What taxes do non-residents pay on Spanish property?
Four. Non-resident income tax (IRNR) via Modelo 210 — 19% of net profit for EU/EEA residents or 24% of gross rent for UK and other non-EU residents, and imputed income tax of 1.1%–2% of cadastral value where the property is not let. Wealth tax where net Spanish assets exceed the regional threshold, commonly €700,000 per person. Capital gains tax at 19% on sale, collected partly through a 3% retention by the buyer. And IBI, the annual local property tax, usually 0.4%–1.1% of cadastral value.
- IRNR applies even if the property is never rented out.
- Wealth tax thresholds and reliefs are regional; Madrid rebates it, Andalusia effectively does too.
- Capital gains is 19% regardless of whether you are EU or non-EU.
Key takeaways
- IRNR: 19% on net rental profit for EU/EEA residents, 24% on gross rent for UK and other non-EU residents.
- Unlet property still triggers imputed income tax on 1.1% or 2% of the cadastral value.
- Wealth tax generally starts above €700,000 of net Spanish assets per person — but the threshold is regional.
- Capital gains tax on sale is 19% for non-residents, with a 3% retention held back by the buyer.
- IBI is set by the town hall and typically runs 0.4–1.1% of cadastral value each year.
- Rental returns are filed quarterly; imputed income annually by 31 December of the following year.
Non-resident income tax (IRNR)
Every non-resident owner of Spanish property has an IRNR obligation, whether or not the property earns anything. If it is let, you are taxed on the rent. If it is empty or used only by you, you are taxed on a notional "imputed" income calculated from the cadastral value.
| Situation | EU / EEA resident | UK & other non-EU | Filing frequency |
|---|---|---|---|
| Property let out | 19% of net profit (expenses deductible) | 24% of gross rent (no deductions) | Quarterly |
| Property not let (imputed income) | 19% of 1.1% or 2% of cadastral value | 24% of 1.1% or 2% of cadastral value | Annually, by 31 December of the following year |
The 1.1% rate applies where the cadastral value was revised in the previous ten tax years; otherwise 2% applies. Deductible expenses for EU/EEA residents include mortgage interest, IBI, community fees, insurance, repairs, management and depreciation, apportioned to the days the property was actually let.
Worked example. A UK resident lets a Costa del Sol apartment for €18,000 a year. Because UK residents cannot deduct expenses, the bill is 24% of €18,000 = €4,320. An identical property owned by a German resident with €7,000 of allowable costs is taxed at 19% of €11,000 = €2,090.
Full detail on rates, regional cadastral variation and filing is in the non-resident income tax guide. Mechanics, forms and deadlines are in the Modelo 210 filing guide, and the licensing and tax position for short-term lets is in the renting-out guide. You can model net returns with the holiday-let calculator.
Wealth tax and the solidarity tax
Non-residents pay Spanish wealth tax (Impuesto sobre el Patrimonio) only on assets located in Spain, valued at 31 December each year. Most regions apply a €700,000 personal allowance, so a couple owning jointly is normally sheltered up to €1.4m of Spanish assets. Mortgage debt secured on the property is deductible, which is why leveraged buyers often fall below the threshold entirely.
| Region | 2026 position for non-residents |
|---|---|
| Madrid | 100% regional rebate — wealth tax effectively nil, but the state solidarity tax can still apply above €3m |
| Andalusia | 100% rebate on the same basis as Madrid |
| Catalonia | Payable above a €500,000 allowance; rates from 0.21% |
| Balearics | Payable above €3,000,000 allowance; rates from 0.28% |
| Valencia | Payable above €500,000; rates from 0.25% |
| Canary Islands | Payable above €700,000; state scale from 0.2% |
Where a region rebates wealth tax, the state-level "solidarity tax on large fortunes" (Impuesto de Solidaridad) picks up net wealth above €3m at 1.7%–3.5%, so the very largest holdings are taxed either way. Non-residents may elect to apply the rules of the region where the bulk of their Spanish assets sits.
Region-by-region allowances, rate scales and the solidarity tax bands are in the wealth tax guide. Because secured debt reduces the taxable base, wealth tax is one reason buyers finance a Spanish purchase rather than paying cash — see Spanish mortgages for non-residents.
Capital gains tax on sale
Non-residents pay a flat 19% on the gain when they sell Spanish property, whether they are EU or non-EU. The gain is the sale price less the acquisition price and allowable costs — transfer tax or IVA paid on purchase, notary, registry, legal fees, agency commission on the sale, and capital improvements evidenced by invoices.
The buyer must retain 3% of the price and pay it to the Agencia Tributaria on Modelo 211 as an advance against your liability. If the real liability is lower, or you made a loss, you reclaim the difference by filing Modelo 210 within four months of the sale.
Worked example. Bought for €400,000 in 2018 with €40,000 of purchase costs; sold for €520,000 with €15,000 of selling costs. The gain is €65,000, so the tax is €12,350. The buyer retains €15,600 (3% of €520,000), leaving €3,250 to reclaim.
Also payable on sale is plusvalía municipal, a town hall tax on the increase in the land value between purchase and sale. Since 2021 you may choose between the objective formula and the real gain method, and no tax is due where you can show a loss.
The full calculation, the retention reclaim and plusvalía rates by region are in the capital gains tax guide. Where a sale is planned but a purchase must complete first, bridging finance in Spain is the usual route; where equity is needed without selling, see equity release.
