Spanish property Capital Gains Tax (CGT) applies to the gain — the difference between adjusted acquisition cost and adjusted sale price. For Spanish tax residents it's part of general savings income, taxed on a banded scale (currently 19% up to €6,000, 21% €6,001–€50,000, 23% €50,001–€200,000, 27% €200,001–€300,000, 28% above €300,000). For non-residents it's a flat 19% for EU/EEA or 24% for non-EU (including UK post-Brexit). A 3% buyer retention is withheld from the sale price for non-residents on account of CGT; the seller reconciles via modelo 210 within 4 months of sale. Key reliefs for residents: the main-home rollover (reinvest in a new main home), the over-65 main-home exemption (no CGT if selling your habitual residence and you're over 65), and the partial exemption for pre-1994 acquisitions (transitional rules). Plusvalía municipal is separate. We handle CGT filings for residents and non-residents — book a consultation.
What CGT Is
Capital gains tax on Spanish property is a tax on the gain made when you sell the property. The gain is broadly:
Sale price (net of allowable costs) – Acquisition cost (grossed up by allowable costs) = Gain
CGT is paid to the Spanish state, on modelo 100 (for residents, as part of the annual IRPF return) or modelo 210 (for non-residents, within 4 months of sale). It sits alongside:
- Plusvalía municipal — a separate local (town hall) tax on the increase in urban-land value.
- Non-resident property tax (IRNR) — the annual imputed / rental tax for non-resident owners, which continues to the date of sale.
The CGT calculation is often more nuanced than sellers expect, particularly for long-held properties where improvements have been made or where the acquisition was via inheritance or gift. Documentation matters — we discuss this below.
The Calculation
Sale price (adjusted downward for allowable costs)
- Actual sale price in the escritura.
- Less agent's fees, legal fees, plusvalía municipal, energy performance certificate (EPC), cédula de habitabilidad renewal if paid by seller.
Acquisition cost (adjusted upward for allowable costs)
- Original purchase price on the acquisition escritura.
- Plus ITP or IVA + AJD paid at acquisition.
- Plus notary and land registry costs at acquisition.
- Plus legal fees at acquisition.
- Plus significant capital improvements (structural works, extensions, kitchens fitted, pools installed) — with paid, dated invoices from registered contractors. Routine maintenance doesn't count.
The gain
Adjusted sale price less adjusted acquisition cost = the taxable gain. This is then taxed at the applicable rate (see below).
Keep every invoice from day one
Structural works, kitchens, pools, extensions — every invoice raises your acquisition cost basis and cuts your eventual CGT bill. Sellers who kept documentation routinely save thousands versus sellers who threw away receipts.
CGT for Residents
Spanish tax residents (spending more than 183 days in Spain, or with Spain as centre of economic or vital interests) pay CGT on property as part of general savings income (rendimientos del ahorro). The current banded rates:
| Taxable gain | Rate |
|---|---|
| Up to €6,000 | 19% |
| €6,001 – €50,000 | 21% |
| €50,001 – €200,000 | 23% |
| €200,001 – €300,000 | 27% |
| Above €300,000 | 28% |
The rates apply progressively — a €100,000 gain pays 19% on the first €6,000, 21% on the next €44,000, 23% on the last €50,000, for a blended average around 21.4%.
Residents get access to specific reliefs (main-home rollover, over-65 exemption, transitional pre-1994 relief) that non-residents don't. Filed as part of the annual IRPF return (modelo 100) for the year of sale.
CGT for Non-Residents
Non-residents pay a flat rate on the property gain:
| Residence | Non-resident CGT rate |
|---|---|
| EU / EEA resident | 19% |
| Non-EU resident (UK post-Brexit, US, Canada, Australia, etc.) | 24% |
Filed on modelo 210 within 4 months of the escritura date. The buyer will have withheld 3% of the sale price as a retention (see below) — this is credited against the CGT liability on the modelo 210. If the retention exceeds the CGT liability (which happens on low-gain sales), the excess is refundable; if the CGT liability exceeds the retention, the balance is due.
Non-residents generally do not get the main-home rollover or over-65 exemption (with narrow exceptions — see below), which is one reason why timing a move from resident to non-resident status (or vice versa) around a property sale materially affects the tax result.
The 3% Retention
When a non-resident sells Spanish property, Spanish tax law requires the buyer to withhold 3% of the sale price and pay it to the Spanish tax authority (via modelo 211) within one month. This is a tax retention on account of the seller's CGT liability, not an additional tax.
The seller then files their own modelo 210 within 4 months, calculates the actual CGT, and either:
- Reclaims the excess if the 3% retention exceeded the true CGT (e.g. low gain or a loss); or
- Pays the balance if the retention was insufficient to cover the CGT.
The retention protects the Spanish tax authority against non-residents leaving Spain with sale proceeds and never paying CGT. It's fully creditable in the seller's modelo 210. See our 3% retention guide for the mechanics from the buyer side.
