Capital Gains Tax

Hello all,

I have a question about Capital Gains Tax.

I am about to sell my house in the Uk and complete the sale in July this year.

And we are going to move to Spain in July, rent for 4 months while we buy our main residence in Spain. But I have heard that there is Capital Gains Tax on your main residence in Spain.

Anyone know for sure or had any experience of this please?

Thank you

Yes, there is Capital Gains tax on your main residence in Spain. Of course, you have to sell it at a profit and you can reduce all the costs involved in selling the house.

The above link will be helpful to you.

If you sell the house and then buy another within 2 years, you can offset some of the tax that you paid.

I wouldn't worry about capital gains tax. Most ex pats overpay in the first place and Spain has a ageing, shrinking population as well as high unemployment and low wages.

Couple that with high/rising interest rates and it isn't a recipe for investment.

Property in the stronger European countries will see a correction too.


It sounds like you are really making some great progress towards your Spanish relocation, congratulations!

Are you concerned about the capital gain on your UK home being caught in the Spanish tax net? Or are you worried about capital gains taxes on your new Spanish home?

If the former, then I'd guess your UK home sale will be tax-exempt (as main home) in the UK. And as you haven't yet relocated to Spain, you haven't become a Spanish tax resident by virtue of spending more than 183 days here. If you keep all (or some) of the sales proceeds in an interest-bearing account, then you can expect that (soon) such interest would be part of your taxable income in Spain.

If the latter, I doubt you would want to rent indefinitely just because there's a potential capital gains tax if you buy. :-) However, I believe your Spanish home would also have a similar main home exemption.