If you own property in Spain and are not a tax resident, you are required to pay taxes. Even if you don't rent it out. Even if you never visit. Ignorance does not exempt you from penalties.
This guide covers all taxes: at purchase, annual, on rental income, on sale, and on inheritance. With rates, forms, and deadlines.
Purchase Taxes — Quick Reminder
Full details in our guide "Costs of Buying Property in Spain." Key figures:
| Tax | Resale | New build |
|---|---|---|
| ITP (transfer tax) | 10% (Valencia, Murcia, Andalusia) | — |
| VAT (IVA) | — | 10% |
| Stamp duty (AJD) | — | 1.5% |
| Notary, registry, lawyer | ~2–3% | ~2–3% |
| Total above price | ~12–13% | ~13–14% |
Annual Taxes
Each year you pay three things: local tax (IBI), non-resident income tax (IRNR), and possibly wealth tax.
IBI — Impuesto sobre Bienes Inmuebles
Local municipal tax, equivalent to property tax. Paid by all owners — residents and non-residents.
| Parameter | Value |
|---|---|
| Rate | 0.4–1.1% of cadastral value (valor catastral) |
| Set by | Municipality (Ayuntamiento) |
| When to pay | Once a year, usually September–November |
| How to pay | Direct debit (domiciliación) or at bank |
The cadastral value is not the market price. It is typically much lower — 30% to 70% of market value. It appears on your IBI bill.
Example: apartment with cadastral value €80,000, IBI rate 0.6% = €480/year.
Non-Resident Income Tax — IRNR (Modelo 210)
This is the main tax people forget. Even if you don't rent your property, Spain considers you to receive "imputed income" (renta imputada) from ownership.
If NOT rented:
| Parameter | Value |
|---|---|
| Taxable base | 1.1% of cadastral value (if revised in the last 10 years) or 2% (if not revised) |
| Rate (EU/EEA residents) | 19% |
| Rate (non-EU residents) | 24% |
| Form | Modelo 210 |
| Filing deadline | By December 31 of the following year |
Example: cadastral value €100,000, revised. Imputed income: €100,000 × 1.1% = €1,100. Tax (EU): €1,100 × 19% = €209/year. Tax (non-EU): €1,100 × 24% = €264/year.
If rented:
| Parameter | EU/EEA residents | Non-EU residents |
|---|---|---|
| Rate | 19% on net income | 24% on gross income |
| Expense deductions | Yes (mortgage, IBI, insurance, repairs, community fees, depreciation) | No |
| Form | Modelo 210 | Modelo 210 |
| Filing deadline | Annually by December 31 (since 2024 — annual instead of quarterly) |
- EU resident: (€12,000 − €5,000) × 19% = €1,330
- Non-EU resident: €12,000 × 24% = €2,880
The difference is substantial. For non-EU citizens, deductions are not available — this is one of the most unfavourable aspects of Spain's non-resident tax regime.
Important: If the property is rented part of the year and empty the rest, you must file two Modelo 210 declarations: one for rental income and one for imputed income for the vacant period.
Wealth Tax — Impuesto sobre el Patrimonio
| Parameter | Value |
|---|---|
| Threshold | €700,000 net assets in Spain (for non-residents — Spanish assets only) |
| Rates | Progressive: 0.2% – 3.5% |
| Who pays | Owners of property worth over €700,000 |
| Form | Modelo 714 |
| Deadline | June (same as income tax) |
For most Costa Blanca buyers with properties under €500,000, this tax does not apply. Relevant for owners of premium villas and property portfolios.
Rental Taxes — Details
Tourist Licence
Since July 2025, all short-term rental operators must register in the national registry and obtain a Número de Registro de Alquiler (NRA). Without an NRA, listings on Booking, Airbnb, and Vrbo are removed. From February 2026, owners must submit an annual rental activity declaration.
Regional rules vary: the Valencian Community requires a separate licencia turística; Andalusia and Murcia have their own procedures. Fines for unlicensed rentals start from €30,000.
