Exit Tax in Spain: What Happens When You Leave

Exit Tax in Spain: What Happens When You Leave

Planning to leave Spain? The exit tax (impuesto de salida) might take a bigger bite than you expect. Here's what you need to know before packing your bags.

Who It Affects

If you've been a Spanish tax resident and hold shares worth over €4 million (or own 25%+ of a company worth over €1 million), Spain can tax the unrealized capital gains when you leave. The rate? Up to 28%.

How to Minimize the Impact

Moving to another EU/EEA country gives you deferral options. Proper planning — ideally 1-2 years before the move — can significantly reduce or eliminate the tax. Cyprus, as an EU member, qualifies for the deferral.

Detailed analysis at Cyprus Tax Life. Considering Cyprus? See the Spain to Cyprus relocation guide.

Originally published at Cyprus Tax Life — Your complete guide to taxes, residency & expat life in Cyprus.

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