Tax-Deductible Expenses When Selling a Property in Spain (2025 Guide)

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Planning to sell your home in 2025? Before closing the deal, it’s essential to understand how real estate taxation works to maximize your net profit. One of the key elements is knowing which expenses are deductible when calculating your capital gains tax in your annual income tax return (IRPF).

In this article, we’ll walk you through exactly which costs can be deducted when selling a property, how to calculate your capital gain, and what documents you need to keep on file.

What Expenses Are Deductible When Selling a Property in Spain?

The Spanish Tax Agency (Agencia Tributaria) only allows deductions for expenses that are directly linked to the property sale. According to the General Directorate of Taxes (DGT), only “actions directly related to the sale of the property” can be deducted.

These deductible costs are divided into two main categories:

1-. Acquisition-related expenses
2-. Transfer-related expenses

Pro tip: All deductible expenses must be backed by official invoices, so make sure to store them properly in a secure digital or physical format.

1-.Acquisition-Related Deductible Expenses

The acquisition value goes beyond just the purchase price. It includes all expenses and improvements necessary to complete the initial purchase of the property.

Formula: Acquisition value = Purchase price + Justified acquisition expenses

Common deductible acquisition expenses:

* Notary fees (for the purchase deed)
* Legal or administrative fees (lawyer, gestoría)
* Land registry fees
* Property valuation (tasación)
* Taxes: Property Transfer Tax (ITP) or VAT + Stamp Duty (AJD)
* Investments and improvements (energy efficiency upgrades, accessibility, new installations…)
* Municipal capital gains tax (if shared with seller)

Important distinction: General repairs or maintenance are not deductible. Only improvements that increase the value, usability, or lifespan of the property can be deducted.

2-. Transfer-Related Deductible Expenses

The transfer value refers to the selling price of the property. However, this amount can be reduced by certain sale-related costs.

Formula: Transfer value = Selling price - Justified selling expenses

Common deductible transfer expenses:

* Municipal capital gains tax
* Mortgage cancellation fees
* Real estate agency commission
* Notary, legal, and administrative fees
* Certificates (energy efficiency, habitability, community debt statements…)
* Costs shared with the buyer

Note: The Spanish Tax Agency requires that the declared selling price is not lower than market value. If it is, the market value will take precedence.

How to Calculate Capital Gains Tax (IRPF)

Your capital gain is the net financial benefit obtained from the sale. It must be included in your IRPF income tax return for the year in which the transaction took place.

Formula: Capital gain = Transfer value - Acquisition value

IRPF Capital Gains Tax Rates in 2025:

Capital Gain	Tax Rate
Up to €6,000	19%
€6,001 to €50,000	21%
€50,001 to €200,000	23%
Above €200,000	26%

Real-Life Example

Selling price: €200,000
Original acquisition cost: €160,000
Capital gain: €40,000

*First €6,000 → €6,000 x 19% = €1,140
*Remaining €34,000 → €34,000 x 21% = €7,140
Total tax owed: €8,280

Final Thoughts: Sell Smart with Tax Optimization

Selling your home is more than a transaction—it's a strategic financial decision. By understanding which expenses you can deduct, you can significantly lower your taxable capital gain and legally reduce your tax burden.

If you plan to sell your property in Spain in 2025, we strongly recommend consulting us to ensure you maximize your financial return.