Modelo 210 Guide
Modelo 211 Spain: How the 3% Retention Tax Works When Selling Property
Selling property in Spain as a non-resident? Everything you need to know about Modelo 211, the 3% retention, deadlines and how to reclaim your money via Modelo 210.
Do you need to file Modelo 210?
Modelo 211 Spain: How the 3% Retention Tax Works When Selling Property
Modelo 211 — the short answer
When a non-resident sells a property in Spain, the buyer withholds 3% of the purchase price and pays this amount directly to the Spanish tax authority AEAT (Agencia Tributaria). This is the so-called Retención — an advance payment towards the Spanish tax on the seller's capital gain. Modelo 211 is the form the buyer uses to document this payment. The Retención is not a final tax. The seller can reclaim any excess amount after review by the AEAT — via Modelo 210.
At a glance
- Buyer withholds 3% of the purchase price
- Buyer files Modelo 211 — deadline: within one month of the Escritura
- Seller files Modelo 210 — deadline: three months after the Modelo 211 deadline
- Retención = advance payment, not a final tax
- Refund possible if tax liability is lower than the Retención
Why the Retención exists
The AEAT faces a structural problem: non-residents sell their Spanish property, receive the purchase price — and then leave the country. Collecting the tax on the capital gain would be complex and often unsuccessful.
The solution: the buyer is liable. They must withhold 3% of the agreed purchase price and pay it to the AEAT via Modelo 211 within one month of the date of the Escritura. If they fail to do so, they can be held personally liable for the seller's tax debt — up to the amount of the Retención.
This is not a small matter. On a villa worth 2 million euros, that means 60,000 euros of potential personal liability for the buyer.
Who pays what — and when
The buyer withholds 3% of the purchase price and remits this to the AEAT. Economically, this reduces the payout to the seller — they receive only 97% of the agreed purchase price at the notary.
Modelo 211 deadline: Within one month of the date of the Escritura.
Modelo 210 deadline: The seller must declare the capital gain within three months of the expiry of the one-month Modelo 211 deadline — meaning: if the notary appointment was on 15 March, the Modelo 210 deadline is 15 July.
Who is affected: All sellers with tax residence outside Spain. EU citizens with Spanish tax residence are exempt.
Example calculation: Villa in Port d'Andratx
A German owner — tax-resident in Munich, owner of a villa in Port d'Andratx for 12 years — sells to a Belgian buyer for €2,400,000.
| Item | Amount |
|---|---|
| Agreed purchase price | €2,400,000 |
| Retención 3% | €72,000 |
| Payout to seller | €2,328,000 |
The buyer transfers €72,000 via Modelo 211 to the AEAT — within one month of the Escritura.
The seller originally acquired the property for €1,200,000. Total acquisition costs including eligible purchase expenses (notary, ITP, land registry, estate agent fees on purchase) amounted to €1,320,000. The taxable capital gain after deducting all recognised costs is approximately €900,000. The Retención of €72,000 is credited in full against the final tax liability.
If the seller could demonstrate higher costs, the Retención could exceed the actual tax liability — giving rise to a refund claim after review by the AEAT.
Common mistakes — and what they cost
Mistake 1: The buyer forgets to make the payment. This happens more than one might expect — usually when the transaction is conducted without an experienced notary or Gestor. Consequence: the buyer can be held personally liable for the unpaid amount. Property purchase checklist for Spain →
Mistake 2: The seller believes the tax is settled once the Retención is withheld. The Retención is an advance payment — not the final tax. The seller must file Modelo 210 within three months of the expiry of the Modelo 211 deadline. Failing to do so risks surcharges: 1% per month for the first 12 months, then 15% plus late interest (intereses de demora) from month 13 onwards (Art. 27 LGT).
Mistake 3: Not claiming the refund. If the actual tax liability is lower than the Retención, the seller is entitled to a refund — after review by the AEAT. Many do not apply. With a Retención of €72,000 and a tax liability of €40,000, that means leaving €32,000 unclaimed.
Mistake 4: Not declaring purchase costs. Notary fees, property transfer tax (ITP), land registry, estate agent fees on purchase — all of these increase the acquisition cost and reduce the taxable gain. Without the documentation, you overpay.
