Capital gains tax rates in Spain, exemptions, and how to calculate and reduce your tax liability
Whether you are selling property, transferring shares, or disposing of business interests in Spain, understanding how capital gains tax works is essential to protect your bottom line. Spain’s CGT system varies significantly depending on your residency status, the type of asset involved, and whether you qualify for specific exemptions. This comprehensive guide covers everything international businesses and investors need to know: current tax rates for residents and non-residents, step-by-step calculation methods, the 3% withholding rule, exemptions for over-65s and primary residence reinvestment, the Beckham Law, double taxation treaties, filing procedures, and the most common mistakes that cost taxpayers thousands of euros each year.
Key Facts: Capital Gains Tax in Spain at a Glance
Resident rates: 19% to 30% progressive on the gain
Non-resident rate: 19% flat on property transfers
Over-65 exemption: 100% on primary residence
Reinvestment exemption: Buy new home within 2 years
3% withholding: Buyer retains at closing for non-residents
Filing: Apr–Jun for residents · 4 months for non-residents
UK post-Brexit: Non-EU status · lost EU exemptions
Double taxation: Treaties with UK, US & 90+ countries
What Is Capital Gains Tax in Spain?
Capital gains tax in Spain (Impuesto sobre las Ganancias Patrimoniales) is a tax levied on the profit realised from selling or transferring assets. Unlike some countries where capital gains tax operates as a separate levy, in Spain it is integrated within the personal income tax system (IRPF — Impuesto sobre la Renta de las Personas Físicas) for residents, and within the non-resident income tax (IRNR — Impuesto sobre la Renta de No Residentes) for non-residents.
The tax applies exclusively to the profit, not the total sale price. That profit — the capital gain — is the difference between the price you paid to acquire the asset (plus allowable costs) and the price at which you sell or transfer it.
The main asset categories subject to capital gains tax in Spain include:
- Real estate — residential, commercial, and land
- Shares and equities — publicly traded and private company participations
- Bonds, mutual funds, and ETFs
- Business interests and participations
- Other assets — precious metals, works of art, government bonds, and similar investments
The basic formula for determining a taxable capital gain is straightforward:
Capital Gains Formula
Taxable Gain = Sale Price − (Purchase Price + Allowable Acquisition Costs + Documented Improvements)
Both residents and non-residents can be liable for capital gains tax in Spain, but the applicable rates, filing obligations, and available exemptions differ substantially. Residents are taxed on worldwide gains, while non-residents are taxed only on gains arising from assets located in Spain.
Selling property or assets in Spain and unsure about your capital gains tax obligations? Lawants’ international team of lawyers and tax advisors provides tailored guidance for residents and non-residents alike — from gain calculation to filing and refund claims. Request a consultation.
Who Has to Pay Capital Gains Tax in Spain? Determining Your Tax Residency
Your residency status is the single most important factor in determining how capital gains tax applies to you. It affects the tax rate, the scope of taxable assets, the available exemptions, and the filing procedure. Spain’s criteria for determining tax residency are strict and clearly defined by the Spanish Tax Agency (AEAT — Agencia Estatal de Administración Tributaria).
Tax Residency Criteria in Spain
Under Spanish law, an individual is considered a tax resident in Spain if any of the following conditions are met:
- Physical presence exceeding 183 days per calendar year. Occasional absences are counted as time spent in Spain unless the individual can prove tax residency in another country.
- Main centre of economic activities or interests — directly or indirectly — located in Spain.
- Spouse and/or dependent minor children are habitual residents in Spain (unless the individual can demonstrate otherwise).
If an individual claims residency in a jurisdiction classified as a tax haven, the Spanish authorities may require proof that they have effectively spent at least 183 days in that territory. Temporary stays in Spain resulting from cultural or humanitarian collaboration agreements with Spanish public administrations are excluded from the 183-day count.
Residents vs. Non-Residents: Key Differences at a Glance
The distinction between tax resident and non-resident status produces fundamentally different tax outcomes. The following table summarises the core differences:
The practical impact is significant: a Spanish tax resident who sells a property abroad must declare and pay capital gains tax in Spain on that transaction. A non-resident is only taxed on the sale of assets physically located within Spain.
