Property Taxes in Spain:
Clear and Compliant Purchases
Personalized Legal and Tax Advice
Our team of tax advisors and lawyers, specialized in Spanish real estate, will help you:
- Estimate all taxes in advance
- Optimize your tax burden within the legal framework
- Avoid mistakes or penalties
- Prepare and file all required documentation
What Taxes Apply When Buying Property in Spain?
The taxes you pay depend on the type of property you’re buying:
If you’re buying a resale property:
You’ll need to pay the Property Transfer Tax (ITP), which varies by region. In Catalonia (home to the Costa Brava), the standard ITP is 10% of the purchase price declared in the deed.
Example: If you buy a property for €400,000, your ITP will be €40,000.
If you’re buying a new-build property (direct from developer):
In this case, you do not pay ITP.
Instead, the applicable taxes are:
- VAT (IVA): 10% for residential properties
- Stamp Duty (AJD): 1.5% in Catalonia
Total: approximately 11.5% of the purchase price.
Capital Gains Tax When Selling a Property
If you sell a property in Spain and make a profit, you are subject to Capital Gains Tax (CGT) on the net gain. The rates for individuals are:
- 19% on the first €6,000 of gain
- 21% from €6,001 to €50,000
- 23% from €50,001 to €200,000
- 28% on gains over €200,000
Important for non-resident sellers: A 3% withholding of the sale price is retained by the buyer and paid to the Spanish Tax Agency as an advance on your potential tax liability.
Ongoing Property Taxes After the Purchase
Once you become a property owner in Spain, you will need to pay the following recurring taxes:
- IBI (Impuesto sobre Bienes Inmuebles): Local property tax paid annually to the town hall. Based on the cadastral value.
- Wealth Tax: May apply if your total net assets in Spain exceed certain thresholds (e.g., €500,000 in Catalonia with exemptions).
- Non-Resident Income Tax: If you don’t rent the property out, you still pay tax on a deemed rental income (usually 1.1% or 2% of the cadastral value, taxed at 19–24%).
- Rental Income Tax (if applicable): Non-residents must declare and pay tax on actual rental income.
Other Costs to Consider
- Notary fees: Typically €600–€1,000 depending on property value
- Land Registry fees: Usually 0.5% of the declared value
- Legal fees: Hiring a lawyer is strongly advised (approx. 1% of the purchase price)
How We Help with Property Taxes
Our team of multilingual tax advisors and legal experts ensures you meet all tax obligations clearly and confidently:
- Pre-purchase tax estimates and planning
- Filing ITP, VAT, AJD, and other required forms
- Non-resident tax filings (Modelo 210)
- Wealth tax and rental income declarations
- Support with inheritance tax, capital gains, and more
Whether you’re buying, selling, or owning a home in Spain, we make the fiscal side simple and secure.
Resident or Non-Resident? Why It Matters
Tax residency is not the same as having a residence permit or a NIE in Spain. You are considered a tax resident in Spain if:
- You spend more than 183 days per year in the country, or
- Your main economic interests or professional activities are based in Spain.
If you do not meet these conditions, you are considered a non-resident for tax purposes.
This distinction has major implications for your tax obligations and legal responsibilities in Spain.
Taxes After the Purchase (Resident vs. Non-Resident)
Once you own property in Spain, you are subject to ongoing taxes. These differ depending on whether you are a tax resident or non-resident.
If You Are a Tax Resident in Spain:
- IBI (Local Property Tax): Paid annually to the local town hall based on the cadastral value.
- IRPF (Personal Income Tax): You must declare global income, including income from renting your property.
- Wealth Tax: Applies if your worldwide assets exceed the exemption threshold (varies by region).
If You Are a Non-Resident:
- IBI (Local Property Tax): Same as for residents.
- Non-Resident Income Tax (Modelo 210):
- If not rented: Taxed on deemed rental value (1.1% or 2% of cadastral value at 19–24%).
- If rented: Declare actual rental income and pay quarterly.
- Wealth Tax: Applies only to assets in Spain above certain thresholds.
Other Costs and Tax Considerations
In addition to taxes, there are other costs associated with buying a property in Spain:
- Notary and Land Registry fees: 1–2% of the purchase price
- Gestoría (administrative service, if used): €300–€800
- Lawyer’s fees (optional but recommended): 1–1.5% of the purchase price
While these are not technically taxes, they are an essential part of your total budget and should be planned for in advance.
Is It Mandatory to Have a NIE?
Yes. The NIE (Foreigner Identification Number) is mandatory for any foreigner purchasing property in Spain. It is required for:
- Signing the deed at the notary
- Paying taxes (ITP, VAT, AJD)
- Registering the property in your name
- Opening a Spanish bank account and setting up utilities
You must obtain your NIE before signing the public deed of sale. We assist clients in applying for the NIE through Spanish consulates or local immigration offices.
Is a Tax Advisor Necessary?
Is a Tax Advisor Necessary?
While it is not legally required, hiring a tax advisor is highly recommended — especially for foreign buyers. Spanish property taxes and legal requirements can be complex, and an advisor helps you:
- Calculate and optimize your tax obligations
- Avoid mistakes or penalties
- Understand differences between resident and non-resident taxation
- Ensure compliance with local and national laws
- File annual tax declarations (e.g., Modelo 210 for non-residents)
Having professional guidance saves time, money, and potential legal issues — giving you peace of mind throughout the entire process.
Our Value Proposition
As a real estate agency specialized in international buyers, we don’t just help you find the ideal property — we also advise you or connect you with trusted experts who:
- Assess the tax impact before the purchase
- Prepare all necessary documentation
- Manage your annual taxes if you’re not a resident in Spain
- Legally represent you if you’re abroad
We make sure your property journey in Spain is not only exciting, but also safe, clear, and professionally managed from start to finish.
