Taxes for Nordic Buyers (Sweden, Denmark, Norway, Finland)

Taxes for Nordic buyers on the Costa del Sol: what to expect

If you are a buyer from Sweden, Denmark, Norway or Finland purchasing a new-build home anywhere on the Costa del Sol, your tax position is shaped by two facts. First, buying from a developer (obra nueva) is taxed differently from a resale property. Second, your nationality places you in Spain’s most favourable non-resident tax bracket. Sweden, Denmark and Finland are EU member states, while Norway belongs to the European Economic Area (EEA), and Spain applies the same reduced rates to EU and EEA residents.⁷ This guide sets out the purchase taxes, the annual taxes you owe as an owner, and the position when you eventually sell. It complements our related guides on buying costs, non-resident mortgages and the residency and visa routes.

Purchase taxes on a new-build home: IVA and AJD

When you buy a brand-new property directly from the developer, you do not pay the transfer tax (ITP). Instead you pay two taxes:

• IVA (VAT) at 10% of the purchase price. This is the national rate for residential property and applies identically across every town on the Costa del Sol.²
• AJD (Impuesto sobre Actos Jurídicos Documentados, stamp duty) at 1.2% in Andalusia, charged on the deed value.²

Combined, new-build purchase taxes come to roughly 11.2% of the price.² Note the contrast with resale homes: a second-hand property is not subject to IVA but to ITP at a flat 7% in Andalusia.¹ So although the resale rate looks lower, new-builds carry the higher headline tax. Budget for these taxes on top of notary, land registry and legal fees, which are covered in our buying-costs guide.

Reduced rates: usually not for foreign second-home buyers

Andalusia offers reduced rates (for example 3.5% ITP) for buyers under 35, or for certain protected groups, but these apply only to a habitual (main) residence below a set value and to resale transactions.¹ A Nordic buyer purchasing a Costa del Sol home as a second residence or investment will almost always pay the standard 10% IVA plus 1.2% AJD, or 7% ITP on a resale. Confirm your eligibility with your lawyer before assuming any reduction.

You will need an NIE

Before you can complete a purchase, pay taxes or open a Spanish bank account, you must obtain an NIE (Numero de Identidad de Extranjero), the foreigner’s tax identification number. It is required on the title deed and on every tax form. Your lawyer can obtain it by power of attorney.

Financing: mortgages for non-residents

Spanish banks lend to non-resident Nordic buyers, but on more conservative terms than to residents. Expect a loan-to-value (LTV) of around 60% to 70%, meaning a deposit of 30% to 40% of the price, with some banks capping first second-home purchases at 65%.⁵ Interest rates for non-residents typically run between 3.5% and 5%, and lenders usually apply a maximum debt-to-income ratio near 35%.⁵ If your income is in Swedish or Norwegian kronor or Danish kroner rather than euros, some banks reduce the LTV to account for currency risk.⁵ Remember that mortgage-related costs are additional to the purchase taxes above.

Annual taxes while you own the property

IBI (local property tax)

Every owner pays IBI (Impuesto sobre Bienes Inmuebles), an annual municipal tax based on the property’s cadastral value (valor catastral). Rates are set by each town hall and generally fall between 0.4% and 1.1% of the cadastral value in Andalusia.⁶ Because it is municipal, the exact rate varies between, say, Marbella, Estepona and Fuengirola, so check the specific town.

IRNR: the non-resident income tax (Modelo 210)

As a non-resident owner you must file the IRNR (Impuesto sobre la Renta de no Residentes) each year using Modelo 210. Since Order HFP/1338/2023 the imputed-income return is filed annually rather than quarterly.³ Two situations arise:

• You do not rent the property out. Spain imputes a notional income and taxes it. The base is 1.1% of the cadastral value if that value was revised in the last ten years, or 2% if not.³ As an EU/EEA resident (all four Nordic nationalities qualify) you then pay tax on that base at 19%.³⁷
• You rent it out. EU/EEA residents pay 19% on the net rental profit and, crucially, may deduct expenses such as community fees, IBI, insurance, repairs and mortgage interest (proportionate to the days let).³ Non-EU residents pay 24% on gross income with no deductions, so being an EU or EEA national is a genuine advantage here.³

Wealth tax and the solidarity tax

Andalusia applies a 100% rebate on the regional Wealth Tax (Impuesto sobre el Patrimonio), so in practice most owners pay nothing regionally.⁸ However, the state-level Impuesto Temporal de Solidaridad de las Grandes Fortunas can apply to very large net worth (broadly above 3 million euros of taxable wealth).⁸ For a typical Costa del Sol home this is not a concern, but high-net-worth buyers should take specific advice.

When you sell: capital gains and the 3% retention

On a future sale, non-residents pay capital gains tax at a flat 19% on the profit, regardless of the amount.⁷ Two mechanics matter:

• The 3% retention (Modelo 211). Because you are a non-resident seller, the buyer is legally required to withhold 3% of the sale price and pay it to the Agencia Tributaria via Modelo 211 within one month. This is not an extra tax but an advance payment against your capital gains liability.⁴
• Your own return. You then declare the actual gain on a Modelo 210 and either pay the balance or reclaim the difference if the 3% withheld exceeds the tax due.⁴

The seller is also liable for the municipal plusvalia (Impuesto sobre el Incremento de Valor de los Terrenos), a town-hall tax on the increase in land value during ownership. As a buyer today this affects your future exit, not your purchase.

Double taxation: the Nordic country-by-country picture

Spain has the primary right to tax income and gains from Spanish real estate, but your home country’s treatment depends on the treaty in force:

The Danish position is the one to watch. Because Denmark unilaterally terminated its treaty with Spain and none has replaced it, Danish buyers have no bilateral treaty relief and should take advice on how Denmark grants (or withholds) credit for Spanish tax paid.¹¹ Swedish, Norwegian and Finnish buyers benefit from an active treaty. In all cases the tax you pay in Spain is normally credited or exempted at home under the applicable rules, but confirm this with a Nordic tax adviser.

Do Nordic buyers need a visa?

No. As nationals of EU member states (Sweden, Denmark, Finland) or the EEA (Norway), you enjoy freedom of movement in Spain and do not need any visa or investment permit to buy property or to spend extended time here. Spain’s residency-by-investment scheme, the so-called Golden Visa, was in any case abolished on 3 April 2025 under Organic Law 1/2025, but it was only ever aimed at non-EU nationals and never relevant to Nordic buyers.¹² If you intend to move permanently and register as a Spanish tax resident, your obligations change (you would file resident income tax rather than IRNR), so see our residency guide.

Quick reference

Figures are current for 2025-2026 and Andalusia-specific where the tax is regional. Because this is money and legal content, always confirm your exact position with a Spanish lawyer and a tax adviser in your home country before committing.