Capital gains tax on selling a flat in Spain: how the gain is taxed

When you sell a flat for more than you paid for it, that capital gain (ganancia patrimonial) is taxed under the IRPF (Spanish personal income tax). It's one of the most important and least understood taxes in Spanish property taxation.

How the capital gain is calculated

Gain = sale price - purchase price. Both prices are adjusted: the sale price is reduced by the selling costs (estate agent's commission; the plusvalía municipal, the local tax on the increase in the value of the land; notary). The purchase price is increased by the acquisition costs (ITP, the property transfer tax, or IVA, Spanish VAT; notary; Land Registry; refurbishments with invoices). The net result is the savings tax base (base imponible del ahorro).

Applicable tax rates (2026)

• Up to €6,000 of gain: 19%
• From €6,000 to €50,000: 21%
• From €50,000 to €200,000: 23%
• From €200,000 to €300,000: 27%
• Over €300,000: 30%

The most important exemptions

Reinvestment in a main home: If you sell your main home and reinvest the whole amount in another one within the following 2 years, the gain is exempt. Over-65s: The gain on the sale of a main home is fully exempt. A life annuity for over-65s: Reinvesting in an insured life annuity (renta vitalicia asegurada) is exempt up to €240,000.

See also: The plusvalía municipal when you sell. Use RadarPro to estimate the tax cost before you close any deal.