Taxes for Russian Buyers of Property in Spain

The taxes for Russian buyers of property in Spain follow the same core rules as for any non-EU purchaser, but two things make a Russian buyer’s position distinctive: the Spain-Russia double taxation treaty has been partly suspended since 2023, and European Union sanctions add practical hurdles to moving money and banking. This guide sets out what you pay at purchase, what you pay every year as a non-resident owner, and what happens when you sell. All figures relate to Andalusia (which governs the whole Costa del Sol) and are current for 2026. Keep the Spanish form names as they appear, since your lawyer (abogado) and gestor will use them.

Purchase taxes for Russian buyers: new-build versus resale

The single biggest tax at completion depends on whether the home is a new-build (bought first-hand from the developer) or a resale (second-hand). This split applies to every buyer regardless of nationality, so a Russian resident faces the same purchase rates as anyone else.

New-build property: IVA plus AJD

A new dwelling bought directly from the promoter carries IVA (VAT) at 10% of the declared price, plus AJD (Impuesto sobre Actos Jurídicos Documentados, stamp duty) at 1.2% in Andalusia. The combined tax on a new-build is therefore about 11.2% ⁴. IVA is paid to the developer on each stage payment, and the AJD is settled when the deed (escritura) is signed and registered.

Resale property: ITP

A second-hand home is exempt from IVA and instead attracts ITP (Impuesto sobre Transmisiones Patrimoniales, transfer tax) at a flat 7% in Andalusia ⁴⁵. There is no separate AJD on a resale, because the two taxes are mutually exclusive. Reduced ITP rates exist in Andalusia (for example for a lower-priced main home), but these rarely apply to an overseas second-home buyer, so budget for the full 7%.

Other completion costs

On top of the tax, allow for notary fees (roughly 550 to 1,400 euros), Land Registry fees (about 400 to 950 euros) and legal or conveyancing fees ⁴. A realistic all-in budget is about 13% to 15% over the price for a new-build and roughly 9% to 11% for a resale. If you buy off-plan, deposits paid before delivery must by law be secured by a bank guarantee or insurance policy (the protection historically known as Ley 57/1968): insist on seeing that guarantee. See our related guides on new-build IVA and AJD, reserving off-plan, and paying the deposit and completion from abroad.

Getting a NIE and being screened at completion

Every buyer needs an NIE (Número de Identidad de Extranjero), the Spanish foreigner tax number, before completing; a lawyer can obtain it under power of attorney. The NIE links you to the Agencia Tributaria (the Spanish tax authority) for every filing described below. Expect the notary, bank and estate agent to run enhanced anti-money-laundering and sanctions checks on a Russian buyer, including the source of funds. This is standard compliance, but it takes longer than for an EU buyer, so build the time into your schedule.

Annual tax as a non-resident owner: IRNR and Modelo 210

Once you own a Costa del Sol home but live in Russia, you are a non-resident for Spanish tax and fall under IRNR (Impuesto sobre la Renta de no Residentes). The key point for Russian buyers is the rate: residents of the EU or EEA are taxed at 19%, but because Russia sits outside that zone, a Russia-based owner is taxed at the general non-resident rate of 24% ¹.

If you keep the property for your own use

If the home is not rented out, Spain charges tax on a notional “imputed income”. This is calculated as 2% of the cadastral value (valor catastral), reduced to 1.1% where that value has been revised in recent years ². The base is then taxed at the 24% non-resident rate and declared once a year on Modelo 210 ¹². In practice the annual bill on a modestly valued apartment is often a few hundred euros, but it must be filed even in a year with no rental income.

If you rent the property out

Rental income is also declared on Modelo 210 and taxed at 24% for a Russian resident. Crucially, the deduction of expenses (mortgage interest, community fees, repairs, agency fees) against rental income is only available to EU/EEA residents taxed at 19%. As a non-EU landlord you are generally taxed on the gross rent at 24%, without deducting costs ¹. This asymmetry is the main reason a Russian buyer’s effective tax on rental yield is higher than an EU neighbour’s, and it is worth modelling before you count on net rental returns.

IBI and other local charges

Separately from IRNR, every owner pays IBI (Impuesto sobre Bienes Inmuebles), the annual municipal property tax, set by each town hall (ayuntamiento) as a percentage of the cadastral value, typically in the range of 0.4% to 1.1% for urban property ³. Expect also a rubbish/refuse charge (basura) and community fees if the home is in a development. Our guide on community fees, IBI and the cost to own goes deeper on these recurring costs.

