as a non-resident involves one of the most misunderstood tax mechanisms in Spanish law: the 3% buyer withholding. On the day you sign the escritura (deed of sale) before a Spanish notary, the buyer is legally required to retain 3% of the entire sale price and pay it directly to the AEAT on your behalf. This is not the final tax — it is an advance payment. Within 3 months of the sale, you must file Modelo 210 declaring the actual capital gain and the resulting tax. If the 3% withheld exceeds the actual tax, the AEAT refunds the difference. If it falls short, you pay the balance.
Many non-resident sellers are not told about this mechanism clearly by their notary or estate agent. Many others who are told about the 3% assume it is the only and final tax and file nothing further. Both groups end up with outstanding IRNR obligations: the first may miss the 3-month deadline; the second lose their refund of overpaid tax by failing to file.
The Spanish IRNR capital gains mechanism for non-resident sellers operates in two distinct steps, each involving a different party and a different form:
| Step | Who Acts | Form | Timing | What Happens |
|---|---|---|---|---|
| Step 1 | The buyer | Modelo 211 | Within 1 month of deed date | Buyer withholds 3% of sale price from the payment to the seller and pays it to the AEAT as an advance payment (ingreso a cuenta) on behalf of the seller |
| Step 2 | The seller (non-resident) | Modelo 210 | Within 3 months of deed date | Seller declares the actual capital gain, calculates the tax at 19% or 24%, credits the 3% already withheld, and either pays the balance or claims a refund |
Both steps are mandatory and independent obligations. Step 1 is the buyer's legal duty; Step 2 is the seller's. The failure of either party does not relieve the other of their obligation.
The 3% withholding obligation is established by Article 25.2 LIRNR. The policy rationale is straightforward: non-resident sellers may have no continuing connection to Spain after a sale and could simply leave without paying the capital gains tax. The 3% advance retained by the buyer (who remains in Spain) provides the AEAT with a tangible security against that risk. The seller then reconciles the actual tax with the 3% advance by filing Modelo 210.
The 3% withholding applies whenever:
It does not matter whether the buyer is a Spanish resident or another non-resident — it does not matter whether the sale is between individuals or involves a company. If the seller is a non-resident and the property is in Spain, the 3% mechanism applies.
The 3% withholding does NOT apply when:
The buyer's obligations are clearly defined by law and non-compliance has serious consequences:
If the buyer fails to withhold and pay the 3%, the buyer becomes a responsable solidario (jointly and severally liable party) for the non-resident seller's IRNR obligation — up to the amount that should have been withheld. In other words, the AEAT can pursue the buyer for the 3% that should have been retained. This liability is a strong practical incentive for buyers and their lawyers to ensure the Modelo 211 is filed and paid promptly.
The seller's own IRNR obligation is not extinguished by the buyer's failure to withhold — the seller still owes the tax and must file Modelo 210 with the correct amount. If no withholding was made, the seller owes the full tax liability directly to the AEAT (rather than paying the balance after crediting the 3%).
The non-resident seller has exactly 3 months from the date the public deed was signed (fecha del otorgamiento de la escritura pública de transmisión) to file Modelo 210 declaring the capital gain. The clock starts on the deed date — not the date of actual payment, not the date the buyer files Modelo 211, and not the date the property is handed over if that differs from the deed date.
| Deed Date | 3-Month Deadline for Seller's Modelo 210 |
|---|---|
| 15 January 2026 | 15 April 2026 |
| 1 March 2026 | 1 June 2026 |
| 30 June 2026 | 30 September 2026 |
| 15 October 2026 | 15 January 2027 |
If the 3-month deadline falls on a Saturday, Sunday, or Spanish public holiday, it is extended to the next working day. The deadline applies even if the buyer has not yet filed or paid the Modelo 211 — the seller's obligation is independent.
The capital gain for IRNR purposes is calculated as follows:
Capital Gain = Sale Price − (Acquisition Cost + Allowable Acquisition Expenses + Improvement Costs) − Allowable Selling Costs
Each element requires precise identification and documentation. Errors in the capital gain calculation can result in either paying too much tax (by omitting allowable costs) or too little (by claiming impermissible deductions). Both outcomes create risk — the former costs money unnecessarily, the latter attracts AEAT correction with interest.
The acquisition cost is the price stated in the original purchase deed (escritura de compraventa). This is the price the seller paid when they bought the property. If the property was received as a gift or inheritance, the acquisition value is the value declared at the time of the gift or inheritance (the inheritance tax base).
