Last updated on June 26th, 2025 at 09:21 am.
When you are moving between countries, the tax implications of selling your property can be confusing. Typically, this is one of the most common questions that property owners ask and it’s always good to get clarity around these important issues.
Capital gains tax in Spain affects both residents and non-residents. Capital gains tax occurs when there is a profit obtained from the sale of an asset, such as a property. It’s important to work out if you’re a resident or non-resident as this can affect your filing deadline and the taxation itself.
As a resident, you can be exempt from paying capital gains tax on your property if it was your main residence and you are over the age of 65. Also, exemption could apply if the property was your primary residence and you buy another property as your main home within two years.
Taxes in Spain can be complicated and you could be subject to fines or penalties if you miss a deadline or don’t submit your taxes properly. It’s a good idea to seek fiscal advice from an expert to avoid any possible issues.
What Is Capital Gains Tax and Who Needs to Pay It in Spain?
Capital gains tax or CGT in Spain is defined as a tax that is levied on the increase in value of certain assets, which may include property or other investments.
In terms of selling a property, the gain is calculated based on the difference between the sale price and the acquisition cost. This includes any related expenses created during this process.
In Spain, there is a progressive rate system for capital gains tax for residents and a flat rate for non-residents. It’s essential to understand these rates if you’re going to sell any assets, such as a property or an investment.
How Is Capital Gains Tax Calculated and What Can You Deduct?
Residents that sell a property and make capital gains through this are subject to the following rates of capital gains taxation:
- 19% for gains up to €6,000
- 21% for gains between €6,000- €50,000
- 23% for gains between €50,000- €200,000
- 27% for gains between €200,000- €300,000
- 30% for gains above €300,000
For non-residents, any capital gains made are taxed at a rate of 19%.
At the sale of your property, 3% of the current sale price will be retained by the lawyer acting on behalf of the buyer and this will be paid to the tax office in the name of the seller on Tax Form 211. This is just in case the tax authority may find it difficult to contact you after the sale.
Once your capital gains tax liabilities are settled then you will either receive a refund or have to pay outstanding tax. In order to retrieve any money you must submit form 210H to the tax office within three months of the sale along with the last four years of non-resident income tax. Don’t expect your money back straight away. It can take up to a year to be returned.
If you spend more than 183 days in a calendar year in Spain or Spanish territory, then you’re considered to be a resident.
It’s useful to know about deductions when it comes to CGT in Spain. You may be able to deduct improvement and transaction costs. Costs relating to renovation work, notary fees and estate agent commissions can be deducted from your gains to reduce your tax liability.
Are There Ways to Reduce or Avoid Capital Gains Tax in Spain?
There are some reductions and exemptions available in Spain for capital gains tax.
Primary residence exemption
Spanish tax residents over the age of 65 that sell their main home can be fully CGT exempt if they have lived there for at least 3 years.
Married couples may have a different process: if at the time of sale only one person, the property owner, is 65 or over, then only 50% of CGT will be exempt.
Reinvestment exemption
If you reinvest the full amount from the sale of your primary residence into a new main home within a two-year timeframe, you may be capital gains tax exempt.
Life annuity exemption
This relates to the over 65s, who can avoid CGT in Spain on up to €240,000 of gains if proceeds are invested into a qualifying life annuity within six months.
50% reduction in CGT in Spain
If you acquired your property in Spain between May 12, 2012 and December 31, 2012, then you could have a 50% reduction in capital gains tax. This applies to both residents and non-residents.
How Do Filing Requirements Work for Residents and Non-Residents?
There are slightly different filing procedures for residents and non-residents in terms of CGT in Spain.
However, it’s important for both residents and non-residents to keep all documents relating to their property sale, such as sale contracts, purchase agreements, or tax payment confirmations, safe.
Residents
A resident should report any capital gains on their annual income tax return. This is usually filed between April and June in the year after the sale of your property. The capital gain should be declared as an aspect of your savings income. You will pay tax due in accordance with the CGT rates for residents.
Non-residents
If you’re a non-resident, file a separate tax declaration within 4 months of the date of sale. If you recall, there will be 3% withheld. Even if this covers your liability, you still have to make this declaration in order to completely reconcile the tax or request a refund in the future.
A professional is still important
Capital gains tax can seem confusing at first and it’s always good to be clear about how much of an impact CGT in Spain will have on profits from the sale of your property or investments. This becomes more difficult if you don’t speak the language, as administration tasks can become even more complicated.
However, if you want to sell your home, Ábaco Advisers can help. At Ábaco Advisers, our team of experienced fiscal and taxation experts support you to make sure you follow regulations while gaining accurate and supportive advice.
For more information, fill out this form and we’ll be happy to offer you a free consultation in the language of your choice.
Originally published on 26th June 2020, updated on 24th June 2025
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24 comments
13 July, 2020 12:50 pm
I am in the process of selling my flat and luckily I will make around a £200,000 profit. I would like to move to Spain before the end of December 2020 and become a resident before the uk withdrawl from EU.
