If you have decided to leave Spain and sell your property, it is important to consider the best time to do so.
Be aware that even after relocating to another country and becoming a resident there, you will still be liable for Capital Gains Tax (CGT) in Spain on the sale of your home. Additionally, you may also be required to pay CGT in your new country of residence.
Definition of a Home for Tax Purposes in Spain
For tax purposes in Spain, your home is defined as the property in which you have lived as a tax resident for the past three consecutive years.
As expected, the tax authorities may require proof that the property is your main residence—your word alone will not be sufficient. Therefore, it is advisable to ensure the following:
- You have registered your home in the tax office with the form M030
- It is declared as your main residence in your annual income tax return.
- It is the address you registered in the town hall (“empadronamiento”)
- It is also the address linked to your bank, TIE, utility bills and other official records.
Capital Gains Tax on the Sale of a Home in Spain Without Reinvestment
If you sell your home in Spain without reinvesting the proceeds into a new property, the CGT you owe will depend on your age and residency status at the time of the sale.
For Individuals Under 65 Years of Age:
- Resident of Spain at the Time of Sale: If you sell your home while still considered a resident of Spain (i.e., you leave Spain after 30 June and the sale occurs in the same year), the applicable CGT rate will range from 19% to 30%, depending on the amount of profit earned.
- Non-Resident at the Time of Sale: If you leave Spain before 30 June and sell your home in the same year or a future year while classified as a non-resident, a flat CGT rate of 19% will apply.
For Individuals 65 Years of Age or Older:
- Resident of Spain at the Time of Sale: If you are 65 or older and sell your primary residence while still a Spanish resident, you are exempt from CGT on the sale.
- Non-Resident at the Time of Sale: If you sell the property as a non-resident, the standard non-resident CGT rate of 19% will apply.
Applicable tax rates for capital gains as a resident from 2025
| FROM | TO | TAX RATE |
| 0,00 | 6.000 | 19,00% |
| 6.000 | 50.000 | 21.00% |
| 50.000 | 200.000 | 23.00% |
| 200.000 | 300.000 | 27.00% |
| 300.000 | 30.00% |
Reinvesting the Proceeds from the Sale of Your Home
If you are considering reinvesting the proceeds from the sale of your home into a new property, the CGT implications will vary depending on your circumstances:
- If you sell the home while still resident of Spain, the capital gains tax will be exempt if you reinvest the proceeds in a new home outside Spain within two years of the sale. Note that you must reside in this new home for a minimum of three consecutive years from the date of purchase in order to comply with the reinvestment rule.
- If you sell the home as a non-resident of Spain and reinvest within two years, the capital gains tax will also be exempt, provided you purchase a property in the EU or EEA (Iceland, Norway, or Liechtenstein). In this case, you should verify with the tax authorities of your new country of residence whether the sale is also exempt from CGT there. If you move to a country outside the EU/EEA, the CGT will be payable.
Conclusion
If you are not reinvesting the proceeds from the sale and are under 65 years of age, it may be more advantageous to sell your home as a non-resident. However, if you are 65 years or older, it is better to sell your home while still resident of Spain.
If you reinvest the proceeds from the sale in a property outside Spain, be sure to check whether there is an exemption from CGT for reinvestment in the country of your new residence. If such an exemption is not available, the most favourable option is to sell the property while resident in Spain.
