Practical guide

You own property in Spain. Spain expects to hear from you every year.

Buying a home in Spain as a non-resident is only the beginning. Even if you never rent it out, you have annual tax obligations — and the Spanish tax authority (Agencia Tributaria) does not send reminders. Here is what you owe, when you owe it, and what happens if you miss it.

The reality most buyers discover too late

Non-residents who own property in Spain have tax obligations from day one. No exceptions.

Many international buyers assume that if they do not rent their property or earn income in Spain, they have nothing to file. That is not how it works. Spain taxes non-resident property owners on imputed rental income, local property tax, and — depending on the value of your assets — wealth tax. If you sell, capital gains tax applies. If you rent, rental income is taxed at source. The rules differ depending on whether you are an EU/EEA resident or not, and individual situations may vary. Professional tax advice tailored to your specific case is always recommended.

What you need to know

Four tax obligations that catch non-resident owners out.

Annual filing

IRNR — imputed income tax, even if you never rent the property.

Non-residents who own property in Spain must file IRNR (Impuesto sobre la Renta de No Residentes) annually via Modelo 210. Even if the property is never rented, Spain imputes a notional rental income based on the cadastral value — currently 1.1% if the cadastral value was revised in the last ten years, 2% otherwise. The tax rate is currently 19% for EU/EEA residents and 24% for non-EU residents. The filing deadline is typically December 31 of the year following the tax period. Missing this filing does not mean it goes away — it accumulates, with interest and potential surcharges.

Key details

Filed via Modelo 210 — one per property, one per co-owner
Tax base: 1.1% or 2% of the cadastral value (depending on last revision date)
Rate: currently 19% (EU/EEA) or 24% (non-EU)
Deadline: typically December 31 of the following year

Local tax

IBI — the annual property tax your ayuntamiento charges every year.

Impuesto sobre Bienes Inmuebles is the local council property tax, paid annually to the municipality (ayuntamiento) where your property is located. The amount depends on the cadastral value of the property and the municipal tax rate, which varies from one town to another. It can range from a few hundred euros for a small apartment to several thousand for a large villa. Most owners set up direct debit (domiciliacion bancaria) through their Spanish bank account to avoid missing it. Non-payment leads to surcharges and can eventually result in an embargo on the property.

Key details

Paid to the local municipality, not the national tax authority
Amount depends on cadastral value and the municipal rate — varies widely
Direct debit through a Spanish bank account is the most common payment method
Non-payment accumulates surcharges and can lead to enforcement proceedings

High-value assets

Wealth tax and the Solidarity Tax — thresholds, rates, and regional differences.

Impuesto sobre el Patrimonio (wealth tax) applies to net assets located in Spain above certain thresholds. Rates and exemptions vary by autonomous community — some regions effectively apply a 0% rate. The Impuesto Temporal de Solidaridad de las Grandes Fortunas (Solidarity Tax) was introduced as a complementary levy for net assets in Spain exceeding three million euros. Non-residents are assessed only on assets located in Spain, not on worldwide wealth. The interaction between regional wealth tax rules and the national Solidarity Tax is complex and has been subject to legal challenges — professional advice is essential for high-value portfolios.

Key details

Wealth tax thresholds and rates vary by autonomous community
Some regions (notably Madrid) have historically applied effective 0% rates
Solidarity Tax applies to Spanish-located net assets above three million euros
Non-residents are taxed only on assets in Spain, not worldwide wealth

When you earn or sell

Rental income and capital gains — different rules for EU and non-EU owners.

If you rent your property, the rental income is taxed under IRNR at currently 19% for EU/EEA residents or 24% for non-EU residents. EU/EEA residents can deduct allowable expenses (maintenance, insurance, community fees, IBI) from the rental income before calculating the tax; non-EU residents currently cannot deduct expenses and are taxed on the gross amount. When you sell, capital gains tax applies at currently 19% on the profit. The buyer is legally required to withhold 3% of the full sale price (retencion) and pay it directly to Hacienda on behalf of the non-resident seller — you then file to recover any overpayment or pay any shortfall.

Key details

Rental income tax: currently 19% (EU/EEA, with expense deductions) or 24% (non-EU, on gross income)
Capital gains on sale: currently 19% on the profit
Buyer withholds 3% of the sale price and pays it to Hacienda directly
The seller files to reconcile the withholding against the actual tax due

Worth understanding

The taxes are part of owning here. Understanding them means no surprises.

Regulated by the Bank of Spain · ICI E156

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