Capital Gains Tax in Spain: A complete guide for 2026
Capital Gains Tax in Spain applies when you sell property, shares, or other assets for a profit. Residents pay progressive rates of 19-28% on gains. Non-residents from the EU/EEA pay 19%, while non-EU citizens pay 24%. Exemptions exist for primary residence sales and reinvestment.
This guide covers Capital gain tax in Spain rates for residents and non-residents, exemptions for over-65 homeowners, the 3% withholding rule, filing requirements, and strategies to minimize your tax bill.
What is the Capital Gains Tax in Spain?
Capital Gains Tax in Spain is a tax on the profit made when selling certain types of assets. It applies to real estate, stocks, bonds, mutual funds, and even business interests. The taxable gain is calculated by subtracting the original purchase price and allowable expenses (such as improvement costs and transaction fees) from the final selling price.
Here’s what CGT usually covers in practice:
- Real estate (property sales)
- Stocks and bonds
- Mutual funds and ETFs
- Business interests and shares
A simple way to think about the CGT definition: taxable gain = selling price minus (purchase price + allowable costs).
That allowable costs bucket is where many returns go wrong, especially for Capital Gains Tax Spain property sales, when invoices get lost. Resident vs non-resident rules still apply, and they change both the rate and the paperwork.
Also read – Tax guide for Americans in Spain
Capital Gains Tax rates in Spain
Spain applies progressive CGT rates for residents, while non-residents are taxed at flat rates. Here’s how the current structure works:
For Spanish residents:
| Gain | Rate |
|---|---|
| Up to €6,000 | 19% |
| €6,001 to €50,000 | 21% |
| €50,001 to €200,000 | 23% |
| Over €300,000 | 28% |
For non-residents:
- EU/EEA citizens – taxed at a flat 19%
- Non-EU/EEA citizens – taxed at a flat 24%
NOTE! These rates apply only to the capital gain, not the full sale price.
These progressive rates only apply to Spanish tax residents. If you live in Spain for over 183 days per year or have your main economic interests here, you are considered a tax resident and use the progressive scale.
NOTE! Capital Gains Tax in Spain for Spanish tax residents is taxed under the IRPF savings income scale.
As of January 1, 2025, the top savings band increased, so the resident scale is
- 19% (up to €6,000),
- 21% (€6,001–€50,000),
- 23% (€50,001–€200,000),
- 27% (€200,001–€300,000), and
- 30% (over €300,000).
These rates apply to the capital gain (profit), not the full sale price.
Resident rates
For residents, CGT rates in Spain follow the savings-income scale, so larger gains move into higher brackets. That’s why a single sale can push part of a gain into the top band in 2026, even when wages stay the same.
Non-resident rates
For non-residents, Spain generally applies a flat rate to capital gains from transfers. The Spanish Tax Agency’s IRNR rate list shows 19% for capital gains revealed on transfers of assets. Separately, the IRNR general rate of 24% can apply to other income types, but the capital gain on a transfer is commonly 19%.
| Taxpayer type | Tax rate | Structure | Notes |
|---|---|---|---|
| Spanish residents | 19–28% | Progressive | Based on gain amount: €0–6k (19%), €6k–50k (21%), €50k–200k (23%), €300k+ (28%) |
| EU/EEA non-residents | 19% | Flat rate | Applied to total gain regardless of amount |
| Non-EU non-residents | 24% | Flat rate | Applied to total gain regardless of amount |
| US citizens (non-resident) | 24% | Flat rate | Tax treaty allows FTC on the US return |
NOTE! For non-residents selling Spanish real estate, the non-resident capital gain is taxed at 19% (this is the rate the Spanish Tax Agency applies to property sale gains by non-residents).
The commonly cited 24% is the general IRNR rate for many other Spain-source income types, but it is not the rate used for the capital gain on a Spanish property transfer.
Residency status is key: living in Spain 183+ days/year makes you a resident subject to progressive rates. Less than 183 days = non-resident flat rate.
Quick example (easy math): €300,000 sale price – €200,000 purchase price = €100,000 gain. A 19% flat rate would produce €19,000 of Spanish Capital Gains Tax.
Capital Gains Tax exemptions and reductions
Spain offers a few generous exemptions and deductions to reduce or eliminate CGT under certain conditions:
Primary residence exemption: If you're a Spanish tax resident over age 65 and sell your main home – where you've lived for at least three years – you can be fully exempt from CGT.