Where the property was inherited, the acquisition value for CGT purposes is the value declared in the Spanish inheritance tax (Impuesto sobre Sucesiones y Donaciones) return filed at the time of inheritance — typically the market value at the date of death. If no Spanish inheritance return was filed (which is common for non-resident heirs), the acquisition value needs to be reconstructed from probate or estate documents. This is an important point: a well-documented inheritance acquisition value can significantly reduce the capital gain on a future sale.
Since 2022, Spain has introduced a valor de referencia (reference value) published by the Dirección General del Catastro for each property. The AEAT has the authority to use this valor de referencia as the minimum taxable value for inheritance, gift, and conveyance tax purposes — and potentially for capital gains base assessment. If the sale price stated in the deed is lower than the valor de referencia, the AEAT may challenge the declared sale price and assess the gain based on the reference value. It is important to price and document the transaction at market value to avoid this issue.
The following costs, incurred at the time of acquiring the property, may be added to the acquisition cost basis to increase it — thereby reducing the taxable gain:
| Cost Item | Deductible? | Notes |
|---|---|---|
| ITP (Impuesto sobre Transmisiones Patrimoniales) paid at purchase | Yes | Typically 6–11% of purchase price depending on the Comunidad Autónoma. Retain the original tax receipt. |
| VAT (IVA) paid at purchase (new property from developer) | Yes | 10% standard rate for residential new builds. Retain IVA invoice from developer. |
| Notary fees at purchase | Yes | Notarial fees for the original purchase deed. Retain the notary's invoice. |
| Land Registry fees at purchase | Yes | Fees for registering the property in your name at the Registro de la Propiedad. |
| Gestoría / agent fees at purchase | Yes | Administrative fees paid to a gestor for handling the purchase formalities. |
| Structural renovation and improvement costs | Yes | Capital improvements made after purchase that are documented with building permits and invoices. Maintenance/repairs are NOT included here (though they may be deductible as rental expenses for EU landlords). |
| Estate agent commission paid at purchase | Yes | If the seller paid an agent to find the property at the time of purchase (less common but allowed). |
The combined effect of adding all allowable acquisition costs to the cost base can be substantial. For a property purchased in 2005 with an 8% ITP payment of €20,000, plus notary and registry fees of €3,000, plus improvements of €30,000, the cost base increases by €53,000 — reducing the taxable gain by €53,000 and the tax by approximately €10,070 (at 19%) or €12,720 (at 24%).
The following costs, incurred in connection with the sale, may be deducted from the gain:
Note: mortgage cancellation fees (comisión de cancelación hipotecaria) and outstanding mortgage capital are not deductible selling costs. The capital balance of a mortgage is not a cost of the sale — it is a debt of the seller. Confusing mortgage capital repayment with selling costs is one of the most common errors in CGT calculations (see Section 16).
Spanish resident taxpayers who sell property are able (in certain circumstances) to apply inflation adjustment coefficients (coeficientes de actualización) that reduce the acquisition cost by an inflation factor, effectively reducing the nominal gain. This adjustment recognises that a property purchased in 1995 for €100,000 and sold in 2026 for €250,000 may have a real (inflation-adjusted) gain that is significantly lower than the nominal €150,000 difference.
Non-residents do not benefit from inflation adjustment. The capital gain is calculated on the raw nominal figures without any inflation indexation. This means that for properties held for a long time in high-inflation periods, non-residents can end up paying tax on gains that are partly illusory (i.e., gains that reflect inflation rather than real appreciation). This is one of the areas where the IRNR treatment is less favourable than the IRPF treatment for residents — a difference that cannot currently be remedied through treaty claims.
Once the net capital gain is calculated (sale price minus cost base and selling costs), the IRNR is applied at the rate applicable to the seller's country of residence:
| Seller Residency | Rate | Applied to |
|---|---|---|
| EU member state or EEA | 19% | Net capital gain |
| Non-EU / Non-EEA (UK, US, Israel, Switzerland, etc.) | 24% | Net capital gain |
The rate applicable to the seller is determined by their country of tax residence in the year of the sale (not their nationality). A US citizen who became a German tax resident before the sale applies the 19% EU rate. A German citizen who became a UK tax resident before 2025 applies the 24% non-EU rate.
