How is IRPF calculated on property sales?
When selling property in Spain, the capital gain subject to IRPF is calculated as the net sale price minus the acquisition value (purchase price plus notary fees, ITPO/IVA taxes, and improvements).
100% Tax Exemption for Sellers Over 65
According to Article 33.4.b of the Spanish Income Tax Law (Ley del IRPF), taxpayers over 65 years old who sell their primary residence are completely exempt from paying IRPF on the capital gain, without any requirement to reinvest the proceeds in another home.