Quick answer
When the seller is not tax resident in Spain, the buyer withholds 3% of the agreed price at the notary and pays it to the Spanish tax agency. It is an advance on the seller's tax on the gain. After the sale, the seller files a non-resident return: if the real tax is lower, the difference is refunded; if it is higher, the seller pays the rest.
Why the retention exists
A non-resident may leave Spain after selling, so the law makes the buyer collect part of the tax at source. The amount is a flat 3% of the price stated in the deed, whatever your actual gain.
How it works at the notary
- The deed states that the seller is not resident and that 3% is withheld.
- The buyer receives the 3% (usually as a separate cheque or transfer) and pays it to the tax agency, normally within one month of the sale.
- You receive the remaining 97%, minus any other agreed deductions, such as the plusvalía municipal.
After the sale: your tax return
You then file the non-resident income tax return for the gain on the sale. Your gain is broadly the sale price minus what you paid, with the purchase costs, sale costs and documented improvements taken into account.
- Tax lower than the 3% withheld, or no gain at all: you claim back the difference.
- Tax higher than the 3%: you pay the balance.
The return has a deadline counted from the sale, so plan it before you sign. Keep the purchase deed, invoices for improvements and the receipts of all costs: they reduce the gain.
If you are tax resident in Spain
The retention does not apply. Bring proof of your tax residence to the notary so the deed reflects it correctly.
Rates and deadlines are set by Spanish tax law and can change. Ask a tax adviser to calculate your case before you sign.
Questions owners ask us
Is the 3% an extra tax?
No. It is an advance on the tax on your gain, settled with your non-resident return after the sale.
Can I get the 3% back?
Yes, all or part of it, if the tax on your gain is lower than the amount withheld, for example when you sell at a loss.
This guide is general information, not legal or tax advice. Rules change; check your own case with a notary, lawyer or tax adviser before you sign.