UK vs EU Post-Brexit
Brexit had a significant CGT impact for UK sellers of Spanish property. Before Brexit, UK residents benefited from the EU/EEA rate of 19% on non-resident CGT. After Brexit, UK residents are treated as non-EU:
- Rate up from 19% to 24% on property gains.
- Some previously available EU-only reliefs (particularly the main-home rollover in cross-border scenarios) tightened.
- UK sellers of Spanish property have seen their effective CGT burden rise proportionally.
For UK sellers considering their timing, the difference between the EU (19%) and non-EU (24%) rate is meaningful — on a €100,000 gain that's €5,000 more, on a €300,000 gain it's €15,000 more. Some UK sellers structure the sale (or their own residence) to optimise around this — that needs modelling, not general advice.
Reliefs & Exemptions
Several important reliefs can reduce or eliminate CGT liability:
Main-home rollover (residents)
Sell your habitual residence and reinvest the proceeds in a new habitual residence within 2 years — the gain is CGT-exempt to the extent reinvested.
Over-65 main-home exemption (residents)
Sell your habitual residence and be 65+ — the gain is CGT-exempt entirely, regardless of reinvestment.
Over-65 lifetime annuity (residents)
Alternative for residents over 65 — reinvest sale proceeds up to a cap in a qualifying lifetime annuity within 6 months, CGT-exempt on that portion.
Pre-1994 acquisitions (residents)
Transitional reduction coefficients still apply to properties acquired before 31 December 1994, up to specified thresholds — reducing the taxable gain.
Death of owner
Transfer of a property on death is inheritance tax, not CGT — the heirs' new acquisition cost is the value at inheritance.
EU cross-border main home (limited)
Some EU residents may qualify for a main-home relief on a sold Spanish habitual residence — narrow application, needs advice. UK post-Brexit access reduced.
Getting the right relief right is often the biggest single lever on CGT — worth structuring the sale carefully rather than filing generically.
Over-65 Main-Home Rule
One of the most valuable reliefs. If you are:
- Aged 65 or over at the date of sale, and
- Selling your habitual residence (evidenced by empadronamiento, tax filings, and factual residence over the required period), and
- Spanish tax resident,
then the gain on that sale is fully exempt from CGT — regardless of reinvestment. This is a genuine planning tool: retirees who become Spanish tax resident well ahead of a planned sale, and are 65+ when they sell, can eliminate CGT on their Spanish home. The requirements around habitual residence and the tax-residence timeline are strict, so plan early.
Non-residents don't normally qualify for the over-65 rule. Where a UK-resident owner is planning to move to Spain and eventually sell, becoming Spanish tax resident well before the sale — and holding the property as habitual residence — can unlock the exemption. That's a decision that needs modelling against other tax and immigration considerations, not something to do on autopilot. We can advise.
Main-Home Rollover
For Spanish residents under 65, the main-home rollover lets you sell your habitual residence and reinvest the proceeds in another habitual residence — the gain is CGT-exempt to the extent reinvested:
- You must have lived in the property as habitual residence for the qualifying period.
- The reinvestment must be within 2 years of the sale (before or after — the rollover works either way with the right structuring).
- The reinvested amount qualifies — partial rollover gives partial relief pro-rata.
- The new home must become your habitual residence.
The rollover is one of the workhorse reliefs for Spanish residents moving between homes. Get the timeline and documentation right and it eliminates most or all of the CGT bill on the move. Get it wrong and you lose relief you were entitled to.
Plusvalía Municipal
Plusvalía municipal is a separate town-hall tax on the increase in urban-land value between purchase and sale. It's paid by the seller (as a matter of law, though contract terms sometimes shift it) within 30 days of the sale. See our plusvalía guide.
Key points:
- Plusvalía is calculated on the cadastral land value, not the property market value.
- Rules changed in 2021 — sellers can now choose the more favourable of two calculation methods (formula-based or actual land-value gain).
- Where the actual sale involves no gain (or a loss) on the land component, plusvalía should not apply — but you may need to claim.
- Plusvalía is deductible from the CGT sale price — reducing the CGT gain.
Worked Examples
Example 1 — UK non-resident, holiday home sold for €300,000, acquired €200,000
- Adjusted sale price: €300,000 less €12,000 agent fees, €3,000 plusvalía = €285,000
- Adjusted acquisition cost: €200,000 + €14,000 ITP + €1,500 notary/registry + €2,500 legal + €10,000 documented improvements = €228,000
- Gain: €57,000
- CGT at 24% (UK non-EU rate): €13,680
- 3% retention withheld: €9,000
- Additional CGT to pay via modelo 210: €4,680
Example 2 — Spanish-resident couple, sold habitual residence for €500,000, acquired €300,000, aged 70
- Over-65 main-home exemption applies.
- Gain: notionally around €150,000 after adjustments.
- CGT payable: €0
Example 3 — Spanish-resident couple aged 55, sold habitual residence for €400,000, acquired €250,000, reinvesting €400,000 in new home
- Main-home rollover applies to full reinvestment.
