You sell your Spanish property, the price is higher than what you paid, and somewhere in the celebration a practical question surfaces: how much of that profit is actually yours to keep? The answer to capital gains tax on property in Spain turns almost entirely on one thing — whether you are a Spanish tax resident or not. Here are the 2026 rates, the exemptions that can remove the tax altogether, and how the gain is worked out.
It’s the profit that’s taxed, not the sale price
This is the reassuring part. Capital gains tax applies only to your gain, which is broadly the sale price minus the acquisition value minus your allowable costs. And the acquisition value is more generous than you might expect: it includes not just what you originally paid, but the purchase taxes, notary, registry and agency fees from back then, plus the cost of genuine improvements. From the sale side you can also deduct the agency commission, plusvalía and legal fees. The one condition is that every deduction needs an invoice — without the paperwork, the tax office will not accept it.
If you are a resident: 19% to 28%
As a Spanish tax resident, your gain is added to the savings tax base and taxed on a rising scale. These are marginal rates, so each one applies only to the portion of the gain that falls within its band:
- 19% on the first €6,000
- 21% from €6,000 to €50,000
- 23% from €50,000 to €200,000
- 27% from €200,000 to €300,000
- 28% above €300,000
The scale is the same across Spain — your region does not change savings-income rates.
If you are a non-resident: a flat 19%
Residents of the EU or EEA pay a single rate on the gain, 19%, whether the profit is €10,000 or a million. There are no bands. You may have seen a 24% figure mentioned — that is the general non-resident rate for other income, such as rent, and the treatment of property gains for non-EU sellers can vary, so it is worth confirming your rate against your residency and any tax treaty. A non-resident sale also triggers the 3% withholding at completion, which we cover in selling property in Spain as a non-resident.
The two reliefs that can bring the bill to zero
For residents, two exemptions are generous enough to remove the tax entirely.
Reinvesting in your next main home
If you sell your habitual residence and put the proceeds into a new main home within two years, before or after the sale, the gain can be fully exempt. Reinvest only part of the money and the relief is scaled to match. The new home can be anywhere in the EU or EEA, but it must genuinely become your main residence — and you have to state your intention to reinvest on the tax return for the year you sell. Overlook that declaration and you lose the relief.
The over-65 exemption
A resident aged 65 or over who sells a habitual residence they have lived in for at least three years pays nothing, with no need to reinvest. If you happen to be approaching 65 and selling your main home, it is genuinely worth weighing up whether to wait, because the saving can run into tens of thousands. Separately, over-65s selling any asset can shelter up to €240,000 of gain by moving the proceeds into a qualifying life annuity within six months.
There is an important limit here: these are reliefs for residents. Non-residents generally cannot use the over-65 exemption — the tax authority has confirmed this in recent rulings — and while EU/EEA residents may be able to reach the reinvestment relief through EU law, that is a question for professional advice rather than assumption.
What if you sold at a loss?
No gain means no capital gains tax, but you still need to declare the sale. Residents can offset losses against gains in the same year and carry any surplus forward for four years. Non-residents who made a loss file Modelo 210 to recover the 3% that was withheld.
Don’t confuse this with plusvalía
National capital gains tax and plusvalía municipal are two separate taxes. One is a state tax on your overall profit; the other is a local tax on the increase in the land value, due at the town hall within 30 days of the sale. You can owe both — though the plusvalía you pay is itself deductible as a selling cost here. See our guide to plusvalía municipal in Valencia.
Double taxation
Under Spain’s tax treaties, Spain taxes the property gain first and your home country credits that tax against its own, so you should not pay twice over on the same profit. One point for British owners: since Brexit, UK residents who are not Spanish tax residents no longer count as EU/EEA taxpayers for the reinvestment relief.
Planning to sell in Valencia? Understanding the tax position before you accept an offer makes the whole process calmer. YES Valencia works with international buyers and can guide the sale — list your property with us to begin. It is also worth reading what selling actually costs once every fee and tax is added up.
This is general information, not tax advice. Rates and reliefs are current for 2026 but change, and individual cases vary — always confirm with a qualified Spanish tax adviser before selling.
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