How the sale of old shares is taxed this year

THE taxation of the sale of old shares in Spain it depends on the date of acquisition. If they were purchased after 2006, they are reported as general personal income tax capital gains. Those purchased before 1994 or with capital gains realized before 2006, however, can benefit from concessions that reduce the amount to be paid.

Taxation of the sale of old shares

THE sale of shares of personal income tax is considered a capital gain or loss and is included in the savings base. The calculation always starts from the difference between i selling price and the purchase pricetaking into account expenses such as brokerages or commissions.

Now, how they are taxed depends on age of the shares:

• Shares held for less than a year: They are integrated into the general income tax base and can be taxed at higher rates, like any other income.
• Shares held for more than one year: they are included in the savings base, applying fixed rates.
• Shares acquired before 1994 or with capital gains generated before 2006: can benefit from transitional regimes and decreasing coefficients.

THE current sections of the savings base I am:

• 19% for the first €6,000 of profit.
• 21% from €6,000.01 to €50,000.
• 23% from €50,000.01 to €200,000.
• 27% from €200,000.01 to €300,000.
• 28% for more than 300,000 euros.

A simple example: if you buy shares for 1,000 euros and sell them for 3,000 euros (net of expenses), you will have a profit of 2,000 euros and on this amount you will pay 19%.

Taxation of the sale of unlisted shares

The taxation of unlisted shares It also generates capital gains or losses. In this case the transfer value will be that agreed between buyer and seller, but this is what the law provides it cannot be less at certain reference values:

• The theoretical value resulting from the last closed balance sheet.
• Or the result of capitalizing the average profits of the last three years at 20%.

The purchase value will be that established at the time of purchase or that established by current regulations.

This mainly affects shareholdings in family businesses or SMEs not listed on the stock exchangewhere the Treasury wants to avoid sales below real value to reduce taxes.

How to declare the sale of old shares

When we sell shares acquired many years ago, personal income tax rules allow us to apply them reducing coefficients reduce the profit that will be taxed. These benefits apply only to the portion of the profit generated before January 20, 2006. Anything generated after that date is taxed entirely on a savings basis.

The coefficients depend on the type of good transmitted:

Important: These reductions are never applied to capital losses or profits generated after 2006.

Practical example

Let’s imagine an investor who has purchased shares of a company listed in 1992 for 10,000 euros and sold them in 2024 for 40,000 euros. The total profit is 30,000 euros.

1. Profit generated up to January 20, 2006: Suppose it amounts to €18,000.
2. Since the shares were held for more than 4 years before 1996, they apply 3 year reduction (25% x 3 = 75%).
3. Of the €18,000 generated before 2006, only the 25% (€4,500) in the tax base.
4. Profit generated after 2006 (€12,000) will be taxed in full.

In total, the taxpayer will declare €16,500 based on savingsinstead of the full 30,000 euros.

This system allows it lighten the tax burden in long-term operations, rewarding those who have maintained their investments for decades.

Frequently asked questions about the taxation of old shares

What if I inherited old shares?

When inheriting shares, the acquisition date that is taken as reference is that of the deceased person. This means that if the original owner purchased them before 1994 or realized capital gains before 2006, the reduction coefficients can also be applied to the corresponding part.

How are shares purchased on different dates taxed (FIFO method)?

If you bought shares in the same company at different times and only sell part of them, the Treasury understands that the first ones you sell are always the oldest. This is what is called a method FIFO (first in, first out). Therefore, if you own shares from 1990 and 2010, at the time of sale the 1990 shares are considered transferred first.

Are coefficients applied to unlisted securities?

Yes, reduction coefficients can also be applied to unlisted shares or company shares. In this case, the corresponding reduction is 14.28% for each year of stay until 31 December 1996. As with listed stocks, only the share of profits generated before 2006 is of interest.

These rules may seem complex at first, but once you understand the key dates (1994 and 2006) and how the coefficients work, everything becomes simpler. The same thing happens in the markets: interpreting graphs and trends is easier with adequate training, like the one we offer in our technical analysis course.

THE taxation of old shares It largely depends on the date of purchase. While those acquired after 2006 are taxed as any capital gains, those purchased before 1994 can benefit from reducing coefficients which reduce the tax burden.

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