Many people think they lose the tax exemption on the capital gain from their home as soon as they move out before the property is sold. Fortunately, that is not always the case.
For the Spanish tax authorities, a property is considered a primary residence when it has been actually used as a residential address for at least three years. If you move to another property and only sell your old property later, the exemption may still apply.
An important condition is that the sale takes place within two years of you leaving the property. Even if you no longer live there at the time of sale, the property can still be considered your main residence for tax purposes.
It is important that you can show when the move took place and that the property was actually your main residence beforehand. The tax authorities may ask for proof of this.
In short: moving before selling does not automatically mean you lose the tax exemption. The right timing and good justification are essential here.
If you're unsure whether your situation meets the conditions, please feel free to contact us. We're happy to help you avoid any surprises with your Spanish tax return.
