These Are the Deductible Expenses When Selling a Home

1. Deductible Expenses for a Home Sale in Your IRPF Tax Return

If you're wondering “what can I deduct when selling a home?”, the short answer is: only those expenses directly related to the sale are deductible.

The rule set by Spain’s Tax Authority (DGT) states that only expenses “directly linked to the sale of the property” are deductible.

These expenses are classified into two groups:

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

You must keep invoices or other proof for all costs you wish to deduct.

2. Acquisition-Related Expenses

These are expenses you incurred when buying the property, which increase the acquisition value. They include:

• Notary fees
• Management/administrative agency (“gestoría”)
• Lawyer fees
• Land registry registration
• Appraisal costs
• Transfer Tax (ITP) or VAT
• Stamp duty (AJD)
• Costs of investments and improvements (e.g., energy efficiency upgrades, accessibility, telecom installation)
• Any prorated costs borne by the seller (e.g., municipal capital gains tax)

DGT guidelines distinguish between “repairs and maintenance” (deductible) and “extensions or improvements” (also deductible if they enhance capacity or useful life) .

3. Transfer-Related Expenses

These are expenses tied to selling the property and reduce the transfer value. They include:

• Municipal capital gains tax (plusvalía)
• Mortgage cancellation fees
• Real estate agent commissions
• Notary fees
• Management/gestoría fees
• Lawyer fees
• Energy performance and habitability certificates, and community debts certification
• Any buyer-related prorated expenses shared with the buyer

4. Calculating the Capital Gain

You report the sale on the income tax return for the year the sale took place (e.g., a sale in 2024 affects Renta 2025).

The capital gain is:

Gain = Transfer value – Acquisition value

Where:

• Transfer value = Sale price – transfer expenses
• Acquisition value = Purchase price + acquisition expenses

Tax rates are progressive:

Gain (€). - Tax Rate

Up to 6,000 - 19%

6,001 – 50,000 - 21%

50,001 – 200,000 - 23%

Over 200,000- 26%

5. Example Calculation

Suppose:

• Transfer value: €200,000
• Acquisition value: €160,000
• Capital gain: €40,000

Tax breakdown:

• First €6,000 at 19% → €1,140
• Remaining €34,000 at 21% → €7,140
• Total tax: €8,280

In summary: When selling a home in Spain, you can deduct all documented expenses directly tied to its purchase and sale. This reduces the taxable gain and saves you money—just make sure you keep all invoices and records.