Spanish property taxes fall into five phases: (1) at purchase — ITP for resale (regional; commonly 6–10%) or IVA (10%) + AJD (0.5–2%) for new-build; (2) annually while owning — IBI (local town-hall tax on cadastral value), basura, non-resident income tax on Modelo 210 for foreign owners, potentially wealth tax where thresholds are met, and community fees; (3) on rental income — for non-residents, Modelo 210 (see below for filing rules); for Spanish residents, IRPF; (4) at sale — CGT and plusvalía municipal, plus a 3% buyer withholding on account of the non-resident seller's CGT (Modelo 211); (5) at death — Spanish inheritance tax (ISD). For non-resident individuals selling Spanish property, the general Spanish CGT rate is 19%. Platinum Legal Spain supports foreign owners with English-speaking coordination of ongoing property tax filings — book a consultation.
Overview by Phase
| Phase | Taxes |
|---|---|
| 1. At purchase | ITP (resale) or IVA + AJD (new-build); notary and land-registry fees (not tax). |
| 2. Annually while owning | IBI (local); basura (waste); non-resident income tax (Modelo 210) for foreign owners; wealth tax where regional thresholds are met; community fees. |
| 3. On rental income | Non-residents file Modelo 210 (see filing options below); Spanish residents include rental income in the annual IRPF return. |
| 4. At sale | CGT — residents via IRPF at savings-income rates; non-resident individuals generally at 19% via Modelo 210. Plusvalía municipal. Buyer's 3% withholding for non-resident sellers (Modelo 211). |
| 5. At death | Inheritance tax (ISD), payable by the heir, with regional variation in allowances and rebates. |
At Purchase
Resale purchases — ITP
ITP (Impuesto de Transmisiones Patrimoniales) is a regional transfer tax on second-hand property. Rates vary by autonomous community and can be adjusted by regional budgets — always confirm the rate applicable at the transaction date. Common general rates are in the 6–10% range, with variations by region, price band and buyer profile (first-time buyers, young buyers, buyers with disabilities and subsidised-housing buyers may qualify for reductions in some regions).
ITP is calculated on the higher of the declared purchase price and the Valor de Referencia. Filed within 30 days of the escritura.
New-build purchases — IVA + AJD
- IVA at 10% on residential new-builds.
- AJD (Actos Jurídicos Documentados) at 0.5–2% depending on region.
See our ITP vs IVA/AJD guide and full cost breakdown.
Annual Ownership Taxes
Every owner faces several annual taxes and charges while the property is held:
IBI
Local town-hall property tax based on cadastral value. Paid by whoever owns the property on 1 January. Everyone pays IBI — resident or non-resident.
Basura (waste tax)
Local waste-collection charge. Small annual amount from the town hall.
Non-resident income tax (Modelo 210)
Foreign owners owe an imputed rental tax (unrented) or a rental-income tax (rented). See non-resident tax.
Wealth tax
Where net wealth exceeds regional thresholds. Different bands and reliefs by region.
Community fees
Apartment blocks and gated developments — paid to the community of owners; not a tax but recurring.
Home insurance
Not a tax but often mortgage-required and prudent to hold.
IBI (Local Property Tax)
IBI (Impuesto sobre Bienes Inmuebles) is Spain's local (municipal) property tax. Every owner pays it annually to the town hall:
- Calculated on the cadastral value — usually well below market value.
- Rate is set by the municipality; broadly in the 0.4–1.1% range for urban property, with local variation.
- Payable by whoever owns the property on 1 January of the tax year.
- Bills and payment methods vary by town hall; many issue during the summer, some via direct debit.
- Certain property-related liabilities may affect the property or a subsequent buyer if not identified and dealt with before completion — this is one of the reasons pre-purchase due diligence matters.
Don't confuse IBI with Modelo 210. IBI is a local town-hall tax paid to your municipality; Modelo 210 is a national tax paid to the Agencia Tributaria on Spanish-source income and is filed separately.
Non-Resident Income Tax
If you're a non-resident owner of Spanish property, you generally owe Spanish non-resident income tax (IRNR) annually on the property — filed on Modelo 210.
Unrented — imputed rental income
- The imputed base is generally calculated using 1.1% or 2% of the cadastral value, depending on the cadastral valuation rules applicable to the property and tax year.
- Under the general domestic non-resident income tax rules, qualifying EU/EEA residents are taxed at 19% on this notional income, while other non-residents are taxed at 24% — this split applies to imputed and rental income (see below), not to a capital gain on sale.
- Imputed property income is generally declared during the calendar year following the tax year. Earlier cut-offs apply where payment is made by direct debit.
Rented — actual rental income
- Base is gross rental income, less eligible expenses under the applicable rules.
- Under the general domestic IRNR rules, qualifying EU/EEA residents may deduct eligible expenses and are taxed at 19%; other non-residents are normally taxed under less favourable deduction rules at 24%. Current treatment should be checked for the filing period concerned, as this area is subject to ongoing EU-law developments.
