Spain Explained

Calculating capital gains tax in Spain when selling your property

Last updated on June 3rd, 2020 at 07:21 pm.

Capital gains tax is applied in most countries and Spain is no exception. Essentially, capital gains tax is a levy imposed on the sale of a non-inventory asset, that is, a capital asset that’s not likely to be liquidated into cash within a year. The most common capital gains are profits earned from the sale of stocks, bonds, and property. Exactly when and what you have to pay varies from country to country, depending on your residential status. However, capital gains tax in Spain is paid on the profit you make from all property sales, whether you are a resident or not.

In this article, we discuss calculating capital gains tax in Spain, so you can get an idea of what you may owe. However, we would like to remind you that taxation in Spain can be complicated and you could be subject to fines or penalties if you miss a deadline or don’t do your taxes properly. Advisably, you should seek fiscal advice from an expert to avoid possible complications.

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Working out capital gains tax in Spain

Capital gains tax in Spain for non-residents

Unusually, capital gains tax in Spain is simpler for non-residents than residents. For non-residents, the Spanish capital gains tax is a flat rate of 19% on profits made on the sale of a home. However, calculating capital gains tax is a little more complex than merely working out 19% of the sale price. Instead, you need to calculate the following:

  1. The true purchase price:
    • This will be calculated from the purchase price (as written on the Title Deed) with plus some costs incurred during the purchase, including VAT, Land Registry fees, Notary fees, Transmission tax and legal fees.
  2. The final sale figure
    • This will be calculated from the current selling price, less the costs incurred during the sale. For instance, this would include your legal fees. Some costs of major structural alterations made to the property can also be deducted. However, you will need to be able to produce the official receipts for the materials and work involved. If you have made alterations to your property and you have not included these in your Title Deed, this needs to be rectified at the point of sale.

Finally, we can calculate:

  • Final sale figure – true purchase price = net profit

The amount of capital gains tax you owe will be deducted from the net profit. 

Capital gains tax in Spain for residents

In contrast, if you are resident in Spain, the amount of capital gains tax you pay is incremental. Remember, you are considered a tax resident in Spain if you reside in the country for more than 183 days per year. 

Therefore, as a resident, the Spanish capital gains tax you owe will be: 

  • 19% for the first €6,000 profit
  • From €6,000 to €50,000, the tax percentage is 21%
  • From €50,000 upwards, it’s 23%
ProfitUp to €6,000From €6,000 to €50,000More than €50,000
Tax19%21%23%

Remember, if you are unsure about your capital gains tax obligations, consult with an expert. It is not advisable to follow online routes involving a tax calculator – Spain has some complex bureaucratic systems. Furthermore, CGT is a further levy applied on regular income tax in Spain so an income tax calculator may be incorrect.

Residents selling their home in the UK

In Spain, as in many European countries, you are liable for tax on your global income. If you are a resident in Spain and sell your property in the UK, then you are also liable to pay capital gains tax in Spain. You must declare the income from the sale on your annual resident tax declaration. However, it is important to remember that this declaration covers the previous year. Therefore, if you sold your house in May 2019 you would declare it in June 2020 and not in that year’s declaration.

Furthermore, the Autumn 2018 budget introduced changes to capital gains tax in the UK. Currently, you don’t have to pay capital gains tax on your main home. However, now you need to pay capital gains tax on second homes and buy to let properties. In the UK, you pay a higher rate of capital gains tax on property than other assets. Basic-rate taxpayers pay 18%, while higher band taxpayers pay 28%. However, all taxpayers have an annual CGT allowance, which means they can earn a certain amount tax-free. In 2019-20, capital gains of up to £12,000 are tax-free. 

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Seek expert advice on your taxes

Taxation is complex, especially if you live in a foreign country or own a second home. Don’t be tempted to turn to an online Spanish property tax calculator – the system can be complicated. Instead, seek expert advice on your taxes from a qualified professional. At Ábaco Advisers, we have extensive experience helping foreign nationals navigate the tax system in Spain and how it interacts with their tax obligations at home. For more information, don’t hesitate to get in touch and we’ll offer a first free consultation.

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215 comments

Sarah

17 August, 2015 7:59 pm

If I sell my property at less
If I sell my property at less than the value estimated by the valor catastral, am I required to pay tax on the actual selling amount or the amount estimated by the valor catastral?

For example, according to the valor catastral, I am expected to sell the property for 77,000 Euros but I am going to sell it for 50,000 Euros. Do I pay capital gains tax on 77,000 or 50,000??

Suzanne O'Connell

17 September, 2015 8:07 am

Dear Sarah

Dear Sarah

You must pay CGT on the difference between the purchase price (plus the purchase costs) and the selling price (minus the costs of selling). It has nothing to do with the Valor Catastral. However, if you sell for less value than the Valor Catastral, the buyer could be liable for a complementary tax as the authorities could make an inspection.  

ronald laing

18 September, 2017 6:52 pm

I am selling my Spanish
I am selling my Spanish holiday home for 132000 euros, my partner and I bought it in 2005 for 72000 euros my partner died in 2015 an I inherited his alf of the proerty and paid the requisite taxes how much would I pay in capital gains from the sale
kind regards
R

Suzanne O'Connell

20 September, 2017 9:13 am

Hi Ronald

Hi Ronald

Thank you for getting in touch. The answer to your question depends on the declared value of the property that is included in the inheritance deed.  

David .

10 February, 2019 9:21 pm

I purchased my holiday
I purchased my holiday apartment in Tenerife in 2004 for Euro 190,000 and sold it in December18 for Euro 140,000 . Will I be subject to payment of any Capital Gains Tax ? . I was a none resident during this time and only used my apartment during UK winter months .

Suzanne O'Connell

13 February, 2019 11:03 am

Hi David

Hi David

There would have been a retention of 3% . As the purchase price was higher than the sale you can reclaim the 3% paid to the tax office which should be done in 3 months of the sale without incurring a fine. 

Arthur Chamberlain

6 March, 2019 9:13 am

Hi,
Hi,
I have read somewhere that as Pensioners (Resident) for more than five years,we are not liable for CGT Fiscal.
Can you confirm that this is true and if so could you confirm in Spanish please.
Thank you
Arthur Chamberlain

Suzanne O'Connell

12 March, 2019 12:22 pm

Hi Arthur

Hi Arthur

If you are a resident over the age of 65 and the property to be sold is your residential home that you are living in and you have been a tax resident for 3 years then you are exempt. 

Roger Perks

26 October, 2019 11:52 am

Does the length of time you have owned the property in Spain effect the CGT.? My wife and I are both in our eighties, non resident, and have owned our apartment for 17 years.

Oscar Paoli

28 October, 2019 12:13 pm

Hi Roger,
It is directly affected if you purchased your property before December 31st 1994.
Indirectly if can be affected with the plusvalía tax which is charged by the townhall on the increase of value of the property is sold. This plusvalía tax ususally increases with each year and as you may deduct this tax from the Capital Gains Tax you can decrease the tax to pay as you have already paid this other tax.
With kind regards,
Ábaco Advisers

Cristian

4 November, 2019 5:27 pm

What if you are resident in both Spain and another EU country and gift a property to a relative, resident where the property is in. i.e. not in Spain.

Is this still liable for any Spanish taxes considering that you would pay taxes in the country that the property is located?

Oscar Paoli

4 November, 2019 5:46 pm

Hello Cristian,
Thanks for contacting us. You will have to be tax resident in on of the EU countries and you will then have to pay taxes regarding the tax regulations of the country you are a tax resident.
With kind regards,
Ábaco Advisers

Jankel

21 November, 2019 2:29 am

Miriam I havent understood this…..Hi Roger,
It is directly affected if you purchased your property before December 31st 1994.
Indirectly if can be affected with the plusvalía tax which is charged by the townhall on the increase of value of the property is sold. This plusvalía tax ususally increases with each year and as you may deduct this tax from the Capital Gains Tax you can decrease the tax to pay as you have already paid this other tax.
With kind regards,
Ábaco Advisers
I bought in May 1983, and in 1985 built a house but all that was in convertible Ptas. Now in 2019 I sold for 223,000 Euros (the Land only as I demolished the subsidence ridden house before) and paid 3% about say 7,000, but the PlusValia Municipal is 36,000 Euros. Are you saying that there is a reduction somewhere? I am non resident. Do I pay more CGT than the 3%? How can it be worked out? The Catastral value was 300,000.

Oscar Paoli

21 November, 2019 12:36 pm

Hi,
Thank you for your message, to be able to give you an exact answer we would need to see the actual paperwork to be able to give you more and detailed information.
You are welcome to book an appointment by phone at +34 966 703 750 or via email at info@abacoadvisers.com
With kind regards,
Ábaco Advisers

Alex

29 December, 2019 1:13 pm

I have lived and worked in Tenerife for over 5 years and now face Divorce proceedings in the uk. My partner remained, in the maternal home and it is now to be sold and any monies from the sale is to be divided between us both.. Would my money due to me be liable for capital gains tax in Tenerife.

Oscar Paoli

31 December, 2019 12:43 pm

Hi Alex,

If there has been any Capital Gain on the sale of the share in the property yes there would be Tax to pay.

With kind regards,

Ábaco Advisers

Mark Jones

2 January, 2020 5:49 pm

I’m a UK resident, but plan to spend six months a year in Spain post Brexit. My son is resident in Spain,but only 23
years old, and at present a student. I understand that being resident in Spain ,one is liable for assets outside of Spain. If I give him £100000 in the UK to buy himself a small place in Andalusia ,will he have to pay Spanish taxes?
Many thanks!

Oscar Paoli

3 January, 2020 3:12 pm

Hi Mark,
If your son is resident in Spain he will have to pay taxes in Spain, specially if he works and if he owns a property in Spain. He will also have to declare that donation he receives from you in the UK.
Should you have further queries please contact us at info@abacoadvisers.com
With kind regards,
Ábaco Advisers

Jim S

20 January, 2020 3:28 pm

I’ve sold my appartment bought in 1993 and have made a profit- I’m a UK resident. and never took any rental income. There has been a 3% retention on the sale price and I’m now unsure of what to do next. Do I need to show the gain on my UK tax reurn?

Oscar Paoli

21 January, 2020 12:46 pm

Hi Jim,
With three months of the sale you should present the Capital Gains Tax Declaration 210H to declare the sale and either apply for a refund of the 3% deposit if there is no gain made or if the 3% does not cover the full amount of Tax to pay then pay the balance.
With kind regards,
Ábaco Advisers

Paul Edwards

31 January, 2020 11:07 am

I sold my large house in fuengirola in 2006 for 220,000e

My gestor has been with us for years and she is strictly legal. She want to the notary with us. I’m sure that she made me pay the 3% retention and the notary fee.