Deductible Expenses (EU/EEA residents only)
- Mortgage interest (proportional to rental period)
- IBI (proportional)
- Community fees (comunidad de propietarios)
- Home insurance
- Repairs and maintenance
- Depreciation (3% of construction value, excluding land)
- Legal and management costs
- Advertising costs for rental
Taxes on Sale
Capital Gains Tax
| Parameter | Value |
|---|---|
| Rate for non-residents | 19% on profit |
| Profit | Sale price − purchase price − purchase/sale costs − improvement costs |
| Form | Modelo 210 |
| Deadline | Within 4 months of the sale |
3% Withholding — Modelo 211
When a non-resident sells property, the buyer must withhold 3% of the sale price and pay it to the tax authority (Modelo 211). This is an advance on Capital Gains Tax.
If the actual tax is less than 3%, the seller can request a refund via Modelo 210. If more, the seller pays the difference.
Example: bought for €200,000, sold for €300,000. Profit: €100,000. Tax: €100,000 × 19% = €19,000. Buyer withheld 3% of €300,000 = €9,000. Seller pays additional €10,000.
Plusvalía Municipal
Municipal tax on the increase in land value. Paid by the seller. Calculated by the municipality based on cadastral land value and length of ownership. Two calculation methods — real and objective; the lower amount applies.
Inheritance Tax — Impuesto sobre Sucesiones
Spain's inheritance tax is one of the most complex in Europe. Progressive rates: from 7.65% to 34%, with multipliers depending on the degree of kinship and estate value.
Key points:
- Tax is paid by the heir, not the estate.
- For non-resident heirs, the rules of the autonomous community where the property is located apply (following the CJEU 2014 ruling and subsequent reforms).
- The Valencian Community, Andalusia, and Murcia offer significant regional allowances (bonificaciones up to 99% for direct relatives).
- Filing deadline: 6 months from date of death (extendable).
Tip: Planning inheritance of Spanish property requires consultation with a lawyer specialising in international succession law.
Summary Table of All Taxes
| Tax | Rate | When | Form |
|---|---|---|---|
| IBI (local) | 0.4–1.1% of cadastral | Annually (autumn) | Ayuntamiento bill |
| IRNR — imputed income | 19% or 24% of 1.1–2% cadastral | By Dec 31 (for prev. year) | Modelo 210 |
| IRNR — rental | 19% (EU, net) / 24% (non-EU, gross) | Annually by Dec 31 | Modelo 210 |
| Wealth tax | 0.2–3.5% (>€700K) | June | Modelo 714 |
| Capital Gains (sale) | 19% on profit | 4 months after sale | Modelo 210 |
| 3% withholding (buyer) | 3% of price | 1 month after sale | Modelo 211 |
| Plusvalía Municipal | Depends on municipality | 30 days after sale | Municipality |
| Inheritance | 7.65–34% (with allowances) | 6 months from death | Modelo 650 |
Filing — DIY or Through a Gestoría
DIY: Possible through the Agencia Tributaria website (sede.agenciatributaria.gob.es). You need a digital certificate or Cl@ve PIN. Interface in Spanish. Suitable for simple cases (one property, no rental).
Through a gestoría / tax advisor: Recommended if renting, owning multiple properties, or having a mortgage. Cost: €50–€150 per Modelo 210 filing; €200–€500 for full annual service. A gestoría can also act as your fiscal representative in Spain.
Tip: Since 2024, non-residents can pay taxes via direct debit from a SEPA (EU) bank account — a Spanish bank account is no longer required for payment.
Common Mistakes
"I don't rent — so I don't pay." Wrong. Imputed income (renta imputada) is taxed annually, even if the property sits empty.
"I paid IBI — that's it." IBI is a local tax. IRNR (Modelo 210) is a national tax. These are two different taxes, two different authorities.
"I'm from the UK, so I'm EU." Since Brexit, British citizens are considered non-EU residents. Rate: 24%, no rental deductions. This significantly increases the tax burden.
"I forgot to file for previous years — no big deal." Penalties + interest + surcharges apply. You can voluntarily regularise the last 4 years (with reduced consequences), but it is better not to let this happen.
"The buyer pays tax on sale." No. Capital Gains is paid by the seller. The buyer only withholds 3% as an advance.
