Which taxes are paid when buying property in Spain?
The main tax depends on whether the property is a resale or a first transfer from a developer. The rates also depend on the Spanish autonomous community where the property is situated.
Resale property in Catalonia
The purchaser normally pays transfer tax, known as ITP. Under the current general Catalan scale, the rates are progressive:
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10% on the portion up to €600,000;
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11% on the portion from €600,000 to €900,000;
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12% on the portion from €900,000 to €1,500,000;
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13% on the portion above €1,500,000.
The official rates, special 20% cases and reduced rates are published by the Catalan Tax Agency. A reduced rate may apply to certain purchases of a main home if every statutory condition is satisfied. The rates are not reduced simply because a buyer is foreign or non-resident.
New property
The first transfer of a new home by a developer is normally subject to Spanish VAT, generally 10% for an ordinary dwelling, plus Stamp Duty (Actos Jurídicos Documentados or AJD). In Catalonia, the general AJD rate applicable to many notarial property transactions is currently 1.5%, although the precise treatment must be checked for the transaction.
Notarial, Land Registry, valuation, mortgage and administrative costs are separate from these taxes. Lucas Gestion can prepare an acquisition-cost estimate and coordinate the relevant Spanish filings after completion.
Which taxes are payable every year?
IBI
The Impuesto sobre Bienes Inmuebles is an annual local property tax charged by the town hall. Its amount depends mainly on the cadastral value and the municipal rate. IBI is separate from the owners' association charges payable in a shared building or development.
Refuse-collection charges
Municipalities may charge for household-waste collection and treatment. The amount and payment method vary locally. In some municipalities the charge appears on the water bill; in others it is billed separately.
Spanish Non-Resident Income Tax when the property is not rented
A non-resident individual who owns an urban property in Spain for personal use, or leaves it vacant, is generally subject to Spanish Non-Resident Income Tax (IRNR) on an imputed property income. The Spanish Tax Agency explains this imputed-income obligation.
The theoretical income is generally calculated by applying 2% to the cadastral value, or 1.1% in the cases specified by law. The official calculation rules are available from the Spanish Tax Agency. The resulting base is then taxed at the rate applicable to the owner's country of tax residence and declared using Form 210.
If the property is owned jointly, each owner normally declares their share. When it is rented for only part of the year, the rental periods and the personal-use or vacant periods must be dealt with separately.
Why does the owner's country of residence matter?
The Spanish rules are not the same for every non-resident owner.
| Owner's tax residence |
General Spanish rate on rental income and imputed income |
Rental expenses |
| Qualifying EU/EEA country |
19% |
Qualifying directly related expenses may generally be deducted with evidence |
| United Kingdom |
24% |
Expenses are generally not deductible under the ordinary non-resident rules |
| United States |
24% |
Expenses are generally not deductible under the ordinary non-resident rules |
| Latin America or another non-EU/EEA country |
24% |
Expenses are generally not deductible under the ordinary non-resident rules |
The Spanish Tax Agency lists the 19% and 24% non-resident rates. The United Kingdom ceased to receive the EU treatment after Brexit; the Tax Agency expressly explains the change to 24% in its Brexit guidance.
This distinction is based on tax residence, not language, nationality or the currency of the owner's bank account.
How is Spanish rental income taxed?
Rent from Spanish property is taxable in Spain even when the owner lives abroad. The return is made under the IRNR system, generally using Form 210. The Spanish Tax Agency's property-rental guidance should be checked for the applicable calculation and filing requirements.
Owner resident in Germany or another qualifying EU/EEA country
The Spanish rate is generally 19%. Properly evidenced expenses directly connected with generating the rent may generally be deducted under the applicable rules. Depending on the circumstances, these may include proportionate owners' association charges, insurance, management expenses, interest, maintenance and depreciation for the actual rental period.
Owner resident in the United Kingdom
A UK-resident owner is generally taxed in Spain at 24% on gross Spanish rental income, without the ordinary deduction of rental expenses available to qualifying EU/EEA residents. This can produce a significantly higher effective burden than the 19% rate suggests.
UK residents will also normally need to consider the income in the United Kingdom. HMRC states that UK residents usually report foreign income and gains through Self Assessment; see the official guidance on reporting foreign income. Double-tax relief may be available under the UK–Spain tax treaty, but the Spanish and UK filings remain separate obligations.
