When you sell a property in Spain, capital gains tax on the property applies to the profit between your purchase price and your sale price. Tax residents of Spain pay progressive rates from 19% to 30% through the personal income tax (IRPF). Non-residents from an EU or EEA country pay a flat 19%; non-residents from elsewhere pay 24%. On top of the national tax, the town hall where the property sits charges a separate local levy, the plusvalía municipal. What you actually owe depends on the deductions you can document, whether you qualify for an exemption, and whether you file on time.
Are You a Spanish Tax Resident
Your whole tax treatment turns on this one question. You are a Spanish tax resident if you spend more than 183 days in Spain during the calendar year.1EURAXESS. Direct and Indirect Taxation Residents report property gains on their annual IRPF return.2Agencia Tributaria. Personal Income Tax Everyone else falls under the non-resident income tax (IRNR), which uses different rates, forms, and deadlines.3Agencia Tributaria. Non-Residents Income Tax: Income Obtained Without a Permanent Establishment The exemptions further down this article apply only to residents.
Rates for Residents
Property gains for residents sit in the savings tax base, which uses progressive brackets. For the 2025 tax year (filed in 2026):
- Up to €6,000: 19%
- €6,001 to €50,000: 21%
- €50,001 to €200,000: 23%
- €200,001 to €300,000: 27%
- Over €300,000: 30%
The brackets are cumulative. A €250,000 gain is not taxed entirely at 27%: the first €6,000 is taxed at 19%, the next slice at 21%, and so on up. Rates apply to the net gain after deductions, not to the sale price.
Rates for Non-Residents
Non-residents from an EU or EEA country pay a flat 19% on the net gain. Non-residents from outside those zones pay 24%.4Agencia Tributaria. Non-Resident Income Tax A double taxation treaty may adjust the mechanics, but treaties generally preserve Spain’s right to tax gains on Spanish property.
There is a procedural point that surprises non-resident sellers at closing. The buyer is legally required to withhold 3% of the total sale price and pay it directly to the tax office on Form 211 within one month of the sale.5Agencia Tributaria. IRNR Withholdings Without Permanent Establishment – Withholding on Property Acquisition That 3% is a deposit against your final capital gains bill. If your actual tax works out lower, you claim the difference back. If it is higher, you pay the balance when you file.
How the Taxable Gain Is Calculated
The gain is the difference between the transmission value (adjusted sale price) and the acquisition value (adjusted purchase price). Both figures allow deductions that can move your tax bill significantly.
On the Sale Side
Start with the sale price on the deed and subtract the costs tied directly to the sale: real estate agent commissions, legal fees for the transaction, and the mandatory energy efficiency certificate. Agent commissions in Spain commonly run 3% to 6% of the sale price.
On the Purchase Side
The acquisition value is more than what you originally paid. Add the taxes you paid at the time of purchase, such as transfer tax or VAT. Add notary fees, land registry costs, and the legal fees from that original transaction. A higher acquisition value produces a smaller taxable gain.
Structural improvements that add value to the property are also deductible, provided you can produce proper invoices. Room extensions, pool installations, and energy upgrades such as solar panels qualify. Routine maintenance and cosmetic repairs do not. Every documented improvement reduces your tax directly, so kept receipts are worth real money at sale time.
Exemptions for Residents
Spanish law offers two powerful exemptions to residents. Non-residents cannot claim either.
Reinvesting in a New Primary Residence
If you sell your main home and reinvest the entire proceeds into a new primary residence, the gain is fully exempt.6Agencia Tributaria. Exemption for Reinvestment in Primary Residence You have two years from the sale to complete the reinvestment, and the window also stretches two years backward if you bought the new home first.
Partial reinvestment gets a proportional exemption. Sell for €300,000 with a €100,000 gain and reinvest €200,000 into a new home; roughly two-thirds of the gain is exempt and one-third is taxed. When the sold property had an outstanding mortgage, the amount available for reinvestment is the sale price minus the remaining loan balance.6Agencia Tributaria. Exemption for Reinvestment in Primary Residence
The property must be your habitual residence, meaning you lived there continuously for at least three years. Exceptions exist for life changes such as a job transfer, marriage, or separation that force an earlier move.6Agencia Tributaria. Exemption for Reinvestment in Primary Residence If the reinvestment will not happen in the same calendar year as the sale, you must state your intention to reinvest on that year’s return.
Sellers Aged 65 and Over
Residents aged 65 or older who sell their primary residence pay no capital gains tax on the profit, with no reinvestment required.7Agencia Tributaria. Transfer of Primary Residence for Persons Over 65 Years of Age The proceeds are yours to use however you like.
For a property that is not your primary residence, sellers aged 65 and over can still avoid tax by reinvesting up to €240,000 of the proceeds into a life annuity within six months of the sale. Only the reinvested portion is exempt. If you later cash out or breach the annuity terms, the exemption unwinds and you owe the original tax plus late-payment interest.8Agencia Tributaria. Transfer of Assets by Persons Over 65 Years of Age With Reinvestment in Life Annuities
Plusvalía Municipal: The Second Tax
Every property sale in Spain also triggers the plusvalía municipal, a local tax charged by the town hall on the increase in land value during the years you owned the property. This is the cost most sellers miss when budgeting.
The seller is legally responsible for paying it within 30 days of the sale. In practice, when the seller is a non-resident, the buyer often withholds the estimated amount at closing to be safe.
You choose between two calculation methods and pay whichever is lower. The first multiplies the land’s cadastral value by a coefficient set by the local council based on years of ownership. The second uses your actual gain, applying the proportion of land value to total property value. If you sold at a loss, you owe nothing under the actual-gain method, but you must prove it by submitting both the purchase and sale deeds to the town hall. Rates vary by municipality and cannot exceed 30%.
Filing the Tax
If You Are a Resident
You report the gain on your annual IRPF return, Form 100, filed through the Agencia Tributaria’s online portal using a digital certificate or the Cl@ve system. The 2025 filing campaign opens in April 2026.2Agencia Tributaria. Personal Income Tax The gain sits in the savings tax base alongside any investment income.
If You Are a Non-Resident
Non-residents file Form 210 to declare the gain and settle up against the 3% the buyer already withheld.9Agencia Tributaria. Form 210 – IRNR – Instructions The deadline is within three months after one month has passed from the sale date, giving you roughly four months in total.10Agencia Tributaria. Income Tax Return for Non-Residents Without a Permanent Establishment File Form 210 even if you sold at a loss; it is the only route to reclaim the withheld 3%.
Late Filing Surcharges
Missing the deadline triggers an automatic surcharge. For voluntary late filings, before the tax office contacts you, the surcharge starts at 1% of the unpaid tax and adds 1% for each additional full month of delay, up to 12%. File more than 12 months late and the surcharge jumps to 15%, with late-payment interest running from that 12-month mark.11Agencia Tributaria. Applicable Surcharges These surcharges replace formal penalties as long as you come forward voluntarily.
If the tax office reaches you before you file, formal sanctions apply and can be substantially higher. The general statute of limitations for Spanish tax obligations is four years from the end of the filing period, so keep every deed, invoice, and receipt for at least that long.
If You Live Abroad
Spain’s double taxation treaties with most countries preserve Spain’s right to tax gains on property located in Spanish territory. You pay the Spanish tax first, and your home country typically lets you claim a credit or deduction for that Spanish tax so you are not taxed twice on the same gain.12Agencia Tributaria. The United States – Agencia Tributaria How you claim that credit varies by country, so confirm the mechanics with a tax advisor in your home jurisdiction before assuming the Spanish tax will be fully offset.