Tax guide 2025 for property sellers in Spain: discover which taxes apply when selling a home, how profits are calculated, and how to optimise your fiscal outcome professionally.
Selling a property in Spain in 2025 involves more than setting the right asking price and negotiating effectively. Taxes ultimately determine how much you keep in your pocket. This clear, comprehensive guide explains the taxes due when selling a home in Spain, available exemptions, and the key strategies to prepare your sale with maximum financial efficiency.
Main Taxes Involved in a Property Sale
When selling a home in Spain, several taxes and costs apply:
- Capital Gains Tax (IRPF for residents): applied to the profit obtained from the sale.
- Non-Resident Income Tax (IRNR): fixed rate applied to gains for non-residents, plus a compulsory 3% retention.
- Municipal Capital Gains Tax (Plusvalía Municipal): applied to the increase in land value.
- Additional expenses: notary, land registry, energy certificate, mortgage cancellation, and administrative fees.
IRPF 2025: How Capital Gains Are Calculated
Capital gains correspond to the difference between the selling price and the acquisition value, including purchase expenses, improvements, and selling costs.
Formula
Capital Gain = Selling Value – (Purchase Price + Purchase Expenses + Improvements) – Selling Expenses
| Capital Gain (€) | Rate |
|---|---|
| Up to 6,000 | 19% |
| 6,001 – 50,000 | 21% |
| 50,001 – 200,000 | 23% |
| Over 200,000 | 26% |
Key Exemptions
- Reinvestment in a main residence.
- Full exemption for sellers aged 65+ selling their primary home.
- Offsetting capital losses from previous years.
IRNR for Non-Residents
For sellers who are not fiscal residents in Spain:
- 19% for EU/EEA residents.
- 24% for non-EU/EEA residents.
- The buyer must withhold 3% of the selling price and pay it as an advance on behalf of the seller.
Municipal Capital Gains Tax (Plusvalía Municipal)
This tax is applied to the increase in land value. Two calculation methods are available:
Objective Method
Based on cadastral land value and years of ownership.
Suitable when the increase is moderate.
Real Method
Based on the proven real increase in land value.
Suitable when the increase is low or non-existent.
Simplified Example
- Cadastral land value: €100,000
- Ownership period: 10 years
- Coefficient: 0.30
- Taxable base: €30,000
- Municipal tax rate: 20%
- Tax due: €6,000
| Item | Description | Impact |
|---|---|---|
| Notary & Land Registry | Official deeds and registration | Low–medium |
| Energy Certificate | Mandatory for selling | Low |
| Mortgage Cancellation | Removing charges or encumbrances | Variable |
| Municipal Documents | IBI, waste tax, and certificates | Low–medium |
| Administration & Legal | Handling paperwork and tax filings | Low–medium |
Example: Full Calculation Step by Step
Scenario: property purchased in 2012 and sold in 2025 by a Spanish resident.
- Purchase price: €300,000
- Purchase expenses: €24,000
- Improvements: €20,000
- Selling price: €500,000
- Selling expenses: €10,000
- Plusvalía Municipal: €6,000
1. Capital Gain Calculation
- Adjusted purchase value: €344,000
- Net selling value: €490,000
- Capital gain: €146,000
2. IRPF Breakdown
- First €6,000 → 19% = €1,140
- Next €44,000 → 21% = €9,240
- Remaining €96,000 → 23% = €22,080
Total IRPF: €32.460
3. Final Outcome
- IRPF: €32,460
- Plusvalía: €6,000
- Other costs: €10,000
- Total tax burden: €48,460
- Net amount received by the seller: €451,540
Smart Strategies to Reduce the Tax Burden
- Calculate early: estimate taxes before accepting any offer.
- Seek expert advice: a professional can significantly improve the final outcome.
- Use available exemptions: reinvestment, age-related relief, loss compensation.
- Keep documentation organised: invoices, deeds, improvements, and purchase records.
- Choose the best Plusvalía calculation method: objective vs. real method.
Conclusion
How much tax you pay when selling a property in Spain in 2025 depends on capital gains tax, non-resident tax, municipal land value tax, and several additional costs. The difference between an acceptable sale and an optimised one lies in preparation: accurate calculations, complete documentation, and correct application of exemptions. With the right strategy, you can sell confidently, transparently, and with maximum financial efficiency.
