Capital gains tax in Spain: rates, reliefs and a worked example

How capital gains tax in Spain works

Capital gains tax in Spain is not a separate tax. For residents, gains are part of income tax (IRPF) and go into the "savings" base. For non-residents, they fall under non-resident income tax (IRNR). Either way, what is taxed is the gain: the difference between what you sold for and what the property cost you, with costs added on both sides.

Whether you pay the resident or the non-resident rules depends on your tax residence in the year of the sale, not your nationality. See our guide to Spanish income tax rates for the 183-day rule.

Spain capital gains tax rates

The resident savings scale has a state half and a regional half, but the law sets both, so the combined rates are the same in every region. Regions cannot change them, unlike the general income tax scale.

What you can deduct

The gain is worked out as follows:

• Sale value: the price in the deed, less selling costs you paid, such as estate agent fees, the plusvalía municipal, and a lawyer's fees on the sale.
• Purchase value: the price you paid, plus the costs and taxes of buying: ITP or IVA and AJD, notary, land registry, and legal fees.
• Improvements: documented investment that adds value, such as an extension, a new kitchen or a pool. Keep invoices. Ordinary repairs do not count.
• Depreciation: if you rented the property out and deducted depreciation against the rent, that amount reduces your purchase value.

If you inherited the property, the purchase value is the value declared for inheritance tax, not what the deceased paid. Owners of property bought before 31 December 1994 may be able to cut the gain with old "reduction coefficients", but only for the part of the gain up to 19 January 2006 and within a lifetime cap of €400,000 of sale value.

Spanish CGT for non-residents

If you live outside Spain, you pay 19% on the gain. The rate is the same for UK, US and EU residents; the Brexit change to 24% applies to rental and imputed income, not gains. See our guide to non-resident tax in Spain.

The 3% retention: Modelo 211 and 210

Because the seller may leave Spain with the money, the buyer must hold back 3% of the price and pay it to the Agencia Tributaria on Modelo 211 within one month of the sale. If the buyer doesn't, the buyer becomes liable for that amount, so the notary will usually insist it is done.

The seller then files Modelo 210 to settle the real tax, within three months after the end of the buyer's one-month window. If 19% of the gain is more than the 3% retained, you pay the difference. If it is less, or you made a loss, you claim a refund. Refunds can take months, so file promptly.

CGT on a Spain non-resident sale is also often followed by the plusvalía bill. If the seller is non-resident, the buyer becomes liable for the plusvalía, which is why buyers often retain it from the price too. See plusvalía tax in Spain.

Reliefs for residents

Reinvesting in a new main home

If you are resident and sell your main home (vivienda habitual), the gain is exempt to the extent you reinvest the proceeds in a new main home within two years. Reinvest part and only part of the gain is exempt. In general, a home counts as your main home after you have lived there continuously for three years.

Over 65 selling the main home

Residents aged 65 or over pay no capital gains tax on selling their main home, whatever they do with the money. Over-65s can also exempt gains on other assets up to €240,000 if they use the money to buy a life annuity within six months.

Common mistakes

• Forgetting the purchase costs. Transfer tax, notary and registry fees paid when you bought all reduce the gain. Find the original receipts.
• Not claiming back the excess 3%. If you sold at a small gain or a loss, the retention is often more than the tax. The refund is only paid if you file Modelo 210.
• Selling a jointly owned home as one person. Each owner is taxed on their share of the gain and files their own return.
• Assuming a resident's relief applies. Moving back to the UK the year before the sale means the non-resident rules apply.

Worked example

A UK resident bought a flat in Alicante in 2015 for €250,000 and paid €25,000 in purchase taxes and fees. In 2026 they sell for €400,000 and pay €15,000 in agent fees and plusvalía.

If the same seller were a Spanish resident without reliefs, the savings scale would give: €6,000 at 19% (€1,140) + €44,000 at 21% (€9,240) + €60,000 at 23% (€13,800) = €24,180. For big gains, the flat 19% for non-residents is lower.

The UK seller also reports the gain to HMRC and gets a credit for the Spanish tax. See our UK–Spain double tax treaty guide for how that works.

Before you sell (or buy)

Records matter. Keep your purchase deed, tax receipts and improvement invoices; without them you may be taxed on a bigger gain. For an overview of the whole process, see selling property in Spain and property taxes in Spain. If you are buying from a non-resident and want a second look at the property, enter the address or referencia catastral on our free property check and we'll get back to you by email.