What is Capital Gains Tax?
Capital Gains Tax is a tax on the profit made from selling a property or asset. It is applicable when you sell a Spanish property and realize a gain.
How is the Capital Gains Tax calculated?
As you can see from using the calculator, Capital gains tax is calculated based on the net profit made when selling a property. The net profit is calculated by deducting the purchase price (including VAT, Land Registry fees, property transfer tax and legal and notary fees) from the final sale price (less costs incurred during the sale such as real estate agent fees).
When do I owe Capital Gains Tax?
After selling a Spanish property, you are required to file the Capital Gains Tax within 4 months from the sale date.
What is the 3% non-resident tax in Spain?
When a non-resident sells a property located in Spain, the buyer is obliged to withhold 3% of the sale price as payment on account of the non-resident’s tax return. The buyer must deposit the 3% retention fee to the tax authorities within one month using Form 211 and send a copy of that form to the seller.
The 3% withholding tax will be deducted from the final capital gains tax payable.
What if a made a loss?
You will need to file a tax return to ask for a refund of the 3% withholding tax.
What is the tax rate for Capital Gains Tax on the sale of a Spanish property?
The tax rate for Capital Gains Tax on the sale of Spanish property is a flat rate of 19% regardless of the tax residency of the seller.
Is the estimate provided by the Capital Gains Tax Return Calculator accurate?
Our calculator provides a rough estimate based on the information you provide. If you want an exact calculation, we advise you to register and calculate the tax through our software, as it will take into account all specific circumstances.