Capital gains tax in Spain
Pellicer&Heredia helps you to reduce your capital gains tax payment
Pellicer & Heredia helps non-residents, expats, and foreign investors understand and reduce capital gains tax in Spain when selling property or other assets. Their legal experts identify available deductions, exemptions, and tax-saving strategies to minimize your liability. With over 20 years of experience in Spanish and international tax law, they ensure accurate calculations, correct tax filings, and the recovery of any overpaid amounts, providing efficient and reliable support throughout the entire process.
Specialist legal assistance for capital gains tax in Spain to reduce your tax liability and ensure compliance
At Pellicer & Heredia, we provide expert legal support for capital gains tax matters in Spain. We help you calculate your tax correctly, identify deductions and exemptions, manage filings, and ensure full compliance with Spanish tax regulations while minimizing your financial burden.
Does Spain have capital gain tax?
Spain taxes the profit from selling assets such as property, shares, or investments. Both residents and non-residents must pay it when selling Spanish assets. The gain is calculated as the difference between the sale and purchase price, adjusted by deductible expenses. Proper declaration is essential to avoid fines or delays, so understanding rates, exemptions, and deductions is especially important for foreign owners.
When do I need to pay capital gains tax?
Selling a property in Spain
If you’re selling a house or other property and you’ve made a profit, you are required to declare and pay capital gains tax. This applies to both primary residences and investment properties, although Spanish residents may benefit from certain exemptions—for example, if the proceeds are reinvested in another main residence or if the seller is over 65.
Home sale by Non-residents
If you’re not a resident in Spain, you still need to pay capital gains tax when selling a property located in the country. In this case, the buyer is legally obliged to withhold 3% of the purchase price and pay it directly to the Spanish Tax Agency using Modelo 211.
As the seller, you must file Modelo 210 within 4 months of the sale to declare the actual capital gain and either pay any outstanding amount or claim a refund if the 3% withholding exceeds your actual tax liability.
Selling shares or company assets
Capital gains tax also applies when you sell shares, stocks, or interests in a company, whether it’s a private business or publicly traded equity. This includes foreign individuals holding Spanish assets. Both residents and non-residents must declare the gain, although non-residents may benefit from Double Taxation Treaties, which can reduce or eliminate this taxation depending on their country of residence
Our capital gains tax services
Full legal management, filings and declarations
Complete legal handling of capital gains calculation, tax forms, filings, deadlines, and communication with Spanish tax authorities for full compliance.
Tax planning before the sale
Strategic pre-sale tax planning to reduce liability, optimize timing, assess reinvestment options, and structure ownership for maximum efficiency.
Exemption and deduction analysis
Detailed review identifying applicable exemptions and deductible expenses, including reinvestment, legal costs, commissions, and property improvement investments to reduce taxation.
Capital gain tax recovery for non-residents
Recovery of excess 3% withholding for non-residents, filing form 210 and managing Spanish Tax Office refund procedures efficiently.
How much is capital gains tax in Spain?
The amount you’ll pay in Spain depends primarily on your residency status and the profit made from the sale. Spain applies different tax rates for residents and non-residents, so identifying which category you fall into is crucial for calculating your tax liability accurately.
To determine how much you’ll owe, you must first calculate the taxable gain, or tax base, which is the difference between the sale price and the original purchase price, adjusted by certain allowable expenses. Importantly, only the net profit—not the total sale amount —is subject to capital gains tax.
How is the tax base calculated?
Capital Gain = Sale Price – (Purchase Price + Deductible Costs)
You are allowed to reduce your taxable base by including specific expenses related to the acquisition and sale of the asset. Some of the most common deductible costs include: notary and registry fees, real estate agency commissions or certain administrative costs.
Applying these deductions correctly can significantly reduce your tax liability, especially in high-value property transactions. Our legal team at Pellicer & Heredia ensures that all eligible expenses are factored in to help you pay only what you truly owe.
