A capital gain (ganancia patrimonial) is the increase in value arising on the transfer of an asset or right, or as a result of assets being incorporated into the taxpayer's estate. It is governed by Article 33 of the Personal Income Tax Act (LIRPF, Law 35/2006) and is taxed in the savings tax base at rates of 19 to 28 per cent depending on the amount. The main exemptions are reinvestment in a main residence (Art. 38 LIRPF) and a full exemption for taxpayers over 65 years of age who sell their habitual residence.
In practice
What Is a Capital Gain in Spain
A capital gain (ganancia patrimonial) arises when the transfer value of an asset or right exceeds its acquisition cost, or when assets are incorporated into a taxpayer’s estate without consideration. Article 33 of Law 35/2006 (LIRPF) is the governing provision: the gain is the difference between the transfer value and the acquisition cost, the latter adjusted for acquisition costs, taxes and capital improvements.
Capital losses (where the transfer value is lower than the acquisition cost) may offset capital gains in the same period, and up to 25 per cent of any remaining loss may be offset against savings-base income from capital.
Tax Rates on the Savings Base
Long-term capital gains (held for more than one year) form part of the savings tax base and are taxed at the following rates in 2026:
| Gain amount | Rate |
|---|---|
| Up to EUR 6,000 | 19% |
| EUR 6,000 to EUR 50,000 | 21% |
| EUR 50,000 to EUR 200,000 | 23% |
| EUR 200,000 to EUR 300,000 | 27% |
| Over EUR 300,000 | 28% |
Short-term gains (assets held for one year or less) are taxed at the general progressive IRPF rates.
Key Exemptions
- Main-residence rollover (Art. 38 LIRPF): the gain is exempt if the proceeds are fully reinvested in acquiring a new main residence within two years before or after the transfer.
- Over-65 exemption (Art. 33.4.b LIRPF): taxpayers aged 65 or older selling their habitual residence are fully exempt without any reinvestment requirement.
- Beckham regime (Art. 93 LIRPF): foreign-source capital gains are generally exempt from Spanish taxation during the years the special impatriate regime is in force.