Taxes are one of the parts of buying property in Spain that most catches foreign buyers off guard — not because any single tax is hidden, but because there are several, they apply at different stages, and the rates vary by region. Here’s the complete picture.
At the Time of Purchase
- Property Transfer Tax (ITP) on resale properties, or VAT (IVA) + Stamp Duty (AJD) on new-build properties — this is the largest single tax cost, typically 7–13% of the purchase price depending on the region and property type
- Notary fees — technically a fee rather than a tax, but a mandatory cost of completing the purchase, typically €600–1,200
- Land Registry fees — typically €400–700 to register your ownership
Ongoing, Every Year You Own the Property
- IBI (annual property tax) — a municipal tax, typically 0.4–1.1% of the property’s cadastral value
- Non-resident income tax (IRNR) — filed via Modelo 210, applying to either rental income or a notional “imputed income” if the property isn’t rented out, at 19% (EU/EEA) or 24% (non-EU, including US and UK citizens) in 2026
- Wealth tax (Impuesto de Patrimonio) — applies above a regional threshold, relevant mainly to higher-value properties or owners with substantial additional Spanish assets
When You Eventually Sell
- Capital Gains Tax on the profit from the sale, typically 19% for non-residents
- Plusvalía Municipal — a local tax on the increase in land value during your ownership period
- 3% retention — the buyer is legally required to withhold 3% of the sale price and pay it directly to the tax authorities on your behalf, as an advance against your capital gains liability
Quick Reference Table
| Tax | When | Typical rate |
|---|---|---|
| ITP / VAT + AJD | At purchase | 7–13% of price (region-dependent) |
| IBI | Annual | 0.4–1.1% of cadastral value |
| Non-resident income tax | Annual (Modelo 210) | 19% (EU/EEA) / 24% (non-EU) |
| Wealth tax | Annual, above threshold | Progressive, region-dependent |
| Capital gains tax | On sale | 19% (non-resident) |
| Plusvalía municipal | On sale | Varies by municipality |
Frequently Asked Questions
Do I pay tax in Spain even if I never rent the property out?
Yes — non-resident owners owe annual “imputed income” tax on a notional rental value even when the property sits empty or is used only personally.
Which of these taxes can I pay myself vs. need a professional for?
Purchase-time taxes are typically handled by your notary/lawyer as part of the transaction; the annual Modelo 210 filing is commonly outsourced to a gestor or tax advisor given its recurring nature and the complexity of getting it right.
Are these taxes the same across all of Spain?
No — ITP, wealth tax thresholds, and plusvalía municipal all vary by autonomous community or municipality, so your specific region matters significantly for total cost.