Selling your home in Spain: income tax, reinvestment and the over-65 exemption
How the gain on selling a home is taxed in Spain, when you can reinvest without paying and what exemption applies to people over 65.
1 min read
If you sell a home for more than it cost you, the gain is declared in your income tax for the year of sale. It falls into the savings base, on a scale from 19% to 30%.
How it is calculated
The gain is essentially the difference between the sale value and the purchase value. Costs and taxes inherent to each transaction, and proven improvements, can be taken into account. Keep your invoices and deeds.
Reinvesting in a main home
If you sell your main home and reinvest the amount in another main home within the legal deadlines, the gain can be fully or partly exempt.
Over 65
The gain from transferring a main home is exempt for people over 65, under article 33.4.b of the Income Tax Act. The tax authority has extended this view to gifts, although the recipient may have to pay other taxes. Foral territories have their own rules, with limits.
Before signing
- Confirm the home meets the tax definition of a main residence.
- Add the municipal plusvalía as well.
- If your family situation is complex, consult an adviser.
