Capital Gains Tax
When someone sells a property in Spain, this person is liable for a capital gain tax on the profit generated by the sale. To calculate the profit, the vendor is entitled to deduct costs related to the property, for buying, furnishing, refurbishing, and selling. The costs which can be deducted vary according to the regions.
The rate at which the profit is taxed depends if the vendor is resident in Spain or non-resident, and if he is a resident from the EU or not.
Residents from non EU countries: There is a flat rate of 24%, with a few exceptions.
Residents in Spain (for vendors from the EU)
If a person stays 183 days or more in Spain for a single year, this person will be considered as a resident for that specific year.
The capital gains tax is paid by the seller and is collected by the National Tax Office.
The amount that you pay is set at 19% for any profit up to 6.000 EUR. What goes up from 6.000 EUR to 50.000 EUR the capital gain tax is 21% and anything above this is set at 23%, for individuals.
The tax has to be paid within 3 to 6 months, according to the regions.
If the vendor is a non-resident (but still from the EU) he/she still has to pay this tax and the Capital Gains Tax is set to 19%.
If the vendor is from outside of the EU or EEA, the tax is 24%.. For residents of other than EU or EEA countries, but from countries with which there is an effective exchange of tax information the rate is set to 19%.
If you are not resident in Spain and you either sell or make a donation of a property, then by law 3% of the selling price will be retained at the purchaser expense and paid to the Spanish tax agency by the buyer on account of capital gains tax or any other tax liability of the seller.) If there has been no gain, or gains below the amount of 3% of the selling price, then the seller may be able to recover all or part of the 3% retention. h Any tax payable in excess of the 3% retention will have to be paid within four months of completion of the sale.
Good to know
You can be exempt from paying the CGT if you lived in Spain for 3 years and you reinvest the money from the sale of your main home into another property that you make your main home, where again you must live in for the next 3 years.
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