Spanish Taxes
What you need to know when buying or selling property in Spain
Buying or selling a property in Spain, whether new-build or resale, comes with several tax obligations, especially if you are not a Spanish resident. While the Spanish tax system can seem complex at first, understanding the basics will help you plan properly and avoid surprises.
Below is an overview of the most important Spanish taxes and levies related to property ownership. As tax situations vary, we always recommend speaking with a Spanish accountant or tax advisor for a precise calculation based on your personal circumstances.
At NICLA-RMB Inmobiliaria, we make sure you know what to expect and can put you in touch with trusted professionals when needed.
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Income Tax for Non-Residents
(Impuesto sobre la Renta de las Personas Físicas – IRPF)
If you own property in Spain but are not resident and do not hold Spanish residency, you are subject to non-resident income tax.
• If your property is not rented out, the Spanish tax authorities apply an imputed income tax based on a percentage of the official cadastral value (valor catastral).
• If the property is rented, you pay tax on the rental income received.
• For periods when the property is partly rented and partly unused, tax is calculated proportionally.
Spanish residents do not pay this imputed income tax on their main residence.
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Property Tax (IBI)
(Impuesto sobre Bienes Inmuebles)
All property owners in Spain, residents and non-residents, must pay annual property tax (IBI).
• Rates generally range between 0.3% and 0.6%
• The exact percentage depends on the local municipality
• The tax is based on the cadastral value of the property
IBI is payable every year and is one of the most common ongoing costs of owning property in Spain.
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Wealth Tax for Non-Residents
(Impuesto sobre el Patrimonio)
Non-residents may also be liable for Spanish wealth tax on property ownership.
• The tax is progressive
• Rates typically range from around 0.2% to 0.5%
• It applies to the net value of your Spanish assets
Allowances and thresholds can change, so professional advice is strongly recommended.
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Plusvalía Tax
(Impuesto sobre el Incremento del Valor de los Terrenos de Naturaleza Urbana)
When you sell a property in Spain, Plusvalía tax is payable to the local town hall.
• This tax is based on the increase in the land value
• It applies regardless of how long you have owned the property
• The amount depends on the municipality and the years of ownership
This tax is separate from capital gains tax.
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Capital Gains Tax
(Impuesto sobre el Incremento de Patrimonio)
Capital gains tax applies when a property is sold at a profit.
• Spanish residents may be exempt when selling their main residence and reinvesting in another primary home
• Profits from selling a holiday home are usually taxable
• Non-residents are subject to capital gains tax on the profit made
For non-residents:
• The buyer is required to withhold 3% of the purchase price and pay it directly to the Spanish tax authorities as an advance payment
• This protects the authorities if the seller leaves Spain without settling the tax
• If the buyer fails to do this, they may become liable for the unpaid tax
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Transfer Tax (ITP)
(Impuesto de Transmisiones Patrimoniales)
Transfer tax applies when buying a resale property from a private seller.
• The rate varies by region
• In many areas, it is around 8% of the declared purchase value
If the property is purchased from a developer or professional seller, VAT applies instead.
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VAT (IVA) on Property Purchases
VAT applies mainly to new-build properties and land purchased from professional sellers.
General guidelines:
• New-build properties: 10% VAT
• New-build property with garage or pool (built at the same time): 10% VAT
• Land purchased from a developer: 21% VAT
• Land purchased from a private individual: usually subject to transfer tax instead
If you buy land first and build later:
• Land purchase: 21% VAT
• Newly built house: 10% VAT
Renovations:
• Small renovations (generally under 25% of the property value): 21% VAT
• Additions such as a pool or garage to an existing property: 21% VAT
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Construction Tax
(Impuesto sobre Construcciones, Instalaciones y Obras - ICIO)
When applying for a building licence, a construction tax is charged by the local authority.
• Usually around 2.5% of the construction value
• The value is calculated by the architect
• Often included in the architect’s fees and paid on your behalf
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Final Advice
Spanish property taxes vary by region, personal situation and usage of the property. Rates and rules may change, so professional guidance is essential.
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NICLA-RMB | Clear guidance on Spanish property taxes, so you can plan with confidence.
