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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98 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