Important:
- Must be a Spanish tax resident,
- Age 65 or older at time of sale,
- Property must be the main home (lived there 3+ consecutive years, note the “vivienda habitual” definition (which includes exceptions),
- 100% CGT exemption - no tax on any gain amount,
- Can be combined with other tax benefits,
Example: €500,000 gain on primary residence sale = €0 tax if over 65.
Reinvestment exemption
If you sell your primary residence and reinvest the full amount into another main home within two years, the capital gain may be exempt.
Important:
- Sell primary residence and buy another primary residence,
- Must reinvest full sale proceeds (100% of the amount received),
- The new home must be purchased within 2 years (before or after the sale),
- New property must become your main residence,
- Exemption applies to the entire gain if reinvesting the full amount,
- Partial exemption if reinvesting partial proceeds: (Reinvested Amount ÷ Sale Price) × Gain = Exempt portion.
Life annuity exemption (for over 65s)
You can avoid CGT on up to €240,000 of gains if you invest the proceeds into a qualifying life annuity within six months.
Important:
- Up to €240,000 of capital gains can be exempted,
- Must invest proceeds in a qualifying life annuity (renta vitalicia),
- Investment must occur within 6 months of sale. An annuity must meet specific tax requirements,
- Can combine with the over-65 primary residence exemption for maximum benefit.
Deductible costs and improvements
Costs such as renovation work, notary fees, and real estate commissions can be deducted from your gain to reduce tax liability.
Important:
- Original purchase price and costs (notary, registry, taxes),
- Home improvements and renovations (must have invoices),
- Real estate agent commissions on both purchase and sale,
- Legal fees and notary costs for the sale,
- Energy efficiency improvements,
- Keep all documentation for 4+ years for tax inspection.
NOTE! Strategic timing matters: If close to age 65, consider delaying sale. If planning to buy a new home, ensure the timeline allows for the reinvestment exemption in Spain.
Consult with a Spanish tax advisor (asesor fiscal) to maximize exemptions.
Capital Gains Tax for non-residents
Non-resident Capital Gains Tax in Spain works differently, mainly because the tax is collected up front for property deals and reconciled later. Spanish Capital Gains Tax non-resident rules also rely heavily on proof of contracts, invoices, and the withholding receipt.
Non-residents selling property or other assets in Spain should be aware of the following:
Tax rate: Non-residents from the EU or EEA are taxed at 19%. Others face a 24% rate.
3% withholding tax: The 3% withholding tax in Spain applies to Spanish real estate sales when the seller is a non-resident: the buyer must withhold 3% of the agreed sale price and pay it to the Tax Agency using Modelo 211 within one month of the transfer.
The non-resident seller then files Modelo 210 to report the actual gain and either pay the difference or claim a refund, and the filing window is three months after the end of that one-month withholding period (effectively, up to about four months after closing).
- Example: €300,000 sale price × 3% = €9,000 withheld at closing. Final CGT calculation later determines whether additional tax is owed or a refund is due.
- Filing obligation: If the withheld 3% exceeds your final tax liability, you can claim a refund. If your liability exceeds the 3%, you must pay the difference.
- Double taxation agreements: US citizens may benefit from the US-Spain tax treaty, which helps avoid double taxation and allows credit for taxes paid in Spain when filing a US return.
NOTE! The US-Spain tax treaty prevents double taxation. US citizens report Spanish property sale on US return (Schedule D) and claim foreign tax credit (Form 1116) for Spanish CGT paid. Net result: pay the higher of the US or Spanish rate, not both.
Capital Gains Tax disputes and appeals
If you disagree with a Spanish CGT assessment, you can file an administrative appeal (recurso de reposición) within one month, or an economic-administrative claim (reclamación económico-administrativa) within one month. Disputes often arise over property valuation, deductible costs, or residency status determination.
Common CGT disputes
- Property valuation disagreements (cadastral value vs market value),
- Disallowed improvement costs (missing documentation),
- Residency status challenges (183-day rule interpretation),
- Exemption eligibility denials (primary residence definition),
- 3% withholding refund delays,
- Timing of sale vs purchase for reinvestment exemption.
How to challenge a CGT assessment
Step 1: File recurso de reposición with the same tax office within 1 month of notification.
Step 2: If denied, file reclamación económico-administrativa with the Regional Economic-Administrative Tribunal (TEAR) within 1 month.
Step 3: Provide supporting documentation: property records, invoices for improvements, residency proof, and legal contracts.
Step 4: Consider hiring a Spanish tax lawyer (abogado fiscalista) for complex cases.
Step 5: Appeals typically take 6-12 months for resolution.
(For US expats, a Spanish property tax dispute can also ripple into the foreign tax credit timeline if the Spanish amount changes.
