Gains on real estate
Gains earned from the sale of real estate are calculated by the difference between the transfer and acquisition values
The acquisition value consists of the actual amount paid for the real estate plus expenses and taxes, this value will be corrected by applying updating coefficients that are established on an annual basis in the Spanish Finance Bill
The transfer value will be the real amount paid in the sale, reduced by the amount of expenses and taxes inherent to the transfer and paid by the seller.

if the real estate was acquired before 31 December 1994, the capital gain calculated previously may be reduced through a transitional provisions:

1-Transfer before 29/11/2006: the total amount of the gain will be reduced by 11.11% for each year in excess of two that it remains in the estate from the date of acquisition up to 31/12/1996, rounded up, so if you bought a property on 6 January 1991 and sold it on 1 July 2006 you must take into account the number of years between the date of acquisition and 31 December 1996, rounded up: 6 years for what the percentage reduction will be 11.11% x 4 = 44.44%.
2-If the transfer was carried out from 30/11/2006 on: only that fractional part of the capital gains generated before 20 January 2006 will be susceptible to reduction.
1 - Calculation of that part of the capital gain generated before 20/01/2006
The fractional part of the capital gain susceptible to reduction is determined by the proportion of the number of days elapsed from the date of acquisition up to 19 January 2006 with respect to the total number of days elapsed from the date of acquisition to the date of transfer.
2 - Calculation of the reduction
In order to calculate the amount of reduction over the part of the gain that may be the object of the reduction, a reduction percentage of 11.11% per year that it remains in the estate exceeding 2 years from the date of acquisition up to 31/12/1996 will be applied, rounded up.
If the taxpayer has acquired the real estate on two different dates or the real estate has been subject to improvement, it will be necessary to make the calculations as if there were two capital gains, with different periods of ownership in the application of the reduction coefficients and different updating coefficients.
• Tax rate: For transfers made from 1 January 2007, 18% (for transfer made up to 31 December 2006, the rate was 35%).
• Form: 212.
When the real estate that is transferred is shared by both spouses and both are nonresident, it is allowed to file just one tax return.
• Deadline: Three months after the end of the period that the new owner has to deposit the tax withheld (this period is, in turn, one month from the date of sale).