The 3% that surprises many non-resident sellers: a clear and simple explanation.

When a non-tax resident in Spain sells a property here, the law requires the buyer to withhold 3% of the sale price and pay it directly to the tax authorities. This percentage often catches people’s attention, but it’s important to clarify that it is not an extra cost or a new tax, but simply a prepayment of the tax the seller must pay on any profit made from the transaction.

Why is it done this way? Very simple: if the seller lives outside Spain, the tax authorities want to ensure that the sale is properly regularized and that the corresponding tax is paid. That’s why they take a small portion at the moment of the sale, preventing the seller from leaving the country without filing their tax return.

After the sale, the non-resident owner must submit Form 210 and calculate their actual gain. If the final tax is higher than the amount withheld, they must pay the difference; if it’s lower or there was no gain, they can request a refund of the excess.

In summary, this 3% withholding is a tax safety measure designed to ensure everything is in order, without complications or risks for either party. It’s a common, straightforward procedure in property transactions involving non-resident sellers.