3% withholding tax

Withholding payment to tax authorities when non-residents sell a property in Spain.

When a non-resident sells real estate in Spain, the buyer has to pay 3% of the price to the Spanish tax authorities as a type of bond to cover the potential capital gains tax liabilities of the vendor, so the non-resident vendor receives the payment net of the 3% withheld for the Spanish tax authorities. In theory the Spanish tax authorities will return this 3% of the property transaction value to the vendor once all the taxes due have been paid.

Below you will find all the articles at Spanish Property Insight that refer to the Capital Gains withholding payment that buyers make to the tax authorities and that vendors do not get their hands on until all taxes debts have been paid. You can also find discussions in the forum about the Spanish capital gains tax withholding payment.