Property Taxes in Spain for Non-Residents: What Owners Need to Know

Start with the big picture

Which taxes can affect a non-resident property owner in Spain?

There is no single “non-resident property tax”.

Depending on your situation, you may need to deal with several different taxes.

The most common are:

• Form 210 Non-Resident Income Tax if you own a property that is available for your own use;
• Non-Resident Income Tax on rental income if you rent the property;
• IBI, the annual local property tax charged by the local authority;
• capital gains tax if you sell the property; and
• in some cases, Spanish Wealth Tax if the value of your Spanish assets is high enough.

Different taxes also apply when you buy, inherit or receive a property as a gift.

The first step is therefore to identify what has actually happened with the property during the year.

Owning a holiday home

You may have a Form 210 obligation even if you receive no income

One of the biggest surprises for foreign property owners is that a Spanish property can create an income-tax obligation even when it is not rented.

If you are an individual who is not tax resident in Spain and the property is empty or available for your own use, you may need to declare what Spanish tax law calls imputed income.

This does not mean that Spain assumes you actually received rent.

It is a tax calculation based mainly on the property’s cadastral value, your ownership percentage and the period during which the property was available to you.

If you want to understand the calculation in detail, see our guide to Form 210 for non-residents in Spain.

You can also use our Form 210 calculator for non-residents to obtain an initial estimate.

A separate local tax

What is IBI?

IBI — Impuesto sobre Bienes Inmuebles — is the Spanish local property tax.

It is completely separate from Form 210.

The tax is linked to ownership of the property and is collected by the local authority. The amount depends mainly on the cadastral value of the property and the rate applied by the municipality.

This means that paying your IBI does not mean that your Form 210 has also been dealt with.

They are two different taxes.

For a non-resident owner, it is therefore perfectly normal to have an annual IBI bill and also a separate Spanish Non-Resident Income Tax obligation.

Keep your IBI bill. Apart from proving payment of the local tax, it also contains cadastral information that may be needed when preparing Form 210.

Renting the property

Rental income creates a different tax calculation

If you rent out a Spanish property while living abroad, the rental income is normally taxable in Spain.

This includes income received through platforms such as Airbnb and Booking.com as well as rentals arranged privately or through a local agent.

Where you are tax resident is particularly important.

Residents of an EU country, Iceland, Norway or Liechtenstein are generally taxed at 19% and may be able to deduct qualifying expenses directly connected with the rental.

Residents of other countries, including the United Kingdom, are generally taxed at 24% on the gross rental income without those expense deductions.

There are also specific rules for rental periods, expenses, depreciation and annual filing.

For a detailed explanation, see our guide to declaring Airbnb and Booking.com income in Spain as a non-resident.

Renting and using the same property

One property can have two different tax treatments in the same year

Many foreign owners use their property themselves during part of the year and rent it out during the rest.

In that situation, the year normally needs to be divided.

For the days when the property was rented, the owner declares the rental income.

For the remaining days when it was empty or available for personal use, imputed income may need to be calculated.

For example, a property rented for 100 days and available to the owner for the remaining 265 days should not normally be treated as though it had been rented for the whole year.

Keeping accurate rental dates is therefore important.

Selling your Spanish property

Selling creates a different non-resident tax process

When a non-resident sells a Spanish property, the annual ownership calculation is no longer the main issue.

Instead, the seller needs to calculate whether the sale has produced a capital gain or loss.

There is also a special rule that often surprises foreign sellers:

the buyer normally has to withhold 3% of the agreed sale price.

The buyer pays that amount to the Spanish Tax Agency on behalf of the non-resident seller.

The 3% is not necessarily the final tax bill. It is a payment on account.

If the final capital gains tax is lower than the amount withheld, the seller may be entitled to claim the difference back.

For a more detailed explanation, see our guide to reclaiming the 3% withholding after selling a property in Spain.

Higher-value Spanish assets

Some non-residents may also need to consider Wealth Tax

Form 210 and IBI are not necessarily the only taxes relevant to every property owner.

Non-residents can also fall within the Spanish Wealth Tax rules in relation to assets and rights situated in Spain.

This does not mean that every foreign property owner has to file a Wealth Tax return.

Whether there is a filing or payment obligation depends on the value and type of Spanish assets, applicable exemptions, deductible debts, the rules that apply to the taxpayer and, where relevant, international tax treaties.

Owners of higher-value Spanish property or several Spanish assets should therefore not assume that Form 210 is their only tax obligation.

This is an area where an individual review is usually more useful than a simple online calculation.

Buying a property

Buying a home involves different taxes

Form 210 is mainly relevant once you own the property.

The purchase itself has its own tax rules.

The taxes depend on factors such as whether you are buying a new or resale property and the location of the property.

A buyer may therefore have purchase taxes and costs at the time of acquisition and later have annual obligations as the owner.

If you are planning to buy property in Spain, it is better to review the tax and legal position before signing the transaction, rather than waiting until after completion.

