Capital Gains Tax When Selling a Costa Blanca Property in 2026: The 3% Retention and How Non-Residents Reclaim It

When a non-resident sells a property on the Costa Blanca in 2026, the buyer is legally required to withhold 3% of the sale price and pay it to the Agencia Tributaria on your behalf (using Modelo 211) — this is a down-payment against your capital gains tax, not an extra charge. Your actual gain is taxed at a flat 19% for EU/EEA sellers and most non-residents. You then file Modelo 210 within four months of completion: if your real tax bill is lower than the 3% withheld (or you sold at a loss), you reclaim the difference; if it is higher, you pay the balance.

That single mechanism catches out thousands of sellers across the Costa Blanca, Costa Cálida, Costa del Sol and Costa Almería every year. Below we explain exactly how the retention works, how the tax is calculated, and the step-by-step to get your money back.

What is the 3% retention when a non-resident sells in Spain?

The 3% retention is an advance payment of your capital gains tax that the buyer must deduct from the price and hand to the Agencia Tributaria. It applies whenever the seller is a non-resident of Spain, regardless of nationality, and is set out in Spanish non-resident income tax law (IRNR).

At the notary on completion day, the buyer pays you the sale price minus 3%. Within one month the buyer (usually via their lawyer or gestoría) files Modelo 211 and pays that 3% to the tax office, then gives you the stamped proof. You need that proof to reclaim anything later, so insist on a copy. If the buyer fails to withhold, the property itself can be charged for the unpaid tax — which is why buyers never skip it.

Example: you sell a Torrevieja apartment for €200,000. The buyer withholds €6,000 (3%) and you receive €194,000 at the notary. Your real gain is then calculated separately — and the €6,000 is credited against whatever that comes to.

How much capital gains tax do non-residents pay on a Costa Blanca sale in 2026?

Non-resident capital gains tax on Spanish property is a flat 19% of the net gain for sellers resident in the EU, the EEA (Norway, Iceland, Liechtenstein) and most buyers with a double-tax treaty. For sellers from outside those territories the rate is 24%. The gain — not the whole sale price — is what gets taxed.

The gain is broadly the sale price minus the original purchase price, after adjusting both ends for the costs you can prove. You add to your original purchase cost the ITP or IVA you paid when buying, notary and registry fees, lawyer fees and the cost of genuine, invoiced improvements; from the sale side you deduct the estate agency commission and the lawyer's selling fee. Keep every invoice — without documentary proof the Agencia Tributaria will not allow the deduction.

Non-resident capital gains on property sales, by coast (2026)

Coast (region)	CGT rate on the gain	Retention withheld by buyer	Return to file
Costa Blanca (C. Valenciana)	19% EU/EEA · 24% others	3% of price (Modelo 211)	Modelo 210
Costa Cálida (Murcia)	19% EU/EEA · 24% others	3% of price (Modelo 211)	Modelo 210
Costa del Sol (Andalucía)	19% EU/EEA · 24% others	3% of price (Modelo 211)	Modelo 210
Costa Almería (Andalucía)	19% EU/EEA · 24% others	3% of price (Modelo 211)	Modelo 210

The CGT rate and the 3% retention are national rules, so they are identical on all four of our coasts. What does change by region is the plusvalía municipal (a separate town-hall tax on the increase in land value), which is set locally — more on that below.

How do I reclaim the 3% retention if I overpaid?

You reclaim it by filing Modelo 210 within four months of the completion date at the notary, showing the real gain and crediting the 3% already withheld. If the 3% is more than your actual tax, the Agencia Tributaria refunds the difference to a bank account.

This happens far more often than sellers expect — typically when you sold at little or no profit, made a loss, or owned the property only a short time. In those cases the 3% withheld can dwarf the true tax, and the refund can be several thousand euros. The steps:

1. Your lawyer gathers the proof: the buyer's stamped Modelo 211, your original purchase escritura and all purchase-cost invoices, improvement invoices, and the new sale escritura.
2. The real gain and the 19%/24% tax are calculated.
3. Modelo 210 is filed within four months, offsetting the 3% already paid.
4. If a refund is due, the tax office pays it — though in practice refunds routinely take 6 to 12 months, and the Agencia Tributaria may run a verification first.
5. If instead your tax is higher than 3%, you pay the balance with the same Modelo 210 — no refund arises.

A practical warning: the refund will not be released if you have unpaid non-resident income tax (also Modelo 210) or IBI on the property from earlier years. Many sellers who never filed their annual holiday-home return find the tax office nets off those arrears first. Our guide to Costa Cálida holiday-home taxes (IBI & Modelo 210) explains the yearly obligation the retention refund assumes you have met.