For foreigners residing in Spain
If you are a tax resident in Spain, capital gains are taxed at progressive rates based on the size of the gain. The current CGT rates for residents are:
- 19% for gains up to €6,000
- 21% for gains from €6,001 to €50,000
- 23% for gains from €50,001 to €200,000
- 27% for gains from €200,001 to €300,000
- 30% for gains above €300,000
Residents may also benefit from certain exemptions or reductions, such as reinvesting the proceeds in a new main residence or being over 65 and selling their primary home. The gain must be declared in the annual income tax return (Modelo 100).
For Non-residents
If you’re a non-resident selling property or assets in Spain, a flat tax rate applies:
- 19% for residents of the EU, EEA, or countries with a tax treaty with Spain
- 24% for residents of non-EU/EEA countries without a tax treaty
Non-residents cannot usually claim the same exemptions available to residents. Additionally, the buyer must withhold 3% of the property sale price and pay it to the tax agency (Modelo 211) as a prepayment of CGT. You must then file the 210 form within 4 months of the sale to settle your tax bill or request a refund if the 3% withheld was more than the tax due.
Which tax form should you use?
Filing the correct tax form is essential to properly declare your capital gain and avoid penalties or delays. The form you need depends entirely on whether you are considered a resident or non-resident for tax purposes in Spain.
Each form has its own rules, deadlines, and submission procedures—so getting it right is crucial for a smooth and compliant transaction.
Income tax model 100 for residents
If you are a tax resident in Spain, you must declare your capital gains in the annual income tax return, known as Model 100. This return includes all income and gains earned during the year, and capital gains are reported as part of your overall income.
The filing period for the 100 form is typically between April and June of the following year. You’ll need to include documentation that supports the capital gain, such as the purchase and sale deeds, invoices for improvements or legal costs, and any other deductible expenses.
210 form for Non-residents
If you’re a non-resident, the form you must use is the Spanish 210 form, which is specifically designed for declaring non-resident income and capital gains in Spain. This applies when you sell a property, shares, or other assets located in Spain.
In the case of real estate sales, the buyer is legally required to withhold 3% of the purchase price and pay it directly to the Tax Agency using the form 211.
As the seller, you must then file model 210 within four months of the sale date to declare the actual gain and either pay the difference or request a refund if the 3% withheld exceeds your capital gains tax liability.
How to avoid the Spanish capital gains tax?
While in Spain isn’t always possible avoid this payment, there are several legal exemptions and strategies that can significantly reduce or eliminate what you owe—especially if you’re properly advised before the sale.
Whether you’re a resident or non resident, understanding the options available under Spanish tax law can help you optimize your sale and keep more of your gains.
Exemptions for primary residence sales
If you’re a Spanish tax resident selling your main home, you may be fully exempt under certain conditions:
- If you reinvest the proceeds in the purchase of another main residence within Spain or another EU/EEA country.
- If you are over 65 years old, have lived in the property for at least three years, and it is your habitual residence at the time of sale.
These exemptions apply only to residents, not non-residents, and must be declared correctly in your income tax return. At Pellicer & Heredia, we help clients prepare the necessary documentation to ensure they qualify and benefit from these exemptions.
Deductions you can apply
To reduce your taxable gain, you can deduct a wide range of expenses related to the purchase and sale of the asset. These include:
- Notary, registration, and legal fees during purchase or sale
- Real estate agent commissions
- Capital improvements (not regular maintenance)
- Transfer tax or VAT paid at acquisition
- Advertising costs or energy certificate fees related to the sale
Properly applying these deductions can significantly lower the amount of capital gains tax owed, especially in high-value transactions. Our legal team ensures that every eligible expense is accounted for, helping you minimize your tax base.
Double taxation treaties
Spain has signed double taxation agreements with many countries to avoid taxing the same income twice. If you’re a non-resident and your country has a treaty with Spain, you may be able to claim relief or reduce your capital gain tax liability depending on how the treaty allocates taxing rights.
Our international tax planning advisors review your case and apply the correct treaty terms to ensure you’re not taxed unfairly or unnecessarily. We also handle all communications with Spanish tax authorities and, if needed, coordinate with tax advisors in your country of residence.