Property owners in Spain who decide to sell their real estate face a range of mandatory payments. Few realize that the final amount owed to the state may differ significantly from what they expected. In 2026, the rules have tightened even further: tax authorities are closely monitoring every transaction, and municipalities are seizing every opportunity to bolster their budgets at the sellers’ expense.
A real estate transaction involves more than just signing documents at the notary and receiving money in your account. Behind the scenes lies a cascade of tax obligations that can catch even experienced property owners off guard. It’s essential to understand which taxes must be paid, when exemptions might apply, and why even minimal gains from a sale should never be overlooked.
Key taxes
The first thing a seller encounters is the capital gains tax, which must be reported in the annual income tax declaration (IRPF). If the property was bought for less than its selling price, the difference is considered profit and is taxed at rates set for savings income. In 2026, these rates range from 19% to 28%, depending on the total profit earned.
The second mandatory payment is the municipal land value increase tax (plusvalía municipal). It is calculated based on the difference between the cadastral value of the land at the time of purchase and sale, as well as the ownership period. As of 2026, the coefficients for calculating this tax have been revised: the shorter the time between purchase and sale, the higher the rate. This is especially relevant for those looking to quickly sell a property.
Don’t forget about the property tax (IBI), which is formally paid by the person who owned the property on January 1st of the year the transaction takes place. In practice, the parties often agree to split this amount proportionally, but the legal obligation remains with the seller.
When the tax may not apply
There are situations where the capital gains tax does not have to be paid. If the sale results in a loss, the state not only exempts you from payment, but also allows you to deduct the loss when calculating other taxes. However, even in this case, the transaction must be reflected in your tax return—otherwise, you risk a fine.
Special attention should be paid to so-called tax exemptions. The most popular is exemption from tax when using the proceeds to purchase a new main residence. If the entire sale amount is invested in acquiring another property for permanent residence, the tax authorities will not make any claims. But if even part of the money is spent elsewhere, the benefit is lost.
There is a special exemption for citizens over the age of 65: when selling their only home where they have resided, they are exempt from paying tax. This rule also applies to people with severe disabilities. Important: if it’s a second or third property, the benefit does not apply.
Plusvalía: new regulations
The municipal land value increase tax (plusvalía municipal) has recently become a real headache for sellers. Starting in 2026, the coefficients used to calculate this tax have been increased, especially for those who have owned their property for less than three years. Municipalities explain this as a measure against speculation, but in practice, it’s ordinary homeowners who suffer when deciding to move.
Previously, the tax was levied automatically, but now the seller must prove that the land’s value has indeed increased. If there is no gain, the tax does not need to be paid, but providing proof requires a significant amount of documentation. Any calculation errors or delays in filing can result in hefty fines.
In some cases, the tax can be reduced if you can prove that part of the property’s value was spent on major repairs or renovations. However, municipalities are reluctant to accept such arguments, and the approval process can drag on for months.
Hidden expenses
In addition to the main taxes, sellers will also have to deal with a range of additional expenses. Notary services, deal registration, and real estate agency fees all fall on the owner. In some cases, the costs of processing documents can reach several thousand euros.
It’s also important to remember the requirement to obtain an energy efficiency certificate, without which a sale is impossible. The cost depends on the region and apartment size, but on average ranges from 100 to 300 euros. Fines are imposed for delays or missing certificates.
As a result, the amount the seller actually receives can be significantly lower than expected. Many owners, after overlooking all the expenses, are unpleasantly surprised by the final figure in their bank statement.
What changed in 2026
In 2026, Spanish authorities tightened control over real estate transactions. The tax office now actively uses digital tools to monitor operations and identify attempts to evade taxation. Any inaccuracies in the declaration can lead to audits and additional charges.
Municipalities gained the right to independently set coefficients for calculating plusvalía municipal, which resulted in significant differences between regions. In some cities, the tax burden has nearly doubled compared to 2024. Sellers are advised to check current rates in advance and consult professionals.
Special attention is given to transactions involving non-residents. Separate regulations apply to them, and tax authorities have tightened oversight. Errors in document preparation can result in transactions being blocked and lengthy legal proceedings.
In case you didn’t know, Spain’s real estate market is traditionally considered one of the most dynamic in Europe. Every year, hundreds of thousands of property transactions take place here, and the tax system is constantly adapting to new realities. In 2026, particular emphasis is placed on transparency and combating tax evasion. For sellers, this means the need to thoroughly prepare for each transaction and factor in all potential expenses.
