If, as residents of Spain with significant assets in business shares or equities, we are considering moving our tax residence outside the country, there is a tax we need to understand thoroughly before taking that step: the Spanish exit tax.
In simple terms, it is a mechanism whereby the Spanish tax authorities can claim tax on the gains our assets have accrued whilst we were residents, even if we have not yet sold them.
This tax does not actually affect most people. It is designed for those with significant wealth and taxpayers with a long-standing connection to the Spanish tax system. But if, by chance, you fit that profile, it could result in a bill running into hundreds of thousands of euros, or even millions.
At Taxmind, we have a thorough understanding of the tax rules and how Spain’s so-called ‘exit tax’ works. We’re therefore going to explain it clearly, so that you know who it affects, how it’s calculated, when it’s possible to defer payment, and what legal strategies exist to manage it efficiently.
What is the exit tax in Spain?
The most precise definition of the Spanish exit tax is set out in Article 95 bis of the Personal Income Tax Act, introduced by Law 26/2014 on tax reform. It operates as a ‘notional transfer’; in other words, when a taxpayer ceases to be a tax resident in Spain, the law treats this as if they had sold their shares and holdings at the market price at that time, even though they have not actually sold anything.
The difference between that market value and what they originally paid (acquisition value) is considered an unrealised capital gain, which is included in the personal income tax savings base for the last tax year as a resident and taxed at the applicable rates.
The aim of this provision is to prevent taxpayers with substantial wealth accumulated in Spain from transferring their residence to jurisdictions with more favourable tax regimes just before selling their assets, thereby avoiding Spanish taxation on those gains.
It should be noted that there is also a similar mechanism under Corporation Tax (Article 19 of the Corporation Tax Act) when a company transfers assets or its registered office outside Spain. We explain this further below.
Who is affected by the Spanish exit tax? Application requirements
The Spanish exit tax does not apply to everyone. For the tax liability to arise, a time-related requirement and at least one of the asset-related requirements must be met simultaneously.
Time-related requirement
The taxpayer must have been a tax resident in Spain for at least 10 of the 15 tax years preceding the change of residence.
This excludes the vast majority of short- or medium-term expatriates. If you have been an ordinary tax resident in Spain for less than 10 years, this tax does not apply to you.
It is important to note that any years during which we have paid tax under the special regime for expatriates (the Beckham Act) do not count towards this period. The 10-year period begins from the first tax year in which we pay tax as ordinary residents under the general personal income tax regime.
Asset requirements (double threshold)
In addition to the time requirement, we must meet at least one of these two conditions:
- Threshold 1 — Overall portfolio: the combined market value of all our shares and holdings exceeds €4,000,000.
- Threshold 2 — Significant holding: we hold more than 25 per cent in an entity whose market value exceeds €1,000,000. In this case, the exit tax is levied only on the unrealised capital gain on that specific holding.
Assets included:
- Shares listed on a stock exchange.
- Unlisted shares.
- Stakeholdings in companies (Spanish or foreign).
- Holdings in collective investment schemes (funds, SICAVs).
Assets NOT included:
- Property, cryptocurrencies, works of art, bank deposits, bonds, insurance policies.
How to tell if Spain’s exit tax applies to you
You can check this quickly. Ask yourself the following questions and consider the answers:
| Question | If I answer ‘Yes’… |
| Have you been a tax resident in Spain for more than 10 years (or for 10 of the last 15 years)? | Continue to the next question |
| Is the market value of your shares and holdings more than €4,000,000? | This probably applies to you |
| Do you hold more than 25 per cent of any company whose value exceeds €1,000,000? | This is likely to affect you |
How is the exit tax calculated?
The formula:
| Taxable base = Market value – Acquisition value Only capital gains are taxed. Unrealised capital losses are not taken into account and cannot be offset. |
For unlisted companies, the market value is determined by taking the higher of the following three values:
- The nominal value of the shares.
- The theoretical book value as shown in the latest approved and audited balance sheet.
- 20 per cent of the average profits for the last three completed financial years.
