Spanish Capital Gains Tax Rates on Property

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Tax

When you sell a property in Spain you have to pay capital gains tax on any profit after taking into account all deductions and allowances.

Deductions and allowances are quite complicated and vary by autonomous region so you will need to consult a local tax specialist for more information.

Capital gains tax rates in Spain

Capital Gains Tax (CGT) rates for non-residents selling assets in Spain have changed in recent years. The following tables show the present CGT rate (final column to the right), and also give previous tax rates to help clarify the confusion surrounding this topic. Most of the websites you will find doing an internet search do not give you the latest, updated tax rate.

Capital Gains Tax on Spanish Real Estate

The following only applies to E.E.A. and EU-residents. Residents from outside the European Union pay 24% in general (there are some exceptions).

GGT rates on real estate assets sold in Spain by EEA/EU-residents have changed over the years as follows (tax rate at time of sale):

PeriodUp to 31/12/06Up to 31/12/0720082009-20112012-201420152016
Rate35%25%18%19%21%Up to 11-Jul 20%
From 12-Jul 19.5%
19%

If you are a non-resident vendor, there is also a CGT withholding tax retention (to cover your capital gains liability) to bear in mind that means you don’t get your hands on all the money until long after the Spanish tax man is satisfied that all tax has been paid. Stories abound of non-residents having problems reclaiming the capital gains retention with the tax authorities refusing to believe they have sold at a loss, or dragging their feet about returning any funds due, sometimes for years. See what others are saying about this subject in the forum discussions on the Spanish 3% CGT withholding / retention tax.

+ Agencia Tributaria reference page (English)

When buying property in Spain, always keep digital and hard copies of all invoices related to your purchase like legal fees, notary fees, and property register fees. Likewise, if you ever do building work on the property once you own it, keep copies of all licences and invoices. You may be able to offset these expenses against capital gains when you sell, and so reduce your Spanish capital gains tax on property sales.