Property Sale Tax Calculator Spain 2026

Selling property in Spain is not just a matter of agreeing a price and signing at the notary. Two distinct taxes apply to the seller: income tax (IRPF) on the capital gain and plusvalia municipal, a local council levy on the increase in urban land value. For foreign residents and expats, understanding these taxes before listing your property is essential for setting realistic expectations and avoiding unwelcome surprises when the tax bill arrives.

How capital gains are calculated

The capital gain (ganancia patrimonial) is the difference between the transfer value and the acquisition value. The transfer value equals the sale price minus any costs inherent to the sale that the seller has paid — typically the estate agent's commission, the energy performance certificate, and the costs of cancelling the mortgage at the land registry. The acquisition value equals the original purchase price plus buying costs (transfer tax or VAT, notary, registry, gestoría) and any documented home improvements.

In formula terms:

Capital gain = Transfer value - Acquisition value

Where:

• Transfer value = Sale price - Selling costs (agent fees, energy certificate, mortgage cancellation).
• Acquisition value = Purchase price + Buying costs (ITP/VAT, notary, registry, gestoría) + Documented improvements.

If the result is negative, there is no taxable gain and no IRPF is due. The loss can be offset against capital gains of the same type in the same tax year or the following four years — particularly relevant if you sell multiple properties over time.

Spain's savings tax brackets

Capital gains from property sales fall under the savings income base (base del ahorro) rather than the general income base. This means they are taxed using a specific progressive scale. For fiscal year 2026, the brackets are:

The scale is progressive: each bracket applies only to the portion of the gain falling within it. For example, on a €70,000 gain, the first €6,000 is taxed at 19%, the next €44,000 at 21%, and the final €20,000 at 23%, giving a total IRPF bill of €14,980 and an effective rate of 21.4%.

Exemptions: when you don't pay IRPF

Spanish tax law provides several situations where capital gains from a property sale are fully or partially exempt:

Reinvestment in a primary residence. If the property sold was your habitual home (vivienda habitual — you must have lived there for at least three years) and you reinvest the full sale proceeds in purchasing another primary residence within two years, the gain is entirely exempt. Partial reinvestment triggers a proportional exemption. For example, if you sell for €250,000 and reinvest €200,000, 80% of the gain is exempt.

Sellers aged 65 and over. If you are 65 or older at the time of sale and the property is your primary residence, the entire gain is exempt with no reinvestment requirement. Furthermore, since 2015, sellers over 65 can also claim an exemption on the sale of any asset if they use the proceeds to purchase a life annuity (renta vitalicia) within six months, up to €240,000.

Dation in payment (dación en pago). When a homeowner surrenders their primary residence to the bank to cancel the mortgage, any resulting gain is exempt provided the debtor has no other sufficient assets to satisfy the debt.

Plusvalia municipal: the local land value tax

The plusvalia municipal (Impuesto sobre el Incremento del Valor de los Terrenos de Naturaleza Urbana, or IIVTNU) is a local tax levied by your town hall. It taxes the increase in the value of urban land during the time you owned the property. Following the Constitutional Court ruling STC 182/2021, two calculation methods now exist, and taxpayers may choose whichever produces a lower bill:

Objective method: The cadastral land value is multiplied by a coefficient based on the number of full years of ownership. The result is the tax base, to which the local council's tax rate is applied (maximum 30%).

Real method: The actual gain on the property is calculated, and the portion attributable to land (determined by the ratio of land value to total cadastral value) is used as the tax base. The council's tax rate then applies.

If you sell at a loss — that is, the sale price is lower than the purchase price — you owe no plusvalia municipal. The deadline to file and pay is 30 working days from the date of the notarial deed.

Practical example: selling a flat in Madrid

James, a British expat, bought a flat in Madrid in 2015 for €195,000. Purchase costs included ITP at 6% (€11,700), notary (€850), registry (€450), and gestoría (€300) — total buying costs of €13,300. He also renovated the kitchen and bathroom for €12,000 (invoiced).

In 2026, James sells the flat for €285,000. He paid an estate agent 3% commission (€8,550), plus the energy certificate (€150) and mortgage cancellation at the registry (€600) — total selling costs of €9,300.

• Acquisition value = €195,000 + €13,300 + €12,000 = €220,300
• Transfer value = €285,000 - €9,300 = €275,700
• Capital gain = €275,700 - €220,300 = €55,400

Applying the savings tax brackets:

• First €6,000 at 19% = €1,140
• Next €44,000 (€6,001-€50,000) at 21% = €9,240
• Final €5,400 (€50,001-€55,400) at 23% = €1,242
• Total IRPF = €11,622

For the plusvalia municipal, assuming a cadastral land value of €40,000, a coefficient of 0.12 for ten years of ownership, and a council tax rate of 30%: the tax base would be €4,800, producing a plusvalia bill of €1,440. James's total estimated tax liability would be €11,622 + €1,440 = €13,062.

If James reinvested the full sale price in a new primary residence within two years, the €11,622 IRPF bill would be exempt — leaving only the €1,440 plusvalia to pay.

Key considerations for non-resident sellers

Non-residents selling Spanish property face the same capital gains tax, but with an important difference: the buyer is legally required to withhold 3% of the sale price and pay it directly to the Tax Agency (Agencia Tributaria) as an advance payment on the seller's behalf. If the actual tax due is less than the 3% withheld, the non-resident seller can claim a refund by filing modelo 210. Non-residents cannot claim the reinvestment exemption for primary residence, as the property is not considered their habitual home in Spain unless they can prove fiscal residence.

Sources

• IRPF Law (Ley 35/2006), articles 33-38 — Regulation of capital gains, the savings tax scale, and primary residence reinvestment exemptions.
• Local Tax Law (RDL 2/2004), articles 104-110 — Regulation of plusvalia municipal (IIVTNU), including the two calculation methods introduced by RDL 26/2021.
• Agencia Tributaria (AEAT) — Official taxpayer portal with income tax manuals, binding rulings, and filing tools.