Non-Resident Property Taxes in Spain (Overview)

Important — please read first. This guide is general information, not personalised tax or legal advice, and does not create any adviser–client relationship. The figures below are the rates and thresholds we could confirm against official sources as of the review date (28 July 2026); Spanish tax rates, regional rules and filing thresholds change by tax year and vary by autonomous community, so a figure that is correct today may not be correct when you buy or sell. Before acting on anything here, confirm the rules that apply to your specific situation with a registered Spanish tax adviser (asesor fiscal) or a practising lawyer (abogado colegiado).

TL;DR: As a non-resident buying property on the Costa del Sol (Andalusia), you typically pay a one-time purchase tax — 7% ITP on a resale, or 10% VAT + 1.2% Stamp Duty (AJD) on a new-build [3][7]. While you own it you pay annual local IBI [6] plus non-resident income tax (IRNR) — even if the home sits empty, via an “imputed income” charge filed on Modelo 210 [1][5]. That IRNR is generally levied at 19% for EU/EEA residents and 24% for everyone else (including the UK and US) [2]. When you sell, the gain is generally taxed at 19%, with the buyer withholding 3% of the price as an advance on your behalf [1][5]. Exact amounts depend on your circumstances.

Owning a home on the Costa del Sol comes with specific Spanish tax obligations for non-residents. The system is layered — some taxes national, some regional, some set by the town hall — and charges typically fall due at three moments: at purchase, each year of ownership, and when you sell. National taxes such as IRNR are uniform nationwide, while Transfer Tax (ITP) and Stamp Duty (AJD) are regional, which is why the Andalusian rates are the ones that usually matter here.

Taxes on Property Purchase: New-Build vs. Resale

The largest tax at the point of purchase depends on whether the property is a brand-new home bought from a developer or a resale bought from a previous owner. In general you pay one or the other, not both.

Resale Properties: ITP Transfer Tax

When you buy a second-hand (resale) property you pay Property Transfer Tax (Impuesto sobre Transmisiones Patrimoniales, ITP), a regional tax. In Andalusia the general rate is a flat 7% [3] — among the more competitive in Spain. ITP is self-assessed and paid to the Junta de Andalucía using Modelo 600 [4]. (Reduced rates exist for certain buyers — for example younger buyers or protected housing — so it is worth checking whether you qualify.)

New-Build Properties: VAT & Stamp Duty

If you are the first owner of a newly built property bought directly from the developer, you generally do not pay ITP. Instead two separate taxes typically apply:

• VAT (IVA): a national tax charged at the reduced rate of 10% on new residential property [7].
• Stamp Duty (Actos Jurídicos Documentados, AJD): a regional tax on the notarised deed; the general Andalusian rate is 1.2% [3].

So a new-build in Andalusia typically carries around 11.2% in purchase tax, versus roughly 7% for a resale.

Annual Property Taxes for Non-Residents

Each year, non-resident owners are generally liable for two main taxes, whether or not the property is used.

IBI: Local Property Tax

The Impuesto sobre Bienes Inmuebles (IBI) is a municipal tax — broadly Spain’s equivalent of council tax — that owners, resident or not, pay annually [6]. It is calculated on the property’s valor catastral (an official administrative value normally well below market price). Each town hall sets its own rate within the statutory band, generally in the region of 0.4% to 1.1% of the cadastral value [6]; confirm the current rate with the relevant municipality, as bands and surcharges vary.

IRNR: Non-Resident Income Tax

The Impuesto sobre la Renta de No Residentes (IRNR) is a national income tax non-residents pay on Spanish-source income, filed on Modelo 210 [1]. Two scenarios are common for property owners:

1. Imputed income (property for personal use). If your property is for your own use and not rented out, the law deems you derive a benefit from owning it and taxes an “imputed income” [5]. The taxable base is generally 1.1% of the cadastral value (or 2% where that value has not been revised in the last ten years) [1][5]. The imputed-income return is generally filed during the year following the tax year, by 31 December [1].
2. Rental income. If you let the property, you declare the rent received [1].

The IRNR rate generally depends on where you are resident [2]:

• 19% for residents of the European Union, Iceland, Norway and Liechtenstein (EEA).
• 24% for residents of all other countries, including the UK and the USA.

EU/EEA residents may generally deduct allowable expenses (such as mortgage interest, IBI, community fees and maintenance) and are taxed on the net rental income; non-EU/EEA residents are generally taxed on the gross rent with no deductions [2]. Whether a specific expense is deductible in your case should be confirmed with an adviser.

Wealth Tax (Impuesto sobre el Patrimonio) in Andalusia

Wealth Tax is an annual national tax on net assets; for non-residents it generally applies only to assets in Spain, with a general tax-free allowance of €700,000 per person [8]. Andalusia currently applies a 100% regional credit, so the effective regional Wealth Tax there is generally zero [9] — though a return may still be required above the filing threshold. A national “Solidarity Tax on Large Fortunes” can apply to net wealth above €3 million and may in practice override the regional credit [9]; this area changes frequently, so verify the current position.

Taxes When You Sell Your Spanish Property

When you sell, two main charges typically apply — one on the profit, one on the increase in land value.

