Taxes on Selling Property in Spain (2025): What You Need to Know

Capital Gains Tax (CGT)

What is it?

Capital Gains Tax is paid on the profit you make from selling your property.

Rates for 2025:

• Residents:
  • 19% for the first €6,000
  • 21% for €6,000–€50,000
  • 23% for €50,000–€200,000
  • 27% for gains above €200,000
• Non-Residents:
  • EU/EEA Residents: 19%
  • Non-EU Residents: 24%

Calculation:

CGT is calculated on the net gain, which is the difference between the sale price and the acquisition cost, minus deductible expenses such as:

• Notary and legal fees
• Real estate agent commissions
• Costs of improvements (with proper documentation)
• Taxes paid at the time of purchase

Note: Routine maintenance costs are not deductible.

3% Withholding Tax for Non-Residents

What is it?

When a non-resident sells property in Spain, the buyer is required to withhold 3% of the purchase price and pay it directly to the Spanish tax authorities as an advance on the seller’s CGT liability.

Key points:

• If the actual CGT is less than 3%, the seller can claim a refund.
• If the CGT exceeds 3%, the seller must pay the difference.
• The seller must file Form 210 within four months of the sale to declare the gain and settle any tax due.

Municipal Plusvalía Tax

What is it?

This local tax is based on the increase in the cadastral value of the land during the period of ownership.

Highlights:

• The rate varies by municipality and duration of ownership.
• Recent reforms allow sellers to choose the most favorable calculation method.
• Typically, the seller is responsible for this tax, but it can be negotiated in the sale agreement.

Additional Costs and Obligations

• Energy Performance Certificate (EPC):
  • Mandatory for all property sales, costing between €60 and €130, depending on property size.
• Mortgage Cancellation Fees:
  • If there’s an existing mortgage, cancellation fees may apply.
• Real Estate Agent Fees:
  • Typically range from 3% to 6% of the sale price.

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• Legal and Notary Fees:
  • Costs vary but are essential for drafting and notarizing the sale deed.

Tax Exemptions

• Over 65s Exemption:
  • Residents over 65 who sell their primary residence, which they’ve lived in for at least three years, are exempt from CGT.

• Reinvestment Relief:
  • Residents under 65 can defer CGT if they reinvest the proceeds into another primary residence within two years.

• Pension Annuities:
  • Residents over 65 can invest up to €240,000 of the gain into a pension annuity within six months to be exempt from CGT.

Summary Checklist

• Determine your residency status.
• Calculate potential CGT and consider applicable rates.
• Gather documentation for all deductible expenses.
• Obtain the Energy Performance Certificate.
• Ensure the buyer withholds 3% if you’re a non-resident.
• File necessary tax forms (Form 210 and 211) within deadlines.
• Consult with a tax professional to explore exemptions and ensure compliance.