I moved to start a teacher job in Thailand urgently within 3 days. I had no other house to sell in uk or Spain. I still had my nie and my residecia,

Now I wish to return to Spain to buy or rent.

Because of the hurry to get my job, I probably paid no CGT. Is this possible? Is there’re an expiry for CGT? Or a fine now? Or does it expire. I will be 65 in 4 months. What do u advise? Renting? I have not asked this until now.

Oscar Paoli

7 February, 2020 12:28 am

Hello there,

It is possible that the 210 / H was never presented, but you will have to confirm it with your earlier gestor.
If tis happened in 2006 this will have expired by now, it has been a long time since then.

You mention that you still had your residencia, if you also had a fiscal residency in Spain that 3 % should never had been retained. We recommend you check this as well with your legal gestor from the past.

With kind regards,

Ábaco Advisers

Ciprian

28 February, 2020 9:26 pm

Hi, I own property across countries in EU. I’m thinking of buying a house in Spain and live there a few month a year. I will not work there, etc. Will I be in danger to have to pay tax in Spain for any property I sell in other countries in the future?

Oscar Paoli

4 March, 2020 3:42 pm

Hello,
As long as you are not resident in Spain you will not have to declare anything that you sell in other countries. As non-resident in Spain and selling a home in a different country you will have to check directly taxes to be paid in that country and the country that you are a tax resident.
Kind regards,
Ábaco Advisers

Dino Discenza

9 April, 2020 11:34 am

I live in the UK my main residence, I own a home in Catalunya (since 2003 -with a mortgage) rented out since 2014 to date. I am 62 yrs (04/02/58) my plan is to sell my UK home when I hit 65, sell my Spanish property also at 65, my wife of 30 yrs and myself will then retire to South of France at 65/66 yrs old, in addition my wife (police officer 28/01/66) retires in 2/3 years, but would like to obtain a mortgage on our new French property before retirement, and pay the mortgage off once the UK & Spanish properties are SOLD. I agree a little complicated. My questions are. Can you represent us on all matters and potential costs + How do I reduce my CGT in Spain when I sell the property at 65 /66 yrs old, although I am non resident and it is not my habitual home, but I have been visiting since 2013 for approx. 3 months each year NOT 181 days?. I thank you very much indeed for your reply, one added bit of info, our beautiful detached property in 2016/17 after renting through an agency destroyed all the furniture & air conditioning value approx. 15k of furniture, my insurance did not cover rental damage ( it now does) we received a compensory figure of 2100 euros by my Insurance company BBVA, would the loss of our expenditure of 15k be able to be included in calculations? Best regards Dino Discenza

Oscar Paoli

21 April, 2020 4:12 pm

Hello there,
We could assist you with all Spanish matters of the sale of your Spanish property.
As non-residente there is not much we can do to reduce your CGT unfortunately and you will not be able to include the loss of your expenditure. Sorry for the inconvenience.
If you wish further assistance please contact us at info@abacoadvisers.com
With kind regards,
Ábaco Advisers

gillian Hewitt

3 June, 2020 7:53 pm

In 1979 my Mother bought an apartment in Benalmadena. The cost to her was £16,500. In May, 2019, I sold the apartment for 153,000 Euros. After all deductions were taken, fees, plus valia, retention of 3% etc., I was left with 132,000 euros. The majority of the money was transferred to my UK bank accounts in June, 2019. I understand that, as I have brought the money into the UK, there will be some UK capital gains tax to pay on this, and that money is due to HMRC in the current tax year, April 2020 to April 2021. Can you advise me how this tax will be calculated, given that it has gone from euros to GBP? Will I need to find out what the rate of euro to GBP rate was on the date or dates of the money transfers?

Oscar Paoli

4 June, 2020 11:06 pm

Hi Gillian,
Sorry not being able to assist you on how the capital tax is calculated in the UK, we recommend checking this with a local advisor home in the UK.
Regarding how to find the exchange rate for a certain date you can do so on sites like the following:

https://www.xe.com/

https://fxtop.com/en/historical-currency-converter.php

With kind regards,
Ábaco Advisers

Anne Foster

4 June, 2020 9:35 am

As a UK resident-
If I sell my UK property – fly to Spain and rent for 3 or 4 months – apply for residencia – then buy a villa in Spain. Will we be subject to Spanish CGT on the profits made from the house sale in the UK?
Thank you.

Oscar Paoli

5 June, 2020 7:29 am

Hi Anne,
If the property is sold in the same year and you are a Tax Resident here then yes you would have CGT, it is preferable to sell the proeprty the year before you come to Spain.
With kind regards,
Ábaco Advisers

Nik

16 June, 2020 4:59 pm

Hello,
I purchased a home in Spain 9 years ago and my ex (resident) and I are both on the escritora. I just read that I should have declared the home as a non-resident and paid a tax. Can I go back and pay the years I missed? I am putting the house on the market and don’t want any surprises later after I sell the house.
Your guide had been very helpful, thank you.
Nik

Oscar Paoli

16 June, 2020 10:11 pm

Hi Nik,

If you did not pay any resident or non-resident income taxes in Spain for the past years, you can of course go ahead and get your tax affairs in order.

Should you need any assistance please do not hesitate to contact us at: info@abacoadvisers.com

Kind regards,

Ábaco Advisers

frederick

7 July, 2020 5:26 pm

I am selling an apartment which has been my main residence for 5 years,and moving to another property in spain which I own.Will I have to pay c.g.t. on the sale?.I am 76 years old and resident for 15 years. thank you for your kind attention.

Oscar Paoli

9 July, 2020 9:51 am

Hi Fredrick,
Unless the legislation changes If you have owned the property for over 3 years as a tax Resident and it is your main residence during all this period at the time of sale and over 65 no Capital Gains Tax to pay.
With kind regards,
Ábaco Advisers

Michael Topham

20 July, 2020 9:39 am

Hi, myself my wife and daughter want to move to Spain before the December deadline.
We own and want to sell our only home in the uk.
Are we liable to capital gains tax in Spain if
We sell it this year and move to Spain becoming residents before December. Or
We achieve residency before December, then sell it or
We sell before or after December and file the paperwork for residency but don’t complete till 2021.
To complicate things more we might purchase a property or rent in Spain and this might have to be done before December to comply with the right to gain residency prior to the December withdrawal time scale.
Thanks Mike

Oscar Paoli

23 July, 2020 9:23 pm

Hi Michael,

Provided that the property is sold prior to the end of the year and you have not been in Spain for over 183 days you are not a Tax Resident for the year and the property would come under British regulations only, if you have been in the Country for over 183 days even if you did not apply for the Resident Document then this would come under possible Spanish legislation. However if you sell the property next year and have Resident Status here then it would be liable for Capital Gains Tax.

Please do not hesitate to contact us should you have any further queries.

With kind regards,

Ábaco Advisers

stephen

30 July, 2020 1:20 pm

I have just built a new house on the costa blanca. I have to put a value on the house for the escritura. The architects value if far lower than what i paid the Builder. Should i register the lower value and pay 1.5% or register a value more in line with the true value?
Also when i sell this house(not in the foreseeable future) if i use the money to but another house as our main residence, does this not exempt us from capital gains? We are Spanish residents.

Oscar Paoli

31 July, 2020 3:44 pm

Hi Stephen,

It is always convenient to put a value closer to the price paid to the builder specially if you would like to sell the property in a close period of time as you could be affected by a high capital gains tax should you sell with a big profit.

If you sell the property as a resident in Spain, you are over the age of 65, the property you are selling has been your permanent home for at least the past three years there will be no capital gains tax. Should you be under the age of 65 and invest all the profits in a new purchase then no capital gains will be paid either.

With kind regards,

Ábaco Advisers

Helen

4 August, 2020 1:28 pm

We purchased a property off plan in 2005 for 160,000 euro’s and are putting it on the market for 135,000. If we are successful with the sale and this amount, how much tax will we pay?

Oscar Paoli

4 August, 2020 9:24 pm

Hi Helen,
Thank you for contactins us, we would need some more information to calculate other taxes like the Plusvalía tax at the sale of your property, but regarding the Capital Gains Tax as you are selling with a loss, you will not pay any capital gains tax.
With kind regards,
Ábaco Advisers

Lesley Bassett

12 August, 2020 11:08 am

Hi
I am UK tax resident
If I sell my property on the mainland for 500,000 euros (it cost me 125.000 euros 20 years ago) and buy somewhere in Ibiza for 250,000 euros what would my tax liability be please.
What time frame would I need to buy the new property if I can benefit from any tax roll over.
Thank you
Lesley

Oscar Paoli

13 August, 2020 10:53 am

Hi Lesley,
As a Non Resident there is no roll over when selling one property to purchase another, there are only allowances for Tax Residents here when they have been Tax Residents for over 3 years and they sell their residential home. For non-residents, the capital gains tax rate is 19% of the profit made on the sale.
Please do not hesitate to contact us should you have any further queries.
Kind regards,
Ábaco Advisers

Thomas Smith

20 September, 2020 7:43 pm

Why do I have to pay CGT,23% on increased value of my uk property which was purchased in 1986 to anticipated sale year 2021 when I have only lived in Spain for 7 years.The Spanish government benefits from 34 years increase in value of my property when I have only been resident 7 years. In my specific case this would equate to approx 53,000 euros!
Is there not a proportional charge based on date of residency?ie 2013 to 2021:8 years.This would be fair and reasonable.
I suspect this is not the case and I will have no choice but to return to UK for 2 years,sell my property without paying Spain any CGT then return to Spain where I am still entitled to residency under WA with all benefits,health access owing to my recently acquired TIE valid for 10 years which allows me to leave Spain for up to 5 years.
Any observations you have would be helpful.
I am over 65 years old.

Oscar Paoli

23 September, 2020 2:19 pm

Hi Thomas,
Capital Gains Tax is not just based on the period that you have been a Resident here, the calculation is from the Date of purchase up to the date for sale, as the property was purchased before 31st December 1994 there is an extra reduction in the Capital Gain. If you return to the UK you would have to cancel the Residency documentation here as well as your Padron and Health Card so you can revert back to UK Taxes, then once you return you would have to reapply for Residency.
Please do not hesitate to contact us should you have any further queries.
With kind regards,
Ábaco Advisers

Laura

20 October, 2020 3:41 pm

Hi, i am selling my home in the UK to move to Spain ahead of Brexit. I will just be renting a house in Spain. would i have to pay capital gains tax to spain on the sale of the UK house even though it is the only property i own and my main home before moving to spain?