Inheriting or receiving property

Inheritance and gifts follow different tax rules

If you inherit a Spanish property or receive one as a gift, Form 210 is not the tax used to deal with the transfer itself.

Spanish Inheritance and Gift Tax rules may apply.

Once the transfer is complete and you become the owner, you may then have the normal ongoing obligations associated with owning the property, including IBI and potentially Form 210.

This is why inheritance, gift and annual non-resident taxation should be treated as separate stages.

Several owners

Joint ownership means separate tax positions

A property can belong to more than one person, but that does not normally mean that there is one single Form 210 for the property.

Each owner is a taxpayer in their own right.

If a couple owns a property 50/50, each person will normally deal with their own 50% share.

If the ownership percentages are different, the calculation should reflect the actual percentage owned by each person.

The purchase deed is therefore one of the first documents worth checking.

Do not confuse nationality with tax residence

Being foreign does not automatically make you a non-resident

A British, French, Belgian or Scandinavian citizen can be tax resident in Spain.

Equally, a Spanish citizen can be non-resident for Spanish tax purposes.

Your tax residence depends on the relevant tax rules, not simply on your passport.

The number of days spent in Spain is important, but other factors such as the centre of your economic interests and certain family circumstances can also matter.

If there is any real doubt about tax residence, resolve that question before deciding which tax return should be filed.

A useful yearly routine

Annual checklist for a non-resident property owner

Keeping a simple annual file can make Spanish property tax much easier to manage.

Each year, it is useful to keep:

Your latest IBI bill
It contains important cadastral information.

The purchase deed
This confirms ownership and each owner’s percentage.

A record of rental dates
If you rent the property, keep the exact dates rather than only the annual income total.

Platform and rental statements
Keep Airbnb, Booking.com, agency and bank records where relevant.

Invoices and receipts
These may be needed to support expenses where deductions are permitted.

Your tax residence documentation
This can be particularly important where your country of residence changes the tax treatment.

Spanish Tax Agency notifications
Do not leave electronic notifications unread, particularly if previous returns are outstanding.

A Spanish digital certificate can make it much easier to check notifications and online tax files.

If something changes during the year

Review the tax position when the property situation changes

Do not wait until the following year if something significant happens.

It is worth reviewing the tax position when:

• you start renting a property that was previously for private use;
• you stop renting it;
• one owner sells or transfers their share;
• the property is inherited or gifted;
• you sell the property;
• your country of tax residence changes; or
• you become tax resident in Spain.

A change that seems administrative can alter the way the property should be taxed.

Previous years

What if you discover that you should have filed tax returns in earlier years?

If you realise that Form 210 should have been filed in previous years, do not automatically start submitting old returns without checking the current position.

The Spanish Tax Agency may already have sent a notification or opened a procedure relating to one of those periods.

It is therefore sensible to review the taxpayer’s online tax record first.

If there has been no previous action, the outstanding years can then be considered.

If there is already a notification, request or assessment, it should be reviewed before deciding what needs to be filed.

Frequently asked questions about property tax for non-residents in Spain

Do non-residents pay tax simply for owning property in Spain?

In many cases, yes. In addition to local IBI, an individual non-resident owner may need to file Form 210 for imputed income even if the property is not rented.

Is IBI the same as Form 210?

No. IBI is a local property tax. Form 210 is used for Spanish Non-Resident Income Tax. Paying one does not replace the other.

Do I pay Spanish tax if I rent my property through Airbnb or Booking.com?

Normally, yes. Rental income from Spanish property is generally taxable in Spain regardless of which platform is used or where the money is received.

What if I use the property myself and also rent it?

The year will normally need to be divided between rental periods and periods when the property was available for your own use.

What happens if I sell the property?

A non-resident seller normally has to calculate the capital gain or loss, and the buyer generally withholds 3% of the sale price as a payment on account.

Does every non-resident property owner have to pay Wealth Tax?

No. Wealth Tax depends on the value and circumstances of the taxpayer’s Spanish assets and other applicable rules.

Does each joint owner have to file separately?

Normally, yes. Each owner generally deals with the share corresponding to their percentage of ownership.

Can I manage Spanish property taxes while living abroad?

Yes. Many tax procedures can be managed remotely when the necessary documentation and authorisation are available.

Need to go deeper?

Use the right guide for your situation

This article gives you the overall picture.

For more detailed information, choose the guide that matches what you need:

Form 210 for non-residents in Spain — if you want us to review and file your return.

Form 210 calculator for non-residents — if you want an initial estimate.

Airbnb and Booking.com income for non-residents — if you rent the property.

3% withholding on the sale of a Spanish property — if you have sold or are planning to sell.

Need help with your Spanish property tax?

We can review your situation before you file anything

If you own property in Spain but live abroad, we can review which Spanish tax obligations actually apply to you.

We regularly assist non-resident property owners in Orihuela Costa, Torrevieja, Pilar de la Horadada and other areas of Alicante and Murcia, including clients who manage their Spanish property from abroad.

Service available in English, Spanish and French.