3% Withholding Reclaim
3% Withholding Reclaim in Spain
Recover Overpaid Taxes After Selling Property
When selling property in Spain as a non-resident, 3% of the sale price is withheld by the Spanish tax authorities as a part payment towards capital gain taxes. In many cases, sellers are entitled to a partial or full refund of this amount.
At Fuster & Associates, we assist international property owners in recovering what’s rightfully theirs.
What Is the 3% Withholding Reclaim?
The 3% withholding is a mandatory retention applied when a non-resident sells real estate in Spain. It is withheld from the total sale price to ensure possible capital gains tax liabilities are covered.
However, if the actual profit is lower or if no profit was made, the seller can reclaim part or all of the withheld amount by filing the appropriate tax return (Modelo 211 and Modelo 210).
Who Can Request the 3% Withholding Reclaim?
Eligible Sellers
You can request a refund if you:
- Are a non-resident who has sold a Spanish property
- Have been subject to the 3% withholding
- Have made a small or no capital gain
- Submit the reclaim request within the legal deadline
This process is available to EU and non-EU citizens, regardless of country of residence, as long as proper documentation is submitted.
Requirements and Necessary Documentation
To file the 3% reclaim, you’ll need:
Copy of the title deed (Escritura) of the sale
Proof of the 3% retention payment (Modelo 211)
NIE and passport copy
Purchase deeds for capital gains calculation
Proof of expenses (notary, agent fees, refurbishments)
European bank account certificate (for refund deposit)
3% Withholding Reclaim Process
1. Gather documents related to the purchase and sale
2. Calculate actual capital gains or capital lost
3. Prepare and submit Modelo 210 to declare the gain
4. Attach Modelo 211 to prove the retention and any other expenses from purchase and sale
5. Submit all forms to the Spanish Tax Agency
6. Await refund—typically within 6–12 months
We monitor deadlines, prepare and file all forms, and communicate with the tax office on your behalf.
Common Mistakes and How to Avoid Them
- Missing the reclaim deadline
- Failing to declare the profit properly
- Not providing the correct bank details
- Assuming the refund is automatic
At Fuster & Associates, we ensure the reclaim is filed correctly, maximizing your chances of a successful and timely refund.
Benefits of Professional Advice from Fuster & Associates
Maximize your refund
Avoid delays or rejections
Save time and paperwork stress
Communicate easily in your native language
We simplify the process and act as your representative before the Spanish Tax Agency, ensuring a hassle-free experience.
Let Us Handle the Process for You!
At Fuster & Associates, we have a team of immigration experts with extensive experience in processing the Spanish Income Tax Return. We know how to avoid common mistakes in document submission, ensuring that each application meets all the necessary requirements to maximize the chances of approval. From document collection to filing appeals in case of denial, we handle everything so you can enjoy your new life in Spain stress-free.
If you are planning to settle in Spain in areas such as San Juan de los Terreros, Pulpí, Los Alcázares, La Zenia, Teulada, and Finestrat, our firm has strategically located offices to provide you with a personalized and close service. We have in-depth knowledge of the consular and administrative procedures specific to each region, ensuring a smooth and efficient process.
At Fuster & Associates, our team of immigration specialists will support you at every stage of the process to guarantee a successful application. From document preparation to handling appeals, we take care of everything so you can start your new life in Spain with peace of mind.
✉️ Contact us today and start living your new life in Spain with all the legal peace of mind you need.
FAQS
Frequently Asked Questions
How much of the 3% can I reclaim?
It depends on the capital gain made. If no gain was made, the full amount may be reclaimed.
What if I made a loss on the sale?
You may be eligible to reclaim the entire 3% if the sale resulted in a loss.
How long does the refund take?
Typically, 6 to 12 months, but it may vary depending on the tax office and completeness of documentation.
Do I need a Spanish bank account?
No , the refund is deposited into any European Bank accoount, providing a proper certificate from bank with Full name and IBAN NUMBER.
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