Once the tax on the net gain is calculated, it is compared with the 3% already withheld by the buyer and paid to the AEAT via Modelo 211:
| Scenario | Outcome | Action Required |
|---|---|---|
| Tax on gain > 3% withheld | Seller owes additional tax | File Modelo 210 and pay the balance within 3 months of deed date |
| Tax on gain = 3% withheld | Zero balance | File Modelo 210 confirming zero balance; no payment required |
| Tax on gain < 3% withheld | Seller is owed a refund (devolución) | File Modelo 210 claiming the refund; provide bank details for payment |
| Property sold at a loss | Tax = zero; full 3% is a refund | File Modelo 210 demonstrating the loss; claim full refund of 3% withheld |
Where a refund is due, the AEAT processes the return and, once validated, transfers the refund to the bank account designated in the Modelo 210 filing. The AEAT has a statutory obligation to process refunds within 6 months of the date the return was filed. If it fails to do so, it owes the taxpayer late-payment interest (interés de demora) on the delayed refund — currently around 4.5–5% per annum.
In practice, AEAT refund processing times for non-resident capital gains returns range from 6 to 18 months depending on the complexity of the return and AEAT workload. Returns supported by complete documentation — purchase and sale deeds, all cost invoices, proof of fiscal residency — are processed faster. The AEAT frequently issues a request for additional documentation (requerimiento) before processing the refund; responding promptly to these requests avoids delays.
A common misconception: if you sell at a loss, you owe no tax, so you don't need to file. This is incorrect on both counts — or at least on the second count.
A sale at a loss does indeed generate zero capital gains tax liability. But the filing obligation under the LIRNR arises from the fact that a transmission of Spanish real estate by a non-resident has occurred — it is a taxable event that triggers a formal reporting obligation regardless of the outcome. Furthermore, the 3% was almost certainly withheld by the buyer (3% of the sale price) and paid to the AEAT as an advance payment. To recover that 3%, the seller must file Modelo 210 showing that the actual tax liability is zero.
When property changes hands in Spain, a separate municipal tax applies: the Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana (IIVTNU) — commonly known as "plusvalía municipal." This tax is levied by the municipality on the increase in the value of urban land since the last transmission. It is entirely separate from the IRNR capital gains tax and is calculated differently (based on the cadastral value of the land and the number of years held, not the actual transaction price).
The plusvalía municipal was the subject of a landmark ruling by Spain's Constitutional Court (Tribunal Constitucional) in October 2021 (STC 182/2021), which held that the prior automatic calculation method — which imposed plusvalía even in cases where land values had not increased — was unconstitutional. Following the ruling, the calculation rules were reformed by Real Decreto-ley 26/2021. Under the reformed system, taxpayers can choose between two calculation methods: the traditional "objective" method (revised formula based on cadastral land value and years held) or a "real increment" method (based on actual declared transaction values). They pay the lower of the two.
The practical implication for non-resident sellers is that where the property has genuinely depreciated in value since purchase, the plusvalía liability may now be zero or significantly reduced under the real increment method. Non-residents who previously paid plusvalía on transactions where there was no real land value increase may be entitled to a refund of the past overpayment — subject to statutory limitation periods.
By law, the plusvalía is a tax on the seller. However, Spanish property contracts frequently include clauses shifting the economic burden to the buyer. The contractual allocation is a matter between the parties and does not change who has the formal legal liability to the municipality. Where the seller contractually agrees to pay the plusvalía, it is a deductible selling cost for IRNR capital gains purposes. Where it is contractually shifted to the buyer, it is not deductible from the seller's gain.
EU and EEA non-residents who sell a Spanish property that was their vivienda habitual (primary residence under Spanish tax law) may benefit from a reinvestment exemption (exención por reinversión en vivienda habitual) if the entire proceeds are reinvested in a new primary residence within 2 years of the sale (or within 2 years before the sale). This exemption is the same one available to Spanish tax residents under Article 38 LIRPF, extended to EU/EEA non-residents by Spain's domestic reform following ECJ jurisprudence.
This is a narrow and technically complex exemption. Non-EU residents — including UK residents post-Brexit — cannot benefit from it. EU residents who used the Spanish property as their genuine primary residence (not as a holiday home or investment property) and who are reinvesting in a new primary residence should obtain specific legal advice before claiming.
