Property taxes in Spain

An owner of property in Spain pays the local IBI tax every year, at between 0.4% and 1.1% of the cadastral value, and a non-resident also pays a tax on imputed income, even if the flat is not let. On a sale, a foreigner pays 19% on the profit, and the buyer withholds 3% of the price and pays it to the tax authority. The wealth tax applies to net assets of €700,000 or more, and the rate of inheritance tax depends on the region. How much tax is due depends on the region, the country of residence and how long the property has been held, so the article sets the taxes out by stage: ownership, inheritance and sale. The figures are as of October 2026.

Inheritance tax is covered in more detail in the article on inheriting property in Spain. How to make money from reselling is described in the article on reselling property.

Local taxes and charges depend on the municipality where the property is. They can differ between autonomous communities: rates are set by both regional and local authorities.

This is the main local tax, which the owner pays to the municipality every year. It is calculated on the property's cadastral value, that is, the official value recorded in the cadastre. The law on local finances sets limits on the rates.

A municipality may raise the maximum rate for urban property with surcharges:

For a flat bought for €200,000 with a cadastral value of €100,000, at a rate of 0.6% the tax is €600 a year.

The law allows additional surcharges for empty and tourist homes. If the municipality has introduced them, the following limits apply:

These surcharges depend on the municipality's decision and on whether the area has been designated as stressed. Check the conditions with the town hall where the property is.

The owner pays the municipality a separate charge for refuse collection and sewerage. The amount and frequency of the payment are set by the municipality. Check the tariff with the town hall.

A non-resident who owns property in Spain may pay tax on imputed income, wealth tax, capital gains tax on a sale and inheritance tax. Each situation depends on nationality, country of residence and region, so before buying it is worth consulting a tax specialist who knows the Spanish system.

If a non-resident owns urban property that they do not let and use as a second home, the tax authority treats the owner as receiving imputed income from it. The tax accrues on 31 December each year.

How it is calculated:

For example, with a cadastral value of €100,000, the imputed income is €2,000. A non-resident from a country outside the EU pays 24%, that is €480 a year, and a resident of the EU pays 19%, that is €380. If 1.1% applies, the base is €1,100 and the tax is €264 and €209 respectively.

The deadline for 2025 is from 1 January to 31 December 2026. Starting with income for 2026, filing opens on 1 April of the following year and runs until 31 December. If there are several owners, each files a separate return for their share.

"Non-residents often do not know that even an empty flat is subject to tax on imputed income. It is a small sum, but form 210 has to be filed every year, otherwise penalties build up," says a tax consultant from Alicante.

A non-resident pays wealth tax only on assets located in Spain. Only debts and charges connected with Spanish assets, such as a mortgage, are deducted. The tax accrues on 31 December each year. The tax-free minimum for non-residents is €700,000.

The state scale has been in this form since 1 January 2021. Regions may set their own scales and reductions, and residents of the EU and EEA may apply regional rules.

Before 1 January 2021, the maximum rate was 2.5%.

A separate large fortunes tax (ITSGF) also applies: it is charged on the net wealth of individuals above €3 million. The tax accrues on 31 December, and the return on form 718 is filed from 1 to 31 July of the following year.

Non-residents pay inheritance tax only on property located in Spain. There is no exemption at state level, but many regions introduce their own reductions and rates.

Since 2021, all non-residents, including citizens of countries outside the EU, have been entitled to apply the rules of an autonomous community rather than only the state rules. For an inheritance from a non-resident, the rules of the region where most of the Spanish assets are located apply. For a gift, the rules of the region where the property is located apply.

The state system divides heirs into four groups with different allowances:

The rate scale is then applied to the remainder:

The amount of tax is multiplied by a coefficient that depends on the size of the heir's existing wealth and on the group of kinship. Regional rules change the final amount considerably.

Two parties take part in a sale, the seller and the buyer, and both bear costs. A lot has been written about the buyer's additional costs, about 10% of the price, while the seller's costs usually stay in the background. On a sale, the owner pays tax on the profit and plusvalía, repays the mortgage if there is one and pays the notary's costs.

The buyer withholds 3% and gives the seller a copy of form 211, so at completion the seller receives 97% of the price. The 3% is then credited against the tax: if the tax is less, the excess is refunded, and if it is more, the seller pays the balance. Form 210 is filed even if there is no profit or there is a loss: without it, the withholding is not refunded.

A non-resident's profit on a sale is calculated as the difference between the sale value and the purchase value. The 19% rate does not depend on the country of residence.

The purchase value includes:

The sale value is the sale price less the seller's costs and taxes connected with the sale. The inflation coefficients that used to increase the purchase price have been abolished for sales from 1 January 2015. A transitional rule applies to those who bought before 31 December 1994.

A flat was bought for €200,000, with costs and taxes at purchase of €20,000 and improvements of €10,000. It is sold for €300,000, and the seller's costs of sale are €9,000.

With a profit of €20,000, the tax is €3,800 and €9,000 has been withheld, so the seller is entitled to claim a refund of €5,200. If the flat is sold for less than it was bought for, the tax is zero and the €9,000 withheld is refunded in full.

"Non-residents most often forget that form 210 has to be filed even when there is no profit. Without it, the 3% withheld cannot be refunded," says a tax consultant from Málaga.

If a resident of Spain sells the flat, the profit goes into the savings base and is taxed on the following scale (according to the tax authority for 2025):

Plusvalía (IIVTNU) is a local tax on the increase in the value of the land under the property. It is not included in forms 210 and 211: the return is filed with the municipality where the property is, within 30 working days of the sale.

If the property has a mortgage, the seller repays it early before completion, or the buyer takes over the debt by subrogation and the price is reduced. For early repayment, the bank may charge a fee within the limits set by the law on mortgage loans:

The fee cannot exceed the bank's actual loss, so in practice the sum is often lower. The repayment of the debt is also recorded at the land registry: the cost depends on the amount of the loan.

How much is IBI?

From 0.4% to 1.1% of the cadastral value for urban property. The municipality may add surcharges, so check the exact rate with the town hall.

Does a non-resident pay tax if the flat is not let?

Yes. A non-resident pays tax on imputed income: 2% of the cadastral value, taxed at 24%, or 19% for residents of the EU and EEA. The return is filed on form 210.

What tax does a non-resident pay on a sale?

19% of the profit. In addition, the buyer withholds 3% of the price, and this sum is credited against the tax. If the tax is less, the excess is refunded.

Who pays plusvalía on a sale by a non-resident?

By law the buyer pays the tax, and who actually bears it is settled by the contract. The return is filed with the municipality within 30 working days.

When does wealth tax have to be paid?

If net assets in Spain exceed €700,000. The tax accrues on 31 December, and the state scale reaches 3.5% on a base above €10,695,996.06.

If you are choosing property in Spain, browse the listings in the Spain-Real.Estate catalogue. Before buying, work out the taxes using the list above and check the rates with the municipality.