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V3182-15 20 October 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · renta mundial

Taxation in Spain on capital gains from the sale of a Portuguese property

A Spanish tax resident asks whether they must pay tax in Spain on the sale of a property in Portugal already taxed there. The DGT responds that the income is worldwide and must be taxed in Spain, and that the international double taxation relief can be applied.

The question raised

Question raised: Taxation in Spain on the capital gain generated from the sale of the real estate located in Portugal, taking into account that it has been taxed in Portugal for said gain.

The DGT's ruling

A tax resident in Spain must be taxed on the capital gain from the sale of real estate in Portugal in accordance with the worldwide income principle. According to the Convention between Spain and Portugal, both States have the authority to tax said gain. To avoid double taxation, the deduction provided for in the Convention and in Article 80 of the Personal Income Tax Law shall apply.

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