Taxes on selling
Capital gains: how they are worked out, what you can deduct, and when reinvestment cancels them.
Capital gains on property
The gain on a sale. For individuals, 50% is added to income and taxed at progressive rates.
Gain = sale price − purchase price adjusted by the inflation coefficient − works from the last 12 years with invoices − purchase and sale costs.
Resident and non-resident individuals are treated the same since the 28% flat rate for non-residents was repealed. Non-resident companies are taxed on the whole gain.
Anexo G (capital gains)
Where property sales are declared. 50% of the gain is taxed at progressive rates. For non-residents too.
Gain = sale price − purchase price × inflation coefficient − works (12 years, invoiced) − purchase and sale costs.
Resident and non-resident individuals: 50% at progressive rates. The 28% flat rate for non-residents was repealed from 2024. Some calculators still apply it.
Reinvestment in a primary home or, between 2026 and 2029, in a property let at a moderate rent: window of 24 months before to 36 months after.
Reinvestment relief
The exclusion that applies when sale proceeds go into another primary home, or, until 2029, into a property let at a moderate rent.
The window runs from 24 months before the sale to 36 months after, and the relief is proportional to the amount reinvested. Where the sold property carried a mortgage, what counts is the proceeds net of repayment.
The intention to reinvest must be declared in the return for the year of the sale. Not declaring it forfeits the relief even if the reinvestment happens.
Currency devaluation coefficient
The factor that indexes the purchase price for inflation when computing a gain. Only applies above 24 months of ownership.
Published by order each year, with one coefficient per year of acquisition. It multiplies the purchase price, reducing the taxable gain.
A property held under two years does not benefit: the gain is computed on the nominal purchase price.
Deductible costs on a sale
What reduces the gain: purchase taxes and costs, value-adding works from the last 12 years, and the costs of selling.
On the purchase: transfer tax, stamp duty, deed and registration. On the sale: agency commission and the energy certificate. In between: works that added value, invoiced, within the last 12 years.
Without an invoice carrying the seller's tax number they do not count. A quotation, an undescribed receipt or a cash payment will not do.
The other groups
General information based on current legislation. Not tax or legal advice.