Taxation in Spain — The Complete Buyer's Guide

Understanding the Spanish tax system is essential for anyone buying, owning, or selling property in Spain. This guide covers every tax you will encounter — from the moment you purchase to the day you sell.

Taxes When Buying Property

Transfer Tax (ITP) — Resale Properties

When buying a resale property, you pay Impuesto de Transmisiones Patrimoniales (ITP). Rates vary by autonomous community:

VAT (IVA) — New-Build Properties

New properties from a developer are subject to 10% IVA plus 1.5% AJD (stamp duty).

Other Purchase Costs

Taxes When Owning Property

IBI (Impuesto sobre Bienes Inmuebles)

Annual property tax paid to your local town hall. Based on the cadastral value. Typically €200 – €1,500/year depending on the property and municipality.

Non-Resident Income Tax (Modelo 210)

If you are a non-resident and do NOT rent out your property, you must still file Modelo 210 annually. You are taxed on an imputed income of 1.1% or 2% of the cadastral value, at a rate of 19% (EU/EEA) or 24% (non-EU).

If you DO rent the property, you declare the actual rental income on Modelo 210 each quarter.

Wealth Tax (Impuesto sobre el Patrimonio)

Applies to net assets in Spain above €700,000 (with a general €700,000 exemption per person). Rates range from 0.2% to 3.5% depending on the region and total wealth. Non-residents are only taxed on Spanish assets.

Solidarity Tax on Large Fortunes

A national tax on net wealth above €3 million, at rates from 1.7% to 3.5%. Applies regardless of region.

Taxes When Selling Property

See our dedicated guide: Capital Gains Tax and Plusvalía Tax When Selling Property in Spain.

• Capital gains tax: 19–28% for residents (progressive), 19% flat for EU non-residents, 24% for non-EU
• Plusvalía municipal: Local land value increase tax, paid to the town hall
• 3% retention: Buyer withholds 3% of sale price for non-resident sellers

Resident vs Non-Resident Tax Comparison

Key Tax Dates