Capital Gains Tax & the 3% Retention

For a non-resident, the capital gain (broadly, sale price minus acquisition cost including purchase taxes and fees) is generally taxed at a flat 19% [1][5]. To secure collection, Spanish law obliges the buyer to withhold 3% of the total sale price and pay it directly to the Tax Agency on the seller’s behalf, using Modelo 211, generally within one month of the sale [5]. This 3% is an advance on the final bill: after the sale the seller files a Modelo 210 to settle the gain, reclaiming any excess or paying any shortfall [1]. A sale at a loss is generally still subject to the retention, reclaimed by filing.

Plusvalía Municipal

The Plusvalía Municipal (formally the IIVTNU) is a local tax charged by the town hall on the increase in the value of the urban land during ownership; it depends on the land’s cadastral value and the years held, and is legally the seller’s responsibility [6]. Where the seller is a non-resident, the buyer is often made secondarily liable to ensure the tax is paid.

How a non-resident typically settles Spanish property taxes

The general sequence — exact steps and deadlines depend on your case: obtain a NIE (Número de Identidad de Extranjero, generally required to buy, bank or file); open a Spanish bank account for taxes, utilities and IBI direct debits; pay the purchase tax on time (resale: ITP on Modelo 600 within the Andalusian deadline [3][4]; new-build: the developer charges IVA and your representative typically files the AJD [7]); register the property at the Land Registry (Registro de la Propiedad); set up the annual IBI with the town hall [6]; and file annual IRNR (Modelo 210) — imputed or rental income [1][2].

Frequently asked questions

Do I have to pay tax in Spain if I don’t rent out my property?

Generally yes — a non-resident owner is usually liable for annual IRNR on a deemed “imputed income” (Modelo 210), plus local IBI, even for personal-use-only homes (see IRNR and IBI above) [1][2][5][6].

What is the difference between ITP and VAT (IVA) when buying?

ITP applies to a resale (Andalusia: flat 7% [3]); VAT applies to a new-build from the developer (10%, plus 1.2% AJD in Andalusia [7][3]). You typically pay one or the other, not both.

What is the 3% retention when I sell?

The buyer withholds 3% of the sale price on Modelo 211 as an advance on the seller’s capital gains tax; the seller then files Modelo 210 to settle the final bill and reclaim any excess [1][5].

At what rate is my rental income taxed as a non-resident?

Generally 19% under IRNR for EU/EEA residents (net of allowable expenses) or 24% for others (on the gross rent), declared on Modelo 210 [1][2].

Is Wealth Tax still payable in Andalusia?

Andalusia currently applies a 100% regional credit, so the effective regional bill is generally zero, though a return may still be required above the €700,000 allowance and a national “Solidarity Tax on Large Fortunes” can apply over €3 million [8][9].

Sources:

[1] Agencia Tributaria (AEAT) — Non-residents: taxation of real estate — https://sede.agenciatributaria.gob.es/Sede/en_gb/vivienda-otros-inmuebles/no-residentes-tributacion-inmuebles.html
[2] Agencia Tributaria (AEAT) — IRNR without permanent establishment: tax rates (19% EU/EEA, 24% others) — https://sede.agenciatributaria.gob.es/Sede/en_gb/no-residentes/irnr-sin-establecimiento-permanente/tipos-gravamen-irnr-sin-establecimiento-permanente.html
[3] Agencia Tributaria de Andalucía (Junta de Andalucía) — ITP & AJD tax rates (Transfer Tax 7%, Stamp Duty 1.2%) — https://www.juntadeandalucia.es/agenciatributariadeandalucia/ova/impuestos/itpyajd/tpo/tipos-gravamen.html
[4] Junta de Andalucía — Modelo 600 (ITP/AJD self-assessment form) — https://www.juntadeandalucia.es/economiayhacienda/apl/surweb/modelos/modelo600/600.jsp
[5] BOE — Real Decreto Legislativo 5/2004, consolidated Non-Resident Income Tax Law (IRNR): imputed income and 3% retention on sale (art. 25.2) — https://www.boe.es/buscar/act.php?id=BOE-A-2004-4527
[6] BOE — Real Decreto Legislativo 2/2004, consolidated Local Finances Law: IBI (arts. 60–77) and Plusvalía / IIVTNU (arts. 104–110) — https://www.boe.es/buscar/act.php?id=BOE-A-2004-4214
[7] BOE — Ley 37/1992 del Impuesto sobre el Valor Añadido (VAT): 10% reduced rate on new dwellings (art. 91) — https://www.boe.es/buscar/act.php?id=BOE-A-1992-28740
[8] BOE — Ley 19/1991 del Impuesto sobre el Patrimonio (Wealth Tax): €700,000 allowance (art. 28) — https://www.boe.es/buscar/act.php?id=BOE-A-1991-14392
[9] Agencia Tributaria de Andalucía (Junta de Andalucía) — Impuesto sobre el Patrimonio: regional rates and 100% credit — https://www.juntadeandalucia.es/agenciatributariadeandalucia/ova/impuestos/patrimonio/tipos-gravamen.html

Published by the eVoost Editorial Team as general information only. This is not tax or legal advice and must not be relied upon as such. Rates and thresholds were confirmed against the sources above as of the review date (28 July 2026) and change by tax year; regional taxes vary by autonomous community. Always confirm your specific obligations with a registered Spanish tax adviser (asesor fiscal) or practising lawyer (abogado colegiado) before acting.