For significant assets, it is advisable to have an independent valuation report to support the declared value in the event of a possible audit by the Spanish Tax Agency (AEAT).
Applicable tax rates (2025)
Capital gains are included in the personal income tax savings base and taxed according to the following brackets:
| Taxable savings base | Applicable rate |
| Up to €6,000 | 19% |
| From €6,001 to €50,000 | 21% |
| From €50,001 to €200,000 | 23% |
| From €200,001 to €300,000 | 27% |
| Over €300,000 | 28% |
In autonomous regions (the Basque Country and Navarre), the regulations and rates may vary.
Practical calculation example
Carlos has been a tax resident in Spain for 14 years. He owns 100 per cent of an unlisted company with a market value of €2,100,000. He acquired it for €350,000.
- Unrealised capital gain: €2,100,000 – €350,000 = €1,750,000.
- Applying the income tax brackets for savings, the estimated exit tax liability amounts to approximately €477,880.
This amount may be payable immediately or deferred, depending on the country of destination, as we shall see below.
Common situations in which the exit tax applies
To understand when and how this tax is applied in practice, here are some of the most common scenarios:
☑️ The founder of a start-up who wants to move abroad
Laura founded her technology company in Spain 10 years ago and still holds 65 per cent of the share capital. The company is valued at €8,000,000. The value of her shareholding (€5,200,000) exceeds the €4,000,000 threshold.
If Laura moves her residence to Germany (an EU country), she will be able to defer payment of the Spanish exit tax until she sells her shares or moves her residence to a third country. If she moves directly to Dubai, she will have to pay the exit tax in the financial year of departure.
☑️ The family business owner with a majority stake
Antonio has lived in Spain for 18 years and owns 80 per cent of a family business valued at €1,600,000. The value of his shareholding (€1,280,000) exceeds one million and his percentage stake exceeds 25 per cent. He meets the second exit tax threshold.
If he decides to move his residence to Portugal to retire, he will be liable for tax on the unrealised capital gain on that shareholding. As Portugal is an EU country, he may opt for automatic deferral.
☑️ The investor with a diversified stock market portfolio
Elena has built up a portfolio of listed shares valued at €4,800,000, with a historical acquisition cost of €2,200,000. If she decides to move her residence to Switzerland, she will exceed the €4,000,000 threshold and will be liable for tax on the unrealised capital gain of €2,600,000 as part of her exit income tax. Payment is due immediately, as Switzerland is not part of the EU/EEA.
☑️ The worker who arrived under the Beckham Law and now wants to leave
Javier is a foreign executive who arrived in Spain seven years ago, paying tax for the first six years under the special impatriate scheme (the Beckham Law). He has only been under the standard personal income tax regime for one year.
As he has only been an ordinary taxpayer for one year, he does not meet the 10-year requirement. The Spanish exit tax does not apply to him. He can transfer his residence without this tax burden, regardless of the value of his assets.
☑️ The executive temporarily posted abroad for work
Sofía has been in Spain for 13 years and holds a 30 per cent stake in a company valued at €2,500,000 (her stake is worth €750,000). She has received a job offer in Mexico for three years. Although she meets the temporary residence requirement, the value of her shareholding (€750,000) does not exceed the €1,000,000 threshold, nor does the total value of her portfolio reach €4,000,000. The exit tax does not apply.
Differences depending on the destination country
The amount of the exit tax does not vary depending on the destination, but when and how it is paid does depend on the country to which you are moving.
Moving to the EU or the EEA
If you are changing your residence to an EU Member State or a country within the European Economic Area, you may apply to defer payment of the Spanish exit tax until one of the following events occurs within the following 10 years:
- You sell (transfer) your shares
- You cease to be a resident of an EU/EEA country
- You fail to comply with your reporting obligations to the AEAT
If 10 years pass without any of these events occurring, Spain waives its right to collect the tax and the debt is extinguished. You must formally notify the AEAT of this when you submit your final income tax return.