Oscar Paoli

21 October, 2020 3:58 pm

Hi Laura,

If the property is sold in the Tax year prior to moving to Spain then there would be no Capital Gain Tax so if sold in 2020 and you move to Spain in 2021 this would be fine.

With kind regards,

Ábaco Advisers

Dee gooch

5 November, 2020 8:27 am

If I sell my house 200thousand euros same price as I paid only been in 2 years and resident 60 yrs old buy a house in Spain again for 120 thousand do I pay cgt on 80 thousand please both houses in Spain this can’t be right as I paid 20 thousand tax on buying first house wouid pay 10% again on new house and have made no profit only my own money back I spent in first place please advise dee

Oscar Paoli

5 November, 2020 9:17 am

Hi Dee,
No you will not pay a CGT on the 80 thousand.
With kind regards,
Ábaco Advisers

Robert Farrington

4 December, 2020 1:23 am

Hi
My wife and I are both 65 and have lived in Spain for over 3 years in our own apartment. We still have an apartment in the uk. If we sell the UK apartment are we still liable to CGT because it is now classed as a second home?

Oscar Paoli

4 December, 2020 10:55 am

Hi Robert,

As you are Residents here in Spain your Residential home will be considered the one you live here in Spain, therefore Capital Gains Tax would be due on the proeprty located in the United Kingdom as a second residence.

With kind regards,

Ábaco Advisers

Diane

12 December, 2020 11:21 pm

I am in the process of selling my (only) home in the UK, and trying to rush completion through before 31 December. There will be a large capital gain as I am selling for £235,000 more than I paid for it. I am buying a new property in Spain in February, using the UK sale proceeds, and this will be my sole property. I am 67. Will I have ro pay CGT in Spain if I cannot complete UK sale until January, or will my age and the fact that it is my sole residence exempt me, please.

Oscar Paoli

14 December, 2020 3:27 pm

Hi again Diane,

I believe we have answered your query in the latest comment.

Do not hesitate to contact should you need anything else.

With kind regards,

Ábaco Advisers

Diane

14 December, 2020 9:39 am

I have lived in my UK house since purchasing it in 2008 for £205,000. I am in the process of selling it for £440,000 and buying a property in Spain for €180,000. I do not own any other properties and I am 67. Will I have to pay Spanish capital gains tax on the sale?

Oscar Paoli

14 December, 2020 3:25 pm

Hi Diane,

If you are a Resident in Spain during the year you sell the property in the UK and move to Spain you will have to pay Capital Gains Tax, it is advisable to move to Spain the year after the sale.

With kind regards,

Ábaco Advisers

Richard

15 December, 2020 5:42 pm

Hi is the form 210H available in English,what information do you need to provide when submitting the form. Thanks Richard

Oscar Paoli

16 December, 2020 5:54 pm

Hi Richard,
You can find the form and and instructions in the following link:
https://www.agenciatributaria.gob.es/AEAT.sede/en_gb/procedimientoini/GF00.shtml
With kind regards,
Ábaco Advisers

Yvonne Lesley Williams

21 December, 2020 8:10 pm

I am 68 and a resident of Spain. for over 3 year. I jointly own with a 65 year old a property used as a bed and breakfast (casa rural) I am told I am exempt of CGT because of my age on my share, . is this correct

Oscar Paoli

22 December, 2020 4:26 pm

Hi Yvonne,

To benefit from the 65-year-old exemption of Capital Gains Tax the property you are selling must be your habitual residence. In order words, a minimum of 3 years lived in the property before selling it is required in order to avoid paying capital gains tax.

With kind regards,

Ábaco Advisers

Darren Hatfield

3 January, 2021 7:12 pm

We plan to sell our UK home in the first half of this year. We paid £93,000 in 2003 and should sell for £155,000. After paying the existing mortgage and fees we should be left with £137,000. On completion, we plan to move to Spain with a non lucrative visa.
Would we pay CGT? If so, is there a way to avoid paying, E.G. staying in the UK until 2022?

Darren

Oscar Paoli

4 January, 2021 11:22 am

Hi Darren,
You would need to pay Cpaital Gains Tax if you were in the Country for over 183 days, however if you delayed the move to Spain until 2022 this would avoid the situation.
Please do not hesitate to contact us should you have any further queries.
With kind regards,
Ábaco Advisers

Barry

25 January, 2021 4:38 pm

I understand if you’re living in Spain and sell a property in the UK which was not your main home, you qualify for Non-Residents Capital Gains Tax in the UK, which means you’re able to re-value the property at 2015 prices before calculating any profit and therefore any tax to pay on the difference (from 2015 to 2020) and not when the property was originally bought, in my case 2005.
When then declaring the sale in Spain, and calculating any capital gains tax to pay, can you use the same valuation from 2015?

Oscar Paoli

27 January, 2021 8:16 pm

Hi Barry,

In Spain the Capital Gains for the sale of the property will be based on the original purchase price plus costs and the sale prices less costs, they do not alter the valuation as in the UK. Then in accordance with the Double Taxation treaty as the property was situated in the UK you will pay the Capital Gains Tax there as per the legislation there and the Tax paid on this Capital Gain, if any is deductable for any liability here.

Kind regards,

Ábaco Advisers

Barry

11 February, 2021 5:27 pm

Hi there,
I will have a net profit of about 57000 Euros from the sale of my house. I am not classed as a fiscal resident, so will have to pay 19% in capital gains tax. My question is this, does the 3% retention come off my final capital gains tax bill or do I have to pay 19% in addition to this retention?
Many thanks.

Oscar Paoli

12 February, 2021 12:43 pm

Hi there,
The form 210H has to be presented within three months of the sale this is the Tax Declaration in spect of the Capital Gain Tax, in this document the 3% paid by the purchased is declared and deducted from the final Tax bill to be paid therefore you pay the balance beween the 19% Tax less the 3% paid by the purchaser to the Tax Office.
Should you need any assistance in the matter do not hesitate to contact us at info@abacoadvisers.com
With kind regards,
Ábaco Advisers

Linda

15 February, 2021 4:45 pm

We sold our UK home in Dec 2020 and moved to Spain on the 18th December. We have not been here for 183+ days, but we applied for residency in Oct 2019. Therefore are we liable for CGT on our sale to Spain?
Also if we are only receiving an annual private pension of £6500, but living off our savings, do we need to submit a tax return in 2022 or before.
Thanks

Oscar Paoli

16 February, 2021 9:56 am

Hi Linda,
Officially as you applied as received your Resident permit in 2019 you would be a Tax Resident for 2020 and as the property was sold in 2020 then it should be declared in your Income Tax Declaration here in Spain. The situation is now more complex as the Spanish Tax Office could at any time in the period of 4 years reclaim the 2020 Income Tax declaration if it is not presented. You would then have to justify to the authorities that you were not a Resident in Spain with documentation and a Certificate from HMRC to confirm that you were a Tax Resident there, all these papers would have to be legally translated.
With kind regards,
Ábaco Advisers

Sandra Cronin

16 February, 2021 7:24 pm

I am a Spanish resident over 65 years. I currently rent a property here and own a U.K. property. If I sell my U.K. property and use some of the money to buy the property I am renting here will I pay CGT ?

Oscar Paoli

17 February, 2021 11:40 am

Hi Sandra,

As the property in the United Kingdom is not your Residential home in Spain there are no deductions and you would be liable to pay Capital Gains Tax if there is any profit. For a property to be considered your Residential home you have to be actually living in the house for 3 full years as a Fiscal Resident and be over the age of 65.

Should you need any assistance please do not hesitate to contact us should you have any queries.

With kind regards,

Ábaco Advisers

jason

26 February, 2021 11:02 am

I am selling my main residence in in Spain. How much time do I have to pay the Capital Gains Tax owed from the proceeds of the sale?
I intend to purchase another property, which I understand would exempt the CGT, but I don’t want to be rushed into it.
What’s my timeline?

Oscar Paoli

26 February, 2021 2:35 pm

Hi Jason,
For a Resident selling the property the Capital Gains Tax is paid in the income Tax declaration to be presented for that year, so if sold in 2021 then the sale is declared in the 2021 Resident Tax Declaration presented in 2022.
With kind regards,
Ábaco Advisers

Andrew Smith

12 March, 2021 9:51 am

Hi,
We are currently resident in the UK and selling our primary residence property here after having lived in the UK since 2012. We also have a flat in Madrid, which was rented out until December 2020. We intend to move into our flat in Madrid after 03 July this year so will be in Spain for less than 183 days this year. We therefore believe we will not be tax resident in Spain this year and will therefore not have to declare the sale of our UK house and pay CGT on it and nor will we have to file a Spanish tax return in 2022.
Some of your responses say we should wait until next year to move to Spain but other responses agree with the 183 day qualifying period for determining residence for tax purposes. Can you confirm that spending less than 183 days in Spain during 2021 means we do not have to declare anything to the Spanish tax authorities in 2022? We need to move this year for employment purposes so need to know if we are liable for CGT on the UK property even if we spend less than 183 days in Spain this year.
Thank you

Oscar Paoli

16 March, 2021 12:12 pm

Hi Andrew,
183 days is the main reason to determine you as a tax resident, but if you come to Spain on July 3rd it might be a bit to close and the sale of your property in the UK could affect. Also has you are moving for employment purposes it would be possible this could affect how they see you in Spain as resident or not. We highly recommend you obtain a certificate as you are a resident in the UK for this year 2021 and to avoid any issues we recommend coming to Spain a bit later than July 3rd. If you are not resident in Spain you will not have to pay CGT on the sale, but regarding your employment you will have to ask your employer to retain taxes as a non-resident and thus you would not have to file the non-resident declaration because the company I would retain the exact percentage for this matter.
Hope this answer is of assistance.
With best regards,
Ábaco Advisers

Andrew Smith

12 March, 2021 12:34 pm

Hello,

Selling my house in UK now. Planning to then move to Spain 3rd of July so that we will be there less than 183 days this year. Can you confirm that we will not need to declare anything next year for tax purposes regarding UK income or sale of UK property from this year and will therefore not be liable to CGT? Some responses to other comments seem to agree with this but there are others which say we have to wait to move until next year, which is obviously simpler, but we have to move this year for work reasons and the 183 day should apply, no? Otherwise the 183 day rule serves no purpose and doesn’t make any sense. Well, that’s my logic but what am I not understanding?
Thanks

Oscar Paoli

16 March, 2021 12:13 pm

Hi again Andrew,
Believe we just answered your query in another query you sent us last week.
With kind regards,
Ábaco Advisers

Liesl

19 March, 2021 11:46 am

I was reading your blog and I want to clarify about capital gains tax. It seemed to say that if you were a fiscal resident for at least 3 years and sold a house, and reinvested in another then you would not be charged cgt on the first one as long as you stayed in the second one for 3 years. Do I understand this correctly?

