Capital Gains Tax On Property In Spain (2026 Guide)

Selling a property in Spain can trigger capital gains tax, whether you live in Spain full time or you are a non‑resident with a holiday home. The rules in 2026 are different from those of a decade ago, so it is important to understand how your gain is calculated, what tax rates apply and which exemptions you may be able to use.

This guide explains the current capital gains tax (CGT) rules on Spanish property for both residents and non‑residents, including the 3% withholding, main home exemptions and practical filing steps.

What Is Capital Gains Tax In Spain?

Capital gains tax is the tax you pay on the profit when you sell a property for more than it cost you. In Spain, the gain is broadly the difference between your sale price and your original purchase price, adjusted for certain acquisition and selling expenses.

CGT can apply whether the property is your main home, a rental, a holiday home or a pure investment. However, there are important exemptions and special rules for your habitual residence and for over‑65s, which can reduce or eliminate the tax in some cases.

Capital Gains Tax Rates In 2026

Spain applies a progressive scale to capital gains on assets such as property. For residents, this scale forms part of the “savings income” section of their annual income tax. Non‑residents normally pay a flat rate on their gain, but the effective result is very similar.

Typical CGT brackets on gains from property follow a banded system:

• A lower rate on the first portion of the gain.
• One or more intermediate rates on the next slices of gain.
• A higher rate for large gains above a set threshold.

The exact percentages and thresholds can change with each budget, so you should always check the current year’s official rates or ask a tax adviser before selling.

Residents vs Non‑Residents: Key Differences

Spanish tax residents are taxed on their worldwide income and gains, including the sale of property in Spain. The gain on a Spanish home is declared in the annual Spanish income tax return, using the savings‑income scale. Residents can usually offset capital losses against gains and may access several exemptions.

Non‑residents are normally taxed only on Spanish‑source income and gains. When a non‑resident sells a property in Spain, the gain is taxed at a fixed rate and the buyer must apply the 3% withholding on the sale price. Non‑residents generally have fewer deductions and reliefs compared to residents, but some exemptions can still apply in specific situations.

The 3% Withholding When You Buy From A Non‑Resident

If the seller is a non‑resident for Spanish tax purposes, the buyer is legally required to withhold 3% of the purchase price and pay it directly to the Spanish tax agency. This 3% is an advanced payment on the non‑resident seller’s potential capital gains tax.

The buyer pays this amount using the relevant form at the tax office or via a collaborating bank, and the non‑resident seller later files their own CGT return to work out the final tax due. If the actual tax is less than the 3% withheld, the seller can claim a refund of the difference. If the tax is more, the seller must pay the balance.

How The Gain Is Calculated

The starting point is the difference between the declared sale price in the deed and the original declared purchase price. However, you can usually include certain costs and taxes in the calculation, which reduces the taxable gain.

Common items that can be added to your acquisition or disposal costs include:

• Notary and Land Registry fees for the purchase and sale.
• Property transfer tax (ITP) or VAT paid when you originally bought the property.
• Estate agency commissions paid by the seller.
• Documented improvement works that add value to the property (for example, structural reforms, new bathrooms or extensions), supported by invoices and, where needed, licences.

Routine maintenance and small repairs are not normally treated as capital improvements, so they usually cannot be added to reduce the gain. Because earlier inflation adjustment rules have been removed, long‑held properties can now show a larger taxable gain than under the previous regime.

Main Home Exemptions For Residents

If you are a Spanish tax resident and the property you are selling is your habitual residence, you may be able to claim powerful exemptions that reduce or eliminate CGT. The habitual residence test is strict and usually requires that you have lived in the property as your main home for a minimum period and that it is properly registered as such.

Reinvestment Exemption (Habitual Residence)

Residents who sell their main home and reinvest the proceeds in another main home can often avoid CGT on all or part of the gain. To use this exemption, you usually need to:

• Sell a property that qualifies as your habitual residence.
• Reinvest the proceeds in another qualifying habitual residence within a set period (often within two years before or after the sale).
• Declare your intention to apply the reinvestment exemption and comply with the documentary requirements in your tax return.

If you reinvest only part of the sale proceeds, the exemption is typically applied proportionally to the amount reinvested. If you fail to reinvest within the allowed time, the exemption can be lost and the gain becomes taxable.

Over‑65 Exemption On The Main Home

Residents aged 65 or over who sell their habitual residence may be fully exempt from capital gains tax on that sale, provided the property meets the habitual‑residence requirements and other conditions are met. This can be a very valuable relief for retirees downsizing or moving into rented accommodation.

There is also a separate regime under which some over‑65 residents can reinvest capital gains into certain qualifying pension products or annuities to obtain additional relief, subject to caps and strict conditions. Professional advice is essential before relying on these provisions.

Other Reliefs And Special Cases

There are several other situations where the CGT outcome can be different. For example, some historic reliefs may still apply to assets acquired in specific periods, or to properties that fall under particular protected schemes.

Inheritance can also affect the calculation of the gain, because the acquisition value for CGT purposes is often the value declared for inheritance tax, plus costs, not the value at which the deceased originally bought the home. This can work in your favour or against you depending on the numbers and the timing.

Deadlines, Forms And Payment

Non‑residents who sell property in Spain must file a specific capital gains tax return and either pay any extra tax due or claim a refund of the 3% withheld. The deadlines are strict and usually counted from the date of sale, so it is important to act quickly after completion.

Spanish tax residents do not normally file a separate stand‑alone CGT return for the sale of their main home or second home. Instead, the gain (or exempt gain) is reported in their annual Spanish income tax return for the year in which the sale took place, and any tax due is paid along with their general income tax bill.

Example: Non‑Resident Selling A Holiday Home

Imagine a non‑resident bought a holiday apartment in Spain for 200,000 euros, paying a further 20,000 euros in purchase taxes and 5,000 euros in notary, registry and legal fees. Several years later they sell it for 300,000 euros and pay 10,000 euros in estate agency fees.

In this simplified example, the acquisition cost is 225,000 euros (price plus purchase costs) and the disposal cost is 10,000 euros in selling expenses, so the net gain is around 65,000 euros before applying any specific rules or extra adjustments. The buyer withholds 3% of the 300,000‑euro price (9,000 euros) and pays it to the tax agency. The non‑resident seller then files their CGT return, calculates their actual tax based on the applicable rate for non‑residents and either pays the balance or claims a refund if the 9,000 euros withheld was more than the final tax due.

Why Professional Advice Matters

Spanish capital gains tax rules on property are detailed and often updated. The interaction between resident vs non‑resident status, main‑home exemptions, reinvestment rules, inheritance values and the 3% withholding means that small mistakes can easily cost thousands of euros or cause delays in obtaining refunds.

Before selling, it is usually worth asking a Spanish tax adviser or lawyer to run the numbers for you, check whether you qualify for any exemptions and confirm the exact forms and deadlines. If you are relocating to Spain or staying on as a resident, it is also a good time to review your private health cover so you have fast access to medical care during and after the move.