Residents and non-residents are assessed to capital gains tax at a rate of 19% (18% from 1 Jan 2007 to 31 Dec 2009). Capital gains arising in less that one year may be accessed under income tax rules. Non-residents should prepare and file a capital gains tax returns within 4 months of the transaction date and all taxes due should also be paid by that date.
Non-resident retention
The purchaser is obliged to retain from a non-resident seller 3% of the purchase price of the property and is responsible for paying this amount over to the local tax office. The purchaser is totally responsible for this deduction, the sum in question being regarded as an encumbrance on the property purchased.
Claims for refund of non-resident retention
Claims for refunds should be made within 4 months of the transaction date and to do so the seller must file a capital gains tax return (modelo 212) with all supporting documentation. Where annual income tax returns have not been submitted the tax authorities will deduct any tax due from any amount being reclaimed and also levy fines for non payment.
Rollover relief
Residents may be able to claim rollover relief. Normally rollover relief is available providing the seller has lived in the property sold for at least 3 years and buys a replacement property within 2 years of the sale.
Double taxation
Individuals resident in UK or Ireland must also declare the disposal in their home country and also pay any capital gains tax due there. As there are double taxation treaties between Spain and these countries then tax paid in Spain can be claimed as a credit against any UK or Irish tax due.
Indexation (Coeficientes de actualización 2010 )
Year of acquisition |
Coefficient |
Up to 1994 |
1.2780 |
1995 (& 31 Dec 1994) |
1.3502 |
1996 |
1.3040 |
1997 |
1.2780 |
1998 |
1.2532 |
1999 |
1.2307 |
2000 |
1.2070 |
2001 |
1.1833 |
2002 |
1.1601 |
2003 |
1.1374 |
2004 |
1.1150 |
2005 |
1.0932 |
2006 |
1.0718 |
2007 |
1.0508 |
2008 |
1.0302 |
2009 |
1.0100 |
| 2010 | 1.0000 |
For assets acquired prior to 31 December 1996 a deduction from the chargeable gain can be claimed calculated on the chargeable gain pro-rated by the total number of days between acquisition and 19 January 2006 over the total number of days between acquisition and disposal multiplied by 11.11% for each complete year the asset was owned in excess of two years.
