How to declare a property sale on Spanish IRPF 2026

When selling, good tax planning saves thousands of euros. This guide explains how property sales are declared in IRPF 2026.

How capital gain is calculated

Gain = Transfer value − Acquisition value

Acquisition value = Purchase price + taxes paid (ITP or VAT+AJD) + notary, registry, agency + documented structural improvements + buyer’s commission if paid.

Transfer value = Sale price − seller’s commission (with VAT) − Plusvalía Municipal − energy certificate − habitability certificate − prior mortgage cancellation costs.

Tax rates 2026

Gain tranche	Rate
0 - €6,000	19%
€6,001 - €50,000	21%
€50,001 - €200,000	23%
€200,001 - €300,000	27%
Above €300,000	28%

Progressive rate: a €80,000 gain doesn’t pay 23% on everything; each tranche applies proportionally.

Real practical case

Data:

Sold 2026 for €175,000
Purchased 2014 for €110,000
ITP paid 2014: €11,000
Notary, registry, agency: €1,800
Structural improvements 2018: €14,000 documented
Sale commission: €5,082
Plusvalía Municipal: €1,800

Calculation:

Acquisition value = €136,800
Transfer value = €168,008
Capital gain = €31,208
IRPF to pay: €6,433

Five major exemptions

1. Primary residence reinvestment

Sell primary home, reinvest in another within 2 years. Gain exempt proportionally to reinvested amount.

2. Over-65 (primary residence)

Total exemption when over-65 sells primary residence. Requires 3+ years residence.

3. Lifetime annuity reinvestment (over-65)

Selling any property over 65 and reinvesting in insured lifetime annuity within 6 months. Full exemption up to €240,000.

4. Mortgage dation in payment

If sale is dation due to inability to pay, full exemption.

5. Persons with disabilities

Documented adaptations can increase acquisition value.

Common mistakes when declaring

1. Forgetting acquisition expenses. ITP, notary, registry, buyer’s commissions add to acquisition value. 2. Confusing improvements with repairs. Painting = repair (not deductible). Changing electrical installation = improvement (deductible). 3. Not applying exemptions you’re entitled to. Over-65 with primary residence: total exemption — must explicitly request. 4. Not declaring thinking “inheritance doesn’t apply”. Inheriting doesn’t tax IRPF (taxes Inheritance Tax), but selling what you inherited does tax IRPF on difference between declared inheritance value and sale price.

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Frequently asked questions

When do you declare a property sale on Spanish income tax?

On the IRPF return for the year following the sale. If you sell in 2026, you declare between April and June 2027. Included in savings tax base as capital gain or loss. Even if not normally required to file, you must do so if the sale exceeds certain thresholds.

What rate does Hacienda charge on property sales?

Capital gain is taxed in tranches: 19% up to €6,000; 21% from €6,000-50,000; 23% from €50,000-200,000; 27% from €200,000-300,000; 28% above €300,000. The gain is the difference between acquisition value (with costs) and transfer value (with costs), not the total sale price.

What IRPF exemptions apply to property sales?

Main ones: 1) Reinvestment in primary residence: if you sell your primary home and reinvest in another within 2 years, proportional total exemption. 2) Over-65 selling primary residence: full exemption. 3) Over-65 reinvesting in lifetime annuity (up to €240,000). 4) Mortgage dation in payment. 5) Documented capital loss.

Which expenses can I deduct calculating the gain?

Acquisition value expenses: ITP/VAT paid when buying, notary, registry, agency, buyer's commission. Transfer value expenses: seller's commission (with VAT), Plusvalía Municipal paid, energy certificate, habitability certificate, prior mortgage cancellation costs. Documented structural improvements (not repairs).