Buying property in Spain? Understand the 3% rule

If you buy Spanish property from a seller who is non-resident for tax purposes, you will have to withhold 3% of the purchase price. This is not an additional tax for the buyer. The amount is deducted from the seller’s proceeds and paid to the Spanish Tax Agency on the seller’s behalf. The withholding must be reported using Form 211 within one month of completion. Before signing, confirm the seller’s tax residence and ensure the 3% withholding is properly reflected in the completion documents.