Capital gains tax in Spain
The guide that could save you thousands
Most people first hear about capital gains tax in Spain when they’re already close to signing a sales agreement. That’s late. But you’re here now, and that gives you an advantage.
What if the moment you sell your property in Spain, you’re hit with a tax bill bigger than you expected? And what if that bill could have been reduced—if only you’d known the rules?
At SpainTax, we’ll break down everything you need to know—plain and simple. Whether you’re a resident or non-resident, selling your first home or an investment property, we’ll help you understand what capital gains tax is, how it works, and how to plan ahead. While we don’t calculate the tax for you, you’ll walk away with the knowledge you need to make informed decisions.
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What is capital gains tax in Spain?
Capital gains tax (CGT) in Spain is a tax you pay when you make a profit from selling an asset—usually a property.
The formula is simple:
- Selling price - Purchase price = Capital gain
- Capital gain x tax rate = Your tax bill
But things get trickier when you factor in deductions, rates, and whether you live in Spain or not.
Who has to pay capital gains tax in Spain?
Residents
If you live in Spain for more than 183 days a year, the Spanish Tax Agency (Agencia Tributaria) considers you a tax resident.
You’re taxed on your worldwide income, including profits from selling property anywhere in the world—but especially in Spain.
Non-Residents
If you don’t live in Spain full-time, but you own property here, you’ll still need to pay capital gains tax on the profit from Spanish properties. The rules are slightly different, and some deductions don’t apply to you.
Capital gains tax rates in Spain
For spanish residents
As of 2024, the tax rates are progressive, based on how much profit you make:
- Up to €6,000: 19%
- €6,001 to €50,000: 21%
- €50,001 to €200,000: 23%
- Over €200,000: 28%
For non-residents
For non-residents in Spain, this tax applies a flat rate:
- 24% for non-EU/EEA citizens
- 19% for EU and EEA citizens
Yes, you read that right. If you’re from the UK (after Brexit), you likely fall under the 24% bracket, while someone from Germany or France pays only 19%.
What costs can you deduct?
Reducing your capital gains tax bill legally is possible—and smart.
Deductible costs may include:
- Notary fees
- Legal fees
- Real estate agent commissions
- Property improvements (not regular maintenance)
- Transfer taxes and registration costs from when you bought the home
The 3% withholding rule for non-residents
When a non-resident sells a property in Spain, the buyer must withhold 3% of the sale price and pay it to the Spanish Tax Agency.
This is not an extra tax—it's a prepayment. After the sale, you can file a tax return (Form 210) to calculate your actual capital gain and either:
- Pay more if the 3% wasn’t enough, or request a refund if you overpaid
You have 4 months from the date of sale to claim it back.
Exemptions and reductions: Is there a way to pay less?
Yes—but only for residents.
Reinvestment Exemption (Primary Residence)
If you’re over 65 or selling your main home and use the profit to buy another primary residence in Spain (or the EU/EEA), you may qualify for a full exemption.
Conditions apply:
- You must live in the property as your main residence for at least 3 years
- The new home must be purchased within 2 years
Over 65 and Selling Primary Residence
If you’re over 65 and selling your main home, you could be fully exempt from capital gains tax, even if you don’t reinvest.
Inflation Adjustment (for properties bought before 1995)
This used to allow reducing the taxable gain by adjusting for inflation. However, this benefit was largely phased out in 2015, and only a limited transitional relief may apply now.
How to report and pay capital gains tax in Spain
Residents
- Report your capital gain in your annual Renta (IRPF) income tax return
- Deadline: Usually by June 30 each year for the previous calendar year
Non-Residents
- File Form 210
- Deadline: 4 months from the sale date
- Attach proof to recover part of the 3% withholding if overpaid
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Control your capital gains tax with us
If you’re thinking about selling a property in Spain, understanding your capital gains tax now gives you time to plan, save money, and avoid surprises.
Selling a home can be stressful—but getting the tax part right doesn’t have to be.
Whether you're preparing to list your property or just exploring your options, our team at SpainTax is here to guide you. Speak with a local tax expert who understands the Spanish system inside and out—and get clear answers tailored to your situation.
Book your consultation online to speak directly with a trusted tax advisor and move forward with confidence.
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