Owner resident in the United States
A US-resident owner is generally taxed in Spain at 24% on gross rental income under the standard non-EU rules. US citizens and US tax residents must also examine their US reporting position. The IRS explains that a Foreign Tax Credit may be available when qualifying foreign income tax and US tax apply to the same income, subject to US rules and limitations.
Owner resident in Latin America or another non-EU country
The Spanish rate is generally 24% on gross rental income, without the ordinary deduction of expenses available to qualifying EU/EEA residents. The owner's country may also require the Spanish income to be reported. The relevant tax treaty, if one exists, and domestic rules in the country of residence must be reviewed individually.
What additional rules apply to tourist rentals?
Tourist letting may involve more than IRNR. The property must comply with the applicable tourism, housing and municipal rules. Obligations can include a valid authorisation or registration, guest reporting, invoices and collection of the Catalan tourist-stay tax.
The Catalan Tax Agency explains who pays and who files the tourist-stay tax: the guest is the taxpayer, while the accommodation operator normally collects and declares it. Rates changed from 1 April 2026 and depend on the type and location of the accommodation; current figures should be checked on the official tariff page.
Tax registration does not replace the licence or authorisation required to operate the accommodation legally.
Could Wealth Tax apply?
An individual with high-value Spanish assets may have to examine Spanish Wealth Tax, even when non-resident. The calculation depends on the value and nature of the Spanish assets, deductible debts, ownership shares, residence and applicable regional or state rules.
The Catalan Tax Agency's Wealth Tax information explains the Catalan rules, including the €500,000 personal allowance for taxpayers resident in Catalonia. A non-resident should not automatically apply that figure without checking the option and rules available to their situation.
Very substantial fortunes may also fall within the Spanish Temporary Solidarity Tax on Large Fortunes. The Spanish Tax Agency provides the current information and Form 718. These taxes require an individual calculation rather than a general estimate based only on the property's asking price.
Which taxes arise when the property is sold?
Spanish tax on the capital gain
The gain is calculated, in simplified terms, from the disposal value and acquisition value after permitted costs and qualifying improvements have been taken into account. Routine repairs are not automatically treated as capital improvements, so invoices and proof of payment are important.
For an individual who is not tax-resident in Spain, the taxable Spanish property gain is generally taxed at 19%, regardless of whether the seller lives in the EU, the UK, the US or Latin America. The Spanish Tax Agency explains the calculation and filing process.
The 3% withholding
When the seller is not tax-resident in Spain, the purchaser must normally withhold 3% of the total agreed price and pay it to the Spanish Tax Agency using Form 211. The official guidance confirms that this is a payment on account, not the final tax:
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if the final liability is higher, the seller pays the balance;
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if it is lower, the seller may request repayment of the excess;
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if no tax is due, the seller may request repayment of the full withholding, subject to review.
Municipal capital-gains tax
The seller may also be liable for plusvalía municipal or IIVTNU. This is a municipal tax connected with the value of the urban land component and is separate from the national tax on the actual gain. The amount depends on the cadastral land value, ownership period and local rules.
Lucas Gestion prepares the relevant calculations and coordinates the municipal and non-resident procedures, with specialist tax advice where required.
Does the property also have to be declared in the owner's home country?
Often, yes. Spain may tax income or gains because the property is situated in Spain, while the country of tax residence may also require the asset, income or gain to appear on a local return.
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A UK resident should check the HMRC rules for foreign property income and selling overseas property.
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A US citizen or tax resident should obtain advice on US worldwide-income reporting and any available Foreign Tax Credit.
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An EU or other international owner should examine the relevant treaty and domestic rules in the country of residence.
A double-tax treaty normally allocates taxing rights and provides a method of relief; it does not necessarily eliminate the obligation to declare in both countries.
Can Spanish property taxes be managed from abroad?
Yes. The owner does not need to travel to Spain for every filing or payment. Lucas Gestion can coordinate, depending on the service agreed:
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acquisition-tax calculations and filings;
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changes of ownership with the town hall;
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IBI follow-up;
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rental and tourist-tax administration;
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sale calculations and the 3% withholding procedure;
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plusvalía municipal;
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repayment applications and liaison with a tax specialist.
SEPA payments can generally be made from a compatible European account. Owners using a UK, US or Latin American account should check direct-debit availability, IBAN or SWIFT requirements, currency conversion and bank charges in advance.