In the Basque Country there is a particular tax regime agreed with the State.

If the seller or the owner who is gifting is a non-resident in Spain, the State law will be applied if the asset which is sold or gifted is located in the Basque Country ( being the Diputación Foral corresponding to the territory competent to claim tax).

If you are a resident in the Basque Country, it is the local tax regulation ( Bizkaia, Alava, Guipuzkoa) that will be applied.

The regulation is similar to that of the State and the regime of the capital gains only applies to assets that were not intended for a business or professional activity (business premises, offices, stores, etc) within the three previous years to the selling or gifting

Capital gain is the difference between the amount of the acquisition ( purchase price or value of the inherited property) and the amount of the sale or gift.

a) The amount of acquisition is the purchase price, plus the taxes paid at the time of purchase and the costs and expenses incurred by the buyer: Notary, lawyer, estate agent fees… . ( Please remember that plusvalía is a tax paid by the seller, but sometimes it is agreed that the buyer will pay. In such cases, when the buyer comes to sell the property, they can not include what had been paid as plusvalía, because it was not an expense but a part of the price).

b) If the asset you are selling was inherited or gifted, the amount of acquisition will be that declared for the inheritance or gift tax plus any taxes, costs and expenses you have paid.

If during your ownership you have refurbished, built, or in any other way improved the asset the capital gain must be calculated in two stages. The first from the acquisition ( the plot of land or the building before refurbishment) and the second from the date of the building or refurbishment.

In The Basque Country ( and being a resident in the Basque Country) to the acquisition value, taxes and expenses incurred or investments in improvements you must apply a coefficient to update the value to the date of selling or gifting. The coefficient to be applied corresponds to that of the date of acquisition, (or to the date on which the tax was paid, the expense was incurred or the improvement made).

These coefficients are similar in all three “territorios históricos”. Those to be applied in 2018 are:

Year
Before &
1994 1,611
1995 1,711
1996 1,648
1997 1,611
1998 1,576
1999 1,532
2000 1,481
2001 1,425
2002 1,375
2003 1,337
2004 1,298
2005 1,257
2006 1,215
2007 1,182
2008 1,135
2009 1,132
2010 1,113
2011 1,080
2012 1,055
2013 1,039
2014 1,037
2015 1,037
2016 1,037
2017 1,015
2018 1,000

Being a resident in the Basque Country, the amount of the capital gains is taxed in what is called ” base imponible del ahorro” in the annual income tax declaration. The total amount to be paid will depend on your other capital incomes, capital gains and some of your personal circumstances.

The rates, are similar in all three “Territorios Históricos” and are:

Up to 2.500,00 20.00%
From 2.500,01 to 10.000,00 21.00.
From 10.000,01 to 15.000,00 22.00.
From 15.000,01 to 30.000,00 23.00.
From 30.000,01 upwards 25.00%

Remember if you are a non-resident the rate is that determined by the State, which is 19% and no coefficients to update the acquisition price or the taxes and expenses paid will be applied.

Either being a resident or non-resident, the capital gains in the selling of your own house ( the house of your domicile in Spain) will not be taxable if the proceeds are invested in the purchase of another house, which is to be your habitual residence or your domicile in Spain.

There is also a transitional regime similar to that of the Spanish State.