The Beckham Law and Its Impact on Capital Gains
Spain’s Special Tax Regime for Inbound Workers (Régimen Especial de Trabajadores Desplazados), commonly known as the Beckham Law, is a preferential tax regime designed to attract international talent. Individuals who relocate to Spain for employment or as company directors — and who have not been Spanish tax residents in the preceding five tax years — may elect to be taxed under non-resident rules while physically residing in Spain.
Under the Beckham Law, Spanish-source employment income up to €600,000 is taxed at a flat 24% rate instead of the standard progressive scale (which can reach up to 47%). The regime lasts for the year of arrival plus five subsequent tax years. However, it is important to note that capital gains from Spanish assets under this regime are taxed at the savings income rates (the same progressive scale that applies to residents for capital gains), while gains from non-Spanish assets may be excluded from Spanish taxation entirely.
The Spanish Start-up Law (Law 28/2022) expanded the regime to eligible remote workers, entrepreneurs and certain highly qualified professionals. Given its complexity and interaction with capital gains taxation, professional assessment is recommended before applying.
Capital Gains Tax Rates in Spain
Spain applies progressive rates to tax residents and, generally, a 19% rate to non-residents on Spanish-source capital gains. Tax is calculated on the net gain, not the total sale price. However, when a non-resident sells Spanish property, the buyer must withhold 3% of the purchase price as an advance tax payment.
Resident Capital Gains Tax Rates
For Spanish tax residents, gains arising from asset disposals are included in savings income (renta del ahorro) and taxed according to the following progressive bands:
These brackets are cumulative — a gain of €100,000 would not be taxed at a single rate. Instead, the first €6,000 is taxed at 19%, the next €44,000 at 21%, and the remaining €50,000 at 23%. Autonomous community rates do not affect savings income, so this scale applies uniformly across Spain.
Non-Resident Capital Gains Tax Rates
Non-residents in Spain face flat tax rates rather than progressive brackets. However, an important distinction must be made between different types of income:
- Capital gains from asset transfers (including property sales): 19% flat rate — this applies to all non-residents regardless of their country of origin, as specified in the IRNR regulations for capital gains arising from asset transfers.
- Other Spanish-source income (rental income, certain services): 24% general rate for non-EU/non-EEA residents, or 19% for EU/EEA residents with effective exchange of tax information.
This is a critical nuance that many sources get wrong. The commonly cited 24% rate is the general IRNR rate applicable to various Spain-source income types — but it is not the rate used for capital gains on property or asset transfers. For property sale gains specifically, the rate is 19% for all non-residents.
Post-Brexit implications for UK residents: Since the UK’s departure from the EU, British nationals are classified as non-EU residents for Spanish tax purposes. While the 19% rate still applies to property sale capital gains, UK residents now face the 24% rate (instead of 19%) on other Spain-source income such as rental income, and have lost access to certain EU-specific exemptions.
Spain Dividend Tax: A Quick Overview
Although not strictly a capital gain, dividend income is frequently relevant for investors with Spanish holdings. Dividends received by Spanish residents are taxed under the same savings income scale (19%–30%) outlined above. For non-residents, Spanish-source dividends are subject to a 19% withholding tax, though applicable Double Taxation Treaties often reduce this rate. If you hold shares in Spanish companies and receive dividends, consult a tax professional to determine your specific treaty rate.
How to Calculate Capital Gains Tax in Spain
A precise calculation is essential to avoid both overpayment and underpayment. The process follows a logical sequence that applies to property, shares, and other asset categories — though real estate transactions typically involve the greatest number of variables.
Step-by-Step Capital Gains Calculation
How to Calculate Your Capital Gain
The actual selling price of the asset. For real estate, this must not fall below the prevailing market value. Subtract allowable disposal expenses (agent commissions, legal fees, notary costs, Plusvalía tax).
The original purchase price plus all costs associated with the acquisition: notary fees, land registry fees, legal fees, and taxes paid at purchase (ITP or IVA).
Expenses for enhancements that increased the property’s value — extensions, renovations, energy efficiency upgrades. Must be supported by invoices. Routine maintenance and repairs are not deductible against capital gains.
Net Sale Value (sale price minus disposal costs) − Total Acquisition Value (purchase price + acquisition costs + improvements) = Taxable Capital Gain.
Spain Capital Gains Tax Calculator: Worked Examples
The following scenario illustrates how CGT is computed for both a non-resident and a resident seller on the same transaction.
