Capital Gains Tax liability in Spain (2024)

FAQs

How does capital gains tax work in Spain? ›

As is the case in most countries, Spain levies capital gains tax (CGT) on the profit made from the sale of assets including real estate. Its rate ranges from 19% for Spanish and EEA residents to 24% for non-EEA residents. Find out about buying and selling property in Spain.

The statute of limitations for taxes in Spain is generally (with some exceptions) four years starting from the day following the date of termination of the voluntary tax filing period.

Spanish Capital Gains Tax

If you are not a Spanish tax resident, then you may need to pay Capital Gains Tax on any profits you make from selling your property. Even if you are a Spanish tax resident, you will still need to pay Capital Gains Tax if the property is not your main home.

Capital Gains Tax is 19% for non residents from EU/EEA countries or 24% for non residents from other countries. According to Spanish tax laws, if you're a resident, you are applied a scale between 19% and 23% and can also get tax relief if you have lived in the property for at least three years before selling it.

This means right now, the law doesn't allow for any exemptions based on your age. Whether you're 65 or 95, seniors must pay capital gains tax where it's due. This can be on the sale of real estate or other investments that have increased in value over their original purchase price, which is known as the 'tax basis'.

Capital gains tax (CGT) is a tax that must be paid on any profits you make when you sell an asset, such as property, that has increased in value. CGT is only due on the profit you make, not on the full amount you sell your asset for.

Capital Gains Tax for People Over 65. For individuals over 65, capital gains tax applies at 0% for long-term gains on assets held over a year and 15% for short-term gains under a year. Despite age, the IRS determines tax based on asset sale profits, with no special breaks for those 65 and older.

Do I have to pay capital gains tax immediately? ›

It is generally paid when your taxes are filed for the given tax year, not immediately upon selling an asset. Working with a financial advisor can help optimize your investment portfolio to minimize capital gains tax.

Expatriates in Spain can enjoy numerous benefits under the Beckham law, which include: A reduced flat tax rate of 24% on income up to €600,000, compared to the progressive rates up to 43% for residents. Taxation on Spanish-sourced income only, rather than worldwide income, which can lead to significant tax savings.

According to the Law 35/2006 on Personal Income Tax and other Spanish tax legislation, an individual becomes a tax resident in Spain if any of the following circ*mstances apply: Spend more than 183 days in Spain, during a calendar year, in Spanish territory.

If you've received a letter from the authorities regarding your late filing and before you file voluntarily; the penalties start at a hefty 50% of the unpaid tax due, in addition to the interest charged from the first day of the delay.

The submission of this tax is done through the Spanish Tax Form Modelo 210 to the Agencia Tributaria (national tax authority). The tax rate for capital gains is 19%, and this rate remains consistent regardless of the residency status of the taxpayer.

Capital gains tax on property in Spain for non-residents

If you are a Spanish non-resident and sell property in Spain you will likely be liable for capital gains tax at a fixed rate of 19% for non-residents from EU/EEA countries or 24% for non-residents from other countries, including the UK.

The capital gains flat rate for non-residents in Spain is a rate of 19 percent charged on the profits gained from the auction of a home. Although the calculation more seems easy, it is more complicated than just working out 19 percent of the sale. This is how you calculate capital gains tax for non-residents in Spain.

For Spanish tax residents, the tax rate starts at 19% for the first €6,000 profit obtained and increases thereafter to 21% when the gain is between €6,000 and €50,000, 23% when the gain is between €50,000 and €200,000, and 26% for any gain over €200,000.