19% up to €6,00021% from €6,000 to €50,00023% from €50,000 to €200,00027% over €200,000

If you’re thinking about selling your property in the Canary Islands, one of your first questions is probably:

👉 How much will I have to pay to the tax office when selling my home?

The answer depends on several factors, but don’t worry: we’ll explain it in a simple way so you know which taxes you need to pay, what exemptions exist, and how to plan the sale to save money.

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Taxes When Selling a Property in the Canary Islands

Selling a home in the Canary Islands involves mainly two taxes: income tax (IRPF) and municipal capital gains tax.

IRPF: How Much You Pay on Capital Gains

Capital gain is the difference between what you paid when buying your property and what you receive when selling it. This gain must be reported in your IRPF and taxed in brackets:

19% up to €6,000

21% from €6,000 to €50,000

23% from €50,000 to €200,000

27% over €200,000

🔹 Practical example: if you bought your apartment for €150,000 and sell it for €200,000, you’ve made a gain of €50,000. That’s the amount taxed according to the brackets above.

Municipal Capital Gains Tax in the Canary Islands

The municipal capital gains tax is charged by the local council and is calculated based on the increase in land value and the years you’ve owned the property.

👉 Important: if you sell your property for less than you paid, you may request not to pay this tax.

Do You Have to Pay IGIC When Selling a Property?

In the Canary Islands, there is no VAT, but there is IGIC (Canary Islands General Indirect Tax).

1. On resale properties, it does not apply.

2. On new-build properties, the buyer pays 7% IGIC.

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Exemptions and Tax Benefits When Selling Your Home

You don’t always have to pay taxes. In some cases, you can benefit from exemptions:

1. If you reinvest the money in another primary residence.

2. If you are over 65 and sell your main home.

3. If you are over 65 and use up to €240,000 to create a life annuity.

Tips to Pay Less Tax When Selling Your Propiety in the Canary Islands

• Check which exemptions apply before selling.

• Keep all receipts for renovations and notary fees—they increase the acquisition value and reduce your gain.

• Consult a specialized real estate agency to plan the sale and avoid overpaying.

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Frequently Asked Questions About Selling a Property in the Canary Islands

Which taxes do I have to pay when selling a property in the Canary Islands?

Generally, IRPF and municipal capital gains tax. IGIC only affects new-build properties.

Do people over 65 pay taxes when selling their home?

No, if it’s their main home, they are exempt from IRPF.

Can I avoid paying the municipal capital gains tax?

Yes, if you haven’t made a profit from the sale, you can request exemption.

What if I reinvest the money in another property?

If you reinvest in a new primary residence, you may be exempt from IRPF.

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