Fiscal residents over 65 years of age and who have lived in the property for more than 3 years are not subject at all to capital gains tax when they sell the property. Residents and non-residents, including those over 65 years of age, living in the property for less than 3 years are liable for capital gains tax. As from the first of January 2010 the capital gain tax for fiscal residents will move to a progressive system from the previous 18% flat rate. For the first 6,000€ taxation will increase from 18% to 19% and for the following 6,000€ taxation will increase from 18% to 21%. Non-residents will pay a Capital Gain Tax of 19% flat.
If the seller of the property is non-resident, the buyer will pay 97% of the property price at the signing of the deeds. The buyer will have one month to pay the remaining 3% to the Spanish treasury using form 211. This 3% retention is an advance on the capital gains tax that the seller will have to pay later on.
If the seller is a fiscal resident and is selling his main residence (where he has lived more than 3 years) he is not liable for capital gains tax if he reinvests the gains for purchasing another main residence within two years. If only a portion of the gains from a property sale is reinvested, then they will get a relief in the form of a percentage up to the total amount reinvested.