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Owning a holiday home in Spain is a dream for many — but it comes with ongoing tax obligations that every owner must understand. Whether you use your Spanish property for personal holidays, leave it empty, or rent it out, there are taxes to pay every year. This guide breaks down exactly what a second home owner pays in Spain in 2026.

Annual Taxes for Second Home Owners

1. IBI (Impuesto sobre Bienes Inmuebles)

The IBI is Spain’s annual property tax, similar to council tax in the UK or property tax elsewhere. It is paid to your local town hall and based on the cadastral value (valor catastral) of the property. Typical annual amounts range from €200 to €1,500 depending on the property size, location, and municipality.

2. Non-Resident Income Tax (Modelo 210)

If you are a non-resident who does not rent out your Spanish property, you must still pay income tax on an imputed income. This is calculated as:

• 1.1% of the cadastral value (if it has been revised in the last 10 years) or 2% (if not revised)
• Taxed at 19% for EU/EEA residents or 24% for non-EU residents

For a property with a cadastral value of €100,000 (revised), the annual tax would be: €100,000 × 1.1% × 19% = €209.

This is filed using Modelo 210, due by 31 December of the year following the tax year.

3. If You Rent Out Your Property

EU/EEA residents: Rental income is taxed at 19%. You can deduct proportional expenses (mortgage interest, repairs, IBI, insurance, community fees).

Non-EU residents: Taxed at 24% on gross rental income with no deductions.

Rental income is declared quarterly on Modelo 210.

4. Wealth Tax (Impuesto sobre el Patrimonio)

If your net assets in Spain exceed €700,000, you may be liable for wealth tax. Rates range from 0.2% to 3.5% depending on total net wealth and region. Non-residents are only taxed on Spanish assets.

5. Solidarity Tax on Large Fortunes

For net wealth exceeding €3 million, an additional national tax applies at 1.7% to 3.5%.

Practical Annual Cost Example

A non-resident EU citizen owning a €250,000 apartment on the Costa Blanca (cadastral value €120,000, revised):

Important Reminders

• Even if you never visit your property, you must file Modelo 210
• Tax representatives: non-residents should appoint a fiscal representative or tax adviser in Spain
• Direct debit IBI: set up a domiciliación at your bank to avoid missing payments
• Keep your fiscal address updated with the Catastro