- Full gain rollover-relieved: CGT payable: €0
Example 4 — German non-resident, investment flat sold for €200,000, acquired €150,000
- Gain (after adjustments): ~€35,000
- CGT at 19% (EU rate): €6,650
- 3% retention withheld: €6,000
- Additional CGT to pay: €650
These are illustrative worked examples
Actual liability depends on your specific numbers, residence, age, reliefs, plusvalía and documentation. Get a proper calculation before completion.
Our Service
We handle Spanish property CGT for both sides of the sale:
- Pre-sale CGT projection — modelling what you'll pay so there are no surprises at completion.
- Assembly of acquisition-cost documentation — invoices, improvements, historical costs (often the difference between good and bad outcomes).
- Relief planning — main-home rollover, over-65 exemption, pre-1994 transitional relief.
- 3% retention coordination — buyer-side modelo 211 and seller-side modelo 210 reconciliation.
- Modelo 210 filing within 4 months for non-residents; IRPF (modelo 100) inclusion for residents.
- Plusvalía municipal — filing and, where relevant, the "no gain" claim.
- Sale conveyancing — full seller-side legal service.
We quote clearly based on the transaction. Book a consultation before a sale to plan the CGT position properly — it's the moment where preparation pays.
Related Guides
Frequently Asked Questions
Depends on residence. Spanish tax residents pay CGT on a banded scale (19% up to €6,000, 21% €6,001–€50,000, 23% €50,001–€200,000, 27% €200,001–€300,000, 28% above), applied progressively across the gain. Non-residents pay a flat rate — 19% for EU/EEA residents, 24% for non-EU (including UK post-Brexit). Reliefs (main-home rollover, over-65 exemption) can reduce or eliminate CGT for qualifying residents. Non-residents generally don't get the main-home reliefs, though there are narrow EU cross-border exceptions.
Gain = adjusted sale price minus adjusted acquisition cost. Sale price is reduced by allowable selling costs (agent's fees, legal fees, plusvalía municipal, EPC). Acquisition cost is grossed up by original ITP/IVA/AJD, notary, registry, legal fees at purchase, and any capital improvements made during ownership (structural works, kitchens, pools, extensions, evidenced by dated invoices from registered contractors). Routine maintenance doesn't count. The higher your documented acquisition cost, the lower your gain. Keep every invoice.
When a non-resident sells Spanish property, the buyer is required by Spanish tax law to withhold 3% of the sale price and pay it to the Spanish tax authority via modelo 211 within one month. This is a retention on account of the seller's CGT liability — not an extra tax. The seller then files modelo 210 within 4 months of sale, calculates the actual CGT, and either reclaims the excess (if the 3% exceeded the true CGT) or pays the balance (if the retention was insufficient). It protects the Spanish tax authority against non-residents leaving Spain with sale proceeds and never paying CGT.
If you're a Spanish tax resident, 65+ at the date of sale, and selling your habitual residence (evidenced by empadronamiento, tax filings, factual residence over the required period), the gain is fully exempt from CGT regardless of reinvestment. This is one of the most valuable reliefs in Spanish CGT. Non-residents don't normally qualify. UK owners planning to move to Spain and eventually sell can potentially unlock this by becoming Spanish tax resident well before the sale and holding the property as habitual residence — but that decision has broader tax and immigration implications and needs modelling.
Yes, if you're a Spanish tax resident selling your habitual residence and reinvesting the proceeds in a new habitual residence within 2 years — the gain is CGT-exempt to the extent reinvested. Full reinvestment eliminates CGT; partial reinvestment gives pro-rata relief. Requirements around what counts as habitual residence and the timeline are strict, so plan the sequence. Non-residents don't generally get the main-home rollover, with narrow EU cross-border exceptions (tightened post-Brexit for UK).
For Spanish tax residents, CGT is included in the annual IRPF return (modelo 100) for the year of sale, filed the following spring/summer. For non-residents, CGT is filed on modelo 210 within 4 months of the escritura date, and the 3% retention withheld by the buyer is credited against it. Plusvalía municipal is a separate local tax due within 30 days of sale. Getting the deadlines right prevents interest and surcharges — the 4-month non-resident deadline is the one most often missed.
Capital improvements — structural works, extensions, new kitchens, pools installed, significant reforms — count toward acquisition cost and reduce the eventual gain. Requirements: paid invoices from registered contractors (autónomo with a Spanish tax number, or a company), correctly dated, with correct VAT (IVA) if applicable. Routine maintenance (painting, replacement fittings without structural change) doesn't count. Keep every invoice from day one of ownership — you don't know at the time which will matter, and sellers with good documentation routinely save thousands versus those without.
We quote clearly for CGT support based on your specific situation. Standard modelo 210 CGT filing for a non-resident sale is a defined-scope service. Complex cases (multi-year improvements documentation, over-65 planning, cross-border relief claims, disputes with the tax authority) attract higher fees. For seller's conveyancing including CGT, we quote as a package. Book a consultation ahead of a planned sale and we'll give you both a CGT projection and a service quote.