Frequently Asked Legal Questions for Expats in Spain

Non-resident property owners in Spain are subject to several taxes:

• IBI (Impuesto sobre Bienes Inmuebles): A yearly local property tax, paid to the local council. The rate varies by municipality.

• Non-resident Income Tax (IRNR): Even if the property isn’t rented, non-residents must pay tax on an imputed rental value (usually 1.1% or 2% of the cadastral value).

• Capital Gains Tax: If you sell the property, you’re liable for 19% tax on the net profit. A 3% retention is withheld at the time of sale.

We manage all these filings for you to ensure full compliance and avoid penalties.

No. Spanish tax residency status significantly affects your tax obligations:

• Residents (living in Spain more than 183 days per year) are taxed on their worldwide income and file annual tax returns (IRPF).

• Non-residents are only taxed on Spanish-sourced income, such as rental income or capital gains from a property sale.

Our team advises both residents and non-residents to ensure the correct filings and rates are applied.

Yes — whether you’re a resident or a non-resident, you may need to file:

• Residents file annual IRPF returns for all global income.

• Non-resident property owners must file Form 210 for imputed income or rental income, even if the property is vacant.

We determine your obligations based on your residency status and property ownership and handle all submissions.

Yes. Whether resident or non-resident, capital gains tax applies:

• Non-residents pay a flat 19% on profits.

• Residents pay 19–26%, based on gains.

• Exemptions and deductions (such as reinvestment in a main residence) may apply for residents.

We handle profit calculations, retention management, and declarations to minimize your liability.

IBI is a local municipal tax on real estate, calculated annually on the cadastral value of the property.

• It must be paid by the registered owner of the property, regardless of whether they are a resident or non-resident.

• Even if the property is unused, IBI is still due.

We help ensure IBI is paid on time and assist with setting up direct debits for convenience.

Yes, you can. However, rental income is taxable in Spain.

• EU/EEA non-residents are taxed at 19% on net income (after expenses).

• Non-EU residents are taxed at 24% on gross income (no deductions allowed).

We manage both short- and long-term rental declarations and ensure your compliance with quarterly tax filings.

Potentially, yes. If your net assets in Spain exceed a set threshold (€700,000 in most regions, excluding your main home up to €300,000), you’re liable for wealth tax (Impuesto sobre el Patrimonio).

This applies to both residents (worldwide assets) and non-residents (Spanish assets only). We can assess your exposure and file on your behalf if needed.

Missing a tax deadline can result in:

• Late payment interest

• Surcharges of 5% to 20% depending on delay

• Potential fines for non-compliance

We help clients avoid penalties by managing tax calendars, setting up reminders, and handling submissions in advance.

Yes — if you’re a resident or an EU/EEA national, you can deduct allowable expenses such as:

• Property management fees

• Repairs and maintenance

• Mortgage interest

• Local taxes and utilities

Non-EU nationals cannot deduct expenses. Our team helps maximize legal deductions for those who qualify.

Modelo 720 is a mandatory declaration for Spanish tax residents who own assets abroad worth over €50,000 (e.g., foreign bank accounts, investments, property).
Non-compliance can result in serious fines. We advise on when and how to file it correctly.

Spain has double taxation agreements (DTAs) with many countries (including the UK, US, and most EU nations). These prevent you from paying tax twice on the same income.
We review your country’s treaty with Spain to ensure you’re not overpaying and claim available tax credits.