At every signing involving a non-resident seller, the same scene plays out: the notary mentions the retention, the buyer transfers the price minus 3%, and the seller notices with a certain uneasiness that they are receiving less than the figure on the deed. The instinct is to read it as a loss — and yet, in most cases, that money returns in full or near full some months later.
What the 3% retention is
It is a legal obligation set out in Article 25.2 of the consolidated text of IRNR. When the seller of a property in Spain is not a tax resident, the buyer must withhold 3% of the total price and pay it to Hacienda. The purpose is collection enforcement: Hacienda guarantees collecting at least 3% before the money — and the seller — leave the country.
Who applies it
Always the buyer, without exception. Private individual, company, resident or non-resident themselves. Legal responsibility for paying it sits with the buyer — if they do not apply it, Hacienda will pursue them, not the seller. That is why buyers and their gestorías are the first to ensure compliance.
What amount is it calculated on
On the total price recorded on the deed, not on the gain nor on net proceeds. If the deed states €250,000, the retention is €7,500. If €480,000, it is €14,400. The reconciliation between what was retained and what is actually due under IRNR happens afterwards via form 210.
What the buyer does, in practice
- On the day of signing, transfers to the seller the price minus 3%.
- Within the following month, files form 211 with the AEAT and pays that amount.
- Provides the seller with a copy of the 211 — it is the proof required for form 210.
If there is a gain
If the real IRNR liability (19% EU/EEA or 24% elsewhere, applied to the net gain) is lower than the 3% retained, Hacienda refunds the difference. This is the usual outcome for sales with good documentation. If the liability is higher, the balance is paid when form 210 is filed in the four months following completion.
If there is a loss
You claim a full refund of the 3% retained. Filing form 210 is still compulsory — declaring zero or negative gain and providing both deeds. If you do not file, the money stays with Hacienda. There is no automatic refund.
How it is recovered
Through form 210, filed within four months of the deed date. The gestor calculates the real gain, deducts allowable costs (purchase, improvements with VAT, agency commission, plusvalía municipal) and requests the refund of the difference between what was retained and what is actually owed.
Hacienda usually refunds between 6 and 12 months later. With a Spanish bank account and complete documentation, towards the lower end. With a foreign account and incomplete proofs, towards the upper end — or never.
Relationship with form 210
The 3% retention (form 211) and the IRNR settlement (form 210) are two halves of the same tax file. The 211 is filed by the buyer within one month of completion; the 210 by the seller within four months. Without the 211, the 210 cannot be closed — and without the 210, there is no refund.
The 3% retention is not a punishment. It is the system pragmatically assuming that it is easier to withhold at the notary than to chase afterwards. But an informed seller expects it, factors it into their net calculation, and recovers it on schedule. An uninformed seller discovers it on signing day and books it as a loss.
— Mauricio
How we handle it
In the valuation we show the gross figure, the 3% retention, the estimated form 210 liability and the real net you will receive — partly at the notary, partly 6–12 months later via refund. No surprise on signing day, no confusion with a "hidden fee", and no last-minute decision under pressure.
Selling as a non-resident?
We model the retention, IRNR and refund into your net proceeds before you set a price.
This guide is indicative and does not constitute tax or legal advice. Every transaction has particularities that a qualified gestor or tax adviser should review.