Property tax: IBI, purchase taxes and inheritance
IBI (Impuesto sobre Bienes Inmuebles) is the annual local property tax, set by each town hall as a percentage of the cadastral value — typically 0.4%–1.1% for urban property. It is billed once or twice a year and is best paid by direct debit from a Spanish account, since unpaid IBI attaches to the property itself and passes to a future buyer.
Most municipalities also levy a rubbish and services charge (basura) of roughly €100–€300 a year, and non-resident owners in some areas pay a vehicle-access or sewerage levy.
| Tax | When | Typical 2026 rate |
|---|---|---|
| ITP (transfer tax, resale) | On purchase | 6%–10% depending on region |
| IVA + AJD (new build) | On purchase | 10% IVA (7% IGIC in the Canaries) plus 0.5%–1.5% AJD |
| IBI | Annually | 0.4%–1.1% of cadastral value |
| Plusvalía municipal | On sale or inheritance | Varies by municipality and years held |
| Inheritance tax (ISD) | On death | 7.65%–34% state scale before regional reliefs |
IBI rates by city, local charges and purchase taxes are tabulated in the property tax guide. Region-by-region purchase tax rates are also in the transfer tax by region guide, the total cash cost of a purchase is in the cost of buying guide, and succession is covered in the inheritance tax guide for non-residents.
Where to go next
- Spanish property taxes for non-residents — the full annual obligations guide.
- Modelo 210 filing guide — who files, when, and how the figures are calculated.
- Spain property FAQ hub — buying, renting, inheritance and tax questions in one place.
- Spanish mortgage calculator — repayments, purchase costs and total cash required.
Rates and thresholds are current as at September 2026 and are drawn from Spanish tax legislation and Agencia Tributaria guidance. This is general information, not tax advice — confirm your position with a Spanish tax specialist before acting.
Frequently asked
Questions from readers
What taxes do non-residents pay on Spanish property?
Non-resident income tax (IRNR) on rental or imputed income, filed on Modelo 210; wealth tax where net Spanish assets exceed the regional threshold, commonly €700,000 per person; capital gains tax at 19% on sale; and IBI, the annual local property tax of roughly 0.4%–1.1% of cadastral value. Community fees and a municipal rubbish charge also apply in most cases.
How much is non-resident income tax in Spain?
19% for residents of the EU, Norway, Iceland and Liechtenstein, charged on net profit after deductible expenses. 24% for UK and other non-EU residents, charged on gross income with no deductions. Rental returns are filed quarterly; imputed income returns annually.
Do I pay Spanish tax if my property is empty?
Yes. Imputed income tax applies to any Spanish property available for your own use. The taxable base is 1.1% of the cadastral value where that value was revised in the previous ten tax years, otherwise 2%, taxed at 19% or 24%. The return is due by 31 December of the year after the tax year.
What is the wealth tax threshold in Spain for non-residents?
Most regions apply a €700,000 personal allowance against net Spanish assets, measured at 31 December, with mortgage debt secured on the property deductible. Catalonia and Valencia set the allowance at €500,000, the Balearics at €3m, and Madrid and Andalusia rebate the tax entirely.
Does Madrid still have no wealth tax?
Madrid applies a 100% regional rebate, so no regional wealth tax is payable. The state solidarity tax on large fortunes still applies to net wealth above €3m at 1.7%–3.5%, so very large holdings are taxed at state level regardless of the regional rebate.
How much capital gains tax does a non-resident pay when selling in Spain?
A flat 19% of the gain, for EU and non-EU sellers alike. Acquisition costs, purchase taxes, professional fees and evidenced capital improvements reduce the gain. The buyer withholds 3% of the sale price on Modelo 211 as an advance; any overpayment is reclaimed on Modelo 210 within four months.
What is the 3% retention when selling Spanish property?
When the seller is a non-resident, the buyer is legally required to retain 3% of the purchase price and pay it to the Agencia Tributaria within one month as an advance on the seller's capital gains tax. If the real liability is lower, or the sale produced a loss, the seller reclaims the balance.
What is IBI and how much is it?
IBI is the annual local property tax charged by the town hall, calculated on the cadastral value at a rate the municipality sets, typically 0.4%–1.1% for urban property. Unpaid IBI attaches to the property rather than the owner, so arrears transfer to a future buyer on sale.
What is plusvalía municipal?
A municipal tax on the increase in the value of the land (not the building) between acquisition and transfer, payable on sale, gift or inheritance. Since the 2021 reform you can choose between the objective formula and the actual gain, and no tax is due where you can evidence that the land did not increase in value.
Is Spanish property tax lower if I buy through a company?
Rarely for a single home. A Spanish SL brings corporation tax, formation and accounting costs and, for non-EU parent structures, potential annual levies, which usually outweigh any saving at residential scale. Company ownership is more commonly justified for development schemes or multi-asset portfolios.
Can I offset my Spanish mortgage interest against tax?
EU and EEA residents can deduct mortgage interest, along with IBI, community fees, insurance, repairs and management costs, apportioned to the days the property was let. UK and other non-EU residents are taxed on gross rent with no deductions, so the interest is not relievable in Spain.
Do I pay tax in both Spain and my home country?
You declare Spanish property income in Spain first, then usually again in your country of residence, where a double taxation treaty gives credit for the Spanish tax paid. The UK–Spain treaty works this way, so most UK owners pay the higher of the two effective rates rather than both in full.