I understand that if I sell before I become a resident I wont pay CGT in Spain?
Am I right in reading that if I sell after I move and become a resident and I reinvest part of the profit in a property in Spain, say £150,000 will I then only be paying CGT on £50,000 or still £200,000?
I am hoping to retire and live of the profits as I am not of pension age.
Many thanks
Kelly
14 July, 2020 8:24 am
Hi Kelly,
If you sell the house before coming to Spain and you are non-residents in Spain, there is no capital gains tax, but you cannot be in Spain more than 183 days this year and the residence must be at the end of the year or much better next year.
With kind regards,
Ábaco Advisers
18 July, 2020 11:10 am
In a question asked in the FAQ’s regarding CGT and moving to Spain from the uk in the same year you state “if you sell, for example, in 2020 and move to Spain in 2021 as a resident then there will be no capital gains tax to pay. However, if you move out in the same year, then there will be” That is actually misleading as there is no split year treatment in Spain and you can only be a tax resident after 183 days in a calender year. Therefore if you sold your UK property, say in September 2020 and moved to Spain at the end of October 2020 you cannot possibly be a tax resident for 2020 as you have been a tax resident in the UK for more than 6 months
20 July, 2020 4:23 pm
Hi John,
Correct you are not a Tax Resident if you move to Spain in October 2020 (provided prior to that you were not in Spain early in the year for example you have been here and just not applied for Residece untill October).
With kind regards,
Ábaco Advisers
26 November, 2020 7:31 pm
Does CGT in Spain reduce over the number of years you have owned the property
1 December, 2020 11:32 am
Hi,
There is a deduction but only on properties purchased before the 31st December 1994.
Please do not hesitate to contact us should you have any further queries.
With kind regards,
Ábaco Advisers
23 July, 2021 9:45 pm
I am British and have lived in Tenerife for 10 years, fully legal now with TIE
I am 70 years old and receive a UK state pension and a civil service pension from the UK
I am about to inherit a property in the UK from my estranged husband (by default as he did not make a new will after our marriage and is therefore declared intestate, and I am the sole heir).
The property was in his name only and I have discovered he took out an Equity release releasing 122,000 pounds on the property. The property is valued at 225,000 pounds, leaving me with 105,000. The original purchase price was 59,000 pounds.
I have calculated that I will have some 37,000 euros CGT to pay here in Spain, less costs involved with the sale. I have a buyer lined up.
Is there any allowance/discount on the CGT for the fact that I am a pensioner, as there is is a non resident sells a property in Spain?
26 July, 2021 9:55 am
Hi Rita,
There are no allowances or discounts on Capital Gains Tax when a property is sold and the same applies for Residents as Non Resident, there are some benefits but these only apply to your Residential Home here.
For more information do not hesitate to contact us at info@abacoadvisers.com
With kind regards,
Ábaco Advisers
22 August, 2021 6:15 pm
For attention of Oscar Paoli,re comments made on september 23rd 2020.
I was concerned to read your comments to my query in relation to CGT on sale of UK property.You stated that I would have to give up my residency,sign off the padron and medical card system if I returned to UK for 2 years to sell my UK property without paying CGT to Spain.I understand that as a 10 year TIE card holder I can leave Spain for up to 5 years without losing my residency.Obviously my fiscal residency would change and I would ensure that the Spanish tax office were made aware of my absence from Spain however my general residency status is protected for 5 years should and when I decide to return after selling the UK property.In addition the British consulate in Madrid confirmed I would not lose my entitlement to the Spanish medical card as that is also protected.I would of course have to notify them I am temporarily out of Spain for 12 to 24 months.As far as the padron is concerned I still retain a holiday home in Spain which will be my secondary home until I return from UK to re-establish my “fiscal residency”.and main residency again.Do you see any problems with that approach?
1 September, 2021 4:53 pm
Hi Thomas,
As of our understanding the possession of the card makes you a resident in that country, if you stay for a long period such as two years for example, this condition is not met, in addition, the immigration law establishes maximum times outside of Spain, taking into account sporadic absences, but in your case, since you have been living in another country for two years, we understand that the residence card must be canceled.
We would recommend take the matter closely with an expert lawyer in this matter to better assist you in your case.
With kind regards,
Ábaco Advisers
18 March, 2022 4:25 am
I am 58 from the USA. I have a business that I plan to close in mid-June 2023 and would like to sell my home by June 31st, 2023, and then apply for a NLV move to Spain soon after (I will not have a place to live in the USA after I sell my home).
1st. Do I have this in the right order?
a. Close business
b. Sell house
c. Apply for a NLV?
2nd. Do I have to have a rented apartment in Spain before I apply for a NLV?
3rd. If I move to Spain (after I am approved , hopefully in July or August) will I have to pay capital gains (in Spain) on the house I sold in June?
I am SO confused as to what to do! Any advice would be greatly appreciated!
