Lorraine Williamson
As Spain’s housing market edges back toward pre-crisis highs, homeowners cashing in on rising prices are discovering that location dictates far more than sale value. A new analysis by the consumer watchdog OCU shows that municipal capital-gains tax can swing by thousands of euros between cities, even for identical properties.
Anyone selling property in Spain must budget for more than estate agent fees. The national government charges capital gains tax (IRPF) on the profit from the sale, while local councils impose a plusvalía municipal on the increase in the land’s value during ownership. Non-residents face a flat 19 % on their gain. Residents pay a tiered rate—19 %, 21 % or 23 % depending on the size of the profit, though documented costs such as notary fees or renovations can reduce the taxable amount.
A patchwork of municipal charges
It is the plusvalía that causes the biggest surprises. After a 2021 legal reform, town halls can choose between two formulas—one linked to cadastral value, the other to the actual price difference—selecting whichever produces the tax due. That flexibility has produced startling contrasts.
Using a model flat bought for €160,000 in 2011 and sold for €210,000 in 2025, the OCU found bills ranging from just €850 in Bilbao to nearly €2,900 in Pamplona. Cities such as Barcelona, Las Palmas, Murcia, and Vigo all hovered around €2,700, while Burgos, Santander, Palma, and Gijón were markedly cheaper. Pamplona offers an exemption for transfers within the immediate family, underlining how local rules can soften or inflate the charge.
Legal shifts offer hope of refunds
The disparities are not the only headache. A Supreme Court ruling in February 2024 opened the door for sellers who paid after the 2021 reform to challenge their bills, even if they never lodged an initial objection, provided the legal deadline for action has not passed. The OCU urges homeowners to review their sale date and assessment carefully, as some could still reclaim money from their town hall.
Planning a sale? Do the maths first
For anyone planning to sell, these findings underline the importance of early financial planning. Collect invoices for all deductible expenses, compare how your municipality applies the tax, and check whether the recent court decision could work in your favour. In Spain’s uneven property-tax landscape, a few calculations in advance can save thousands when selling property in Spain.
Source: Democrata