- Rental-filing timing has changed. Rental income may be declared per accrual period under the applicable Modelo 210 deadlines. Eligible rental income accrued from 2024 can also be grouped annually under current AEAT rules, with a filing period in January following the accrual year. The correct filing method should be confirmed for the owner's specific circumstances.
See our detailed non-resident property tax guide. Modelo 210 is one of the most commonly missed obligations by foreign owners.
Modelo 210 is separate from IBI
IBI is a local town-hall tax. Modelo 210 is a national tax paid to the Agencia Tributaria on Spanish-source income. Paying IBI does not satisfy Modelo 210, and vice versa. Many foreign owners discover this years into ownership when a Hacienda notification arrives.
Wealth & Solidarity Tax
Spain's Impuesto sobre el Patrimonio (wealth tax) can apply to net wealth above regional thresholds — including net Spanish assets for non-residents. The rules and rebates are set at the regional level and change over time:
- Regional variation is significant. Some regions apply their national bands and some apply substantial rebates. Historically Madrid has applied a 100% rebate in the past; regional rules can change.
- Alongside the regional wealth tax, the Temporary Solidarity Tax on Large Fortunes operates at the national level and can capture high-net-worth taxpayers where regional wealth tax is minimal.
- Thresholds and rates change with regional and national politics — check the current regional and national position at the time of filing.
Wealth-tax planning is fact-specific and needs individual assessment. Most non-resident owners with a single mid-priced property don't trigger a material wealth-tax liability, but multiple-property holdings and higher-tier assets can — see our tax service.
Rental Income Tax
Rental income from Spanish property is taxable in Spain:
- Spanish residents — rental income is included in the annual IRPF return (Modelo 100) at the applicable rates for the tax year concerned.
- Non-residents (EU/EEA) — Modelo 210 at 19%, with eligible expense deductions under the general rules.
- Non-residents (non-EU including UK post-Brexit) — Modelo 210 at 24% with less favourable deduction rules under the general regime. This area is subject to ongoing EU-law developments; check current treatment.
Short-term rentals typically require a tourist licence from the applicable region — see our tourist licence guide. Non-compliance with the licensing regime can trigger substantial regional fines separate from tax liability.
At Sale — CGT & Plusvalía
Capital Gains Tax
See our full property CGT guide. Summary:
| Seller | General Spanish tax treatment |
|---|---|
| Spanish tax resident | Include the gain in the annual IRPF return at the applicable savings-income rates for the tax year concerned. |
| Non-resident individual | Generally 19% of the taxable capital gain, filed via Modelo 210. |
| Non-resident seller at completion | Buyer withholds 3% of the total sale price as an advance payment against the seller's CGT liability, via Modelo 211. Reconciled through the seller's Modelo 210. |
Reliefs for Spanish residents include main-home rollover, over-65 habitual-residence exemption and pre-1994 transitional coefficients. Some EU/EEA residents may have access to limited relief in qualifying circumstances; UK residents should not assume that pre-Brexit treatment continues, and specific advice is essential.
Plusvalía municipal
See our plusvalía guide. Key points:
- Local town-hall tax on the increase in urban-land value.
- Paid by the seller within 30 days of the escritura.
- Since the 2021 reform, sellers can choose the more favourable of two calculation methods (formula-based or actual land-value gain).
- Where the urban-land value hasn't increased, plusvalía may not apply — but a claim may be needed; some town halls still bill initially.
- Plusvalía is generally deductible from the CGT sale price (reducing the taxable gain).
Inheritance Tax
Spanish property passed on death is subject to Impuesto sobre Sucesiones y Donaciones (ISD) — inheritance tax, paid by the heir:
- Rates and reliefs are set by autonomous region. Several regions provide substantial allowances or rebates for close relatives (spouse and children), but the applicable region, relationship, pre-existing wealth and filing date can materially change the result.
- Non-Spanish-resident heirs of a Spanish estate are treated broadly in line with resident heirs following 2015 EU Court of Justice case law — but individual outcomes depend on the connection to the region concerned.
- Foreign owners with Spanish property should plan how Spanish rules will apply to their estate — see our wills and inheritance service and Spanish will service.
- ISD must generally be filed within 6 months of death (extendable), and late filing triggers surcharges.
Spanish inheritance is a specialist area — the intersection of forced heirship, regional reliefs, non-resident heir treatment, EU Regulation 650/2012 (Brussels IV) and any Spanish will you hold makes it a case for advice, not autopilot.
Ongoing Compliance
The realistic pattern for a foreign property owner in Spain is a combination of:
- Once-a-year IBI — usually direct-debited.
- Once-a-year basura.
- Modelo 210 — imputed (if unrented) declared during the calendar year following the tax year; rental income filed under the applicable Modelo 210 deadlines (annual grouping option available for rental income accrued from 2024).
- Wealth-tax check where net Spanish assets approach regional thresholds.
- Community fees.
- At sale — plusvalía, CGT and, for non-residents, the 3% withholding reconciliation.
- On inheritance / gift — ISD.
