Capital Gains Tax in Spain for Expats: What You Need to Know

Capital gains tax (CGT) in Spain catches many NLV holders off guard. Once you become a Spanish tax resident — which happens automatically if you spend more than 183 days in Spain per calendar year — Spain has the right to tax your worldwide capital gains. Understanding the rates, exemptions, and reporting requirements can save you significant money and avoid penalties.

When You Become a Spanish Tax Resident

Spain taxes capital gains for tax residents, not simply visa holders. You become a Spanish tax resident in any year where:

• You spend more than 183 days in Spain in that calendar year (the 183-day rule), or
• Your main economic interests or centre of activities is Spain

Most NLV holders who live in Spain full-time will meet the 183-day threshold in their first year. This means filing a Spanish income tax return (IRPF / Declaración de la Renta) is required, and capital gains from worldwide assets must be reported. For a complete overview, see our Spanish tax guide for NLV holders. For a complete overview, see our NLV renewal.

Spanish Capital Gains Tax Rates 2024/2025

Spain taxes capital gains in a separate "savings income" tax band (base del ahorro). The rates for 2024 (applicable in 2025 filings) are:

• Gains up to €6,000 — 19%
• Gains from €6,000 to €50,000 — 21%
• Gains from €50,000 to €200,000 — 23%
• Gains from €200,000 to €300,000 — 27%
• Gains above €300,000 — 28%

These rates apply to both Spanish and foreign assets. If you sell a property in the UK, shares in a US brokerage account, or any other asset while you are a Spanish tax resident, the gain is subject to Spanish CGT.

What Counts as a Capital Gain

In Spain, capital gains (ganancias patrimoniales) arise from:

• Selling property (in Spain or abroad)
• Selling shares, ETFs, investment funds, or other securities
• Receiving compensation for expropriation
• Winning prizes in competitions
• Certain cryptocurrency transactions

The gain is calculated as the sale price minus the original purchase price, adjusted for allowable costs such as legal fees, agent commissions, and improvement costs on property.

Double Taxation: Avoiding Being Taxed Twice

If you pay CGT in your home country on an asset sold while you are a Spanish tax resident, you may also owe tax in Spain. Spain has double taxation treaties (convenios de doble imposición) with most major countries including the UK, USA, Canada, and Australia. These treaties typically prevent you from paying the full rate in both countries — you receive a credit in Spain for tax already paid abroad.

The treaty rules are complex and vary by country and asset type. Always work with a Spanish gestor or tax adviser (asesor fiscal) experienced in cross-border situations before selling significant assets.

Key Exemptions and Reliefs

• Primary residence exemption (reinvestment relief): If you sell your habitual Spanish residence and reinvest the proceeds in another Spanish property within 2 years, the gain is exempt. This applies only to Spanish property and only to those aged under 65.
• Over 65 primary residence: If you are 65 or over and sell your Spanish primary residence, the gain is completely exempt from CGT regardless of reinvestment.
• Offsetting losses: Capital losses in the same year can be offset against capital gains. Losses can be carried forward for up to 4 years.

Modelo 720: Reporting Foreign Assets

NLV holders with foreign assets exceeding certain thresholds must file Modelo 720 — a declaration of assets held abroad. This is a reporting obligation, not a tax payment, but the penalties for non-compliance are severe. See our dedicated guide on Modelo 720 for full details.

Practical Advice for NLV Holders

• Tell your Spanish gestor about any planned asset sales before completing them — they can advise on timing and structuring to minimise your Spanish CGT liability
• Keep detailed records of original purchase prices and all allowable costs for assets you own
• If you became a Spanish tax resident mid-year, only gains realised after your residency date may be taxable in Spain (treaty-dependent)
• Cryptocurrency gains must now be reported in Spain — all disposals of crypto assets are subject to CGT