Municipal capital gains tax (plusvalía): the two methods
Since 2021 you can choose whichever method works out cheaper, and the calculator does both:
- Objective: cadastral value of the land × coefficient for the years you have owned it × municipal rate. We use the maximum coefficients in Royal Decree-law 8/2023; your town hall may apply lower ones.
- Actual: the gain between the two deeds × the share of the cadastral value that is land × municipal rate.
If you sell for less than you paid, there is no increase in value and no plusvalía is due. The maximum coefficients can change by law: if you sell at the end of 2026 or later, check them in your town hall’s bylaw.
Income tax on the sale
The gain is the sale price minus its costs (commission, plusvalía, cancellation) and minus what the property cost you (price plus buying costs). If you are resident in Spain, it is taxed in income tax brackets: 19% up to €6,000, 21% up to €50,000, 23% up to €200,000, 27% up to €300,000 and 30% above that.
You pay no income tax if you are over 65 and sell your main home, or if you reinvest the full amount in another main home within the following two years. If you live outside Spain, the gain is taxed at 19% and the buyer withholds 3% of the price on account, which is settled later.
Other costs of selling a flat
The energy performance certificate is compulsory to sell (we allow €150). If there is still a mortgage, cancelling it at the registry costs around €600 between notary, registry and gestoría. The outstanding mortgage debt is not deducted: subtract it yourself from the final figure. If you are selling to buy another home, also work out the costs of the new purchase.
Frequently asked questions
What costs does the seller of a home pay?
The estate agent’s commission if there is one, the municipal capital gains tax, income tax on the gain, the energy certificate and, if there is a mortgage left, its cancellation. The notary for the sale is usually agreed to be paid by the buyer.
Do I pay plusvalía if I sell at a loss?
No. If the sale price is equal to or lower than the purchase price, there is no increase in value and nothing is due. You will need to prove it with both deeds.
When do I not pay income tax on selling my home?
If you are over 65 and it is your main home, or if you reinvest the amount in another main home within the following two years. If you reinvest only part of it, the exemption is proportional.
Does the estate agent’s commission carry IGIC?
Yes. In the Canary Islands agency fees carry 7% IGIC instead of 21% VAT.