taxes

What capital gains tax do I pay when selling property in Spain?

When selling property in Spain, you pay capital gains tax on the profit (difference between purchase and sale price, adjusted for costs).

For non-residents, the rate is a flat 19% on the gain.

For residents, rates are progressive: 19% on the first €6,000, 21% on €6,000-€50,000, 23% on €50,000-€200,000, 27% on €200,000-€300,000, and 28% above €300,000.

You can deduct purchase costs (taxes, legal fees, notary), improvements (with invoices), and selling costs.

Residents over 65 selling their primary residence are exempt.

A 3% retention is withheld from non-resident sellers at completion — your lawyer files a tax return to reclaim any excess.

Plusvalía municipal tax is also due.

Reinvestment relief may apply for residents reinvesting in a new primary residence within 2 years.

WOW-Estates provides capital gains estimates to help sellers plan their tax obligations.