We lost our home in a river break and were forced to move into our weekend house. Do we have to wait and live in it 3 years before we sell it to avoid cgt, or are you saying we can sell it, reinvest in another house but cannot sell the second one for 3 years?

Thank you

Oscar Paoli

22 March, 2021 1:44 pm

Hi,

This is not correct unfortunately, in order to be able to apply for a reduction in Capital Gains Tax you must have been a Tax resident living in the property for at least three years and reinvest the sale price in a new home to live in.

Should you have any further queries do not hesitate to contact us.

With kind regards,

Ábaco Advisers

Tom Smith

20 March, 2021 10:12 pm

Resident in Spain 10 years with UK property I wish to sell.It was previously my main residence for 25 years but since 2013 has been let out.I am 70 years old,what CGT will I be liable for to UK and Spanish tax authorities?Initial purchase price of property was £42000,selling for approx £260,000.

Oscar Paoli

22 March, 2021 1:46 pm

Hi Tom,

You would pay Capital Gains Tax on the Gain of £ 218.000 if the property was purchased before the 31/12/1994 there would be a reduction in the Gain based on the time between purchase and that date, and then Taxes at the invesment rates:

Up to 6.000€: 19 %
From 6.000€ to 50.000€: 21 %
Upwards 50.000 €: 23%

Should you have any further queries do not hesitate to contact us.

With kind regards,

Ábaco Advisers

Susan Crammon

21 March, 2021 1:24 pm

I am almost 70 yrs old and have been a fiscal resident in Spain for four years. I built a house in UK in 2006 in which I lived in for 11years until moving to Spain after remarrying. Owing to Covid I have not been able to return to UK so my home there has been empty for over a year so have decided to sell it. Am I liable for capital gains and if so how can I estimate the amount. I want to gift most of the money I would receive from the sale to my children and grandchildren. Thank you for your help.
Susan

Oscar Paoli

22 March, 2021 2:07 pm

Hi

The Capital gains Tax is based on the value of the purchase less the sales price and is tax and the investment rates of

Upto 6.000€: 19%
From 6.000€ to 50.000€: 21%
Upwards 50.000 €: 23%

Regarding the gift to your children and grandchildren, what amounts will they be?

Should you have any further queries do not hesitate to contact us.

With kind regards,

Ábaco Advisers

Michael Ferguson

29 March, 2021 5:12 pm

Hi my name is Michael Joseph Ferguson.
I am looking at selling my house in the UK that l rent out.Tha capital gains tax l will pay in the UK can l offset the amount against my Spanish capital gains tax (l am Spanish tax resident)
The amount of profit could be in the region of £525,000 what would be my capital gains tax amount to pay in Spain?

Oscar Paoli

1 April, 2021 3:11 pm

Hi Michael,
It is possible to offset the Capital Gains Tax paid in the UK against the Capital Gains to be paid here under the Double Taxation Treaty between the two Countries, and it is difficult to advise of the exact amount of Tax to be paid here
The Tax bands are at present up to 6.000 € 19% then from 6.000 € to 50.000 € 21% and upwards of 50.000 € 23%.
Hope this information can be of assistance.
With kind regards,
Ábaco Adviser

Lyn Farnworth

13 May, 2021 11:56 am

Good morning, could you help me please ? I sold a property last year in January and bought a new house with the funds, can I offset the Capital Gains Tax bill to the new one, I am under 65 years of age ?

Oscar Paoli

21 May, 2021 10:52 pm

Hi Lyn,

The home you sold must have been your main residence for at least the last 3 years, therefore, you must be a tax resident in Spain and you have to reinvest it in another home that you are going to keep for at least 3 years as your main residence. Age does not matter.

You have two years to reinvest the capital gains, it can be two years before the sale or two years after.

With kind regards,

Ábaco Advisers

Shirley

27 June, 2021 4:30 pm

We purchased a property in U.K. for 96,000 including costs. We have lived as tax residents in Spain since 2003. If we now sell the U.K. property for 400,000 what would be our tax bill
Thank you

Oscar Paoli

28 June, 2021 10:47 am

Hi Shirley,
It is very difficult to give exact figures as this depends on your general Tax Declaration but you would have made a profit of 310.000 € which is taxed under the especial Tax bands of Investment/Capital Gains Percentage (%) 2020:

Upto 6.000€ -> 19 %
From 6.000€ to 50.000€ -> 21 %
Upwards 50.000 € -> 23%

Hope this can be of assistance.

With kind regards,

Ábaco Advisers

Mike Harvey

4 July, 2021 11:51 am

Hello
I am a resident in Spain I am selling my property and buying another in Spain. I understand the capital gain tax, but is there any tax relief here in Spain if you sell your home and then buy another home here? I have lived in my present property for over 3 years and intend to do the same in the next.

Oscar Paoli

5 July, 2021 10:02 am

Hi Mike,

Under present legislation If you sell your residencial home which have lived in as a Tax Resident for more than 3 years and are over the age of 65 the property is exempt from Capital Gains Tax, if you are not over the age of 65 but have completed the three year and are going to reinvest in another property a partial amount or the full amount then there are allowances for this.

With kind regards,

Ábaco Advisers

Jose Suarez Alvarez

12 July, 2021 6:49 pm

Hi,
We are of Spanish Nationality residing in London for 21 years now and will be moving back to Spain this year. We sold our main residence property last 2019, we did not pay any tax on the property based on the UK tax Law, I am getting also my monthly state pension since July this year £557.54, my wife will be retiring next year in November and will apply for her UK State pension from Spain together with her Spanish state pension just like me too. and We have savings too. Do We have to pay taxes when we bring it to Spain. We need your professional opinion and advice too. It would be very much appreciated. We look forward to hearing from you soon.
Kind regards,
Jose

Oscar Paoli

26 July, 2021 9:56 am

As Residents here in Spain you will need to declared your worldwide income including Pensions and Bank interest from both Countries in your income Tax declaration each year. Should you being paying Tax in the UK there is a process to stop this and can be processed once you have presented your first Tax Declaration here as a Resident.

With kind regards,

Ábaco Advisers

Oliver Jones

23 July, 2021 2:02 pm

Hi. I am a tax resident in Spain and have been renting my home out in the UK. If I decide to sell my UK house and reinvest all the money into buying a house in Spain, am i liable to pay tax on the profit of the sale? Many thanks!

Oscar Paoli

26 July, 2021 9:56 am

Hi Oliver,

As a Resident here selling a property in the UK you will be liable for Capital Gains Tax on any profit made, please note if there is any liability in the UK to HMRC this can be deducted from any liability here under the Double Taxation treaty.

With kind regards,

Ábaco Advisers

Oliver Jones

29 July, 2021 3:03 pm

If I sell my property in the UK and dont make any profit, is that sufficient to not declare any taxable profits in Spain – or do they look into the true value of the property value? (like they would in the UK)

Oscar Paoli

2 August, 2021 12:23 pm

All property sales have to be shown in your Income Tax Declaration irrespective of making a profit or a gain and in theory you should declare the Agreed sale prices and the Purchase prices as shown in all official documents, Spain is looking to change this in the 2022 Tax year and the vale to be declared may well have to be the legal market value.

Kind regards,

Ábaco Advisers

deborah

31 July, 2021 9:07 pm

Thinking of selling our home in UK and buying in Spain, I needed to know the taxation situation as a resident here , very informative website …..thanks

Oscar Paoli

1 August, 2021 7:46 am

Hi Bedorah,
Thank your for your comment.
Should you need any further assistance with the taxes in Spain do not hesitate to contact us at info@abacoadvisers.com
With kind regards,
Ábaco Advisers

Pablo Arroyo

4 September, 2021 6:37 pm

Following on Tom Smith question from 20 March, 2021, as we might soon be facing the same situation.

I believe if he rented his property since 2013 he will have to pay capital gains in the UK for the sale, as it isn’t his main residence anymore. Do this taxes get offset on the Spanish declaration? Is it the other way around maybe?

Oscar Paoli

7 September, 2021 11:40 am

Hi Pablo,

The sale of the property in the UK will have to be declared here and you can under the Double Taxation Treaty deduct any Capital Gains Tax paid in the UK againts any liability here.

Hope this information is iseful.

For more information contact us at info@abacoadvisers.com

With kind regards,

Ábaco Advisers

Javad

25 October, 2021 8:23 pm

I’m resident of Spain (but not-Spanish). I’m trying to sell my stocks that are in the United States market. How much tax I have to pay when let’s say my profit is 50,000 Euros? Does the tax also apply to profit of selling bitcoin?

Oscar Paoli

25 October, 2021 9:05 pm

Hi Javad,

Yes, you will need to pay taxes on the profits (Bitcoin included), the scale looks like follows:

-> 19% for the first €6,000 profit
-> 21% for profits between €6,000 and €50,000
-> 23% for any profit above €50,000

With kind regards,

Ábaco Advisers

Anita Wilmot

9 December, 2021 10:32 pm

Hi,

I am currently in the UK in my main (and only home), which I have lived in and owned for 15 years.

I am intending to move to Spain in 2022, on an NLV visa, and purchasing another property there.

I am aware that if I become fiscally resident in Spain in 2022, that I will be liable for UKCGT for the period I am not living in the property.

But how does that affect any plusvalia due in Spain? If I am buying another property in Spain as my “main residence” am I exempt?

Or should I delay my move to Spain until after the 3rd of July 2022, in order to not become fiscally resident in Spain under the 183 day rule, thus not becoming liable for plusvalia when I file my tax return for the 2022 tax year in April 2023?

Many thanks for your help.

Oscar Paoli

10 December, 2021 9:12 am

Hi,
As you will not have completed three full years as a Tax Resident in Spain there are no allowances for the sale of the property in the UK in respect of Capital Gain Tax, it would be to your advantage to sell the property in 2022 and not come to Spain to live or be a Resident until 2023.
With kind regards,
Ábaco Advisers

David

22 January, 2022 8:26 pm

A friend and I bought a house in the UK in 1999 for £200K. It was my home and I lived in the house until I move to Spain in 2017 (five years ago).

In 2010 my partner and I purchased my friend´s share of the property. The house was valued at £320K. The outstanding mortgage and transfer expenses amounted to £199K. My friend´s and my personal profit was £60.5K ((320-199)/2)

My partner had recently sold her apartment and was able to pay my friend the profit that she had made and we took out a new mortgage on the property to cover the shortfall. We finally paid off the outstanding mortgage last week.

