Spain Property Taxes for Foreign Buyers — Complete Guide 2026

Taxation is one of the areas where Spanish property law catches international buyers off guard. The regime is layered: there are taxes on acquisition, taxes on annual ownership, taxes on rental income (whether or not you actually receive rent), and taxes on eventual disposal. Non-residents face a distinct set of obligations from Spanish residents.

This guide sets out each tax clearly, with current rates as of June 2026. It does not constitute tax advice. Given the complexity of Spain's regional tax variations and the interaction with your home-country tax obligations, you should always appoint a qualified independent Spanish tax adviser before purchasing.

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Taxes on Acquisition

Resale Properties: Impuesto de Transmisiones Patrimoniales (ITP)

When you purchase a resale property — one sold by a private individual who is not a VAT-registered developer — you pay Impuesto de Transmisiones Patrimoniales, commonly known as ITP or transfer tax.

ITP is administered at the level of Spain's autonomous communities, meaning the rate depends on where the property is located:

Autonomous Community	Standard ITP Rate (as of 2026)
Andalucía (incl. Costa del Sol)	7%
Valencia (incl. Costa Blanca, Valencia city)	10%
Catalonia (incl. Barcelona, Costa Brava)	10%
Madrid	6%
Balearic Islands	8–11% (banded by price)
Murcia	8%

Rates and bandings are subject to change by regional governments. Confirm the current rate with your lawyer at the time of purchase. ITP is payable within 30 days of notarial completion.

New-Build Properties: IVA and AJD

When you purchase a new-build property from a developer for the first time, ITP does not apply. Instead, you pay:

• IVA (Impuesto sobre el Valor Añadido): Spain's equivalent of VAT, charged at 10% on residential new-build properties (4% applies to subsidised social housing — viviendas de protección oficial — which is unlikely to be relevant to most international investors).
• AJD (Actos Jurídicos Documentados): Stamp duty on the notarised deed, charged at 0.5–1.5% of the purchase price, depending on the autonomous community.

IVA and ITP are mutually exclusive. You pay one or the other, not both, depending on whether the property is new-build or resale.

Notary, Registry and Professional Fees

In addition to the above taxes, budget approximately:

• Notary fees: around 0.3–0.5% of the declared price
• Land registry inscription fees: around 0.2–0.4%
• Lawyer / gestoría fees: typically 1–1.5% or a fixed agreed fee

Total acquisition costs — taxes plus fees — typically amount to 10–14% of the purchase price. See our step-by-step guide to buying property in Spain for more detail on the purchase process.

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Annual Ownership Taxes

IBI — Impuesto sobre Bienes Inmuebles

IBI is the annual local property tax, broadly equivalent to council tax in the UK. It is levied by the local municipality and is calculated as a percentage of the property's cadastral value (valor catastral) — a tax-assessed value that is generally lower than the market value, sometimes substantially so.

Rates vary by municipality but typically fall in the range of 0.4–1.1% of the cadastral value. IBI bills are issued once per year, usually in the summer or autumn, and can normally be set up as a direct debit from your Spanish bank account.

All property owners — resident and non-resident alike — are liable for IBI. It is usually a modest charge relative to market value but should be factored into your annual cost of ownership.

Garbage Collection Tax (Tasa de Basuras)

Most municipalities also levy a separate annual charge for refuse collection. This is typically a small flat fee and is usually billed alongside IBI or separately by the local council.

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Non-Resident Income Tax (IRNR)

Non-residents who own Spanish property are liable for the Impuesto sobre la Renta de No Residentes (IRNR), Spain's non-resident income tax. Two scenarios apply depending on whether the property is rented out or left empty.

Imputed Income Tax on Empty or Owner-Occupied Properties

If you own a Spanish property that is not your main residence and is not rented out to third parties, you are still required to file an annual IRNR declaration and pay tax on a notional "imputed" income. This is one of the most commonly overlooked obligations among overseas buyers.

The imputed income is calculated as follows:

• 2% of the property's cadastral value (or 1.1% if the cadastral value has been revised within the last ten tax years)

This imputed income figure is then taxed at:

• 19% for residents of EU and EEA member states
• 24% for residents of all other countries

For example, a property with a cadastral value of €150,000 (revised within ten years) would generate an imputed income of €1,650 (1.1%), on which an EU resident would pay €313.50 in tax. The filing deadline is 31 December of the year following the tax year in question.

Your gestoría or tax adviser can file this return on your behalf.

Rental Income Tax

If you rent your Spanish property — whether on a long-term or short-term holiday basis — rental income is taxable in Spain under the IRNR regime.