Most of Spain's double tax treaties follow Article 13 of the OECD Model Convention, which gives the country where the immovable property is located (Spain) the right to tax capital gains from its disposal. This means that for the most common scenarios, the DTT does not reduce the Spanish CGT rate — it simply ensures the home country also provides relief (typically a credit) to avoid double taxation.
| Treaty | Spanish CGT on Spanish Real Estate? | Home Country Relief |
|---|---|---|
| Spain-United Kingdom (2013) | Yes — Spain taxes at 24% (non-EU domestic) | UK credits Spanish tax against UK CGT |
| Spain-Germany (2011) | Yes — Spain taxes at 19% (EU domestic) | Germany exempts with progression (Progressionsvorbehalt) |
| Spain-United States (1990) | Yes — Spain taxes at 24% (non-EU domestic) | US credits Spanish tax against US CGT |
| Spain-Israel (1999) | Yes — Spain taxes at 24% (non-EU domestic) | Israel credits Spanish tax against Israeli CGT |
| Spain-France (1995) | Yes — Spain taxes at 19% (EU domestic) | France exempts with progression |
| Spain-Netherlands (1971/1990) | Yes — Spain taxes at 19% (EU domestic) | Netherlands exempts with progression |
The DTT functions primarily to prevent double taxation — not to reduce Spain's tax. The seller pays IRNR in Spain and then claims a credit or exemption in their home country for the same gain. The practical effect is that Spain's IRNR is the primary tax cost on the gain, and the home country tax liability is reduced by the amount of Spanish tax paid.
The most financially damaging error: missing the 3-month deadline. Non-resident sellers who complete a sale in June and do not engage a Spanish adviser promptly often find themselves filing in October or November — 3–5 months late, triggering a 10%–15% surcharge. On a €30,000 tax liability, a 10% surcharge adds €3,000 of completely avoidable cost. Engage your Spanish adviser immediately after agreeing the sale, not after signing the deed.
Using only the purchase deed price (without adding ITP/VAT, notary fees, land registry fees, and gestoría costs) overstates the gain. For a property purchased at €200,000 with 8% ITP (€16,000) and €4,000 in fees, omitting these costs inflates the gain by €20,000 — adding €3,800 in unnecessary tax at 19% or €4,800 at 24%. Every allowable acquisition cost should be recovered from the original purchase file and included.
A very common conceptual error: sellers deduct the outstanding mortgage balance from their gain, treating it as a "cost of sale." Mortgage capital is not a cost of the sale — it is a debt of the seller that is settled from the sale proceeds. Only the interest portion of mortgage payments during rental periods (for EU landlords) or the mortgage cancellation fee may have some relevance to deductible costs, but the capital balance itself has no place in the CGT calculation.
Sellers who sold at a modest gain (where the actual tax is less than 3% of the sale price) or at a loss routinely fail to file Modelo 210 and consequently lose their refund. The refund does not arrive automatically — it requires a filed return. The 4-year limitation period applies: a seller who sold in 2021 and has not filed has until the 2025 filing deadline (3 months post-deed) + 4 years to claim. For many sellers, the clock is running out. This represents real money — in the worked example above, €8,550 — that is simply left unclaimed.
Capital gains from the sale of Spanish immovable property (real estate) must use income type code 28. Code 06 is for capital gains from the transfer of movable assets (e.g., securities). Filing a property sale under code 06 results in the AEAT processing the return in the wrong category, which can create cascading problems including incorrect cross-referencing with the buyer's Modelo 211 (which is specific to real property sales).
Where the seller pays the plusvalía municipal, it is a deductible selling cost that reduces the IRNR capital gain. Many sellers or their advisers forget to include it, or do not know the final plusvalía amount at the time of filing and file without it. If the amount is not known at filing time, a preliminary estimate can be used and the return corrected (via a substitutive filing) once the municipal tax assessment is received — provided this is done before the AEAT has issued any notification.
UK sellers applying 19% (their former EU rate) when the correct post-Brexit rate is 24%, or non-EU sellers applying 19% because they believe their DTT reduces the rate to the EU level (it does not, for property sales). Each 5-percentage-point error on a €100,000 gain results in a €5,000 under- or over-payment. Both directions are problematic: under-payment triggers AEAT correction; over-payment requires a corrective return to claim a refund.
Structural improvements made after purchase — kitchen extensions, bathroom additions, new roof, swimming pool, extra floor — can be added to the acquisition cost base if properly documented. Sellers who carried out significant works 10 years ago and have no records (no building permit, no contractor invoices, no payment evidence) cannot claim those costs. Good record-keeping throughout the ownership period directly affects the tax cost on eventual sale.
The seller needs a copy of the buyer's Modelo 211 filing to complete their Modelo 210 correctly — specifically, to confirm the amount withheld and that it has been paid to the AEAT (so it can be credited). Where the buyer's adviser has not provided the Modelo 211 receipt, the seller must chase it actively. If the 3% was withheld but not yet paid to the AEAT when the seller files Modelo 210, technical complications can arise. Confirm receipt of the Modelo 211 acknowledgement before filing.