The house was recently valued at £600K.

We want to purchase a home in Spain as we are currently renting. I am 73 years old and my partner will be 69 in March.

I assume we will be liable to paying the Spanish tax authorities capital gains tax?

How will the profit be calculated?

I presume that my partner´s will be using the difference between the valuation in 2010 and today´s value less any expenses?

In my case do I have to use the price that my friend and I paid in 1999 or can I also use the valuation in 2010 since my partner and I effectively repurchased the property?

Oscar Paoli

24 January, 2022 9:15 am

Hi,

It is difficult to say exactly, but the Tax to be paid in accordance with the 2021 Tax regulations would be as follows on the Capital Gains

Upto 6.000€ -> 19 %

From 6.000€ to 50.000€ -> 21 %

From 50.000€ to 200.000€ -> 23%

Upwards 200.000 € -> 26%

And is Based on the Original purchase price from which you purchased eachpercentage of the property and the sale price less official costs.

With kind regards,

Ábaco Advisers

Geof Harrison

25 January, 2022 4:53 pm

What is classed as first day as a resident in Spain. The day the house was purchaced, the day you move in,the day you get your padron or the day you get your fesidentia card. No one will commit. Thank you in advance.

Oscar Paoli

28 January, 2022 4:11 pm

For tax purposes, we would start counting from the day you move to Spain with the aim of living here for more than 183 days a year.

With kind regards,

Ábaco Advisers

JJ

6 February, 2022 9:14 pm

I am tax resident in Spain and am selling a UK property. I believe that I have to pay CGT in Spain on the difference between the purchase price and the sale price, however, there were considerable renovations prior to moving into the UK property when I purchased it – full rewire, full central heating, some walls erected and new external doors/windows installed, full property plastered, new kitchen and bathrooms installed, new flooring. So completely renovated from the brickwork up.

My question is…….can i offset these costs as there were major, works before the CGT calculation is undertaken?

Kind regards

JJ

Oscar Paoli

8 February, 2022 9:52 am

Hi,

It is possible that some of the costs may be deductible if completed at the same time as the purchase and you have all the Official VAT receipts for works carried out had any required planning permission which would justify costs of works.

With kind regards,

Ábaco Advisers

Michal

9 February, 2022 11:23 pm

Question: I will be selling my house in the UK and moving to Spain July/August. In terms of work I will transfer to the same employer from the day when I arrive in Spain. Would I need to pay CGT on the sale of the property?
I am assuming not as I will be less than 185 days in the country this year which is the same year when I will be selling the property. Can I easily move funds from the sale of the home in the UK to Spanish bank and buy Spanish property in 2023 as my main home?

Oscar Paoli

11 February, 2022 9:32 pm

Hi Michael,

As you will be arriving in Spain after 183 days of the year has passed you will be a Non Resident for the year 2022 and a Resident as of 2023 and therefore there would be no Capital Gains Liability if sold in 2022, obviously the later in the year you transfer the better.

Kind regards,

Ábaco Advisers

raymond piper

20 February, 2022 9:07 am

I sold my main house in spain which I lived fulltime in for 15 years for a profit of €276,000 but purchased another for €360,00 within 5 months [under 65 years old at the time of sale] do I have to pay CGT?
Ray

Oscar Paoli

21 February, 2022 3:02 pm

If you sold the property and you were a Resident for over three year and had lived in the property as a Tax Resident and you invested the full amount in another residential home then one would compensate the other but if you only reinvested part then only part of teh Capital Gain would be exempt form Tax.

With kind regards,

Ábaco Advisers

Claire

10 March, 2022 4:12 pm

I have recently bought a holiday home in Spain which I intend to retire to in the next few years. How far in advance of my move to Spain would I need to have completed on the sale of my UK property so that I shall not be liable for Spanish CGT?

Oscar Paoli

11 March, 2022 9:53 am

Hi Claire,

In order to be able to avoid any possible Capital Gains Tax Liability, the property should be sold in the Tax year before you come over to Spain to retire, taking into account the Tax year here is from January to December.

With kind regards,

Ábaco Advisers

Rita

13 March, 2022 11:24 pm

I’m in process of sale my property in Spain. I paid 5 years ago 120k, now will sale for 160k. Difference 40k. But, I paid 6.5 % tax when bought property in 2017 from 120k and 3 % will be paying from 160k after sale. Also every year paid IRNR form 210 non-resident tax(100 e/per year), plus IBI 226 e/per year. Also agency fee will be 10k and I invested in property around 10k-repair, new furniture (have original receipts, etc…). So, in my case after calculated on expenses, as per above- I have around 5500- 5900-euro capital gain from which I have to pay 19% -correct? filling form 210? Since I’m familiar with this form 210 already- and can fill online-my question: Is it Tax man- can back to me asking to prove all above? Means receipts for repair, furniture, Tax form, etc…?

Oscar Paoli

14 March, 2022 10:18 am

Hi Rita,

For non-residents, the capital gains tax rate is 19% of the profit made on the sale.

Purchase price (as written on the Title Deed) + costs incurred in the purchase. The purchase costs that will be taken into account include the VAT, Land Registry fees, Notary fees,
Transmission Tax and Legal fees.

We then take your current selling price and deduct from it the costs incurred in the sale (legal fees etc). We can also deduct certain costs of major structural alterations you have made to the property – but only if you can produce the official receipts for the materials and/or work involved. Furniture and smaller repairs may not be included, neither the IBI or the yearlyt IRNR.

These calculations will leave us with a final sale figure.

Final sale figure – true purchase price = net profit

All official receipts will need to be presented to be validated.

With kind regards,

Ábaco Advisers

Rita

19 March, 2022 8:17 pm

Oscar, can you please advise. I’m in process to fill Form 210(after sold my apartment) – should indicate Capital Gain. Under “Income obtained” when I chose (2) Income type- 22 Other incomes (Capital Gain) –further, the system does not allow me to indicate the address of the sold apartment. In this case, when submitting a declaration at the bank, it will not be clear what I am paying for, for what address.
Only ‘’Income type” which allows to indicate address under number: 01, 02, 28, 33, 34, 35 in Form 210.

Oscar Paoli

22 March, 2022 8:57 pm

Hi Rita,
If you wish to get further information or assistance completing your 210 Form please do not hesitate to contact us at info@abacoadvisers.com
With kind regards,
Ábaco Advisers

Oliver Jones

28 March, 2022 3:19 pm

Hi – I understand CGT is not payable when the property was your ‘main home’. How is this defined? I have been since I arrived in Spain (now a Spanish resident) and the property I am selling in the UK is my only one – the proceeds of which I will reinvest into a property in Spain. Thanks

Oscar Paoli

31 March, 2022 3:57 pm

In Spain to avoid CGT you must sell your property that has been your main home, this means you have lived there over 3 years in this case, and you also have to be over the age of 65.
With kind regards,
Ábaco Advisers

Oliver Jones

28 March, 2022 3:59 pm

Hi, also above you say “As you will not have completed three full years as a Tax Resident in Spain there are no allowances for the sale of the property in the UK in respect of Capital Gain Tax”. Can you explain what sort of allowances are available if you have completed three full years as a tax resident in spain?

Thanks

Oscar Paoli

1 April, 2022 9:23 am

Hi Oliver,

When you are a Resident here in Spain and sell a property in the UK it is never considered to be your residential home, as you will not be living in the property there but living here in Spain.

With kind regards,

Ábaco Advisers

Jean james

28 March, 2022 4:54 pm

Do you pay cgt if you are over 65 and have owned your house in Spain for more than 3 years. I am a resident of Spain.

Oscar Paoli

31 March, 2022 3:52 pm

You will not pay on this property as long as it has been your permanent residence for this last 3 years.

With kind regards,

Ábaco Advisers

Amanda

4 April, 2022 8:41 am

I’m a Spanish resident and I wish to sell my UK property that has been rented out for the past 3 years.
I bought it in 2015 for 220k and will sell for around 335k. Will I just be liable for CGT on the difference of those figures minus costs? Also, how long do I have to decide whether to invest in Spain, and how much do I need to spend to avoid CGT?

Oscar Paoli

4 April, 2022 9:47 am

Hi Amanda,

As this is your second property and not you main residence you will pay Capital Gains Tax

To calculate this profit we need firstly to ascertain your original purchase price. We do this by adding to the purchase price as written on your Title Deed the costs which you incurred in the purchase (VAT, Land Registry fees, Notary fees, Transmission Tax, Legal fees etc). This gives us a true purchase cost. We then take your current selling price and deduct from it the costs incurred in the sale (legal fees etc), thereby reducing the final sale price. You then pay Tax on the difference between the Two. As the property is outside of Spain should you pay any Tax for Capital Gains in the UK this can be deducted from any liability here under the Double Taxation Treaty. If you are over 65 (residente for over 3 years here) and sell a second property and reinvest all the funds in an annuity pension (not investment) then this would cancel out an Tax to pay as all funds reinvested.

With kind regards,

Ábaco Advisers

Alex Ortiz

16 April, 2022 1:02 pm

Hello,
My partner and I purchased a UK property in September 2017 for £242,000 and lived in the property until August 2020 when we received job offers in Madrid. We moved out and rented the house until its sale in March 2022 for £300,000. We undertook renovations on the property that totalled around £20,000. We have completed the UK tax return and we are not required to pay any tax in the UK.

All of the proceeds of the sale are being used to purchase an apartment in Madrid. Will we be required to pay CGT and if so, what approximate amount can we expect to pay?
Thanks in advance,
AJ

Oscar Paoli

19 April, 2022 8:01 am

Hi Alex,

As the property was not your residential home when it was sold then Capital Gains Has to be paid on the Gain received in your annual Tax declaration.

With kind regards,

Ábaco Advisers

Arthur

25 April, 2022 12:17 pm

My Spanish wife and I intend moving to Spain from the UK, if we sell our primary residence UK home after moving to Spain will we be CGT liable?

Oscar Paoli

27 April, 2022 8:52 pm

Hi Arthur,

If you move to Spain and sell the property in the same Tax year then you would be liable for Capital Gains Tax, as your proeprty in the UK would not be your main residence and you would not have been a Tax Resident here in Spain for more than three years. The ideal situation would be for you to sell the property in the year prior to you coming to Spain to live.

With kind regards,

Ábaco Advisers

Allan Downie

23 May, 2022 3:53 pm

I have owned a house in Spain for 4 years and i now want to sell up my house in uk and move to spain. Is there any tax advantages in selling before I move or after I’ve moved.

Oscar Paoli

24 May, 2022 8:59 am

It is always best if possible to sell the house in the UK the year prior to moving to Spain and that way there would be no Capital Gains Tax to pay.

