Selling a home in Spain after 65: tax and exemptions

When can you sell without paying income tax on the gain?

A capital gain is the profit calculated for tax purposes: the difference between the sale and acquisition values, with adjustments allowed by tax law. If this exemption applies, no IRPF is payable on that gain.

1. You must have reached 65 when the property is transferred. Turning 65 later, when you file the return, is not enough.
2. The property must qualify as your main home. Normally you must have lived there continuously for at least three years and occupied it within twelve months of acquisition. Justified exceptions exist, for example where circumstances require a move.
3. Check your ownership. You must have held full ownership for the required period, even if shared with someone else. Full ownership includes both ownership of the property and the right to use it. If you inherited or received an additional share later, each acquisition needs checking.

There is no €240,000 cap on this main-home exemption. That figure belongs to the separate lifetime-annuity exemption explained below.

The main-home exemption also covers people with formally recognised severe or high dependency. Disability or retirement alone does not automatically meet those conditions.

I bought for €200,000 and sell for €550,000: is the €350,000 gain taxed?

If you qualify, you can keep the money, buy a cheaper home or use it for your needs. You do not have to reinvest it to claim this age-based exemption.

If you have not yet reached 65, buying another main home may qualify for a different exemption, with reinvestment amounts and deadlines to meet. Read our reinvestment guide and use the calculator →

What if I no longer live in the property?

You moved out or rented it afterwards

The general rule allows the exemption if the property is your main home when you sell, or was your main home at some point in the two years before the transfer.

Renting it out after moving does not, by itself, rule out the exemption. Check the dates and whether the property genuinely met the main-home conditions beforehand.

You moved to a care residence or a relative’s home

Current rules contain a specific provision for people over 65 or with severe or high dependency. A property that was their main home until they moved because of age or dependency to a specialist centre or the home of a relative up to the third degree by blood or marriage can retain that status for this exemption.

This exception can preserve main-home status even after more than two years, provided its conditions are met. It does not cover every move: keep evidence of the reason, dates, family relationship and previous residence.

This amendment applies from 8 October 2026. Earlier sales require a review of the rules applicable on their transfer date.

If two people own the home, are both exempt?

Each owner is assessed separately: age, ownership share, main-home use and how they acquired their interest.

If every owner meets the conditions, each may apply the exemption to their own gain.

Selling a second home after 65

A holiday home or investment property is not exempt simply because you are over 65. A gain will normally be taxable. A separate route is to use the proceeds to set up an insured lifetime annuity for yourself.

A lifetime annuity is a contract with an insurer that converts a capital sum into regular payments for the beneficiary’s lifetime. It is different from buying another property or putting the money into a bank account.

• As a general rule, it must be established within six months of the sale.
• The maximum capital eligible for this reinvestment relief is €240,000 per taxpayer in total. This is not €240,000 of tax saved, and it is not a new allowance for each sale.
• If you reinvest less than the total proceeds, only the corresponding proportion of the gain is exempt.
• You must notify the insurer of the tax purpose and meet the contract requirements. Early surrender or non-compliance can cause the exemption to be lost.

Before entering an annuity contract, review its terms, costs and tax effects with a qualified professional. You do not need this product for the age-based main-home exemption if you already qualify.

Do people over 65 pay municipal plusvalía tax?

The IRPF exemption does not automatically remove municipal plusvalía. This council tax concerns an increase in urban land value. It uses different rules from the income-tax calculation of your profit.

If there has been no increase in land value, the transfer may be outside the scope of this tax. You still need to report the transfer and provide evidence.

If there has been an increase, check the applicable calculation methods and any specific relief. How to calculate municipal plusvalía in Barcelona →

Can I sell and keep living in my home?

You can sell the bare ownership while retaining a lifetime usufruct. The buyer acquires ownership and you retain the right to use and enjoy the property on the agreed terms.

The IRPF exemption may apply where you are the full owner, meet the age and main-home requirements, and sell the bare ownership while reserving the usufruct.

This is different from a property whose bare ownership and usufruct already belong to different people. That situation needs individual assessment and does not automatically qualify for the same exemption. Our guide to bare ownership and usufruct, in Spanish →

Frequently asked questions