Wealth tax and the solidarity tax

Non-residents are liable to Spanish wealth tax only on assets located in Spain, with a general tax-free allowance of 700,000 euros per person ³. Andalusia applies a full regional rebate, so the standard regional wealth tax is effectively neutralised (see our wealth tax in Andalusia guide). However, the state-level Solidarity Tax on Large Fortunes (Impuesto Temporal de Solidaridad de las Grandes Fortunas) still applies to net Spanish wealth of 3 million euros or more, at progressive rates from 1.7% up to 3.5% ³. For most single-property buyers this is out of scope, but high-value or multi-property Russian investors should take advice before structuring a purchase.

Selling: the 3% retention and capital gains

When a non-resident sells Spanish property, the buyer is legally required to withhold 3% of the sale price and pay it directly to the Agencia Tributaria (via Modelo 211) as an advance against the seller’s tax ⁵. The seller then files Modelo 210 to settle the actual capital gain, which for non-residents is taxed at 19% ¹. If the 3% withheld exceeds the real 19% liability (or there is a loss), the excess is refundable; if the gain is larger, the balance is due. A separate municipal tax on the increase in land value, plusvalía municipal, is normally the seller’s responsibility. Keep every invoice from the purchase (taxes, notary, legal, improvement works), because these raise your cost base and reduce the taxable gain. Our guide on selling as a non-resident covers this in detail.

The Spain-Russia tax treaty and why it may no longer shield you

Spain and Russia signed a double taxation convention on 16 December 1998, which entered into force in 2000 and applies from 1 January 2001 ⁶. On 8 August 2023, however, Russia issued Presidential Decree No. 585, suspending the core “distributive” articles of its treaties with 38 jurisdictions it labels unfriendly, and Spain is on that list ⁷. The suspended articles include those on income from immovable property, dividends, interest, royalties, capital gains and other income; the articles on the elimination of double taxation, mutual agreement and exchange of information remain in force from the Russian side ⁷. In plain terms, treaty rate reductions can no longer be relied on. For a property buyer this matters less than it sounds, because income from immovable property is taxable where the property sits, so Spain taxes your Costa del Sol home regardless. The open question is what Russia does on top: a Russian tax resident is taxable on worldwide income, and while the surviving elimination-of-double-taxation article can still allow a credit for Spanish tax paid, take Russian tax advice on your own position rather than assume the old treaty result. Our double taxation treaties guide explains the general mechanics.

EU sanctions, banking and mortgages

This is where a Russian buyer’s route differs most from any other foreigner’s. Under EU sanctions (Council Regulation (EU) 833/2014, Article 5b), banks in Spain and across the EU are prohibited from holding deposits worth more than 100,000 euros in total for a Russian national or a person resident in Russia. The prohibition does not apply to Russian nationals who are citizens of an EU or EEA member state, or who hold a residence permit in one ⁸. Because completing a purchase normally runs through a Spanish bank account, this cap (with restrictions on certain Russian banks and payment channels) needs planning well ahead: discuss the money route with your lawyer and a compliant bank before you commit. Financing is also harder: Spanish banks lend to non-residents on tighter terms (loan-to-value commonly around 60% to 70%, and often less for non-EU applicants), and many currently apply extra caution to Russian-source income, so do not assume a mortgage will be available. See our guides on opening a Spanish bank account as a non-resident and non-resident mortgage deposits and loan-to-value.

Residency and visas

Buying property no longer buys residency. Spain’s Golden Visa, which granted residency for a 500,000 euro property investment, closed to new applicants on 3 April 2025 under Organic Law 1/2025; existing holders keep their rights but the property route is gone ⁹. Russian nationals who want to live in Spain now use the ordinary routes, mainly the non-lucrative visa (for those with sufficient passive income) or the digital nomad visa (for remote workers) ⁹. Owning a Costa del Sol home can support such an application but does not by itself confer the right to stay beyond the standard 90-day Schengen limit. See our non-lucrative visa, digital nomad visa and residency after the Golden Visa guides.

A worked example

These are the headline rules; your exact position depends on the cadastral value, the price, whether you rent and your Russian tax residence. Always engage a Spanish lawyer and a gestor before signing, and take parallel Russian tax advice given the treaty suspension.

This guide is general information, not tax or legal advice. Rates, treaties and sanctions change; confirm current figures with the Agencia Tributaria, the European Commission and qualified advisers before you transact.