With kind regards,

Ábaco Advisers

Terry

30 May, 2022 7:36 am

Hi Oscar
We purchased our U.K. property in 2012, this was our only property so was our primary residence.
We purchased our Spanish property in 2019 and became resident in Spain also in 2019.
We are now selling our U.K. property … my question is… As it was our primary residence from 2012 to 2019 will we only be liable for Capital Gains Tax from 2019 to present date ?

Oscar Paoli

30 May, 2022 12:14 pm

Hi Terry,

Capital Gains is based on the original purchase price plus costs on that date less the sales price on the date of sale less costs and the Tax is then paid based on the difference between the two.

With kind regards,

Ábaco Advisers

david bryan

1 July, 2022 5:53 pm

Hi, i have been a Spanish resident since about july 2021 and sold my UK house in January 2022, I am over 65 and the UK property has been my permanent home for 40 years will I have to pay capital gains tax on the profit from the sale.

Oscar Paoli

4 July, 2022 8:58 am

Hi David,

Unfortunately the property you live in now is your residencial home and also you have not been a Tax Resident here for over three year therefore there will be Capital Gains Tax due as you have not been a Tax resident here for over three years and you were not living in the proeprty at the time of sale.

With kind regards,

Ábaco Advisers

Franco

19 July, 2022 9:37 am

Does this also apply to a property in Belgium ? Our case is the following: we will sell our home in Belgium in October 2022 and then buy a home home & move to Spain as from November 2022 (so NOT being a Spanish resident in 2022 as we will spend less than 50 days in Spain in 2022, the plan is to become Spanish residents only as from 2023. Since we will sell our Belgian property whilst being Belgian residents can I safely assume that we would not have to pay any Capital Gains tax in Spain ?

Oscar Paoli

26 July, 2022 8:45 am

Hi Franco,

This is correct, if the house is sold in 2022 and you do not become Residents here until 2023 then there is no Capital Gains to to pay here.

With kind regards,

Ábaco Advisers

Loraina

27 July, 2022 10:12 am

Hello, we moved to Spain end of 2020, we won’t be fiscal resident until this year, we sold our uk property in June this year, my husband only moved to Spain until February this year, we have lived in the property for 25years or more, how does this stand on cgt please. We are buying a villa this October using most of the funds from uk property thank you

Oscar Paoli

9 August, 2022 7:00 am

Hi Loraina,

In order to have any benefits on the sale of property you have to have been Residents in Spain for three year, which in this case you have not.

You mentioned you became Residents at the end of 2020 in this case your first Tax year would be 2021 which has just been completed covering the period 1st January 2021 to 31st December 2021.

As the property was sold in June of 2022 this will have to be declared i your 2022 Income Tax Declaration, as the property was not your residencial home when sold not had you been Tax Residents here for over three years you would be eligible for Capital Gains Tax.

With kind regards,

Ábaco Advisers

Loraina

27 July, 2022 10:12 am

Hello, we moved to Spain end of 2020, we won’t be fiscal resident until this year, we sold our uk property in June this year, my husband only moved to Spain until February this year, we have lived in the property for 25years or more, how does this stand on cgt please. We are buying a villa this October using most of the funds from uk property thank

Oscar Paoli

27 July, 2022 1:04 pm

In order to have any benefits on the sale of property you have to have been Residents in Spain for three year, which in this case you have not.

You mentioned you became Residents at the end of 2020 in this case your first Tax year would be 2021 which has just been completed covering the period 1st January 2021 to 31st December 2021.

As the property was sold in June of 2022 this will have to be declared i your 2022 Income Tax Declaration, as the property was not your residencial home when sold not had you been Tax Residents here for over three years you would be eligible for Capital Gains Tax.

Should you have any further queries do not hesitate to contact us.

Kind regards,

Ábaco Advisers

chris maynard

30 July, 2022 6:32 pm

i own a third share in an apartment in spain with two other people , we purchased the property in 2019 and paid cash so there is no mortgage , we purchased the property from the bank for 55,000 euros , i want to buy out the other two joint owners so the property will become mine , they want 35,000 euros each for their share . we are NON-RESIDENTS from the UK , i understand the capital gains tax to be 24%
how much capital gains tax will they have to pay ?

Oscar Paoli

31 July, 2022 3:52 pm

Hi Chris,
If you are from the UK and are non-residents in Spain the Capital Gains Tax is 19% and the exact amount will depend on the possible costs you might be able to deduct such as notary and land regsitry fees from the purchase, tax from the purchase, plusvalía tax when selling the property, etc. A specific calculation should be arranged.
Should you need any assistance in the process do not hesitate to contact us at info@abacoadvisers.com
With kind regards,
Ábaco Advisers

Jill Davies

23 August, 2022 7:19 am

I am a U.K. resident and am considering selling a property in Spain. I know I will have capital gains tax etc. to pay in Spain. When I fill my U.K. tax return will I have to declare it and will that capital gain be treated as a capital gain in U.K. also? I am also thinking of selling a U.k. property in same U.K. tax year so will I loose out on that years allowance for CGT in U.k. ?

Oscar Paoli

25 August, 2022 3:19 pm

Hi Jill,

In this case, as foreign properties need to be declared on the annual UK income tax documents under the “foreign section” the sale and potential capital gains will also need to be declared. However you should be able to claim relief in the UK over the amount of Capital Gains tax paid here in Spain.
As to weather or not this will affect the yearly CGT allowances when also selling a UK property, this is something that will need to be discussed with your UK accountant as they are better situated to confirm the situation.

With kind regards,

Ábaco Advisers

David

6 September, 2022 1:33 pm

Hi i own a property in Tenerife i am a Uk resident but im in the process of becoming a Spanish resident Up to now this year ive spent 90 days in Tenerife Ive paid taxes as a non resident for 20 years I am also in the process of selling my UK home My plan is to come to Tenerife while my home is for sale and complete my residency If i come out for say 80 days bringing me to the end of 2022 bringing my total days for the year to 170 will i be liable for Spanish CGT
Thank you

Oscar Paoli

7 September, 2022 12:31 pm

Under the Residency test, and given the number of days you will have been in Spanish territory during the calenday year, you would not be considered a Resident for tax purposes and thus not liable for Spanish CGT.
We would advise however that, allthough you are under the 183 day limit, you would be sufficiently close for the tax office to perhaps investigate the matter and request confirmation as to the time spent in Spain in order to justify that you are not a Spanish tax resident for the year in question.
In this regard we would recommend either coming to Spain perhaps a couple of weeks later or, if this is not a possibility, keeping exact records of flights or ferries so as to easily justify the exact time spent here should it be requiered.
Regards,
Ábaco Advisers

Ian

24 September, 2022 11:06 pm

Hi. First of all, it is amazing how many questions you answer here – thank you.

My wife and I and 2 children plan to move to Spain in August 2022. We are currently living in the UK. We are deciding whether to sell our home here or rent it for income.

1) If we choose to sell it, when is the latest we can sell it without having to pay CGT in Spain?
2) If we choose to rent it out, I assume we will need to pay income tax on any profit we make in the UK and in Spain?

Thank you.

Oscar Paoli

26 September, 2022 10:12 am

Hi Ian,

As you are are non residents in 2022 (Arrival in August 2022) you will need to sell your property before the 31st December 2022.

Should you keep the property and rent it out under the Double Taxation Treaty the Tax will always have to be paid in the United Kingdom as is located there, however you also have to declare in Spain and the Tax paid in the United Kingdom mis deducted from the Tax paid there on the same Income.

Hope this is of assistance.

With kind regards,

Ábaco Advisers

Ian

12 October, 2022 1:27 pm

Hi, we moved to Spain in Oct 2020. For the first 18 months, we put our UK property on rent. Now we are selling it.

I know that I have 2 years to reinvest the proceeds into a main home here to avoid CGT. However I also heard from someone that we must sell the UK house within 2 years of moving here in order to avoid it too. Is that true? And how are the 2 years calculated?

As our first Empadronamiento was 28/10/20, as you can imagine we are nervously awaiting the sale to complete prior to 28/10/22 to avoid potentially being liable for the tax.

Figures for UK house: Purchase Sep 2014 – £156K
Sale Oct 2022 – £275K

By my calculations, and if the 2 years sale point above is true, I’m worried that if the sale doesn’t complete before 28/10/22 I will be liable for EUR 25K Plusvalia tax. Is that correct?

Thanks a lot, any advice greatly appreciated
Ian

Oscar Paoli

18 October, 2022 2:25 pm

Hi Ian,

We would recommend that you tax advisor looks into your case in particular to make sure the property was your main home otherwise you may be liable to tax payments for any capital gains.

With kind regards,

Ábaco Advisers

James

24 October, 2022 3:54 pm

Selling a home in spain.
Can I deduct
new door after squatters.
lawers fees
estate agent fees
new alarm
cleaning inside for sale
pest control inside
Notory UK fee
Notory Spain fee
land reg fee

Oscar Paoli

24 October, 2022 4:03 pm

Of the mentioned fees in your comment you can deduct, as long as you have the original invoices, the lawyers fees in Spain of the purchase and/or the sale process, estate agent fees, spain notary fee and land registry fees in Spain.

With kind regards,

Ábaco Advisers

James

24 October, 2022 3:59 pm

Spanish Plusvalia council tax
From 10th Nov 2021 this does not apply
Ref Google search
Is this correct

Oscar Paoli

24 October, 2022 4:01 pm

Unfortunately this is not correct, the plusvalía tax is still ongoing the only change is the change of calculations of this tax.
With kind regards,
Ábaco Advisers

James

25 October, 2022 10:03 am

I google that Plusvalia council tax does not apply in Spain from 1st Nov 2021 ?
I live in UK want to sell property in Balearics what exactly can I set against capital gains tax ?

Okupas stole my carpets…furniture….smashed entrance door costing £1,000 to relace. My lawyrers fees and court fees to take Okupas to court….can these costs be set against Capital Gains tax ?

I am deemed to be Non Resident

Oscar Paoli

25 October, 2022 3:12 pm

Hi James,

The plusvalía is still ongoing, but the calculation has been modified since last year.
From the purchase costs that will be taken into account include the VAT, Land Registry fees, Notary fees, Transmission Tax and Legal fees.

From the sale you may deduct from it the costs incurred in the sale (legal fees etc). We can also deduct certain costs of major structural alterations you have made to the property – but only if you can produce the official receipts for the materials and/or work involved.

The costs against the Okupas I belive you may not be able to include them but your local tax representative will be able to confirm this to you.

