Capital gain taxes

Capital Gains Tax when selling a property in Costa Blanca North

When selling a property in Costa Blanca North (e.g., Benissa, Calpe, Altea), there are two main taxes to consider:

1. Municipal Capital Gains Tax (Plusvalía – IIVTNU)

This is a local tax charged by the town hall, based on the increase in the value of the urban land. Since the 2021 reform, it only applies if there is an actual increase in value.

Calculation methods:

• Objective method: cadastral land value × years of ownership × municipal coefficient × tax rate (max. 30%).

• Real gain: based on the actual profit attributable to the land. If no gain, the tax is 0 €.

Rates and coefficients differ per municipality, usually between 20 % and 30 %.

2. National Capital Gains Tax (CGT)

This is the state tax on the profit made from the sale:

• Spanish tax residents (progressive rates):

  • 19 % on the first €6,000 gain

  • 21 % on gains between €6,000 and €50,000

  • 23 % on gains between €50,000 and €200,000

  • 27 % on gains between €200,000 and €300,000

  • 28 % above €300,000

• Non-residents:

  • 19 % (EU/EEA residents)

  • 24 % (non-EU residents)

For non-residents, the buyer must withhold 3 % of the sale price as an advance payment. If the final tax due is less, the seller can reclaim the difference through form 210.

Summary

Conclusion

• Municipal Plusvalía: local tax, depends on municipality, may be 0 € if no value increase.

• CGT: progressive for residents, flat rate for non-residents, with 3 % withholding.