If you are inadvertently a Spanish tax resident in the year of sale (due to spending 183+ days in Spain or having your centre of vital interests there), the capital gain should be declared in the IRPF annual return — not in Modelo 210. Filing IRNR when you are actually a resident understates total tax liability and creates a mismatch. Conversely, residents who file IRPF returns should not also file Modelo 210 for the same property gain. Confirm your residency status at the start of the year in which you plan to sell.
If no 3% withholding was made, the seller still owes the IRNR on any gain and must file Modelo 210 within 3 months of the deed date. The difference is that the seller owes the full calculated tax directly to the AEAT — there is no 3% credit to offset. The seller should also document clearly in the Modelo 210 that no Modelo 211 was filed (the relevant field should be left blank or indicated as zero). The buyer may be jointly liable to the AEAT for the unwithheld amount — but that is the buyer's problem to resolve separately. Do not skip the filing simply because the withholding was not made.
The 3-month deadline does not wait for document collection. If documents are not fully assembled by the deadline, it is better to file with the information available (a conservative preliminary calculation showing the approximate gain) rather than miss the deadline and incur a surcharge. A supplementary or corrective substitutive filing can be made later with additional cost documentation — provided this is done before the AEAT issues any notification or query on the original return. The objective is to file within 3 months; refinement can follow.
The statutory deadline is 6 months from the date the complete return is filed. In practice, straightforward returns with full documentation are processed within 6–12 months. Complex returns — where the AEAT requests additional documentation (a requerimiento) — can take 12–18 months or more. The AEAT owes interest on refunds not paid within 6 months. Responding promptly to any AEAT documentation requests is the most effective way to accelerate the process. Designating a Spanish bank account for the refund payment is advisable where available.
Yes. Each co-owner declares their proportionate share of the gain in a separate Modelo 210 return. The cost base is also split proportionately. If you owned 50/50, each of you declares 50% of the gain, 50% of the acquisition costs, and 50% of the selling costs. The 3% buyer withholding was calculated on the full sale price — 50% of the 3% is credited to each co-owner's return. If co-owners have different residency status (e.g., one EU, one non-EU), each applies their own rate.
The Modelo 211 is filed by the buyer, not by you. It covers the buyer's withholding obligation. Your own separate Modelo 210 filing obligation as the seller is a distinct legal requirement under the LIRNR. Modelo 211 does not substitute for Modelo 210. You must file Modelo 210 within 3 months of the deed date regardless of whether Modelo 211 has been filed by the buyer. The 3% is credited in your return as a prepayment; filing is required to establish the credit and settle any balance or refund.
No. Under the IRNR, each property sale is a separate taxable event with its own Modelo 210 return. Gains and losses from different property sales cannot be netted. If you sell two properties in the same year — one with a €50,000 gain and one with a €30,000 loss — you pay tax on the €50,000 gain and receive a full refund of the 3% withheld on the €30,000 loss property (since the tax on that sale is zero). The net position is assessed only in your home country's domestic tax system, where DTT credit rules may allow some netting.
If the original escritura de compraventa is lost, a certified copy can be obtained from the original notary's office (notaría) or from the notarial archive (protocolos notariales) held by the Colegio Notarial for the province. The Land Registry (Registro de la Propiedad) may also hold a copy of the registration. A nota simple from the Land Registry shows the current owner and the date of registration but may not show the original price. The AEAT generally accepts certified notarial copies as evidence of acquisition cost. If the acquisition year and approximate price can be documented through other means (bank transfer records, purchase receipts, mortgage records), these may support the cost base claim in combination.
Possibly not — but urgent action is required. The statute of limitations for IRNR is 4 years from the filing deadline. For a sale in (say) March 2021, the 3-month filing deadline was June 2021. The 4-year limitation period runs from June 2021 to June 2025. If you are reading this after June 2025, the assessment window for that specific return may have expired (though AEAT can still act if the period was interrupted by any action). For a sale in late 2021, the window may still be open. For any sale in 2022, 2023, 2024, or 2025, the window is definitely open. Act immediately — voluntary filing, even late, avoids the formal sanctions regime if the AEAT has not yet initiated proceedings.
Assemble all of the following before beginning the Modelo 210 capital gains return:
Jacob Salama (Colegiado nº 11.294 ICAMálaga) advises non-resident sellers on capital gains calculation, acquisition cost documentation, refund claims, Modelo 210 filing within the 3-month window, and late filing regularisation. Don't let avoidable errors cost you thousands.