With kind regards,

Ábaco Advisers

Colin

6 December, 2022 4:05 pm

I am a Spanish Resident TIE since November 2020 and aged 64.
I have owned an apartment here for 20 years and thus paid my annual property taxes here each year.

I am selling a property in UK and expect a large gain, which the UK require me to pay GGT upon Even though i am Non Res….

Do I still face a CGT bill here in Spain, or… is a property CGT charge only applied in the country of the property?

Oscar Paoli

7 December, 2022 8:44 am

As the property is in the UK you will have to pay the Capital Gains Tax there however under the terms of the Double Taxation Treaty when the sale is declared here in Spain the Tax you have paid there is deducted from any liability you may have here.

With kind regards,

Ábaco Advisers

Morris Piddington

11 December, 2022 5:35 pm

as a Spanish resident, if I gift a property in the UK to my son, what is my tax liability in Spain?

Oscar Paoli

11 December, 2022 9:54 pm

This will depend on the amount and of course in which region in Spain you are located.
Should you wish to have more details you will have to contact us at info@abacoadvisers.com
With kind regards,
Ábaco Advisers

Bev

22 December, 2022 5:40 pm

Hello, lots of information on here thankyou.
Can you tell me please, as a resident, if I sell my property in Spain to move back to uk and repay my outstanding mortgage would the amount I repay be included in the capital gain for tax reasons. I have been told, hopefully incorrectly that money I pay back to the bank to clear my mortgage would be included in the capital gain?

Oscar Paoli

27 December, 2022 8:44 am

Hi,

The amount paid off on the mortgage is not a deduction form the Calculation of the Capital Gains Tax which is purchase price plus costs less sale price minus costs, the costs for the set up of the mortgage if done at the same time as the purse are deductable as well as the cancelation cost if done when sold.

With kind regards,

Ábaco Advisers

Brian

24 December, 2022 11:38 am

I am a Spanish Tax Resident, renting a property in Spain, where I live. If I was to sell a property that I own in the UK, would I be liable for CGT? This UK property is the only property that I own.

Oscar Paoli

27 December, 2022 8:42 am

Hi Brian,

Yes you would as it would not be your Residential Home at the time of sale.

With kind regards,

Ábaco Advisers

Janet Chapman group

2 February, 2023 8:03 pm

Good evening my husband and I bought a property 4 yrs ago ,my husband is of retirement age unfortunately I’m not. we have sold our property and want to buy another property . we have made a profit of 80k the property to buy is 155,000 leaving 15,000 uninvested profit will I have to pay capital gains tax on the 15,000 as a non pensioner or just half of it

Oscar Paoli

8 February, 2023 12:45 pm

This exemption for Capital Gains Tax will apply to your husbands 50% share if the property is in joint names, always provided that you have been full Tax Residents for more then three years living in the property as your main residence, on the remaining 50% you can have a reduction on a percentage for reinvestment and then pay Tax on the balance.
With kind regards,
Ábaco Advisers

minette wise

22 February, 2023 9:34 am

Hi
I have sold my UK property and am hoping to move to Spain later in the year . My partner owns a property in Spain which we will live in . Do i have to pay CGT in Spain on my Uk house sale ? We are planning using the NLV to get to Spain

Oscar Paoli

22 February, 2023 12:27 pm

Hi,

You would only have to declare the Capital Gains here if you sold this year and became a Resident in the first 6 months of the year, ideally it would to sell this year and take up residency in 2024.

Best regards,

Ábaco Advisers

Trisha Page

14 March, 2023 4:51 pm

Can you give me an approximate cost for Abaco to help us fill out our CGT next year?
We are resident in Spain and are selling our home in the UK this year.

Oscar Paoli

16 March, 2023 3:17 pm

Hi Trisha,
You may contact us at info@abacoadvisers.com and we will be able to assist you in your calculation.
With kind regards,
Ábaco Advisers

Terry Douthwaite

20 March, 2023 10:27 am

Hi

We are UK residents intend to move to spain on a NLV, we are a mid 50’s couple and intend to fund the move with the sale of our house etc.
Would we be liable for CGT if we sold before we moved out there, we will be purchasing a property in Spain for more than the value of any gains we make on our current property?
Am I correct in thinking if we sold in the first half of the year and got our visas in the second half of the year then we would not be liable for CGT on our house sale – or does it not make a difference if the profit from this our main residence is reinvested in our new main residence in Spain?
We will also be cashing in some investments and pull what we can from some private pensions but this will be done a year before we intend to get our visas so I assume there would be no tax on this?

Thanks in advance
Terry

Oscar Paoli

20 March, 2023 11:08 am

Provided that the sale and the investment situation is completed ideally in the year prior to moving to Spain there would be no Tax liability here. For example if everything was completed in the first part of the year and you did not come to Spain or obtain your Visa til very late in the year.
With kind regards,
Ábaco Advisers

Rob

4 April, 2023 10:47 pm

I am irish citizen moving, to live in spain.
I buy a house in UK 2017 for £100000.
I sell house in UK April 2023 for £200000,
I want to buy in Spain 2023 for £250000.
if I move and buy in April will the capital tax
implications be different to if I purchased and move in in July (183 day) as a none resident? Thank You

Oscar Paoli

5 April, 2023 10:00 am

As there are no allowances for reinvestment it is always beneficial to sell the property outside of Spain the year previous to your move to Spain to become a Resident, or move to Spain in the very latter stages of the year to justify that you were not in the Country for 183 days in that Tax year.
With kind regards,
Ábaco Advisers

Steven ledwell

28 April, 2023 10:57 am

If I sell my uk property as a Spanish resident I am subject to CGT?
Will this be based on when I purchased property in 2005 and the value differential or will it be based from 2015.

Can I move back to uk and sell property and not pay cgt and if yes would I have to become a uk resident and give up Spanish residencey until sold.

Oscar Paoli

28 April, 2023 1:03 pm

Hi Steven,

You would be subject to CGT based on the original purchase price plus costs and the sales price less costs. As property is located in the United kingdom the sale also has to be declared there and the Tax paid in the uK will be deducted from any liability here under the double Taxation treaty.

If you wish to give up the Residency this should be done the year before and you must cancel the residency and then reapply a year after the sale.

With kind regards,

Ábaco Advisers

Suzanne

5 May, 2023 12:37 pm

Hi

We are Spanish Residents and have lived here for 5 years. We have kept our UK home as a base for us to go back to when we visit family. We would like to sell this UK property and buy a new UK property elsewhere for the same value. Would we have to pay anything in tax to Spain if we purchase another home and make no profit?

Thanks!

Oscar Paoli

5 May, 2023 1:33 pm

As this is a second property and under the double Taxation treaty the sale has to be declared in the United Kingdom and Tax paid there then in Spain you would also have to declare as well but the Tax paid if any is deducted from any liability here.

With kind regards,

Ábaco Advisers

Debbie

12 May, 2023 5:15 pm

Hi
I inherited My Fathers property in Tenerife when he died. My Lawyer has power of attorney and registered myself as a non tax resident, opened spanish bank account in my name and applied for non resident NIE number. I had to do this during the inheritance procedure due to now owning the property.
The apartment was sold within 2 weeks of property transferring to me. The hotel who originally sold the property to my father in 2008 agreed to purchase back at a reduced price. The town hall cadastral value at date of death was 175000 euros. The property was sold for 135000 euros after fees for a quick sale.
As the property was inherited is there CGT to pay? 3% purchase price CGT was held back by the buyer

Oscar Paoli

15 May, 2023 7:49 pm

The sum retained from you would have been 3% of the sale prices as a deposit against any possible Capital Gains Tax, if the proeprty was sold for less than the price shown in the Deed for the inheritance then you would have sold for a loss and the 3% can be claimed back from the Tax Office, your Solicitor in the sale should explain all this to you and how to request the refund.

With kind regards,

Ábaco Advisers

John Hoare

18 May, 2023 10:27 am

Hi
We have just sold our property and have had 3% retained for CGT does this have to be paid if we purchase another property in Spain within 2 years, we are non-residents.
Thank you in advance
John

Oscar Paoli

18 May, 2023 1:13 pm

Hi John,

Yes the Capital Gains Tax will have to be paid.

With kind regards,

Ábaco Advisers

Richard

9 June, 2023 10:07 am

I am a UK national resident in the UK. When I sell my Spanish apartment will I have to pay UK capital gains tax, and if so, how would I avoid double taxation?

Oscar Paoli

9 June, 2023 11:28 am

Hi Richard,

As a UK resident with a property in Spain you are obligate to declare and pay the Capital Gains Tax here in Spain as the property is located here, then under the terms of teh Double Taxation treaty you then have to declare the sale in the United Kingdom and any Tax paid here in Spain is offset against any liability in your own Country.

With kind regards,

Ábaco Advisers

Brenda

10 June, 2023 4:02 pm

Hello, I am selling my apartment in France at the beginning of 2024. it is currently my main residence according to French law (but not according to Spanish law which I think requires 3 years ). I do not need to pay capital gains in France as it is my main residence but if I go to live in Spain in 2024, will I be liable for capital gains on the sale of my French apartment? I plan to invest the gain in a main residence in Spain. My economic interests are all in France and will continue to be in 2024 so I imagine I will still be tax resident in France despite the 183 days rule? (this is only rental income from properties in France – I do not pay tax as I have a deficit from my rentals and live off savings). I would like to live in Spain all year round but if the capital gains applies, it’s simply not worth it. Thank you!

Oscar Paoli

19 June, 2023 10:15 am

Hi Brenda,

As you will not have been a Tax Resident in Spain for the required period you will be liable for Capital Gain Tax here for the property you sell in France, if you had paid any Tax on it there it could have been deducted from any liability here.

With kind regards,

Ábaco Advisers

Russ Lewis

7 July, 2023 2:57 am

You mention that Spanish tax residents over the age of 65 are exempt from CGT on their principal residence if owned for a minimum of 3 years. Is this a complete exemption or are there any rules about re-investing the sale proceeds? Are there any ways to get round these rules? (I want to buy another property but outside the EU.)

Russ Lewis

7 July, 2023 3:32 am

Further to my above question, I think I am getting confused by the rules for over-65s relating to exemptions from CGT in general, e.g. second properties. These rules presumably are over-ridden by the specific exemption for over-65s selling their principal residence (of at least 3 years).

Thanks for all your excellent advice

Oscar Paoli

11 July, 2023 4:43 pm

This is only for the main property and does not count for second properties.
With kind regards,
Ábaco Advisers

Tony Wilkinson

25 August, 2023 3:23 pm

I have lived in Spain for nearly 7 years. I am a full tax resident and currently rent a property in Spain as my prime residence. I own a property in the UK which has been rented out since March 2017 until July 2023. It is currently up for sale. I will be using the money from the sale to purchase a property in Spain. I have owned the UK property since the mid 1990´s.
What will be my tax liability ?

