Selling a property in Spain does have some tax implications. One of them is personal income tax (IRPF) but here are some cases where you could be exempt from paying this to the Tax Agency (Hacienda):
Exemption from paying personal income tax for people over 65 years of age
Those sellers over 65 years of age do not have to pay personal income tax for the sale of their permanent home. They must have lived in the property for more than 3 years. (This can be proven by obtaining an historical padron from your town hall). If the house they sell is a second home, they will still be liable for taxes on it.
Exemption from paying personal income tax for reinvestment in a habitual residence (permanent home).
If you have sold your permanent home and use the money to buy a new property in Spain then you could be free of paying IRPF. To do this, you must meet the following requirements:
• The home you are selling must be your permanent home and you must have lived in it for at least three years continuously.
• You must make the reinvestment within two years.
• The new property you purchase must also be your permanent home. To prove this, you must live in it within twelve months of the purchase.
• For the reinvestment to be for the total tax amount, you must allocate all the money from the sale (taking into account the expenses) for the purchase of the new property. If you don’t reinvest the total amount then you will only get a partial refund.
Exemption from paying personal income tax for surrendering the property as payment for a debt
If you have to surrender your home because you have not been able to meet the mortgage payment, you can also enjoy the exemption, however it is necessary to prove that you do not own any other property whose value is sufficient to pay the entire Debt.