I just moved to Spain and I am wondering about the tax implications of selling the property where I used to live.

• Will I need to pay taxes on the capital gain if I sell on the same year I move to Spain?

You will only need to declare this capital gain in your annual tax return if you are tax resident in Spain for that year. You will be considered tax resident in Spain if you exceed 183 days of residency or if Spain is the main centre of your economic or vital interest.

• How do I declare this capital gain?

On your annual tax return. To be submitted from April-June after the tax year is over.

• Will I have to pay on this capital gain after selling my previous main address?

If you sell your main address, you would be exempt from payment of any taxes providing that you meet the following requirements:

• • It has been your main address for at least the past 3 years
  • You reinvest the proceeds into a new main address in Spain
• Are there any exemptions?

Yes, if you are older than 65, you will not need to reinvest the proceeds into a new main address in Spain.

• How long can I wait to reinvest into a new main address?

You have maximum 2 years to reinvest into a new main address.

• What if I wait to sell the property abroad after being resident for one year in Spain?

If you sell the property after residing one year in Spain, you will not be able to apply the main address exemption. You will need to pay taxes to Spain on this capital gain as if you were selling a property that is not your main address.

• How much will I pay on my capital gain?

Taxes to be paid on your capital gain will depend on the rest of incomes you have for the year. Savings tax rates for 2023 are as follows:

If you need checking your specific situation or a simulation of taxes, do not hesitate to ask our tax advising department.