Scenario: A property purchased for €200,000 is sold for €350,000. The owner incurred €18,000 in acquisition costs, spent €25,000 on documented renovations, and will pay €15,000 in sale-related expenses plus €2,000 in Plusvalía tax.
Non-resident tax (19% flat rate): €90,000 × 19% = €17,100
Resident tax (progressive rates):
- First €6,000 at 19% = €1,140
- Next €44,000 (€6,001–€50,000) at 21% = €9,240
- Remaining €40,000 (€50,001–€90,000) at 23% = €9,200
- Total resident tax = €19,580
In this example, the non-resident pays less in CGT than the resident on the same gain — a result of the flat rate versus the progressive structure. However, residents have access to exemptions and deductions that can substantially reduce or eliminate the tax.
Capital gains tax calculations for property transactions in Spain can involve numerous variables — acquisition costs, improvement documentation, disposal expenses, and applicable exemptions. At Lawants, our multidisciplinary team of lawyers and tax advisors helps international investors and businesses compute their precise tax liability and identify every legitimate deduction available. Talk to our experts.
The Transitional Regime for Assets Acquired Before 1995
Spain offers a reduction mechanism for assets that were acquired before 31 December 1994 and that are not used in a business activity. Under this transitional regime, reduction coefficients can be applied to the portion of the gain generated between the acquisition date and 19 January 2006:
- Real estate: 11.11% reduction per year of ownership between acquisition and 31 December 1996
- Company shares: 25% per year
- Other assets: 14.28% per year
The gain generated from 20 January 2006 onwards is taxed at the standard rates with no reduction. Additionally, since 1 January 2015, the regime is limited to transfers where the cumulative total of all eligible transfer values does not exceed €400,000 per taxpayer. This transitional regime is available to both residents and non-residents, making it a valuable provision for long-term property owners who acquired assets decades ago.
Every deductible cost you miss increases your tax bill unnecessarily. Our tax specialists analyse your full transaction — acquisition costs, improvements, disposal expenses — to ensure your capital gains calculation is accurate and optimised. Talk to our experts.
Capital Gains Tax on Property in Spain: What You Need to Know
Property sales are the most common trigger for capital gains tax in Spain, particularly for international investors and businesses with real estate holdings. The rules differ significantly depending on whether the seller is a resident or non-resident, and additional municipal-level taxes may also apply.
Capital Gains Tax on Property for Residents
Spanish tax residents must declare gains from property sales anywhere in the world under the worldwide taxation principle. The gain is reported in the annual income tax return (Form 100) under the savings income section and taxed at the progressive rates of 19%–30%.
Losses from property sales must also be declared, as they can be offset against gains to reduce the overall tax liability (see the section on offsetting losses below).
Residents benefit from the full range of available exemptions, including the primary residence reinvestment exemption and the over-65 exemption. One additional provision worth noting is the partial exemption for properties acquired between 12 May 2012 and 31 December 2012: the capital gain on such properties is 50% exempt, provided the transaction is not between related parties as defined by the Commercial Code.
Capital Gains Tax on Property in Spain for Non-Residents
Non-resident property sellers face a distinct set of rules:
- Tax rate: 19% flat rate on the gain from property transfers, applicable to all non-residents regardless of nationality.
- Scope: Only gains from Spanish-located property are taxable in Spain for non-residents.
- 3% withholding: The buyer withholds 3% of the sale price and pays it directly to the Spanish Tax Agency as an advance on the seller’s CGT (see dedicated section below).
- Filing: Non-residents must submit Form 210 within four months of the sale date.
- Exemptions: EU/EEA tax residents may access the reinvestment exemption under certain conditions. Non-EU residents generally do not qualify for the primary residence or reinvestment exemptions.
- Post-Brexit: UK residents are now classified as non-EU nationals and have lost access to EU-specific exemptions, including the reinvestment exemption for properties located outside Spain.
Non-residents must also consider the deductible costs available to them. According to IRNR regulations, expenses directly related to the disposal — such as legal fees, land registry fees, real estate agency fees, and transfer-related taxes — can be deducted from the gain. EU citizens can additionally deduct costs incurred for maintaining the property from taxable income. Non-EU residents, however, cannot deduct maintenance costs.
