Selling a Yacht in Spain: Tax on Capital Gains and Transfer

Tax on the Sale of a Yacht: The Basics

When a yacht is sold, the seller faces a potential tax on any capital gain realised, while the buyer faces transfer tax (ITP) on the purchase of the used vessel. The applicable tax rules differ significantly depending on whether the seller is a Spanish tax resident or a non-resident, and whether the vessel is held personally or through a company.

Unlike the sale of real estate in Spain — where the buyer must withhold 3% of the purchase price on behalf of a non-resident seller — there is no equivalent buyer withholding obligation for yacht sales. The non-resident seller bears the sole responsibility for declaring and paying any IRNR due on the gain.

Capital Gains for Spanish Tax Residents

For a Spanish tax resident selling a yacht held personally, the capital gain is included in the base imponible del ahorro (savings income tax base) and taxed at the savings-income progressive rates. These rates for 2026 are:

• 19% on the first €6,000 of gain
• 21% on gain between €6,000 and €50,000
• 23% on gain between €50,000 and €200,000
• 27% on gain between €200,000 and €300,000
• 28% on gain above €300,000

The capital gain is calculated as: Sale price − Acquisition cost. There is no indexation relief or holding-period reduction for yachts in Spain — the full nominal gain is taxed, regardless of how long the vessel has been held. This is an important distinction from the treatment of real estate, where some historical reductions applied (though these have largely been phased out).

Calculating the Acquisition Cost

The acquisition cost for capital gains purposes is the vessel's purchase price plus all costs incurred on acquisition and those that cannot otherwise be deducted. For a personally held vessel, the following are included in the acquisition cost:

• The original purchase price (the amount paid to the seller)
• IVA paid on the purchase (where IVA was not recovered as input tax — i.e., for personal ownership)
• ITP paid on a used vessel purchase
• Matriculation tax paid at the time of registration
• Notary fees and maritime registry fees paid on acquisition
• Capital improvements: Expenditures that materially increase the vessel's value or extend its useful life — a significant refit, a new engine, major structural work — can be added to the acquisition cost. Routine maintenance cannot.

For a vessel held through a VAT-registered company that recovered the IVA on purchase, the IVA is not included in the acquisition cost (since it was reclaimed). The company's depreciation charges reduce the vessel's book value, and the capital gain for IS purposes is calculated against the depreciated book value rather than the original acquisition cost.

Capital Gains for Non-Residents

A non-resident who sells a yacht that was sited in Spain (or that generates a Spain-source gain) is subject to the Impuesto sobre la Renta de No Residentes (IRNR) on any capital gain. The applicable rate depends on the seller's tax residency:

• 19% for individuals tax resident in another EU or EEA member state
• 24% for individuals tax resident outside the EU/EEA (including the USA, UK post-Brexit, Switzerland, and most non-European countries)

The IRNR is declared on Modelo 210, which must be filed and the tax paid within one month of the date of the sale. Failure to file and pay within this period results in late-payment surcharges (ranging from 5% to 20% depending on the delay) and interest at the legal rate.

Unlike the position for real estate, there is no 3% buyer withholding obligation for yacht sales in Spain. The non-resident seller is solely responsible for self-declaring and paying the IRNR. Some buyers and their lawyers may nonetheless seek contractual protections — such as a portion of the price being held in escrow until the seller provides evidence of IRNR compliance — but this is not legally required.

ITP on the Buyer's Purchase of a Used Vessel

While the seller deals with capital gains tax, the buyer of a used vessel purchased from a private individual pays Impuesto sobre Transmisiones Patrimoniales (ITP) on the transaction. ITP is a cost to the buyer, not the seller — the two taxes arise from the same transaction but on different parties.

The ITP rate is set by the autonomous community where the purchase is formalised: 4% in Andalucía, up to 10% in Cataluña. The buyer must file and pay ITP within 30 days of the purchase date. If the declared sale price is below the fiscal reference value maintained by the autonomous community, the tax authority will reassess the ITP on the reference value.

Selling Through a Company vs Personally

Personal sale

The seller pays IRPF savings-income tax (19–28%) on any gain. No VAT is charged on the sale to the buyer (ITP applies instead). The sale is relatively simple: a private sale contract, cancellation of any existing maritime registration, and a capital gains declaration in the annual IRPF return (Modelo 100).

Sale by a company

The company pays Impuesto sobre Sociedades (IS) at 25% on the gain (calculated as the sale price minus the vessel's depreciated book value). If the company is VAT-registered and the vessel was used in its commercial activities, IVA at 21% may apply to the sale of the vessel (as a business asset disposal), rather than ITP — the buyer's tax treatment differs accordingly. The company's shareholders then face a further tax on dividend distributions of the after-tax proceeds. The combined effective tax rate (IS + dividend tax) is typically higher than the personal capital gains rate, which is one reason why long-term yacht-holding companies are often dissolved before a sale.

Practical Capital Gains Examples

Illustrative only. Gain is sale price minus full acquisition cost (including taxes paid on purchase). IRPF savings rate is approximate based on the gain bands. Specific circumstances must be analysed individually.

Planning Before the Sale

Several planning opportunities exist for sellers who have flexibility before the sale:

• Timing relative to tax residency: Spanish residents pay 19–28% on gains. A seller who is about to cease Spanish residency should consider whether completing the sale before or after the change of residency produces a better combined Spanish/new country of residence tax outcome.
• Documenting all capital improvements: Every documented improvement that can legitimately be added to the acquisition cost reduces the taxable gain. Before a sale, review the vessel's maintenance history and ensure all genuine capital improvements have supporting documentation.
• Offsetting losses: If the seller has other capital losses from the same tax year (on shares, investment funds, or other movable assets), these can offset the yacht gain in the savings income base. Timing the sale to coincide with a year in which other losses are available can reduce the overall tax cost.
• Residency planning: For very large gains, the difference between a 28% Spanish IRPF savings rate and a 0% capital gains rate in certain jurisdictions can be material. However, genuine residency changes require a real change of tax domicile — artificial or paper residency changes are robustly challenged by the AEAT.

Documenting the Sale Properly

A properly documented yacht sale should include: a written sale and purchase agreement with the full identities of buyer and seller, the vessel's description, and the agreed price; evidence of completion of any due diligence obligations; a receipt for the purchase price; a bill of sale or equivalent transfer document; and the deregistration of the vessel from the seller's name and its re-registration in the buyer's name with the relevant maritime authority. The seller should retain copies of all purchase documentation and capital improvement receipts indefinitely, as the AEAT can raise enquiries on capital gains many years after the event.