Thank you!
18 March, 2022 10:00 am
Thank your for contacting us. Unfortunately we do not deal with this process ourselves. Nevertheless, we would recommend you to speak with our relocation adviser collaborator David Ruiz. He will go through everything with you. If you wish to contact him directly please send him an email at david@torreviejatranslation.com
With kind regards,
Ábaco Advisers
4 January, 2023 9:12 pm
Hi, we purchased a property in Almeria last September (22) with the intention to sell up and move over permanently on NLV’s. Our house sale here in the UK completes at the end of January (23). As we will have sold our main residence in the UK before applying for residency and moving to our new Spanish home are we right in thinking we are not liable to CGT ?. If we have got this wrong, would we avoid paying it by waiting till next year (24) and would we be able to use our Spanish property this year without creating any further issues ?
Many thanks
Richard
5 January, 2023 9:30 am
Hi Richard,
If you sell in 2023 and become residents in 2023 you would be liable to Capital Gains Tax, if you wait till 2024 to become residents you can use your property under the regulations for entrance into the UK and for 2023 you would declare as non residents.
With kind regards,
Ábaco Advisers
29 April, 2023 6:00 pm
We bought our apartment in 1989 through a UK company. We have completed a uk tax return for the last 33 years in the UK. The company has been a nonprofit company, supported by the directors. We have a tax exempt certificate from HRMS (uk tax authority). We currently have a large sum in a director loan account which we can offset against Capital Gains in the uk. Is it possible to pay our CG in the uk not Spain?
2 May, 2023 10:39 am
Hi Richard,
Under the double taxation treaty as the property is located in Spain you will have to declare the sale here for Capital Gains Tax and then deducted any Tax due here against any liability you may have in the UK.
With kind regards,
Ábaco Advisers
14 May, 2023 6:09 pm
Hello.
A little help please. How long does a POA last in Spain?
Best regards
Richard
15 May, 2023 12:44 pm
It will depend on how it is written, normally it is open in time, and others both parties agree on a time of validity that could be any time agreed upon.
With kind regards,
Ábaco Advisers
1 October, 2024 2:27 pm
Hi, I intend to sell a property in the UK and then buy one in Spain under the Golden Visa Rule which I believe is still available.
Purchase price will be 500K in euros. As I am buying in Spain and my UK house sale will fall into the spanish tax year can I offset any of the capital gains tax payable on the profit of the UK house against the purchase of the spanish house.
18 October, 2024 1:52 pm
Good afternoon,
Should you be considered a tax resident in Spain for the year in which both the sale and the purchase take place you will be able to apply for the re-investment option exemption against capital gains due in Spain on the annual income tax forms however there are additional criteria that need to be met.
Namely that the property sold was considered and declared as your main reisdence for the previous 3-4 tax years in your country of residence and that the new property must be maintanied as your main residence in Spain for a period of 3-4 years after purchase.
Please be aware however that the exemption is not total but proportional based upon the sale price of the property in the Uk and the purchase price of the property in Spain.
Regards,
Ábaco Advisers
23 October, 2024 12:39 pm
Hi I’m moving to Spain in 2025 and renting out our main home here in the Uk. If I rent it out for 5 years rent in Spain for 5 years then sell my main house to buy one in Spain will I still haver to pay CGT.
24 October, 2024 10:09 am
Hi David,
As you are moving to Spain and, given the indicated 5 year period of renting a property here, this will be considered your main home for tax purposes as a Resident in Spain.
To this end if you were to sell your property in the UK as a Resident in Spain you would be subject to Capital Gains over the sale as this will be considered a secondary home.
You will of course be able to deduct ceratin incurred costs from both the original purchase and sales process as well as any potential CGT liable to HMRC in the Uk under the double taxation treaty we have with the Uk.
Kind Regards,
Ábaco Advisers
1 August, 2025 2:15 pm
We are residents of Spain but have a property in the UK which we plan to sell. We bought the property 40 years ago. It was covered by a Deed of Trust so that my parents had full use of it during their lifetime. Its value has unsurprisingly risen since buying it. Will the cost be inflation adjusted before paying Spanish Capital Gains tax (as otherwise I fear we may actually lose money when selling)? Many thanks.
4 August, 2025 9:04 am
Good morning,
Initially the calcualtion would be based upon the purchase price of the property against that of the sale, there would be no adjustment for inflation or increase in valuation since purchase. You would have the ability to include additional deductions against the profit if the purchase date was prior to the 31st of December 1994 under the so named “coeficientes de abatamiento” which help to reduce the overall profit given such a considerable difference in property values since that time.
However, you mention that the property was covered by a Deed of Trust for usage by your parents. If this deed was set up a number of years after the purchse it may be that the value of the property was adjusted/increased on the Uk land Regsitry. The same for if the Trust was terminated, this value may have again been adjusted. If the above is the case the latest value will be that which is used for the Capital Gains calcualtions.
Kind Regards,
Ábaco Advisers
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