The 3% Withholding Tax on Property Sales by Non-Residents
One of the most distinctive features of Spanish capital gains tax for non-residents is the mandatory 3% withholding at the point of sale. This is established under Article 25.2 of the IRNR Law and works as follows:
- The buyer withholds 3% of the agreed sale price (not 3% of the gain) and pays it directly to the Tax Agency using Form 211 within one month of the transfer.
- The buyer must deliver a copy of Form 211 to the non-resident seller so the seller can deduct this amount from their final CGT liability.
- The non-resident seller then files Form 210 to declare the actual capital gain. If the 3% withheld exceeds the actual tax due, the seller may apply for a refund of the excess.
- Deadline: Form 210 must be filed within four months of the sale.
- Refund processing time: Variable — typically between 6 and 12 months depending on the Tax Agency’s workload.
Worked Example — 3% Withholding
Sale price: €350,000 → 3% withheld = €10,500
Actual CGT liability (19% on €90,000 gain): €17,100
Result: The seller owes an additional €6,600 to be paid when filing Form 210.
Conversely, if the gain had been smaller — say €30,000 — the tax would be €5,700, meaning the seller would be entitled to a refund of €4,800 from the €10,500 withheld. Failing to file Form 210 means forfeiting the right to reclaim any overpaid amount, and can also lead to penalties and late-payment interest.
What Is the Plusvalía Tax on Spanish Property?
In addition to state-level CGT, sellers of Spanish property are subject to the Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana — commonly known as the Plusvalía tax. This is a municipal tax levied by the local town hall (ayuntamiento) on the increase in the value of urban land (not the property itself) during the period of ownership.
Following the landmark ruling of the Spanish Constitutional Court in October 2021, the Plusvalía tax can no longer be charged when there has been no real increase in land value. The seller must demonstrate whether a gain has occurred by comparing the acquisition value and the transfer value.
There are two methods for calculating the Plusvalía, and the seller may choose whichever produces the lower tax bill:
- Objective method: Based on the difference in the cadastral value (valor catastral) of the land over the period of ownership, with coefficients set by the town hall.
- Real method: Based on the actual difference between the purchase and sale prices of the property.
The Plusvalía tax applies not only to property sales but also to gifts and inheritances. Rates and coefficients vary by municipality, so the amount due can differ significantly depending on the property’s location.
Exemptions and How to Reduce Capital Gains Tax in Spain
Spain provides several legitimate mechanisms to reduce or eliminate your CGT liability. However, each exemption comes with specific conditions that must be met precisely. Strategic planning — ideally well before the sale — is the key to maximising these benefits.
Primary Residence Reinvestment Exemption
Under Article 38 of Law 35/2006, capital gains from the sale of your primary residence (vivienda habitual) can be fully exempt if the entire proceeds are reinvested into purchasing or rehabilitating a new primary residence. The key conditions are:
- The property sold must have been the taxpayer’s habitual residence (generally, occupied for at least 3 years).
- The new property must be acquired within 2 years (before or after the sale).
- If 100% of the sale proceeds are reinvested, the exemption is total.
- If only a partial amount is reinvested, the exemption is proportional: (Reinvested Amount ÷ Sale Price) × Gain = Exempt Portion.
- The new home must become the taxpayer’s habitual residence.
- The replacement property can be located in any EU/EEA country.
Post-Brexit note: UK tax residents no longer qualify as EU/EEA taxpayers. This means British nationals who are not Spanish tax residents can no longer benefit from this exemption. If you are a UK citizen who is a Spanish tax resident, the exemption remains available to you.
Capital Gains Tax Exemption for Over 65 in Spain
Spain offers two distinct and particularly generous exemptions for individuals aged 65 and older:
1. Primary residence sale — full exemption:
- Tax residents aged 65 or older at the time of sale are fully exempt from CGT on the gain from selling their primary residence.
- The taxpayer must have lived in the property for at least 3 consecutive years.
- No reinvestment is required — the proceeds can be used freely.
- If the property is held under a community property regime (régimen de gananciales), both spouses must be 65 or older.
- This exemption does not apply to non-residents, even if they are over 65.
2. Life annuity reinvestment — any asset:
- Individuals over 65 who sell any asset (not limited to their primary residence) can exempt up to €240,000 of the capital gain.
- The proceeds must be reinvested into a qualifying life annuity (renta vitalicia) within 6 months of the sale.
