Being aware of the taxes involved makes the sale faster and safer at the notary. Below we go through the 3% withholding tax for non-residents, capital gains tax and the municipal plusvalía – including the forms and deadlines that apply.

3% withholding tax (for non-resident sellers)

What is it? The buyer must withhold 3% of the purchase price if the seller is non-resident (without a permanent establishment) and pay the amount to the Spanish Tax Agency using Form Modelo 211 within one month of completion. The seller should receive a copy of the payment. The amount is treated as an advance payment towards the final capital gains tax.

When does the seller declare? The non-resident seller files Modelo 210 for the capital gain within three months after the month in which the buyer’s Modelo 211 payment deadline has passed (in practice, roughly four months after completion). If the tax due is lower than the 3% withheld, the seller can request a refund of the excess amount.

Capital gains tax (CGT)

Non-residents (individuals): Capital gains are normally taxed at 19%. The 3% paid by the buyer via Modelo 211 is offset against this tax in the seller’s Modelo 210.

Residents (for comparison): Progressive rates according to the current brackets; for example, 19% up to 6,000 €, 21% up to 50,000 €, 23% up to 200,000 €, 27% up to 300,000 € and 30% above that. (Regional differences and rule changes may apply.)

Tip: Keep receipts for improvements and costs related to the sale – these can affect the taxable gain. Always consult an advisor regarding deductions in your specific municipality.

Plusvalía municipal (IIVTNU)

This is the municipal tax on the increase in land value for urban plots. After a ruling by the Constitutional Court in 2021, the rules were changed: today there are two calculation methods (objective or real) and the taxpayer can choose the most favourable one. The tax is normally charged by the local council where the property is located and paid in connection with the transfer.

Timeline in brief

• Completion day (notary) – the sale is signed.
• Within 1 month: The buyer pays 3% via Modelo 211 and provides the receipt to the seller.
• Within a further 3 months: The non-resident seller declares the gain via Modelo 210 and, where applicable, requests a refund.
• Municipal deadline: Plusvalía is declared/paid according to the rules of the local council (varies – check locally).

Mini example (simplified)

If you sell as a non-resident for 200,000 €, the buyer withholds 6,000 € (3%) and pays it via Modelo 211. If your capital gain is 20,000 €, CGT at 19% will be 3,800 €. In your Modelo 210 declaration, the 6,000 € is offset against the 3,800 €, which means a refund of 2,200 €, minus any plusvalía. (For illustration only; amounts and rules may vary.)

Checklist – taxes & forms

• Confirm your tax status (resident / non-resident).
• Make sure the buyer is aware of Modelo 211 and the one-month deadline.
• Prepare Modelo 210 in time (three months after the 211 period).
• Check and plan for plusvalía with the local council.
• Keep documentation for acquisition value / improvements (can reduce tax).

Book your sales start – how we help you

Do you want a quick tax review before listing? We put together your timeline, prepare the documentation for 211/210 and check plusvalía with the local council – so you avoid unnecessary delays.