2025 property tax guide: discover how much tax is payable when selling a property in Spain and learn how to protect your net profit through professional planning.
Selling a property in Spain in 2025 requires more than setting the correct asking price and negotiating effectively. Taxes ultimately determine how much you keep. This comprehensive guide explains clearly the taxes involved in selling a home, the exemptions available, and strategies to prepare your sale with maximum financial efficiency.
Main Taxes When Selling a Property
When selling a property in Spain, several taxes and costs apply:
- Capital Gains Tax (IRPF for residents): applied to the profit made from the sale.
- Non-Resident Income Tax (IRNR): a fixed rate on gains for non-residents, plus a compulsory 3% withholding.
- Municipal Capital Gains Tax (Plusvalía Municipal): applied to the increase in land value over time.
- Additional expenses: notary, land registry, energy performance certificate, mortgage cancellation, and administrative fees.
IRPF 2025: How Capital Gains Are Calculated
Capital gains are calculated by subtracting the purchase price, purchase costs, improvements, and selling costs from the net sale price.
Formula
Capital Gain = Sale Price – (Purchase Price + Purchase Costs + Improvements) – Selling Costs
| 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 your main residence.
- Full exemption for sellers aged 65+ selling their primary home.
- Offset capital losses from previous years.
IRNR for Non-Residents
For sellers who are not tax residents in Spain:
- 19% for EU/EEA residents.
- 24% for non-EU/EEA residents.
- Buyers must withhold 3% of the sale price as an advance on the seller’s tax liability.
Municipal Capital Gains Tax (Plusvalía Municipal)
This tax is levied on the increase in land value. Two calculation methods exist:
Objective Method
Based on the cadastral value of the land and years of ownership. Suitable when the increase is moderate.
Real Method
Based on the actual, verifiable 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 rate: 20%
- Tax due: €6,000
| Item | Description | Impact |
|---|---|---|
| Notary & Land Registry | Official deeds and registration | Low–medium |
| Energy Certificate | Mandatory for sale | Low |
| Mortgage Cancellation | Removing encumbrances or charges | Variable |
| Municipal Certificates | IBI, waste tax, licences | Low–medium |
| Administration & Legal | Processing paperwork and tax filings | Low–medium |
Practical Example: Full Calculation Step by Step
Scenario: Property purchased in 2012 and sold in 2025 by a Spanish tax resident.
- Purchase price: €300,000
- Purchase costs: €24,000
- Improvements: €20,000
- Sale price: €500,000
- Selling costs: €10,000
- Municipal tax: €6,000
1. Capital Gain Calculation
- Adjusted purchase value: €344,000
- Net sale 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
- Municipal tax: €6,000
- Other costs: €10,000
- Total tax burden: €48,460
- Net received by seller: €451,540
Strategies to Optimise Taxation
- Plan ahead: calculate tax impact before accepting offers.
- Seek professional advice: an expert can significantly improve outcomes.
- Use exemptions: reinvestment, age relief, offsetting losses.
- Maintain full documentation: deeds, invoices, improvements, purchase records.
- Choose the most advantageous municipal tax method: objective vs. real.
Conclusion
The amount of tax payable when selling a property in Spain in 2025 depends on capital gains tax, non-resident tax, municipal land tax, and additional costs. Proper planning and professional advice ensure a secure, transparent sale with maximum profit potential.
