Exit tax

Last updated: 2026-05-16

Exit tax is the tax on unrealized capital gains when a Spanish tax resident loses Spanish residency. Regulated in Art. 95 bis LIRPF since 2015.

When it applies:

• If you've been a Spanish tax resident at least 10 of the last 15 years.
• And the aggregate value of your stock/equity portfolio exceeds €4 million (or >25% participation with value >€1M).

How it works:

• "Fictitious" (unrealized) capital gains are taxed at 23-28% as if you'd sold everything the day before losing residency.
• You can request 5-year deferral (10 years if moving to another EU/EEA state with treaty).

Who's exempt:

• Those with <€4M in equity.
• If you return to Spain as resident within 5 years (refund of paid tax).

It's why many Spanish founders with startups sell or restructure BEFORE moving to Andorra/UAE/Portugal.

Official sources:

• Art. 95 bis LIRPF — Law 35/2006 on Personal Income Tax (BOE-A-2006-20764).
• Royal Decree 439/2007, IRPF Regulation — implementation of exit tax deferral and guarantees.
• Council Directive (EU) 2016/1164 (ATAD) — EU framework on exit taxation for legal entities.