How to avoid Capital Gains Tax in Spain
While it’s not always possible to avoid CGT entirely, there are effective ways to reduce your liability:
- Be a long-term resident over 65: Sell your main home after turning 65 and meet the residency condition for a full exemption.
- Reinvest in another residence: Use the proceeds from your sale to buy a new primary home within the required timeframe.
- Track deductible costs: Maintain records of all home improvements and allowable expenses related to the sale.
- Plan sales strategically: Timing a sale when your other income is lower may reduce your overall tax rate as a resident.
NOTE! Timing your sale strategically can reduce CGT:
- Sell after turning 65 if primary residence,
- Coordinate sale and purchase timing for the reinvestment exemption.
- Consider spreading asset sales across multiple years if possible,
- Track all improvement costs throughout ownership.
For significant gains (€100,000+), professional tax planning with a Spanish asesor fiscal typically pays for itself through tax savings.
Filing and paying Capital Gains Tax in Spain
For Residents (declaración de la renta – Form 100):
- File annual income tax return (declaración de la renta): Form 100
- Filing period: April to June following year of sale (this is the normal campaign window used each year)
- Gain reported in the “savings income” (rentas del ahorro) section
- Tax paid based on progressive CGT rates (including the 2025 update used for 2026 filings)
- Payment options: full payment, or split payment (60% in June, 40% in November)
- Late filing penalties: surcharges and interest can apply depending on the situation
For Nonresidents (Form 210):
- Must file separate Form 210 (non-resident tax return)
- Deadline: 4 months from the sale date (not calendar year)
- Required even if 3% withholding covers full liability
- Include: sale contract, purchase documentation, proof of 3% withholding (Form 211)
- Processing time for refunds: 6-12 months,
- Can file electronically with a digital certificate or through gestoría.
This section is where filing Capital Gains Tax in Spain details make or break a refund timeline, especially after a property closing in 2026.
NOTE! Refund and appeal processing times vary based on the case and the Tax Agency’s workload, so it’s safest to plan for variability rather than a fixed timeline.
Conclusion
Capital Gains Tax in Spain can have a significant impact on your profits from property or investment sales. However, with careful planning, timely reinvestment, and knowledge of exemptions, you can reduce or even eliminate your liability.
Key Points:
Residents: 19-28% progressive rates.
Non-residents: 19% (EU) or 24% (non-EU) flat rates.
Over-65 exemption: 100% for primary residence.
Reinvestment exemption: Buy a new home within 2 years.
3% withholding: Deducted at closing for non-residents.
Filing: April-June for residents, 4 months for non-residents.
Capital Gains Tax in Spain requires careful planning to maximize exemptions and minimize liability.
Taxes for Expats specializes in US expat taxes with Spain property sales, foreign tax credits, and dual-country filing. Our CPAs have handled 5,000+ Spain filings.
FAQ
If you are over 65 and a Spanish tax resident, you can avoid CGT entirely when selling your main residence, provided you have owned and lived in the property for at least three years. This is a 100% exemption with no gain limit.
Residents file their annual income tax return (Form 100) between April and June of the year following the sale. Non-residents must file Form 210 within four months of the sale date. Include sale documentation and proof of taxes paid.
Yes. The 3% withholding is deducted from the sale price at closing. If your actual CGT liability is less than the 3% withheld, file Form 210 to request a refund. Processing typically takes 6–12 months. Refunds are common for small gains or qualifying exemptions.
Yes. If you reinvest the full sale proceeds into a new primary residence within 2 years, you can defer 100% of the CGT. Partial reinvestment creates a proportional deferral. The new property must become your main home.
Residents: 19–28% progressive rates based on gain amount. EU/EEA non-residents: flat 19%. Non-EU non-residents: flat 24%. Your residency status (183+ days in Spain) determines which rate applies. The rate applies only to the gain, not the sale price.
Yes. Renovation and improvement costs can be deducted if you have proper invoices and receipts. Examples include kitchen remodels, new bathrooms, structural improvements, and energy upgrades. Regular maintenance (painting, minor repairs) typically does not qualify. Keep documentation for at least four years.
Common disputes include property valuation disagreements, disallowed improvement costs, residency status challenges, and exemption denials. If you disagree with an assessment, you generally have one month to challenge it, either by filing a recurso de reposición or a reclamación económico-administrativa, depending on your situation and preferred route.
The US–Spain tax treaty helps prevent double taxation. Report the sale on your US return (Schedule D) and claim a foreign tax credit (Form 1116) for Spanish CGT paid. You generally pay the higher of the US or Spanish effective rate, not both.