- If only a partial amount is reinvested, only the proportional part of the gain is exempt.
- Life annuity income is itself subject to favourable taxation: only 8% of annuity income is taxable if the policyholder is 70 or older at the time of establishment.
Strategic Tip
If you are approaching your 65th birthday, delaying the sale until after turning 65 could save tens of thousands of euros. A gain of €300,000 on a primary residence sale would result in €0 tax if you are 65 at the time of sale — compared to over €60,000 in CGT if you sell at 64.
Offsetting Capital Losses Against Gains
Loss offsetting is a legitimate and effective way to reduce your overall CGT liability:
- Residents: Capital losses from the sale of assets can be offset against capital gains within the same tax year. Unused net losses can be carried forward for 4 years. Additionally, capital losses can be used to offset up to 25% of gains in a different savings income category (such as dividends or interest).
- Non-residents: Generally, non-residents cannot offset losses against gains in the same manner as residents under the IRNR framework.
For example, if a resident sells one property at a €50,000 gain and another investment at a €20,000 loss in the same year, the net taxable gain is reduced to €30,000 — potentially saving several thousand euros in tax.
Deductible Costs That Reduce Your Taxable Gain
Accurately accounting for all deductible costs is one of the most effective ways to minimise your capital gains tax bill. Costs that can be deducted include:
- Original purchase price and all acquisition-related costs (notary, registry, legal fees, taxes)
- Documented improvements and renovations (backed by invoices)
- Real estate agent commissions on both purchase and sale
- Legal and notary fees for the sale
- Energy efficiency improvements (with documentation)
- Plusvalía tax paid on the sale
Critical rule: Keep all invoices, receipts, and contracts for a minimum of 4 years from the filing date — this is the standard statute of limitations for tax inspections. Without documentation, deductions will be disallowed, and your taxable gain will be higher than necessary.

Double Taxation Treaties: Avoiding Tax on the Same Gain Twice
Double taxation arises when a taxpayer is liable for capital gains tax in Spain and simultaneously in their country of residence. Spain maintains an extensive network of over 90 double taxation agreements (DTAs) to prevent this, ensuring that the same gain is not taxed in full by two different jurisdictions.
UK-Spain Double Tax Treaty and Capital Gains
The UK-Spain Double Taxation Convention remains in force after Brexit and provides that gains from the sale of immovable property (real estate) may be taxed in the country where the property is located — in this case, Spain. The UK taxpayer can then claim a credit for the Spanish CGT paid against their UK tax liability on the same gain, preventing full double taxation.
However, while the treaty itself is unaffected by Brexit, UK residents have lost access to certain EU-specific benefits in Spain: the reinvestment exemption for primary residence sales, and the more favourable 19% rate on non-transfer income (rental income, for example, is now taxed at 24% for UK residents as non-EU nationals).
Effective coordination between Spanish and UK tax advisors is essential to ensure treaty benefits are claimed correctly and that the overall tax burden is optimised.
US-Spain Double Tax Treaty and Capital Gains
Under the US-Spain tax treaty, US citizens and residents who pay CGT in Spain on Spanish property sales can claim a Foreign Tax Credit (Form 1116) on their US federal tax return, offsetting the Spanish tax paid against their US liability on the same income. The gain is reported on Schedule D of the US return.
The net result: the taxpayer effectively pays the higher of the US or Spanish rate, not both combined. Given that US citizens are subject to worldwide taxation regardless of residence, professional coordination between US and Spanish filings is critical — particularly for those who are also Spanish tax residents.
Other Key Double Taxation Agreements
Spain has active DTAs with more than 90 countries, covering most major economies like Canada and the UAE. The specific provisions — including applicable rates, credit mechanisms, and exemptions — vary by treaty. Important: treaty benefits are not automatic. They must be actively claimed in the correct tax filings, with supporting documentation. If your country of residence has a DTA with Spain, consult a qualified cross-border tax specialist to ensure you benefit from its provisions.
Navigating double taxation agreements across jurisdictions requires precision and coordination. Lawants’ international team of lawyers and tax consultants advises businesses and investors from the UK, US, EU, and beyond on structuring their Spanish transactions to minimise cross-border tax exposure. Get in touch with our team.
