Modelo 211
Modelo 211 is the form that a buyer must file when purchasing property from a non resident seller in Spain. Its purpose is straightforward: the buyer retains 3% of the total purchase price and pays it directly to the Agencia Tributaria as an advance payment on the seller's IRNR (non resident income tax) liability. This mechanism exists to prevent non resident sellers from leaving Spain without paying the capital gains tax they owe.
How the 3% retention works
At the time of the notarial deed (escritura), the buyer withholds 3% of the agreed purchase price. This amount is not paid to the seller. Instead, the buyer files Modelo 211 and pays the 3% directly to the Agencia Tributaria within one month of the transaction date.
Concrete example. You buy a property for 300,000 euro from a non resident seller. You pay 291,000 euro to the seller and 9,000 euro (3% of 300,000) to the Agencia Tributaria via Modelo 211. The seller then files Modelo 210 to declare the actual capital gain. If the tax owed is less than 9,000 euro, the seller requests a refund. If it is more, the seller pays the difference.
When Modelo 211 applies
Modelo 211 applies whenever the seller is a non resident for Spanish tax purposes. This is the case if the seller does not have their fiscal domicile in Spain, regardless of nationality. It applies to sales of apartments, houses, land, garages, and commercial properties. It does not matter whether the buyer is a resident or non resident. The obligation sits with the buyer.
If the seller is a Spanish tax resident, Modelo 211 does not apply. The notary will typically verify the seller's tax residency status at the time of the transaction.
The buyer's responsibility
As the buyer, you are legally responsible for retaining and paying the 3%. If you fail to do so, the Agencia Tributaria can hold you jointly liable for the seller's unpaid IRNR. This is not a theoretical risk. The tax authority has a lien on the property itself, meaning the debt follows the asset even after the sale. Your notary and lawyer should ensure this retention is handled correctly at closing.
You must file Modelo 211 within one month of the escritura date. Filing is done online through the Agencia Tributaria sede electrónica. You need the seller's NIE or passport number, the property reference, and the transaction details.
The seller's next step
After the sale, the seller must file Modelo 210 within three months of the escritura to declare the actual capital gain. The capital gain is the sale price minus the original purchase price minus allowable costs (notary fees, transfer taxes paid at acquisition, documented improvements). The tax rate on the gain is 19% regardless of the seller's country of residence. The 3% already paid via Modelo 211 is credited against this liability.
What if the 3% exceeds the tax owed
This happens frequently, especially when the seller held the property for a long time and the original purchase price was high relative to the sale price, resulting in a small or zero gain. In these cases, the seller requests a refund through Modelo 210. The Agencia Tributaria processes the refund, though timelines vary and can take several months.
If the seller sold at a loss, no capital gains tax is owed at all, and the entire 3% retention is refundable.
Common mistakes
The most common mistake is the buyer not knowing about the 3% obligation. If you buy from a non resident and pay the full price without retaining 3%, you become jointly liable for the seller's tax. The second mistake is filing Modelo 211 late, which triggers surcharges. The third is confusing the 3% retention with ITP (the property transfer tax the buyer pays separately), which are entirely different obligations.
