Spanish Property Taxes for Foreign Owners: A Clear Guide

Buying property in Spain is an exciting step, but it comes with specific tax obligations. These obligations vary significantly depending on whether you are a tax resident or non-resident.

This guide explains which taxes apply, when they are paid, and what to expect, so you can own property in Spain with confidence and peace of mind.

1. Foreign Owners Who Are NOT Tax Residents in Spain

You are considered a non-resident taxpayer if:

• You spend fewer than 183 days per year in Spain, and
• Your main economic interests are not based in Spain

Taxes Applicable to Non-Residents

Non-Resident Income Tax (IRNR)

This tax applies to income generated in Spain, including income that is imputed simply for owning a property.

• Deemed (Imputed) Income – Personal Use:
  Even if the property is not rented, an annual tax applies based on the cadastral value.
• Rental Income:
  If the property is rented, tax applies to the net rental income earned.

Tax rates: 19% for EU/EEA residents · 24% for non-EU residents

Filing deadline:
Model 210 — annually for deemed income, quarterly for rental income

Local Property Tax (IBI)

A mandatory annual tax charged by the local town hall on property ownership.

Typical rate: 0.4% – 1.1% of the cadastral value
Payment period: Usually between August and November (varies by municipality)

Wealth Tax (Impuesto sobre el Patrimonio)

Applies to the net value of assets located in Spain.

Exemption: Up to €700,000 in most regions
Filing period: April to June of the following year

2. Foreign Owners Who ARE Tax Residents in Spain

You are considered a Spanish tax resident if you spend more than 183 days per year in Spain or if your main economic interests are located here.

Taxes Applicable to Residents

Personal Income Tax (IRPF)

Residents are taxed on their worldwide income, including employment income, pensions, savings, and rental income from any country.

Filing period: April to June of the following year

Local Property Tax (IBI)

The same annual municipal tax that applies to all property owners.

Wealth Tax (IP)

Residents are taxed on worldwide assets.

Common exemptions:
€700,000 general exemption + €300,000 for the main residence

Declaration of Assets Abroad (Modelo 720)

An information-only declaration (not a payment) for foreign assets exceeding €50,000.

Filing period: January 1st to March 31st

Taxes When Selling a Property in Spain

Capital Gains Tax

Tax on the profit obtained from the sale of the property.

Rate: Progressive, starting at 19%
Non-resident rule: The buyer withholds 3% of the sale price as an advance payment

Municipal Capital Gains Tax (Plusvalía Municipal)

A local tax based on the increase in the cadastral land value during the ownership period.

Responsible party: The seller