Filing and Paying Capital Gains Tax in Spain
The filing process and deadlines differ substantially for residents and non-residents. Missing a deadline can result in surcharges, interest, and — in the case of non-residents — the loss of refund rights.
Filing as a Resident (Form 100)
Spanish tax residents report capital gains in their annual income tax return (declaración de la renta), following this process:
- Form: Modelo 100 (annual IRPF return)
- Section: Capital gains are declared under savings income (rentas del ahorro)
- Filing period: April to June of the year following the sale
- Payment options: Full payment at filing, or split payment (60% in June, 40% in November)
- Losses: Must also be declared in the same return, as they can offset gains
Filing as a Non-Resident (Form 210)
Non-residents have a separate and shorter filing process:
- Form: Modelo 210 (non-resident income tax return)
- Deadline: Within 4 months of the sale date (not tied to calendar year)
- Required documentation: Sale contract, purchase documentation, proof of the 3% withholding (Form 211), and invoices for all deductible improvements and costs
- Refund request: If the 3% withheld exceeds the actual tax liability, include the refund claim in Form 210
- Filing method: Electronically with a digital certificate, or through a gestoría or law firm
- Refund processing: Typically 6 to 12 months, though timelines can vary
Form 210 must be filed even if the 3% withholding fully covers the tax liability. Failure to file results in the loss of refund rights and potential penalties for non-compliance.
Disputes and Appeals: Challenging a CGT Assessment
If you disagree with a capital gains tax assessment issued by the Spanish Tax Agency, you have the right to challenge it through a structured appeals process:
- Step 1 — Administrative appeal (recurso de reposición): Filed with the same tax office that issued the assessment, within 1 month of notification.
- Step 2 — Economic-administrative claim (reclamación económico-administrativa): If the first appeal is denied, a claim can be filed with the Regional Economic-Administrative Tribunal (TEAR) within 1 month.
- Step 3 — Supporting documentation: Property records, purchase and sale contracts, invoices for improvements, residency proof, and any relevant legal documentation.
- Resolution time: Appeals typically take 6 to 12 months, though complex cases may take longer.
The most frequent grounds for CGT disputes include property valuation disagreements (cadastral value versus market value), disallowed improvement costs due to missing documentation, residency status challenges involving the 183-day rule, exemption eligibility denials (particularly regarding the definition of vivienda habitual), delays in processing 3% withholding refunds, and disputes over the timing of reinvestment for the primary residence exemption.
For complex cases or high-value transactions, engaging a specialised Spanish tax lawyer (abogado fiscalista) is strongly recommended.
Common Mistakes and How to Avoid Them
Capital gains tax errors can be costly. These are the most frequent mistakes we see — and how to prevent them:
- Incorrect gain calculation: Failing to include all deductible expenses leads to overpayment. Maintain thorough records of every cost from the day of purchase onwards — acquisition taxes, notary fees, agency commissions, and improvement invoices.
- Missing filing deadlines: Late filing triggers automatic surcharges and interest. Non-residents have just 4 months from the sale date; residents must file between April and June of the following year. Mark these deadlines immediately upon completing a transaction.
- Not claiming the 3% withholding refund: Non-residents who fail to file Form 210 lose the right to reclaim any overpaid tax. Given that the withholding is based on 3% of the sale price (not the gain), the overpayment can be substantial.
- Overlooking double taxation relief: Failing to utilise applicable tax treaty provisions results in unnecessary double taxation. Always coordinate your Spanish filing with your home-country return.
- Assuming UK residents still qualify for EU exemptions: Post-Brexit, British nationals who are not Spanish tax residents cannot access the reinvestment exemption or other EU-specific benefits. This catches many UK property owners by surprise.
- Poor documentation of improvements: Renovations and improvements without proper invoices cannot be deducted, increasing the taxable gain. Keep all receipts, contracts, and proof of payment from the moment you begin any work.
- Ignoring Plusvalía tax obligations: The municipal capital gains tax is separate from state-level CGT and must be settled independently with the local town hall. Overlooking it can lead to additional penalties.
- Poor sale timing: Selling just before turning 65, or without considering your annual income levels, can result in significantly higher tax liability. Proper planning can save tens of thousands of euros.
How Lawants Can Help You Navigate Capital Gains Tax in Spain
Lawants is an international firm of lawyers, accountants, and labour consultants specialising in advising multinational businesses, entrepreneurs, and investors with interests in Spain. Our multidisciplinary team provides comprehensive support across every aspect of capital gains tax planning, compliance, and dispute resolution.
