Exit tax in Spain (departure tax): when it applies and how to avoid mistakes when changing tax residency

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🏁 Introduction

The so-called exit tax — or departure tax — is a mechanism through which Spain taxes the unrealised capital gains of those who cease to be tax residents in the country.
Its purpose is to prevent taxpayers from transferring their residence to another jurisdiction before selling shares or assets with latent gains, thus avoiding taxation in Spain.

➤ If you are considering changing your tax residency, you may also find useful our article “Tax residency in Andorra: requirements and fiscal advantages”, which explains how effective residency is determined and its legal benefits.

⚖️ Origin and legal basis

The Spanish exit tax was introduced by Law 26/2014, of 27 November, which added Article 95 bis to the Law 35/2006 on Personal Income Tax (IRPF).

❗It entered into force on 1 January 2015 and has since become a permanent part of the Spanish tax system.

Its procedural development is found in Article 121 bis of the Personal Income Tax Regulation (Royal Decree 439/2007), as amended by Royal Decree 633/2015.

This regime draws directly from the case law of the Court of Justice of the European Union (CJEU), particularly the case C-371/10 National Grid Indus (Netherlands, 2011), which upheld the legitimacy of taxing unrealised capital gains provided that payment deferral within the European area is allowed.

It may seem unusual, but taxing gains that have not yet been realised remains, to say the least, surprising.

🧾 When it applies

Article 95 bis establishes that a taxpayer must pay tax on unrealised gains from shares or participations when:

• They transfer their tax residency outside Spain.
• They have been resident in Spain for at least 10 of the previous 15 tax years.
• They meet any of the following wealth thresholds.

💰 Wealth thresholds

The conditions related to wealth are as follows:

• The combined market value of their shares or participations exceeds €4,000,000, or
• They hold a stake greater than 25% in a company whose market value exceeds €1,000,000.

In both cases, it is deemed that the taxpayer has generated an unrealised gain, which must be included in the savings base of the last tax year in which they are considered a Spanish resident.

🧮 How it is calculated

The capital gain is determined as the difference between:

• The market value of the shares or participations at the time of the change of residency, and
• The acquisition value (purchase price or subscription cost).

⚠️ Real estate properties are not included — only shares, participations or equity-related rights in entities.

If the taxpayer holds assets received through inheritance, donation or exchange, the acquisition value will be the one used for the corresponding tax (inheritance, donation or exchange transaction).

🌍 Deferral of payment within the 🇪🇺 EU or EEA

The Spanish system allows taxpayers to defer or postpone payment when the change of residence is made to:

• Another member state of the European Union, or
• A state of the European Economic Area (EEA) with an effective exchange of tax information.

➤ If you’re interested in how the EU also established its own Exit Tax, read the article Exit tax in the European Union: key fiscal insights on company and asset relocation.

🕐 Duration and conditions

The taxpayer may request a deferral of up to 10 years, provided they maintain ownership of the securities.

If during that period the assets are sold, conditions are breached, or residency within the EU/EEA is lost, the tax becomes immediately due.

If the taxpayer returns to Spain before the end of the 10-year period and retains the securities — or remains resident within an EU/EEA country — the tax is extinguished.

These conditions are regulated under Article 121 bis of the Personal Income Tax Regulation, which also requires taxpayers to report annually to the Spanish Tax Agency on the status of their assets and any relevant changes.

🧩 Transfers to countries outside the 🇪🇺 EU or EEA

When the transfer is made to third countries, no automatic deferral applies.
The tax must be self-assessed and paid in the year of the change of residence. This would be the case, for example, of a transfer to Andorra or the United States.

Exceptionally, the taxpayer may apply for a payment deferral, provided they prove that there is no intent of tax avoidance and offer sufficient guarantees as required by the tax authorities.

Unlike the EU/EEA case, this approval is discretionary, not automatic, and requires securing the eventual payment of the tax.

🧾 Special cases

🔸 Temporary transfers

If the transfer is temporary and the taxpayer returns to Spain within five years, they may request a refund of the tax paid, provided that the securities have not been sold.

🔸 Death of the taxpayer

If the taxpayer dies while the deferral is still in place, the tax will not be levied if the securities are included in the inheritance without being sold.

📜 Legal references

This tax is specifically regulated by:

• Law 35/2006, of 28 November, on Personal Income Tax (IRPF) → Art. 95 bis
  (added by Law 26/2014, of 27 November)
• Royal Decree 439/2007, of 30 March, IRPF Regulation → Art. 121 bis
  (amended by RD 633/2015, of 10 July)

These provisions have been interpreted by the Spanish Directorate-General for Taxation, including Binding Consultation V1860-16 (28 April 2016), confirming that a change of residence abroad triggers the exit tax even without any sale of assets.

🌐 Comparison with other European countries

Spain is not alone in this approach: France, Germany, Denmark and the Netherlands have similar regimes, though with different thresholds and deferral periods.

➤ To understand how France applies its own Exit Tax regime, read the article Exit tax in France: rules, thresholds and exemptions.

🧭 Conclusion

The Spanish exit tax aims to prevent the fiscal relocation of large fortunes and ensure taxation of capital gains accrued while the taxpayer was resident in Spain.
Properly planning a change of residency requires analysing not only double tax treaties, but also the implications of Article 95 bis and the deferral options allowed by the regulation.

In this context, if you are considering moving your tax residency — for instance to Andorra or another European country — our team can help you assess the tax implications and design a strategy with full legal certainty. You can request a personalised consultation via our contact form.

Last review: November 2025