Taxation of Capital Gains


Short term Capital gains of residents are taxed as income. Long term gains are now taxed at the following rates:

Taxable Base Rate
From To Applicable
€0.00 €6,000.00 21%
€6,000.01 €24,000.00 25%
€24,000.01 Onwards 27%

Gains made on the disposal of the principal residence are fully taxable except to the extent that the proceeds are re-invested in another principal residence. The gain is exempt where the taxpayer has been habitually resident for at least three years and is 65 years of age or older.

Non Residents:

Capital gains made by non-residents are subject to the lower rate of 21 per cent, but there is a withholding of 3 per cent on the sale price, which a purchaser of real estate from a non-resident must pay to Spanish Revenue.


Please note: The information contained in these pages is given without charge and without responsibility. It is not a substitute for proper professional advice which we shall be happy to give if so instructed.