Whether you are selling Spanish real estate, restructuring a business, transferring shares, or planning the tax-efficient disposal of investment assets, Lawants offers:
- End-to-end CGT advisory: From pre-sale planning and gain calculation to filing, refund claims, and post-sale compliance.
- Cross-border tax coordination: We work alongside your home-country advisors to ensure double taxation treaties are applied correctly and your global tax position is optimised.
- Exemption and deduction maximisation: We identify every legitimate reduction available — reinvestment exemptions, over-65 provisions, deductible costs, and loss offsetting strategies.
- Non-resident property sales: Management of the 3% withholding process, Form 210 filing, and refund applications.
- Dispute resolution: Representation in administrative appeals and economic-administrative claims before Spanish tax tribunals.
- Multilingual expertise: Our team operates in English, Spanish, Italian, and other languages, ensuring clear communication with clients from the UK, US, EU, and beyond.
Don’t leave money on the table or risk non-compliance penalties. Contact Lawants today for a personalised assessment of your capital gains tax obligations in Spain.
Frequently Asked Questions
While you cannot always eliminate CGT entirely, you can reduce or avoid it by reinvesting the full proceeds of a primary residence sale into a new main home within two years, selling your primary residence after turning 65, reinvesting gains from any asset sale into a qualifying life annuity (up to €240,000) if you are over 65, ensuring all deductible costs and improvements are properly documented, and timing your sale strategically when other income is lower.
Tax residents aged 65 and older are fully exempt from CGT on the sale of their primary residence, provided they have lived in the property for at least three years. For the sale of other assets, they can exempt up to €240,000 of gains by reinvesting the proceeds into a qualifying life annuity within six months. Non-residents over 65 do not qualify for these exemptions.
Non-residents pay a 19% flat rate on capital gains from asset transfers, including property sales. This applies to all non-residents regardless of nationality. The general IRNR rate of 24% applies to other Spanish-source income types for non-EU/non-EEA residents.
Yes, if you sell a property in Spain at a profit, you are liable for capital gains tax — whether you are a resident or non-resident. However, residents may qualify for exemptions (primary residence reinvestment, over-65 exemption). If you sell at a loss, no CGT is due, but you should still declare the loss in your tax return.
When a non-resident sells property in Spain, the buyer must withhold 3% of the total sale price and pay it to the Tax Agency via Form 211 within one month. This serves as an advance payment towards the seller’s CGT. The seller then files Form 210 within four months to settle the difference — either paying additional tax or claiming a refund if the withholding exceeds the actual liability.
Residents can offset capital losses against capital gains in the same tax year, with unused losses carried forward for up to four years. Losses can also offset up to 25% of income from a different savings category. Non-residents generally cannot offset losses under the IRNR framework.
The UK-Spain DTA remains in force post-Brexit. It allows gains on Spanish property to be taxed in Spain, with the UK taxpayer claiming a credit against their UK tax on the same gain. However, UK residents have lost access to EU-specific exemptions in Spain, including the reinvestment exemption for non-residents.
Yes. US citizens are subject to worldwide taxation regardless of where they live. However, the US-Spain tax treaty allows a Foreign Tax Credit (Form 1116) for Spanish CGT paid, preventing full double taxation. The net effect is that the taxpayer pays the higher of the US or Spanish rate, not both combined. Professional coordination of US and Spanish filings is essential.
The Beckham Law is a special tax regime for individuals who relocate to Spain for work and who were not Spanish tax residents in the preceding five years. It allows qualifying individuals to be taxed at a flat rate on Spanish employment income. Capital gains from Spanish assets under this regime are taxed at the standard savings income rates, while gains from non-Spanish assets may be excluded from Spanish taxation. The regime’s interaction with CGT is complex and requires professional guidance.
Yes, the Plusvalía is a separate municipal tax on the increase in urban land value, levied by the local town hall. It applies to property sales, gifts, and inheritances, and is independent from the state-level capital gains tax. Sellers can choose between two calculation methods (objective or real) and should opt for whichever produces the lower tax bill. Since the 2021 Constitutional Court ruling, no Plusvalía is due when there has been no actual increase in land value.






