Capital gains tax on property in Spain

Capital Gains Tax (CGT) in Spain for residents is a maximum of 15%, calculated as part of their Spanish income tax.

CGT can apply to an individual or a company whether registered as a resident in Spain or not. The rules and regulations differ depending on the type of assets that are involved.

As of January 1st 2007, Capital Gains Tax for non-residents has been reduced from 35%, which previously had been calculated and paid by your Spanish lawyer. 

If you sell a Spanish property more than one year after purchasing it, then you are liable to pay capital gains tax on property in Spain (GGT) on the difference between the amount that you sell the property for and the amount that you declared having purchased it for previously, minus any inflationary gain.

When a non resident of Spain sells a property in Spain whether as an individual or as a company, the rate of CGT is now exactly the same as for a Spanish national.

Any expenses incurred during the property sale, e.g. Notary and lawyers's fees, can be offset against this.