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V2530-25 18 December 2025 · SG de Fiscalidad Internacional Criterion in force
IRNR · ganancia patrimonial

French residents may be taxed in Spain on property sale without reinvestment

The DGT confirms that while Spain may tax capital gains, the reinvestment exemption does not apply if the proceeds are not reinvested in a new primary residence.

The DGT's ruling

According to the Convention between Spain and France, the gain from the alienation of real estate located in Spain may be subject to taxation in Spain. The exemption for reinvestment in a primary residence provided for in the seventh additional provision of the TRLIRNR is only applicable if the amount obtained is reinvested in the acquisition of a new primary residence. If the taxpayer declares that they will not carry out said reinvestment, the capital gain may not be excluded from taxation.

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