Spanish Capital Gains Tax Raise to 19% Goes Unnoticed

Spain’s Government has raised Capital Gains Tax (CGT) for both residents and non-residents to 19% as from the 1st of January 2010, which effectively means any property sold on as from the said date will attract CGT at 19%. This tax change seems to have gone blissfully unnoticed by the majority of people, or this is what you realise when you read what the so-called experts write on the many different expat forums available.

After a protracted process grounded on discrimination, the European Commission forced Spain to equate the Capital Gains Tax for both residents and non-residents alike leaving it at 18% as from the 1st of January 2007. Previously it stood at 35% for non-residents and 15% for residents.

This new tweak is related to Spain’s widespread efforts to prop up its dwindling coffers in view of its beleaguered Economy. This policy of increasing taxes in the aftermath of a property bubble has come under heavy criticism by reputed financial experts and may even hamper an early recovery as well as possibly incentivizing under declaring.

The following table sums up CGT amendments over the last years:

For those who are still sceptical, and doubt wether this is true or not, I refer you to the official Modelo 212 instructions (PDF – Spanish) for further confirmation.

Related articles and blog posts

Spanish Wealth Tax (Patrimonio) – 8th November 2011

Taxes on Selling Spanish Property – 8th December 2014

Changes to Spain’s Inheritance and Gift Tax Law – 21st February 2015

La Complementaria or ‘Bargain-Hunter Tax’ – 8th May 2015

Taxes on Buying Spanish Property – 8th July 2015

Non-Resident Taxes in Spain – 8th December 2015

Spanish Inheritance Tax (Part I) – 8th February 2016

Spanish Inheritance Tax (Part II)  – 8th March 2016

Please note the information provided in this blog post is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. VOV.

2.010 © Raymundo Larraín Nesbitt. All rights reserved.