What other taxes and costs does a non-resident seller pay?

Beyond capital gains tax, a selling non-resident on the Costa Blanca normally faces the plusvalía municipal, estate agency commission, their own lawyer's fee, and any mortgage cancellation costs. Together these are over and above the CGT itself.

• Plusvalía municipal — a town-hall tax on the rise in the land value during your ownership, set by each ayuntamiento, so a Torrevieja, Orihuela or Pilar de la Horadada rate can differ. Since the 2021 reform you can choose the calculation method, and if there was no real gain on the land, you can be exempt — but you must prove it.
• Estate agency commission — typically a percentage of the price plus IVA, agreed in writing up front.
• Lawyer's fee — roughly 1% + IVA is common for handling the sale and the Modelo 210.
• Energy Performance Certificate — legally required to market the property; see our energy certificate rules for Spain 2026.
• Mortgage cancellation — if a loan is still registered, the notary and Registro de la Propiedad charge to remove it, even if you repaid it years ago.

For the full seller-side picture across all four coasts, our dedicated article on selling property in Spain 2026: taxes, costs and steps walks through the sequence from listing to key handover.

Does it matter whether I am a resident or non-resident for CGT?

Yes — it changes the entire mechanism. If you are tax-resident in Spain, no 3% is withheld; your gain goes into your annual renta (IRPF) at the savings-income scale, and residents over 65 selling their main home can be fully exempt, with a reinvestment relief for those buying another main home. Non-residents get neither relief and are subject to the 3% retention.

Whether you count as resident turns on the 183-day rule and your centre of economic interests — explained in our guide to Spain tax residency 2026 and the 183-day rule. If you are not sure which side of the line you sit on, get advice before you sign, because the difference can be very large. Sellers with foreign accounts should also keep our Modelo 720 overseas-asset reporting guide in mind, as a property sale can change what you must declare.

How does the retention interact with a joint sale or a company sale?

When a property is owned by two non-resident spouses, the 3% is withheld on the whole price and each owner files their own Modelo 210 for their share of the gain. If only one co-owner is a non-resident, the retention applies only to the non-resident's portion.

Where a property is held through a company, the rules differ again and specialist advice is essential. Our overview of buying property jointly or via a company in Spain 2026 explains the structures — and because how you hold the property at purchase dictates how it is taxed at sale, it is worth reading before you buy, not just before you sell.

What we see in our own listings

Mediter currently has 15,690 properties for sale across the Costa del Sol, Costa Blanca South, Costa Blanca North, Costa Cálida, Costa Almería and Mallorca. A large share of our Costa Blanca South sellers — in towns such as Torrevieja, Orihuela Costa, Pilar de la Horadada and Guardamar del Segura — are non-residents, which means the 3% retention and the Modelo 210 refund apply to most of these sales. Knowing the rule before you accept an offer lets you plan your net proceeds accurately rather than being surprised at the notary.

Frequently Asked Questions

Is the 3% retention an extra tax?

No. It is an advance payment against your capital gains tax. It is credited in full against your real bill when you file Modelo 210, and any excess is refundable.

How long does it take to get the 3% back?

You file Modelo 210 within four months of completion. Once filed, a refund from the Agencia Tributaria commonly takes 6–12 months, sometimes after a verification check.

What if I sell my Costa Blanca property at a loss?

There is no capital gains tax on a loss, so the whole 3% withheld is reclaimable — but you must still file Modelo 210 with proof of the purchase and sale prices to get it back. It is not refunded automatically.

Who actually pays the 3% to the tax office?

The buyer, via Modelo 211, within one month of the sale. They must give you the stamped proof, which you need to support your refund claim.

Is the capital gains rate different on the Costa del Sol or Costa Almería?

No. The 19% (EU/EEA) or 24% (others) CGT rate and the 3% retention are national rules, identical on all four of our coasts. Only the local plusvalía municipal varies by town hall.

Do I need a Spanish NIE to sell?

Yes — every non-resident seller needs an NIE to appear on the escritura and to file Modelo 210. See our guide to the NIF vs NIE number in Spain 2026.

Thinking of selling — or buying — on the Spanish costas?

Whether you are planning to sell a non-resident holiday home and want to protect your net proceeds, or buying your next place on the Costa Blanca, Costa Cálida, Costa del Sol or Costa Almería, Mediter Real Estate can help you get the tax side right from the start. Contact our team at info@mediter.com or +34 744 719 499 — we will put you in touch with the right local lawyer and gestoría and guide you through every step.