Which taxes apply at each stage?
| Stage | Tax or charge | Who normally pays | Main driver |
|---|---|---|---|
| Resale purchase | ITP | Buyer | Region and taxable value |
| New-build purchase | VAT/IGIC + AJD | Buyer | Property type and region |
| Annual ownership | IBI | Owner | Town hall and cadastral value |
| Non-resident personal use | IRNR imputed income | Owner | Cadastral value and unused days |
| Non-resident rental | IRNR rental income | Owner | Residence group and rent |
| Sale | Capital-gains tax | Seller | Gain after eligible values and costs |
| Sale | Municipal plusvalía | Seller, generally | Land value, holding period and municipality |
Non-resident does not mean tax-free
Income from Spanish real estate is Spanish-source income. A non-resident individual can therefore have Spanish filing obligations when the home is empty, used personally, rented or sold. Co-owners are generally separate taxpayers for their respective shares.
Personal use and empty periods
For a non-resident individual, a Spanish urban property that is available for personal use can produce imputed income. The base is generally 1.1% of cadastral value when the qualifying valuation falls within the relevant ten-year window, and 2% otherwise, prorated for ownership and days not rented. The resulting base is taxed at 19% for residents of the EU, Iceland, Norway and Liechtenstein, and generally 24% for other taxpayers.
Renting the property
Gross rent is the starting point. Taxpayers resident in the qualifying EU/EEA group may deduct expenses that are directly and inseparably linked to the Spanish rental income, subject to proof. Other non-residents are generally taxed at 24% on gross income without those expenses. If the property is rented for only part of the year, the remaining days can still generate imputed income.
Selling as a non-resident
The gain is generally the transfer value after eligible selling costs minus the adjusted acquisition value. The applicable non-resident capital-gains rate is 19%. Separately, the purchaser must normally withhold 3% of the agreed price and pay it to AEAT. The seller credits that amount against the final liability, so a refund may arise when the withholding exceeds the tax.
IBI, wealth tax and ownership costs
IBI is a municipal property tax and varies by town hall. Non-residents can also fall within Spanish Wealth Tax on assets and rights located or exercisable in Spain, with qualifying debts linked to those assets potentially deductible. Filing can be required when tax is payable or when gross assets and rights exceed €2 million, even if no tax is due. Regional rules, treaties and the Temporary Solidarity Tax on Large Fortunes make high-value cases unsuitable for a simplified property-only calculation.
Resident owners
Spanish tax residents use ordinary IRPF rather than the non-resident calculator above. Rental income, imputed income on second homes, capital gains and main-home exemptions follow resident rules. Tax residence should be established before applying a rate based merely on citizenship or the address shown on a deed.
Common questions
Do foreigners pay more tax when buying property in Spain?
The general purchase tax is driven by the transaction and autonomous community, not nationality. However, reduced rates may require the property to become the buyer’s habitual residence or impose other conditions that a non-resident buyer does not meet.
Do I pay Spanish tax if the property is never rented?
A non-resident individual can still owe IRNR on imputed income for personal-use or empty urban property. IBI and possible wealth taxation are separate.
Is the 3% sale withholding the final tax?
No. It is a payment on account collected by the purchaser. The non-resident seller calculates the actual gain and credits the withholding against the final tax.
Can a non-resident deduct mortgage interest and other rental costs?
Qualifying residents of the EU, Iceland, Norway and Liechtenstein may deduct directly related expenses if the legal and evidence requirements are met. Other non-residents are generally taxed on gross rent under current domestic rules.