Historic Spanish tax liabilities are commonly subject to a four-year limitation period, but the calculation can be interrupted or extended by filings, notifications and other events. Historic years should be reviewed individually rather than assumed to be time-barred.
Residents vs Non-Residents
Spanish tax residents
File the annual IRPF (Modelo 100) covering worldwide income, including rental income and CGT on sale, at applicable rates. Access to main-home reliefs. Wealth tax where regional threshold is triggered.
Non-residents (EU/EEA)
File Modelo 210 for imputed / rental income tax at 19% under the general domestic rules, with eligible expense deductions on rentals. Non-resident individuals selling Spanish property generally pay CGT at 19% via Modelo 210.
Non-residents (non-EU / UK post-Brexit)
Under the general domestic rules, imputed and rental income tax is at 24% with less favourable deduction rules. CGT on the property gain for non-resident individuals is generally 19% (the same as EU non-residents) — the 19/24 split does not apply to the capital gain on a property sale.
Beckham Law
Doesn't apply to non-residents. Applies to Spanish tax residents electing into the special inbound-worker regime, subject to eligibility. See Beckham Law.
Our Support
Platinum Legal Spain provides English-speaking coordination of property-tax compliance for foreign owners, working alongside qualified Spanish tax professionals where required:
- Annual Modelo 210 for imputed (unrented) owners.
- Rental-income Modelo 210 filings under the applicable deadlines (per-accrual or annual-grouping options).
- Missed-year regularisations, coordinated with the tax professional.
- CGT projection and filing coordination on sale, for residents and non-residents.
- Plusvalía filings and — where relevant — no-gain claim coordination.
- Inheritance-tax filing coordination and pre-planning through Spanish wills.
- Wealth-tax assessment where net Spanish assets approach regional thresholds.
- Response to Hacienda notifications.
Fees depend on the work required. You'll receive a written quotation before engagement. Book a consultation to review your position.
Related Guides
Frequently Asked Questions
As a non-resident owner: IBI (local town-hall tax based on cadastral value), basura (waste charge), and non-resident income tax on Modelo 210 (imputed if unrented, or rental income if let). Wealth tax may apply if your net Spanish assets exceed the applicable regional threshold. Community fees apply for apartments and gated developments. As a Spanish resident: IBI, community fees, and rental income and CGT in the annual IRPF. Wealth tax where the regional threshold is triggered.
No — completely separate. IBI is a local town-hall tax paid to your municipality, based on cadastral value. Modelo 210 is a national tax paid to the Agencia Tributaria on Spanish-source income — for non-resident owners, this includes an imputed rental tax (unrented) or rental income tax (rented). Paying IBI does not satisfy Modelo 210, and vice versa. Many foreign owners discover this years into ownership when a Hacienda notification arrives.
Rental income may be declared per accrual period under the applicable Modelo 210 deadlines. In addition, eligible rental income accrued from 2024 can be grouped annually under current AEAT rules, with a filing period in January following the accrual year. The right filing method depends on your circumstances — confirm the treatment for your specific situation before filing.
Spanish tax residents include the gain in their annual IRPF return at the applicable savings-income rates for the tax year concerned. For non-resident individuals, the general Spanish CGT rate on the property gain is 19%, filed via Modelo 210. Non-resident sellers also face a 3% buyer withholding at completion via Modelo 211 as an advance payment on account of their CGT liability — reconciled through Modelo 210. Plusvalía municipal is a separate local tax due within 30 days of sale.
Wealth tax applies to net wealth above regional thresholds — including net Spanish assets for non-residents. Regional variation is significant; some regions apply substantial rebates. Alongside the regional wealth tax, the Temporary Solidarity Tax on Large Fortunes operates at the national level and can capture high-net-worth taxpayers where regional wealth tax is minimal. Non-resident owners of a single mid-priced property typically don't trigger a material wealth-tax liability; multiple-property holdings and higher-tier assets can.
Spanish inheritance tax (ISD) applies to the heir. Rates and reliefs are set by autonomous region — several regions provide substantial allowances or rebates for close relatives, but the applicable region, relationship, pre-existing wealth and filing date can materially change the result. ISD must generally be filed within 6 months of death (extendable). Spanish inheritance is a specialist area — the intersection of forced heirship, regional reliefs, non-resident heir treatment and EU Regulation 650/2012 makes it a case for advice.
Consider a voluntary regularisation of missing years before Hacienda contacts you. Spanish tax liabilities are commonly subject to a four-year limitation period, but the calculation can be interrupted or extended by filings, notifications and other events — historic years should be reviewed individually rather than assumed to be time-barred. Late-filing surcharges and interest apply, but voluntary regularisation typically avoids the penalty regime that applies to wilful evasion. If Hacienda has already written, respond within the deadline and take advice.
Yes. Every Modelo 210 and every Spanish tax filing requires a NIE. If you have Spanish property you already have one — it appears on your escritura. If not, you'll need to obtain one before any tax filings can proceed. Your NIE is used for life — the same number appears on tax returns, bank accounts, utility contracts and land-registry filings for as long as you have Spanish assets.