EU and EEA residents may deduct allowable expenses (mortgage interest, management fees, repairs, agency fees, insurance, IBI, and so on) from gross rental income. Net income is taxed at 19%.

Non-EU residents are taxed on gross rental income at 24%, with no allowable deductions permitted under current Spanish law. This represents a materially higher effective rate and is a significant consideration for non-EU investors.

Rental income must be declared quarterly (January, April, July and October) using Form 210. Short-term holiday lets must also be registered with the regional tourist authority and comply with applicable licensing rules; operating without a licence carries significant penalties.

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Wealth Tax (Impuesto sobre el Patrimonio)

Spain levies an annual wealth tax on the net value of Spanish assets held by non-residents. Key parameters as of 2026:

• Individual allowance: €700,000 per person (note: the additional €300,000 reduction for the main residence applies to residents only and is not available to non-residents)
• Taxable base: Net value of Spanish assets above the threshold — for property, this is the higher of the cadastral value, the purchase price or the tax authority's assessed value
• Rates: Progressive, ranging from 0.2% to 3.5% at the national level, with autonomous communities able to set their own scales (Andalucía and Madrid have in past years offered 100% bonifications — effectively zero wealth tax — but these regional policies are subject to change)
• Filing: Annually via Form 714

Non-residents must obtain an NIE and file directly or through a fiscal representative.

Solidarity Tax on Large Fortunes (Impuesto de Solidaridad de las Grandes Fortunas)

Introduced at the national level, the Solidarity Tax on Large Fortunes applies to individuals with net wealth above €3 million globally (not limited to Spanish assets for residents; for non-residents, Spanish assets are the relevant base). The rates are:

• 1.7% on the tranche between €3m and €5m
• 2.1% on the tranche between €5m and €10m
• 3.5% above €10m

This tax operates as a floor — any wealth tax already paid at the regional level is credited against it. Where a regional government has set a very low or zero wealth tax rate, the Solidarity Tax effectively fills the gap at the national level for qualifying individuals.

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Plusvalía Municipal

The plusvalía municipal (officially, Impuesto sobre el Incremento del Valor de los Terrenos de Naturaleza Urbana — IIVTNU) is a local tax levied by the municipality on the notional increase in the cadastral land value over the period of ownership. It is payable on the sale, inheritance or gift of urban property.

Historically paid by the seller in a standard sale, the cost allocation can sometimes be negotiated — always confirm this in your arras contract. The amount depends on the cadastral land value, the applicable coefficient (which varies by municipality and holding period) and the local tax rate.

Following a Constitutional Court ruling in 2021, sellers who can demonstrate that no actual land value increase has occurred are entitled to challenge the assessment. Your lawyer or gestoría can advise on this if relevant.

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Capital Gains Tax on Disposal (CGT)

When you sell Spanish property as a non-resident, the gain is subject to Spanish capital gains tax.

Rate: 19% on the net gain for non-residents. The net gain is calculated as the sale price less the original purchase price plus acquisition costs (ITP or IVA, notary fees, registry fees and professional fees), less any capital expenditure properly documented and less selling costs (agency fees, lawyer's fees).

3% Retention at Source: The buyer of Spanish property from a non-resident is legally required to withhold 3% of the purchase price and remit it to the Agencia Tributaria on the seller's account within 30 days of completion, using Form 211. This is an advance payment against the seller's CGT liability. The seller then files a return (Form 210) within four months of completion; if the actual CGT liability is less than the 3% already retained, a refund is due. If it is more, the balance is payable.

Reinvestment exemption: Spanish residents over 65 are exempt from CGT on the sale of their main residence. This exemption does not apply to non-residents.

Double Taxation Treaties: Spain has double taxation treaties with a large number of countries. These treaties determine how CGT is allocated between Spain and your country of residence and may provide relief against double taxation. The specific treaty provisions applicable to you depend on your residence and must be assessed by a qualified adviser.

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Related Guides

• How to buy property in Spain
• Spain residency options after the Golden Visa
• Spain property investment overview
• Browse current Spain listings

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How Global Investments Can Help

Navigating Spain's overlapping national, regional and local tax obligations requires specialist knowledge — particularly for non-residents whose home-country tax position must also be considered alongside Spanish liabilities. Global Investments maintains relationships with independent Spanish tax advisers across the major markets and can introduce you to professionals with specific experience of advising international property investors. We recommend taking formal tax advice before exchanging contracts on any Spanish property, as the tax structure of your acquisition can have a material effect on your net return.