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V0090-14 16 January 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · renta mundial

Capital gains from selling a French property are taxable in Spain

A Spanish tax resident asks whether they must pay Spanish taxes on the sale of a property in France. The DGT confirms that worldwide income is subject to Spanish income tax, but double taxation can be avoided if France also taxes the transaction.

The question raised

Whether tax must be paid in Spain on the capital gain that may derive from the transfer of the real estate located in France.

The DGT's ruling

Tax residents in Spain are taxed on their worldwide income, including gains from the transfer of real estate abroad. According to the Convention between Spain and France, France has the authority to tax said real estate, but Spain will also tax the gain. To avoid double taxation, the international double taxation deduction provided for in Spanish regulations and in the Convention shall apply.

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