What we see in practice
In the southwest of Mallorca — Port d'Andratx, Camp de Mar, Bendinat — Retención refund claims are the most common reason sellers seek tax support after the notary appointment. Not because they are unaware of the Retención, but because they only realise at the notary: "And what happens to that money now?"
The typical case: a German or Austrian owner, purchase price between €1.5 and €3 million, has sold the property with a capital gain. Recovering the difference is standard practice — yet many file the refund claim too late or not at all.
💡 Tip for sellers: 3% was withheld at the notary — how much of it can you reclaim from the AEAT? → Check your refund now
What this means for you
As a seller:
- You receive only 97% of the purchase price at the notary
- Modelo 210 deadline: three months after the Modelo 211 deadline
- If your tax liability is lower than the Retención: file a refund claim
- Gather all documentation on acquisition costs and purchase expenses before the notary appointment
As a buyer purchasing from a non-resident:
- You are legally required to withhold 3% and remit it via Modelo 211
- Deadline: within one month of the Escritura
- Failure to comply can result in personal liability
Modelo 210 vs. Modelo 211 — what is what?
| Form | Who files it? | Purpose |
|---|---|---|
| Modelo 211 | The buyer | Payment of the 3% Retención to the AEAT |
| Modelo 210 | The seller | Declaration of the capital gain; refund claim |
Both forms are linked: the buyer's Modelo 211 is the basis for the credit in the seller's Modelo 210. Without the NRC (Número de Referencia Completo) from the buyer's payment receipt, the credit cannot be processed. The seller should actively request this document from the buyer.
Tax rate on the capital gain
The taxation of the capital gain is governed by the provisions of the IRNR (Impuesto sobre la Renta de no Residentes). It differs from the taxation of ongoing income — for rental income and Renta imputada, EU/EEA residents pay 19%, third-country residents pay 24%. The 3% Retención already withheld is credited in full against the final tax liability. For the calculation of the specific tax due on the capital gain, we recommend consulting an Asesor Fiscal.
FAQ
Do I really have to withhold 3% as a buyer, even if I know the seller personally? Yes. The withholding obligation applies regardless of any personal relationship. The only exception: the seller is tax-resident in Spain.
How long does the AEAT refund take? Depending on the complexity of the case and the AEAT's workload, a refund can take several months to well over a year. There is no statutory processing deadline.
What happens if I do not file Modelo 210 after the sale? The AEAT can demand the difference — plus surcharges from the first month after the deadline (Art. 27 LGT). Additional penalties may apply depending on the individual case.
Does the Retención apply to gifts or inheritances? No — the 3% Retención applies exclusively to transactions for consideration (purchase/sale). Gifts and inheritances are subject to different rules.
Related Questions
More common Modelo 210 mistakes: → The 12 most common Modelo 210 mistakes
Sources
- Art. 25 IRNR (Impuesto sobre la Renta de no Residentes, RDLeg 5/2004)
- Art. 27 LGT (Ley General Tributaria, Ley 58/2003) — surcharges
- AEAT: Modelo 211 — Retención en la adquisición de bienes inmuebles a no residentes
- AEAT: Modelo 210 — IRNR, non-residents without permanent establishment
Conclusion
The Retención is not a bureaucratic detail — it is a substantial sum. In a typical luxury transaction in southwest Mallorca, we are talking about €45,000 to €90,000 withheld at the notary.
Sellers who do not settle on time leave money behind — or pay unnecessary surcharges. Buyers who miss the deadline can be held personally liable.
File your Modelo 210 for capital gains via Fiscaro — fully digital, without a Gestor, in under 30 minutes. → Get started
Hanns-Christopher Deppe
Founder of Fiscaro · Real Estate Economist & Dipl. Industrial Engineer · Agent in Mallorca
Hanns-Christopher has lived in Mallorca for over 15 years and has guided hundreds of non-residents through their Spanish tax obligations. He founded Fiscaro to make the Modelo 210 process as simple as possible.
This article is for general information purposes only and does not constitute individual tax advice. For an assessment tailored to your specific circumstances, we recommend consulting a qualified tax adviser or Spanish gestoría.
Related articles