Spain property tax for foreigners: on the way in, every year, on the rent, on the way out.

What taxes do you pay when buying property in Spain?

A resale from a private seller pays Impuesto sobre Transmisiones Patrimoniales (ITP), set by each region, with a 6% state fallback. A new build from a developer pays 10% VAT instead, plus regional stamp duty (AJD) on the deed. ITP is charged on the higher of the price and the Catastro reference value.

Regional rates, from each region's consolidated law: Andalucía 7%; Comunitat Valenciana 9% (11% where the value exceeds EUR 1,000,000); Catalonia 10% up to EUR 600,000 rising to 13%; Illes Balears 8% to 13% on a sliding scale. Full table: Spain property buying costs.

What is the annual property tax in Spain?

Impuesto sobre Bienes Inmuebles (IBI), a municipal tax on the cadastral value. For urban property the minimum and default rate is 0.4% and the maximum 1.10%, before specific increases councils may add. Each council sets its own rate within that band.

Councils may add a surcharge of up to 50% of the IBI bill on homes permanently empty for over two years owned by holders of four or more residential properties, rising to 100% after three years.

Do non-residents pay tax on an empty Spanish home?

Yes. A non-resident individual who keeps the property empty or for own use pays non-resident income tax (IRNR) on imputed income of 1.1% or 2% of the cadastral value. It is taxed at 19% for EU/EEA residents or 24% for others, accrues on 31 December and is declared on Modelo 210.

The 1.1% rate applies where the municipality's cadastral values were collectively revised and in force from 1 January 2012 onwards; otherwise 2%. No expenses are deductible, and the charge is pro-rated by days owned and days let.

Scale example: a unit with a EUR 100,000 cadastral value at 1.1% gives EUR 1,100 of imputed income, or EUR 264 of tax at 24%.

How is rental income taxed for a non-resident in Spain?

Under IRNR on Modelo 210, at 19% for residents of the EU, Iceland and Norway and 24% for others. Residents of EU/EEA states with effective tax-information exchange may deduct expenses directly related to the income. Under AEAT guidance, other non-residents are taxed on the gross rent.

The 24% rate has applied to non-EU taxpayers since 11 July 2021. Whether non-EU owners can deduct expenses under a tax treaty's non-discrimination clause has been argued in the courts; AEAT's published guidance still says gross rent, so budget on that basis.

What is capital gains tax on Spanish property for non-residents?

19%, for all non-residents, EU and non-EU. The gain is the sale value net of the seller's costs, minus the acquisition value including improvements and purchase costs and taxes. The buyer withholds 3% of the price as a payment on account, and the seller settles on Modelo 210.

The municipal plusvalía tax (IIVTNU) is due separately on a sale. It taxes the increase in value of the urban land, at a rate each municipality sets up to a maximum of 30%. EU/EEA residents selling their habitual residence may be exempt on a full reinvestment in a new habitual residence; that does not apply to a holiday or investment property. Step by step: selling property in Spain.

Do foreigners pay wealth tax on Spanish property?

Possibly. Non-resident individuals are taxed on assets situated in Spain, with a EUR 700,000 exempt amount that also applies to them and a state scale of 0.2% to 3.5%. The tax point is 31 December. Non-residents may apply the regional rules of the region where most of their Spanish assets sit.

A separate solidarity tax on large fortunes applies to net wealth above EUR 3,000,000, with regional wealth tax paid deductible. It was created as temporary and is extended pending a reform of regional financing. Non-residents outside the EU must appoint a representative resident in Spain for it. Do not estimate either without the regional rules.

Header photo: Gerda Arendt, CC0, via Wikimedia Commons. All credits: image credits.