Capital Gains Tax When Selling Property in Spain: 2026 Rates, Bands and Worked Examples

Capital Gains Tax When Selling Property in Spain in 2026

If you are selling a home, apartment or villa in Spain, the single biggest tax line on your settlement statement is almost always capital gains tax (CGT) — known locally as the Impuesto sobre la Renta de las Personas Físicas (IRPF) savings-income component for residents, or the Impuesto sobre la Renta de No Residentes (IRNR) for non-residents.

This guide walks you through how capital gains tax on selling property in Spain is calculated in 2026, the current rate bands, the 3% retention non-residents must deal with, the separate municipal plusvalía, and three worked examples so you can sanity-check the number your gestor or abogado gives you.

⚠️ Tax law changes every year through the Ley de Presupuestos Generales del Estado. Always confirm the current bands and any regional surcharges with the Agencia Tributaria (AEAT) or a licensed Spanish tax advisor (asesor fiscal) before signing anything.

Who pays Spanish CGT on a property sale?

Anyone who sells real estate located in Spain — resident or not — owes Spanish tax on the gain. Where you live only changes how you pay:

• Tax residents in Spain declare the gain in their annual IRPF return (Modelo 100), typically filed between April and June of the year after the sale.
• Non-residents (the majority of foreign owners) file Modelo 210 within four months of the sale and must also deal with the 3% retention the buyer is legally required to withhold.

Companies (including foreign SLs, LLCs, or Spanish SLs) are taxed under corporate income tax rules instead, generally at the standard corporate rate. This guide focuses on individuals.

The 2026 savings-income tax bands

For both residents and non-residents from the EU/EEA, the gain is treated as savings income (base imponible del ahorro) and taxed on a progressive scale. As of 2026 the structure has been broadly:

• 19% on the first slice of gain (roughly up to €6,000)
• 21% on the next band (roughly €6,000–€50,000)
• 23% on the band roughly €50,000–€200,000
• 27% on the band roughly €200,000–€300,000
• 28% (or higher) on gains above €300,000

These thresholds and the top rate have been adjusted several times in recent years. Confirm the exact 2026 bands on the AEAT website before relying on them — the structure shown above is the pattern in force, but the cut-off points and top rate can move.

Non-residents from outside the EU/EEA are generally taxed at a single flat rate (historically 24%) rather than the savings scale, with fewer deductions available. This is one of the most important distinctions for US, Canadian, UK and other non-EU sellers.

How the gain is calculated

The taxable gain is not simply sale price minus purchase price. The formula is:

Gain = Transfer Value − Acquisition Value

Where:

• Transfer Value = sale price minus costs the seller paid (agent commission, plusvalía municipal, legal fees tied to the sale, energy certificate, cancellation of mortgage).
• Acquisition Value = original purchase price plus the costs you paid when you bought (ITP or VAT, notary, registry, gestoría, legal fees) plus documented capital improvements minus accumulated depreciation if the property was rented out.

Inflation indexation (coeficientes de actualización) for individuals was abolished years ago, so you generally cannot uplift the purchase price for inflation. Keep every invoice — improvements without a proper factura with your NIE on it will likely be rejected by the AEAT.

The 3% retention for non-residents

When a non-resident sells, the buyer must withhold 3% of the sale price and pay it directly to the AEAT using Modelo 211 within one month of the deed. The seller then receives a copy as proof.

You then have four months from the sale date to file Modelo 210 declaring the actual gain:

• If your real CGT bill is higher than the 3% withheld, you pay the difference.
• If it is lower (or you sold at a loss), you can claim a refund of the excess.

Refunds typically take 6–12 months and the AEAT may request documentation. This is one of the most common areas where foreign sellers leave money on the table — if you bought in 2005 and sold in 2026 with little gain, the 3% may be vastly more than the actual tax owed.

The municipal plusvalía — a separate tax

Don't confuse state CGT with the Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana (IIVTNU), universally called plusvalía municipal. This is a local council tax on the increase in the cadastral land value during your ownership.

Key points for 2026:

• After the 2021 Constitutional Court ruling and subsequent reform, you can now choose between two calculation methods (objective coefficient or real gain), whichever is lower.
• If you sold at a loss, you can be exempt — but you must prove it and file the declaration.
• Rates and coefficients vary by municipality. Check with the Ayuntamiento where the property sits.
• It is normally paid by the seller (unless contractually shifted), within 30 days of the deed.

Worked examples

Example 1: Non-resident with a modest gain

• Bought a Costa Blanca apartment in 2012 for €150,000; purchase costs €18,000 → acquisition value €168,000.
• Sold in 2026 for €230,000; selling costs (agent, plusvalía, legal) €15,000 → transfer value €215,000.
• Gain = €47,000.

If taxed on the savings scale (EU/EEA resident seller): roughly 19% on the first ~€6,000 + 21% on the remainder ≈ €9,750.

Buyer withheld 3% of €230,000 = €6,900 via Modelo 211. The seller files Modelo 210 and pays the ~€2,850 difference.

Example 2: Non-EU seller, same numbers

The same €47,000 gain at a flat 24% (non-EU/EEA) ≈ €11,280. After the €6,900 retention, the seller owes about €4,380.

Example 3: Sale at a loss

• Bought in 2007 for €280,000 (acquisition value €310,000 with costs).
• Sold in 2026 for €260,000 net of costs.
• Loss = €50,000 → no CGT due.

But the buyer still withholds 3% (€7,800). The seller must file Modelo 210 to reclaim the full €7,800. Skipping this filing is simply gifting the money to the Spanish treasury.

Main residence exemptions (residents only)

Tax residents in Spain may eliminate CGT entirely if:

• They are over 65 and selling their vivienda habitual (habitual residence held for at least 3 years), or
• They reinvest the entire net sale proceeds into another habitual residence in the EU/EEA within 2 years.

These reliefs are not available to non-residents, which is a frequent source of disappointment for retirees who keep tax residency abroad.

Documents your buyer's lawyer will ask for

• Original escritura of purchase and all invoices for acquisition costs.
• Invoices for capital improvements (with NIE and property address).
• Latest IBI receipt and certificado de estar al corriente with the community of owners.
• Energy performance certificate.
• Cancellation of mortgage (if any) and nota simple from the Registro.
• Your NIE and, for non-residents, a Spanish bank account for any refund.

Common pitfalls

• Underdeclaring the sale price to reduce CGT — the AEAT cross-checks against the valor de referencia and you may trigger a buyer ITP reassessment plus penalties.
• Forgetting Modelo 210 when the 3% retention exceeds the actual tax due — no refund is automatic.
• Missing the 4-month deadline — late filing brings surcharges of 1% per month plus interest.
• Assuming your home country won't tax it again — most treaties (US, UK, Canada) give Spain primary taxing rights but you must still report and claim a foreign tax credit at home.

Short FAQ

Is capital gains tax in Spain really 19%? The 19% figure is only the first band of the savings scale. Larger gains move into 21%, 23%, 27% and higher. Quoting "19% CGT in Spain" as a flat rate is misleading.

Can I deduct the real estate agent's commission? Yes — agent fees, plusvalía municipal, mortgage cancellation, and legal costs related to the sale reduce the transfer value. Keep the invoices.

What if I inherited the property? Your acquisition value is the value declared for inheritance tax purposes, plus the inheritance tax actually paid and registration costs.

Final word: Spanish property tax is technical and the numbers in this article are illustrative. Before you sign the escritura de compraventa, sit down with an independent Spanish *asesor fiscal* or *abogado* — not the buyer's — and have them model your specific 2026 figures against the current AEAT bands.