Knowledge pillar
Property taxes in Spain for foreign owners
Foreign property owners in Spain pay one-off purchase taxes (ITP or IVA + AJD), annual taxes (IBI, IRNR, possibly wealth tax), and on sale (capital gains plus plusvalía). Non-EU owners pay higher IRNR (24% vs 19%) and have narrower deductions than EU/EEA owners.
Taxes at purchase
On purchase you pay either ITP (resale, 6–10% depending on region) or IVA + AJD (new build, 10% + 0.75–1.5%). Both are paid by the buyer. Plus notary, registry and (usually) independent legal fees.
Annual taxes you owe even if you don't rent
Every year, as a non-resident owner, you owe:
- •IBI (municipal property tax) — 0.4–1.1% of cadastral value
- •IRNR via Modelo 210 — imputed income tax on a second home, even if vacant (19% EU/EEA, 24% non-EU on 1.1–2% of cadastral value)
- •Basura (waste collection)
- •Comunidad (community fees, for apartments and gated developments)
Tax on rental income
If you let your property, rental income is taxed via Modelo 210 quarterly. EU/EEA residents pay 19% on net income (with deductions for mortgage interest, IBI, comunidad, repairs, depreciation, agent fees). Non-EU residents pay 24% on gross income with no deductions.
Wealth tax (Patrimonio) and Solidarity Tax
Wealth tax applies to non-residents on Spanish-located assets above a regional threshold (typically 700,000€, with the main home additionally exempt for residents). Rates: 0.2–3.5%. The state Solidarity Tax (Impuesto Temporal de Solidaridad) applies above 3M€ net wealth, complementing or replacing regional wealth tax.
Taxes on sale
On sale, the seller pays capital gains tax (19% for EU/EEA non-residents, 24% non-EU) on the gain, and plusvalía municipal on the land-value increase. The buyer withholds 3% of the sale price and pays it to Hacienda as an advance on the seller's CGT (Modelo 211).
Spanish gestor — when you need one
Non-resident owners almost always benefit from a Spanish gestor or tax adviser for annual IRNR filings, IBI direct debits and rental-income returns. Fees range from 100–400€ per year for a single-property owner.
Frequently asked questions
Do non-residents pay tax on a Spanish property they don't rent out?
Yes. Non-resident owners owe annual IRNR (Modelo 210) based on the imputed income of a second home, even if it sits empty. The taxable base is 1.1–2% of cadastral value, taxed at 19% (EU/EEA) or 24% (non-EU).
What is the tax rate on rental income in Spain for non-residents?
EU/EEA non-residents pay 19% on net rental income (with deductions). Non-EU non-residents pay 24% on gross income with no deductions, which makes net yields meaningfully lower.
Do foreigners pay wealth tax in Spain?
Yes — non-residents pay wealth tax on Spanish-located assets above the regional threshold (typically 700,000€). The state Solidarity Tax applies on top above 3M€ net wealth.