Purchase taxes and costsArticle 5 of 6 · 4 min read
The buyer's 3% retention when the seller is non-resident
If you buy a home in Spain from a seller who is not a Spanish tax resident, you must hold back part of the price and pay it to the tax office yourself. This page explains what to withhold, how to pay, and how to avoid paying twice.
Terms used
- Modelo 211 — Modelo 211 is the tax form the buyer uses to pay the 3% retention to the tax office.
- Modelo 210 — Modelo 210 is the form a non-resident seller files for their final tax on the sale.
- Agencia Tributaria — The Agencia Tributaria is Spain's tax agency.
- NIE — The NIE is the tax identification number Spain gives to foreigners.
Key rules
- Withholding: If the seller is not a Spanish tax resident, you hold back 3% of the price and pay the seller the rest.
- Deadline: Pay the 3% with modelo 211 within one month of the deed.
- Your liability: If the 3% goes unpaid, the tax office can pursue you, even if you paid the seller in full.
- Doubt: If you cannot confirm the seller is a Spanish tax resident, withhold the 3%.
What you must do
If the seller is not a tax resident in Spain, you withhold 3% of the price and pay it with modelo 211 within one month of the deed. You pay the seller the price minus that 3%. The money goes to the tax office on the seller's behalf, not to you or the notary.
Example: on a €300,000 price, you pay the seller €291,000 and pay €9,000 to the tax office.
Why it falls on you
The 3% is an advance on the seller's tax on their gain. The law makes you responsible for withholding and paying it. If it is not paid, the tax office can come to you for the amount. The seller later files modelo 210 for their final tax. The 3% is credited against it, and any excess is refunded to the seller.
How to check the seller's residence
Work this out before the deed, not after. The notary asks the seller for ID or passport, NIE and a declaration of residence, and records the address in the deed.
- A foreign address or a non-Spanish passport is a warning sign. Nationality alone does not make someone non-resident.
- A declaration in the deed is normal, but it does not remove your own liability if it turns out to be false.
- If you doubt the seller's status, withhold the 3% or ask for a tax-residence certificate. It can come from the Spanish tax agency or from the seller's foreign tax authority.
How to pay
File modelo 211 with the Agencia Tributaria. You can do it online with a digital certificate or electronic ID, or in person at the office by appointment. A representative can file it for you. Keep the payment receipt and give it to the seller, who needs it for modelo 210.
What goes wrong
If you pay the seller in full and the 3% is never paid, you can end up paying it after the sale. Getting the money back from the seller is then a private matter between you. Late payment adds surcharges and interest, and penalties can apply. The tax office can also place a charge on the property, and some registrars ask to see the form.
The timeline, documents, checklist and warnings below cover the steps in order.
Timeline and deadlines
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Confirm whether the seller is a tax resident of Spain: before the deed
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Pay the seller the price less the 3%: at the deed
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Give the seller the payment receipt so they can file modelo 210: after you pay
Documents you need
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The seller's ID or passport, and NIE, which the notary asks for at the deed.
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The seller's declaration of residence in the deed, with the address shown there.
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A tax-residence certificate from the Spanish tax agency or the seller's foreign tax authority, if you doubt the seller's status.
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The receipt for your payment with modelo 211, to show the seller.
Checklist
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Check the seller's address shown in the deed.
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Ask for a tax-residence certificate if the seller has a foreign address or you doubt their status.
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Withhold the 3% if you cannot confirm the seller is a Spanish tax resident.
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Keep the payment receipt and show it to the seller.
What to watch out for
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You can end up paying the 3% twice: You are legally responsible for withholding and paying the 3%. If it is not paid, the tax agency can pursue you for it, even after you paid the seller in full.
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Late payment costs extra: Paying late brings surcharges and interest, and penalties can apply for not filing or paying. File on time, and ask a gestoría to do it if you are unsure.
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The property can be charged and the registry may ask for the form: The tax agency can place a charge on the property, and some registrars check that the form was filed. Keep the modelo 211 receipt with your deed papers.
Frequently asked questions
Does the seller's declaration in the deed protect me if it turns out to be false?
No, the seller's declaration of residence in the deed does not remove your own liability if it is false. Notaries accept it as normal practice, but the tax agency can still pursue you.
Does a foreign passport mean the seller is non-resident?
No, a foreign passport alone does not make a seller non-resident for tax. A foreign address in the deed is a stronger warning sign, so check it with the notary. A tax-residence certificate settles the question.
What happens to the 3% I pay if the seller's final tax is lower?
The 3% is credited against the seller's final tax on the capital gain, and any excess is refunded to the seller. The seller settles this by filing modelo 210. It is the seller's matter, not yours.
Can someone else file the retention payment for me?
Yes, a representative can file modelo 211 for you.
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