The 3% withholding is paid by the buyer to the Spanish Tax Agency via Form 211. The seller then reconciles it through Form 210 for the sale. Many sellers think it is their final tax — it is not.
- Step 1
Sale price
The buyer agrees a price with the non-resident seller.
- Step 2
Buyer withholds 3%
On completion, the buyer retains 3% of the price instead of paying it to the seller.
- Step 3
Buyer files Form 211
The buyer pays that 3% to the Spanish Tax Agency using Form 211, within 1 month from the transmission date.
- Step 4
Seller files Form 210 (sale)
The non-resident seller declares the capital gain or loss on Form 210, within 3 months once the Form 211 deadline has passed.
- Step 5
Refund, zero or additional payment
The 3% withholding is offset against the final tax. A refund, balanced position or extra payment may result.
Sale price €500,000 — what happens to the 3%?
- Sale price
- €500,000
- 3% withheld by buyer (Form 211)
- €15,000
- Final tax on capital gain (Form 210)
- Depends on documented gain
- If final tax < €15,000
- Refund route may exist
- If final tax > €15,000
- Additional payment due
Illustration only. The final tax position depends on purchase costs, sale costs, documented improvements and the full review of your case.
Many sellers believe the 3% is the final tax. It is not. The final result depends on the capital gain calculation and the documents available. A higher gain can mean additional payment beyond the 3%; a lower gain or a loss may open a refund route.
Check how the 3% withholding applies to your sale
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