Relocation to third countries for work reasons
If the move is for work reasons to a country that has a double taxation agreement with Spain, you can apply for a deferral of up to 5 years (extendable to 10). If, within that period, you return to Spain without having sold the assets, the tax liability and any interest on it are automatically extinguished.
Relocation to tax havens or countries without a treaty
Where the destination is a tax haven or a jurisdiction with no effective exchange of information with Spain, there is no possibility of deferring payment. The exit tax must be paid in full in the tax return for the year of departure.
| Country of destination | Is it payable on departure? | Deferral possible | Conditions for termination |
| EU / EEA | No (if requested) | Up to 10 years | No sale + 10-year EU residency |
| Country with a DTA (employment) | No (if requested) | 5 years (+ 5 extendable) | Return to Spain unsold |
| Rest of the world | Yes | No | — |
| Tax haven | Yes, immediately | No | — |
The exit tax under Corporation Tax
Although the Spanish exit tax is usually associated with individuals, there is also an equivalent mechanism for legal entities under corporation tax, regulated by Article 19 of the Corporation Tax Act.
It is triggered when a company transfers assets, permanent establishments or its registered office outside Spain, thereby ceasing to fall under Spanish tax jurisdiction. At that point, the unrealised capital gains on those assets must be included in the corporate tax base.
Where the transfer is to another EU Member State, the regulations allow the payment to be split into five equal annual instalments, provided that the guarantee and reporting requirements established by the Spanish Tax Agency (AEAT) are met.
Legal strategies for managing the exit tax
The Spanish exit tax is a tax liability which, in certain circumstances, can be planned for in advance to reduce its impact or even avoid it altogether within the legal framework.
1. Check whether the thresholds are actually exceeded
Before assuming that the exit tax applies to you, check carefully whether your shareholdings exceed the established thresholds. An adviser will certainly help you to carry out this check thoroughly.
2. Reduce your assets below the thresholds before leaving
If the value of your shareholdings is close to €4,000,000, it might be worth considering whether it is possible to sell, donate or restructure part of your assets to fall below the threshold before changing your residence. These transactions have their own tax implications, but in certain scenarios the cost may be lower than that of the exit tax.
3. Prior corporate restructuring
Transactions such as partial demergers, donations of shareholdings to family members resident in Spain, or the admission of new shareholders can reduce the percentage of the shareholding that we effectively take with us upon departure. These transactions must be carried out for a genuine economic reason and with sufficient time to avoid being challenged by the Spanish Tax Agency (AEAT).
4. Choosing your destination country strategically
If we have flexibility regarding the destination, choosing a country within the EU or the EEA allows us to defer payment for up to 10 years and even have the liability extinguished if we retain the assets without selling them during that period.
5. Apply for a deferral if the move is temporary or work-related
If your situation constitutes a temporary work-related move, formally apply for the deferral in your latest income tax return. If you return before the deadline without having sold the assets, the liability is extinguished.
6. Reclaim the exit tax paid if you return to Spain
If you paid the Spanish exit tax upon leaving and subsequently re-establish your tax residence in Spain without having transferred the assets, you can request a correction to the self-assessment and a refund of the amount paid (overpayment).
Procedure and formal obligations vis-à-vis the AEAT
With regard to when and how it is declared, the capital gain subject to exit tax is attributed to the last tax year in which the taxpayer was resident in Spain. It must be included in the personal income tax return for that financial year by means of a supplementary self-assessment. The regulations allow payment to be made up to one year after the date on which resident status is formally lost.
Required documentation
- Valuation report for the shares (particularly if they are unlisted)
- Proof of new tax residence (certificate of residence from the country of destination)
- Documentation regarding the acquisition cost of the assets
- In the case of an EU deferral: formal notification to the AEAT containing the required details
Guarantees for the deferral
When applying for a deferral (outside the automatic EU scheme), the AEAT may require the provision of guarantees proportional to the deferred amount: bank guarantee, surety bond, mortgage on immovable property, etc.