Oscar Paoli

29 August, 2023 9:58 am

Good morning,

Over the sale of the property in the Uk you will be subject to Capital Gains tax in Spain as a Spanish tax resident.
This calcualtions is based upon the original purchase price of the property and the eventual sales price.
The specific calculation process is that the purchase price is subtracted from the sales figure as well as any applicable costs relative to both procedures such as estate agents, legal representation and general administration costs.

The result of this subtraction is considered the net profit, or loss as the case may be. In the case of profit the amount is then subject to the scaling tax calcuation of between 19% and 26% depending on the overall amount.
Please be aware that, due to the double taxation treaty we have with the Uk, if you were liable for Capital Gains tax in the Uk this amount is taken into account and directly deducted against the amount due here in Spain.

For an approximate figure as to the tax implications additional information would be needed such as the original purchase figure of the property prior to costs and the sales figure that it is currently on the market for.
With this we can calcuate an approximate figure, based of course on the tax bands and exchange rates at the time, of what the overall tax implications might be.

Kind Regards,

Ábaco Advisers

Jody

4 September, 2023 1:03 pm

Hi, my mum is a Spanish resident and is looking at selling her UK property. Will she pay CGT in UK and Spain?

Oscar Paoli

5 September, 2023 10:11 am

Good morning,

In this case as a Spanish resident your mother would potentialy be liable for Capitral Gains Tax here in Spain over the sale of a property in the Uk.
Any profit made from the sale with regards to the initial purchase price, minus certain costs of course, would be taxable here on the annual income tax returns as per the scaling system we of anywhere between 19-26%.
However, the case may be that CGT is also due in the Uk to HMRC in which case any figures paid are taken into account and directly deducted from the overall figure on the Spanish taxes.

Certain other costs such as administrative charges, estate agents and solicitors fees are taken into account from both the original purchase as well as the sale counting against any potential profit.

Kind Regards,

Ábaco Advisers

Marie

14 September, 2023 4:25 pm

We bought our property in Fuerteventura 11 years ago and are thinking of selling it.
I heard that if you owned a property for more than 10 years there was a reduction in the Capital Gains Tax, is this true ?
We live in the property 9 months of the year approximately as we go back to Ireland every so often.

We are resident here, but both under 65.

Thanks

Oscar Paoli

18 September, 2023 3:20 pm

Hi Marie,
No, unfortunately there are no reductions per se according to the way you mention in your comment. You may have heard something about reductions for abatement, but that can only be applied if the property was acquired before 1994, so it would not apply in this case.

In your case, being under 65 years of age, the only possibility to reduce the capital gain is the reinvestment in the main residence after the sale. And that, only if the property you are selling has been considered as your main residence during at least the last 3 tax years.

With kind regards,

Ábaco Advisers

Nigel Lella

14 September, 2023 4:44 pm

Hi
Live in the UK but thinking of moving to Spain i have a Villa in Benalmadena
I have company’s in the UK witch i take a wage from and pay tax in the UK
I also ham self employed in 1 company
I need some advice on what is the tax laws are in Spain and would i need to pay tax hear
I am a high rate tax payer

Oscar Paoli

19 September, 2023 1:54 pm

Dear Nigel,
Thank you for your email. We would need to know more about your specific case to be able to guide you properly, if you wish to book an appointment with our tax department please email us at info@abacoadvisers.com or call us at +34 966 703 750 and we will be happy to assist you further.
With kind regards,
Ábaco Advisers

John Hurst

27 September, 2023 12:48 pm

Hi, very useful site thank you. We are selling a house in Lanzarote which we have owned since 2006 and fully renovated it, if we manage to sell the house for the anticipated value we should be liable for CGT of some 60,000 euros, which I presume we pay to the Spanish Tax Office. We do not own any property in the UK, only the one house in Lanzarote, we live in our Mother in Laws house and look after her (86), so can our house in Spain which we do not rent out be considered as our First Home under Spanish Tax laws? I am 66, so does the Spanish exemption for over 65 year olds apply for not paying CGT? Also we had a holiday home in Wales which when we sold it created a Capital Loss of £86,000. which is recognised by HM Revenue & Customs. Can we in any way transfer the Capital loss from the UK to the Capital Gain in Spain and not actually pay the money in tax to the Spanish Tax Office?

Oscar Paoli

29 September, 2023 11:22 am

Good morning,
Unless you are actively living in your property in Spain it cannot be considered from a tax perspective as your main residence. Due to this you would not be able to apply the reductions and/or exemptions against CGT for principal residences.
The same has to be said regarding the exemption for those over the age of 65. In order to apply these the property being sold has to have been considered as your main residence for the previous 3 tax years, and declared as such on the relevant income tax forms, in addition to the requierement of yourselves having been resident in Spain over the same 3 year period.
With regards to the capital loss, regretably lossess outside of Spain cannot be carried over to cover their equivalent here.
Kind Regards,
Ábaco Advisers

Ross

13 December, 2023 6:41 pm

I am selling my primary residence in the UK which I understand would mean I am liable to pay CGT in Spain where I will be residing for over 183 days in the year of sale. I plan to spend the proceeds on renovating a house in Spain which I have already purchased. Is it possible to offset the capital gains tax against the renovation costs?

Oscar Paoli

14 December, 2023 12:24 pm

Good morning,
Regretably at this time the current tax legislation does not permit the offset of capital gains over the sale of a non-primary residence against renovation costs, even if said renovations are for your main dwelling.
If you are considered, based upon time spent and your residency application, as a Resident here in Spain you will be liable for the capital gains tax on the annual income tax return.
However, you can potentially reduce the overall tax liability as costs incured from both the sale and initial purchase of the property in question can be taken into account.
Kind Regards,
Ábaco Advisers

John jall

1 February, 2024 12:03 pm

of I sell my house in Spain as a resident and then move to UK,we are both over 66 and have lived in the property for three years
what costs are there
expect to make a 10000 profit on house
can you help then can come to you with a understanding of what happens

Oscar Paoli

1 February, 2024 3:41 pm

Good afternoon John,
As a resident over the age of 65 and with the property having been considered your primary residence for the previous three fiscal years you are eligable to apply the full exemption for capital gains here in Spain.
However, if any of the above conditions are no met in full, the profit in question would be taxed at the scaling rates of 19-21%.
You can of course deduct costs from both the original purchase and sale to reduce the overall profit.
Regards,
Ábaco Advisers

Janice

19 February, 2024 2:42 pm

Hi l have been a resident in spain l am a pensioner in spain and am selling my house l have not paid tax in spain will l still not pay capital gains tax thank you

Oscar Paoli

4 March, 2024 3:21 pm

Dear Janice,
If you wish assistance with tax related issues, please contact us at info@abacoadvisers.com
With kind regards,
Ábaco Advisers

Michelle

8 March, 2024 7:37 pm

I am a Spanish resident of over 3 years and sold my uk property in late 2023.
I paid uk CGT in uk on the rebase system as advised as was told that this was the best way to go as I would have made a large profit after selling. However as this rebase was from April 2015 I could not claim for private resident relief which would have been between 1991 & 2003 ( 12 yrs).
Can I apply this resident relief allowance to my CGT in spain to lower my CGT here?

Oscar Paoli

13 March, 2024 12:17 am

Good morning,
Unfortauntely not, the Private Resident Relief is applicable on Uk tax calcualtions only and cannot be taken into account on your annual Spanish income taxes.
However, due to the double taxation treaty we have with the Uk, any Capital Gains tax that you have paid in the Uk is counted against Capital Gains due here in Spain when arranging the taxes later this year.
It will need to be indicated to your tax representative so as it can be consiered a cost incured and decducted during the calcualtion process.
Regards,
Ábaco Advisers

Michelle

13 March, 2024 10:20 pm

I recently sold my house in uk. It was originally my main residence for 12 years before I rented it out until I sold in 2023.
I have been a Spanish resident now for past 3 years.
I was advised by my uk accountant to use the rebase system for uk tax purposes as I am no longer a uk resident.
I am not sure I have done the right thing going down this route as my uk tax bill was less than £9000. As this will be deducted from my Spanish tax bill, I feel that I may have been better off paying more tax to the uk leaving me with a lesser Spanish tax liability. I then could have claimed my residential relief of 12 years and other home improvement costs in uk (that aren’t allowed in spain) ?

Oscar Paoli

14 March, 2024 6:06 pm

Good afternoon Michelle,

Without specific figures we would not be able to confirm which of the two options would be the most efficient from a tax perspective.
However it is worth bearing in mind that the overall increase in the tax due to HMRC would have been to such a high figure that the overall total would be higher even taking into account the reduced Spanish tax implications.
In essence there is no better option so to speak. The application of one option or another would depend on each individual case and the figures involved.

Kind Regards,

Ábaco Advisers

Jo

17 June, 2024 10:18 pm

Hi
I’m thinking of selling a buy to let property in the UK, I am a fiscal resident in Spain. I fill out a UK tax return & a Spanish tax return. Any tax due on the rental income is offset due to the double taxation treaty. Will this be the same for CGT? Obviously the difference on how this is calculated in the UK & Spain is very different & it appears that the CGT in the uk is reasonable , but the CGT in Spain is mindblowing . Seems very unfair

Oscar Paoli

26 June, 2024 2:23 pm

Good afternoon,
As a resident in Spain you will be liable for Capital Gains over the sale of the UK property. However, given the double taxation treaty we have with the UK, any tax of the same nature that you are liable for over the sale in the Uk is considered offset against its equivalent here when you come to file the annual income tax forms over the tax year in question.
Due to the tax in the UK being due well in advance of the corresponding tax years income taxes being due to the Spanish government there is no issue in providing proof as to the total amount to be offset.
Regards,
Ábaco Advisers

Maureen

24 June, 2024 12:09 pm

I am 70 years old and own a property in the UK worth 120,000 eu. I lived there for 5 years before becoming tax resident in Spain last year.

I want to keep the house in the UK to use when I visit. It won’t be let out.

If I sell the UK house in (say) 5 years time, but don’t reinvest the funds in a property in Spain, will the sale be subject to Spanish CGT?

Oscar Paoli

25 June, 2024 4:15 pm

Good afternoon,
If you sell the property in the UK whilst having residency, and being considered a tax resident, here in Spain you will be subject to Capital Gains Tax on the annual income tax forms over the tax year in question.
The calculation will be made taking into account the original purchase price of the property and costs involved during the purchase process, as well as the eventual sales figures and associated costs.
Regards,
Ábaco Advisers