Taxes · October 2026
Non-Resident Taxes in Spain 2026: What You Pay to Buy, Own, Rent and Sell a Home
Owning a Spanish home from abroad means a tax bill every year — even if you never rent it out. Here is every tax, every rate and what it costs in real numbers.
Managing Spanish property taxes from home.
October 11, 2026 · 9 min read · By Tharros Brokers
This guide to non-resident taxes Spain covers the full life of a property: what you pay when you buy, what you owe every year while you own it, how rental income is taxed and what happens when you sell. The single biggest surprise for most foreign owners? You pay income tax on a Spanish home even if it sits empty — and the rate depends on whether you live in the EU or not.
Non-Resident Taxes Spain: The Full Overview
IRNR = Impuesto sobre la Renta de No Residentes (Non-Resident Income Tax).
Non-Resident Taxes Spain: Buying a Property
Good news first: non-residents pay exactly the same purchase taxes as Spanish residents. There is no foreign-buyer surcharge.
- Resale homes: Property Transfer Tax (ITP), set by each region.
- New builds: VAT (IVA) plus Stamp Duty (AJD) on the deed.
Purchase taxes are not financed
Spanish banks lend against the property price, not the taxes. With a 70% non-resident LTV, you need a 30% deposit plus purchase taxes and costs in cash. Plan for both from day one.
Non-Resident Taxes Spain: Every Year You Own
1. IBI — municipal property tax
An annual local tax based on the property’s cadastral value and the council’s rate. Residents and non-residents pay it the same way.
2. Non-resident income tax on imputed income
If your Spanish home is not rented out — a holiday home, or simply empty — Spain treats it as generating a notional income. You declare 1.1% of the cadastral value (or 2% if the cadastral value has not been revised recently) and pay tax on that figure. If you rent part of the year, you declare imputed income only for the days it was not rented.
Illustrative. Cadastral value is usually well below market value — check it on your IBI receipt.
3. Wealth Tax (only above €700,000)
Non-residents pay Wealth Tax only on assets located in Spain, and only above a €700,000 minimum exemption. Crucially, debts linked to Spanish assets — such as a Spanish mortgage — are deductible. Rates rise in bands:
State scale applied to the taxable base after the €700,000 exemption. Some regions apply their own rules.
Buying in Spain from abroad? Know your numbers first.
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Renting Out: How Rental Income Is Taxed
Rental income is declared through non-resident income tax, and this is where EU and non-EU owners are treated very differently.
Illustrative only.
⚠ Non-EU deductions: a ruling to watch
A July 2025 National Court ruling said non-EU residents should also be able to deduct expenses. It is not final — a Supreme Court decision is pending. Keep every invoice and receipt now, in case the rules change and past returns can be corrected.
If you employ at least one full-time person in Spain to manage the rental, the activity may instead be taxed as business income through a permanent establishment — take professional advice before setting this up.
Selling: Capital Gains, the 3% Withholding and Plusvalía
Capital gains tax: 19% or 24%
The gain (sale price minus purchase price and eligible costs) is taxed at 19% for EU/EEA residents and 24% for others. EU/EEA, Iceland, Norway and Liechtenstein residents may be exempt if they reinvest the full proceeds in a main residence.
The buyer withholds 3%
When the seller is a non-resident, the buyer keeps back 3% of the price and pays it to the Tax Agency as an advance on the seller’s capital gains tax. On a €300,000 sale, that is €9,000. The seller reclaims any excess when filing.
Plusvalía municipal
This local tax on the increase in land value is normally the seller’s. With a non-resident seller, the buyer pays it first and reclaims it — so the deed of sale should state clearly who bears this cost.
Forms, deadlines and official guidance on non-resident income tax (including Form 210) are published by the Spanish Tax Agency, Agencia Tributaria.
Pro Tips for Non-Resident Owners
- Appoint a fiscal representative or gestor. Annual Form 210 filings are easy to forget from abroad, and late filing brings penalties.
- Check your cadastral value. It drives IBI, imputed income and part of your purchase costs.
- Factor tax into your rental yield. For non-EU owners, 24% on gross rent can turn a good yield into an average one.
- A Spanish mortgage can reduce Wealth Tax for higher-value owners, because debt on Spanish assets is deductible.
- Check double tax treaties. Spanish tax paid can usually be credited in your home country — confirm with your adviser there.
Frequently Asked Questions
This article is general information, not tax advice. Rules and regional rates change; confirm your position with a qualified Spanish tax adviser.
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