Gains from the sale of a home will be taxed in the savings tax base

Determining the capital result derived from the sale of real estate is a critical aspect of the income tax return. The Directorate General of Taxes (DGT) has specified the criteria for calculating whether the operation generates a capital gain or loss, which will directly affect the taxpayer's savings tax base.

What the DGT has resolved

The criterion establishes that the result of the operation is obtained by subtracting the acquisition value of the property from its transfer value. For a correct calculation, the following rules must be observed:

• Acquisition value: This includes the actual purchase price, investments and improvements made, as well as expenses inherent to the acquisition, such as notary, registry, or tax expenses. Loan interest cannot be included.
• Transfer value: This is the actual sale amount, provided it is not lower than the market value. From this amount, the inherent expenses that the seller had to satisfy for the transfer must be deducted.

The final result, whether positive or negative, is integrated into the savings tax base in accordance with current regulations.

What it means for you

If you are an individual selling a home, the tax impact will depend on the correct management of documented expenses. It is not enough to consider the purchase and sale price; it is necessary to include all investments and management expenses to reduce the tax base in the event of a gain, or to increase the loss if the result is negative.

This criterion is of special relevance for residents and expatriates who own real estate assets in Spain, as the determination of the market value and the correct integration of expenses are decisive for the tax calculation.

What you should do

It is fundamental to keep all documentation that proves the acquisition and transfer expenses. Notary invoices, registry expenses, taxes paid during the purchase, and receipts for improvements or investments in the home are essential elements for the calculation. It is recommended to assess each particular situation to ensure that the transfer value is not lower than the market value and to avoid contingencies with the Administration.