Taxes for French Buyers of Property in Spain

Buying on the Costa del Sol is straightforward for French purchasers, but the Spanish tax system works differently from the French one and the acronyms take some learning. This guide to taxes for French buyers of property in Spain sets out what you pay on completion, what you owe every year as a non-resident owner, and how the France-Spain double taxation treaty stops you being taxed twice. Figures below reflect Andalusia (the region covering the whole Costa del Sol) for 2026. Tax is a money and legal matter, so treat this as orientation and confirm your own position with a Spanish abogado or gestor before you sign.

The good news: France is in the EU

Your country of tax residence drives almost every rate you will meet. Because France is a member of the European Union (and the EEA), French residents are taxed as EU non-residents in Spain, which is the favourable bracket. The headline non-resident income tax rate is 19% for residents of the EU, EEA, Iceland, Liechtenstein and Norway, against 24% for non-EU residents such as post-Brexit British buyers.¹ French buyers also keep the right to deduct rental costs (see below), a benefit historically reserved to EU/EEA residents.¹ As EU citizens you need no visa or purchase permit; you simply obtain an NIE (foreigner identification number), which every buyer requires to complete.

Taxes you pay when you buy

What you pay on purchase depends on whether the home is a new build bought from the developer or a resale from a private owner. The two are mutually exclusive: a property attracts either IVA plus AJD, or ITP, never both.

New-build property: IVA + AJD

A brand-new home bought directly from the promoter carries IVA (VAT) at 10% of the price, plus AJD (Actos Juridicos Documentados, stamp duty on the deed), which in Andalusia is 1.2%.² That is a combined 11.2% in indirect tax on a new apartment or villa. IVA is paid to the developer at completion; AJD is settled shortly after signing.

Resale property: ITP

A second-hand home instead attracts ITP (Impuesto sobre Transmisiones Patrimoniales), the transfer tax. Andalusia applies a single flat rate of 7% since the reform under Law 5/2021.³ ITP is calculated on the higher of the price paid or the Junta de Andalucia’s official reference value (valor de referencia), and must be paid within 30 calendar days of signing the escritura.³ Be aware of that reference value: if it exceeds your price, the tax is charged on the higher figure.

Table: purchase taxes at a glance (Andalusia, 2026)

Other completion costs

On top of tax, budget for notary fees, Land Registry fees and legal fees. Notary and Registry charges are regulated and scale with price, commonly a few hundred to around a thousand euros each.² Independent lawyer fees typically run near 1% plus IVA. As a rule of thumb, allow roughly 10-14% over the purchase price for the full package of taxes and costs: nearer the lower end on a new build once fees are added, and around 8-9% on a resale.² If you are financing the purchase, most Spanish banks lend non-residents up to about 60-70% of value, a point covered in our mortgages for French buyers guide.

Taxes you pay every year you own

Ownership brings two recurring obligations: a local council tax and a national non-resident income tax.

IBI and rubbish collection

IBI (Impuesto sobre Bienes Inmuebles) is the annual municipal property tax, levied by the town hall on the cadastral value. Rates are set locally and vary by municipality, so a Marbella flat and a Nerja townhouse can differ. You will usually also see a separate refuse charge (basura). Set up a direct debit so these are not missed.

IRNR and Modelo 210

As a non-resident owner you are liable to IRNR (Impuesto sobre la Renta de no Residentes), declared on Modelo 210 and administered by the Agencia Tributaria. How it works depends on whether the home is let:

• If you keep it for your own use, Spain charges tax on a notional imputed rental income even when the property sits empty. The taxable base is 1.1% of the cadastral value where that value has been revised in the last ten years, or 2% otherwise, and your 19% rate is applied to that base.¹ The imputed-income Modelo 210 is filed by 31 December of the year after the tax year.¹
• If you rent it out, you are taxed at 19% on the net rent. Crucially, because France is in the EU/EEA, you may deduct expenses: IBI, community fees, insurance, mortgage interest, depreciation and utilities, among others.¹ A non-EU owner cannot generally deduct in the same way. Rental Modelo 210 returns are filed in the year following the income (a spring filing window applies).¹

Andalusia also has a wealth tax (Impuesto sobre el Patrimonio) which is largely neutralised by a regional allowance, but the national Solidarity Tax on Large Fortunes can apply to very high net worth. Most holiday-home buyers are unaffected; if your Spanish assets are substantial, take advice.

Taxes when you sell

Selling as a non-resident triggers two mechanisms. First, the buyer must withhold 3% of the sale price and pay it to the tax office via Modelo 211 within one month of completion.⁴ This is not an extra tax: it is an advance against your capital gains tax, and if your final bill is lower you reclaim the difference.⁴ Second, you declare the actual gain on Modelo 210, taxed at 19% for EU/EEA residents, within four months of the sale.⁴¹ You will also owe plusvalia municipal, a local tax on the increase in land value; since recent Supreme Court rulings you may choose the calculation method (objective or real gain) that produces the lower figure.⁴

The France-Spain double taxation treaty

French residents are protected by the France-Spain double taxation convention. As a general rule under such treaties, income from immovable property and gains on its sale are taxable in the state where the property is situated, so your Costa del Sol home is taxed first in Spain. France, as your country of residence, then relieves double taxation on that Spanish-source income under the treaty. You must still declare the Spanish property and income to the French tax authorities; the treaty determines the relief, not an exemption from declaring. Because the interaction of Spanish IRNR with French impot sur le revenue and any social levies is genuinely technical, use an adviser familiar with both systems (see our related guides on the buying process and on residency and visas, the latter being far simpler for EU citizens).

Practical checklist for French buyers

1. Get your NIE early; nothing completes without it.
2. Confirm whether the home is new build (IVA + AJD) or resale (ITP) before you model costs.
3. Check the Junta’s valor de referencia: it can raise your ITP base above the price paid.³
4. Budget 10-14% over the price for taxes and fees.²
5. Diarise your annual Modelo 210 and IBI so nothing lapses.¹
6. Keep every invoice: as an EU resident you can deduct rental costs.¹
7. On any future sale, expect the 3% retention and the four-month gain return.⁴

Handled properly, the Spanish tax load for a French buyer is predictable and, thanks to EU status, lighter than for many other foreign purchasers. Pair this guide with our companion pieces on the purchase process, mortgages and residency to plan the whole move.