If you own property in Spain but don't live there, you still pay tax there — annually, on use and on sale. The amounts are mostly manageable, but the obligations are serious: Spain reminds late and expensively.
The IBI (Impuesto sobre Bienes Inmuebles) is the municipality's annual property tax, calculated on the cadastral value; a few hundred to a few thousand euros depending on municipality. Add the refuse charge (basura) and possibly sewerage. Best paid by direct debit (domiciliación) — missed IBI is collected with a surcharge and is a charge on the property.
Non-residents pay an annual income tax on the notional rental value of their property: base 1,1 % / 2 % of the cadastral value (depending on when the municipality last revalued), rate 19% for EU/EEA residents, 24% for third countries. If you let, the rent is taxed instead — EU citizens may deduct costs. Filed in the following year; the gestoría does this as tax representative.
Spain levies a wealth tax (Impuesto sobre el Patrimonio) on non-residents' assets located in Spain. The Balearics raised the allowance in 2024 to €3,000,000 per person — most owners are therefore unaffected. For properties above this threshold (or several owners with large shares) the structure should be planned in advance.
When a non-resident sells, the buyer withholds 3% of the price and pays it to the tax office (Modelo 211) — as a prepayment of the seller's capital gains tax. Within four months the seller declares the actual gain (Modelo 210): sale price minus acquisition costs incl. expenses and proven investments, rate 19% (EU/EEA) or 24%. If the tax is below the retention, the difference is refunded — with receipts. Add the municipal plusvalía on the increase in land value.
Austria, Germany, Switzerland and the UK have double taxation agreements with Spain: Spain may tax property income and gains, the home country credits or exempts (with progression). Report the property to your tax adviser at home — also because of possible reporting obligations.
Spanish inheritance tax applies to property located in Spain, also for non-residents, with Balearic reliefs for close relatives. Will, matrimonial property regime and ownership structure (persons, shares, company) should be considered at purchase — later it is expensive.
Around 10–13% comes on top. Which tax applies when — with calculator.
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Market value, costs, retention, capital gains tax — honestly, before you decide.
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