Frequently asked questions about the exit tax in Spain
To summarise everything discussed regarding the Spanish exit tax, here we answer several of the main questions we are asked at our firm:
☑️ What exactly is the exit tax?
The Spanish exit tax is a tax levied on unrealised capital gains accumulated in company shares or equity interests when a taxpayer transfers their tax residence outside Spain. The law treats this as if a notional sale of those assets had taken place at the time of departure.
☑️ Who has to pay the exit tax in Spain?
Only taxpayers who meet two requirements simultaneously: having been tax residents in Spain for at least 10 of the previous 15 tax years, AND holding shares with a total value exceeding €4,000,000 or a stake of more than 25 per cent in a company valued at over €1,000,000.
☑️ Does the exit tax also apply to property, cryptocurrencies or other assets?
No. The exit tax applies exclusively to shares and holdings in companies. Property, cryptocurrencies, deposits or other assets are not subject to this tax.
☑️ How is the unrealised capital gain calculated?
The formula is: market value on the date of departure minus acquisition cost. Only positive capital gains are taxed; unrealised capital losses are neither taken into account nor offset.
☑️ Can I defer payment of the exit tax if I move to an EU country?
Yes. If you are moving to an EU or EEA Member State with which there is an exchange of information, you can apply to defer payment. If 10 years pass without the holding being sold or your residence changing to a country outside the EU, the debt is written off.
☑️ What happens if I move to Andorra, the United Arab Emirates or any country outside the EU?
Automatic deferral does not apply. For work-related relocations to countries with a double taxation agreement with Spain, a temporary deferral of up to 5 years may be requested. For relocations to tax havens, payment is immediate and unavoidable.
☑️ Can I legally avoid the exit tax?
Yes, under certain circumstances. Strategies such as staying below the asset thresholds, restructuring shareholdings before departure or choosing a destination country within the EU can minimise or defer the impact within the legal framework. It is essential to plan this in advance and seek specialist advice.
☑️ What happens if I return to Spain after having paid the exit tax?
If you return to Spain without having sold the assets for which you paid the exit tax, you can apply to have your self-assessment amended and request a refund of the amount paid. The AEAT will treat this as an overpayment. No interest is refunded, but the principal amount is.
☑️ When must I declare the exit tax to the Tax Agency?
You must include the gain in your personal income tax return for the last tax year in which you were a resident, by means of a supplementary self-assessment. Payment can be made up to one year after you formally lose your Spanish tax residency.
☑️ Does the exit tax also apply to companies?
Yes. Section 19 of the Corporation Tax Act sets out a similar mechanism when a company transfers assets or its registered office outside Spain. For intra-EU transfers, payment in five annual instalments is permitted.
☑️ Do the years spent working under the Beckham Law count towards the exit tax?
No. The tax years in which a taxpayer has been taxed under the special regime for expatriates (the Beckham Law) do not count towards the 10-year requirement.
☑️ What happens if I left Spain years ago without declaring the exit tax?
If you met the requirements at the time but did not declare the exit tax, there is a risk that the AEAT may detect this through the automatic exchange of tax information systems. Voluntary regularisation before any formal demand is issued can significantly reduce penalties. Consult a specialist adviser as soon as possible.
Conclusions
We now know that the exit tax in Spain is a tax measure that can have a very significant impact on the assets of those who decide to move their residence abroad. We have seen that it does not affect the majority of people, but for those who have lived in Spain for many years and hold significant business interests, it can result in a bill of hundreds of thousands of euros that it is wise to plan for.
We must bear in mind that it only applies if we have been an ordinary tax resident in Spain for at least 10 years and exceed the asset thresholds. It is levied exclusively on unrealised capital gains from shareholdings and shares, not on other assets. Nor should we forget that the country to which we move determines whether we pay immediately or can defer payment.
There are legal strategies which, if planned well in advance, can help reduce or defer the impact of the tax.
For any change of tax residence where you need to know how the exit tax applies in such a situation, at Taxmind we specialise in international taxation for expats. Please contact our firm for personalised advice on exit tax.
