Owning property in Spain — whether it's a sun-drenched villa on the Costa del Sol or an apartment in Barcelona — comes with a range of tax obligations that every owner must understand. Spain property tax rules affect residents and non-residents alike, and the 2025/2026 tax year brings updated valuations and thresholds that could impact how much you owe.
This comprehensive guide walks you through every property tax in Spain you need to know about, from the annual IBI (Impuesto sobre Bienes Inmuebles) to capital gains tax on property sales. Whether you're a Spanish resident, a foreign investor, or an expat considering a purchase, you'll find the specific rates, deadlines, and practical examples you need to plan effectively.
Use our Spain Property Tax Calculator to get a quick estimate of your annual obligations.
What Is Spain Property Tax (IBI)?
The Impuesto sobre Bienes Inmuebles (IBI) is Spain's primary annual property tax, similar to council tax in the UK or property tax in the United States. It is a municipal tax levied by local town halls (ayuntamientos) on all property owners, regardless of whether they are Spanish residents or non-residents.
How IBI Is Calculated
IBI is calculated based on the valor catastral (cadastral value) of the property, which is an administrative valuation determined by the Spanish Cadastre (Catastro). The cadastral value is typically well below the market value of the property — often between 30% and 50% of the actual sale price — though recent revaluations in some municipalities have narrowed this gap.
The formula is straightforward:
IBI = Cadastral Value × Municipal Tax Rate
IBI Tax Rates for 2025/2026
IBI rates vary by municipality, but Spanish law sets minimum and maximum ranges:
- Urban properties (Urbana): 0.4% to 1.3% of the cadastral value
- Rural properties (Rústica): 0.3% to 0.9% of the cadastral value
Most municipalities set their rates somewhere in the middle. Here are some typical effective IBI rates for major Spanish cities in 2025:
| City | Approximate IBI Rate (Urban) |
|---|---|
| Madrid | 0.456% |
| Barcelona | 0.66% |
| Valencia | 0.793% |
| Seville | 0.7394% |
| Málaga | 0.6949% |
| Marbella | 0.51% |
Practical Example
If you own an apartment in Barcelona with a cadastral value of €150,000, your annual IBI would be approximately:
€150,000 × 0.66% = €990 per year
By contrast, a similar property in Marbella with the same cadastral value would cost:
€150,000 × 0.51% = €765 per year
IBI Payment Deadlines
Payment periods vary by municipality but typically fall between August and November. Many town halls offer:
- Direct debit (domiciliación): Often with a small discount (up to 5%)
- Split payments: Some municipalities allow payment in installments
- Early payment discounts: Ranging from 2% to 5% depending on the locality
Tip: You can check your property's cadastral value online at the Spanish Cadastre website (www.sedecatastro.gob.es) or by requesting a certificate at your local Catastro office.
Non-Resident Property Tax in Spain (IRNR)
If you own property in Spain but are not a Spanish tax resident, you face an additional layer of taxation: the Impuesto sobre la Renta de No Residentes (IRNR), or Non-Resident Income Tax. This applies even if you do not rent out the property.
Non-Residents Who Do NOT Rent Out Their Property
Spain imputes a deemed rental income to non-residents who own property for personal use. You must declare and pay tax on this "imputed income" annually.
Imputed income calculation:
- 1.1% of the cadastral value if the value has been revised in the last 10 years
- 2% of the cadastral value if the value has NOT been revised in the last 10 years
Tax rate on imputed income (2025/2026):
- 19% for EU/EEA residents (including Norway and Iceland)
- 24% for non-EU residents (e.g., UK post-Brexit, US, Canadian citizens)
Practical Example — Non-Resident Imputed Income Tax
A British citizen (post-Brexit, now non-EU) owns a holiday apartment in Alicante with a cadastral value of €120,000 (revised within the last 10 years). The annual imputed income tax would be:
- Imputed income: €120,000 × 1.1% = €1,320
- Tax at 24%: €1,320 × 24% = €316.80 per year
If the same property were owned by a French citizen (EU resident), the tax would be:
- Imputed income: €120,000 × 1.1% = €1,320
- Tax at 19%: €1,320 × 19% = €250.80 per year
Non-Residents Who Rent Out Their Property
If you earn rental income from Spanish property, you must declare it quarterly using Form 210.
- EU/EEA residents: Taxed at 19% on net rental income (you can deduct allowable expenses such as mortgage interest, maintenance, insurance, and depreciation)
- Non-EU residents: Taxed at 24% on gross rental income (no expense deductions allowed)
This distinction is significant. A non-EU resident landlord earning €12,000 gross rental income with €5,000 in expenses would pay:
- EU resident: (€12,000 - €5,000) × 19% = €1,330
- Non-EU resident: €12,000 × 24% = €2,880
Filing Deadlines for Non-Residents
| Situation | Filing Deadline |
|---|---|
| Imputed income (no rental) | December 31 of the following year |
| Rental income (quarterly) | April 1-20, July 1-20, October 1-20, January 1-20 |
Property Transfer Taxes: Buying Property in Spain
When purchasing property in Spain, the taxes you pay depend on whether the property is new-build or resale.
Buying a New-Build Property
New properties purchased directly from a developer are subject to:
- IVA (VAT): 10% of the purchase price (4% for officially protected housing — Vivienda de Protección Oficial)
- AJD (Stamp Duty / Actos Jurídicos Documentados): Varies by autonomous community, typically 0.5% to 1.5%
Buying a Resale Property
Resale properties are subject to the Impuesto de Transmisiones Patrimoniales (ITP) — the Transfer Tax. Rates vary by region:
| Autonomous Community | ITP Rate (2025) |
|---|---|
| Andalucía | 7% |
| Cataluña | 10% (11% over €1M) |
| Comunidad de Madrid | 6% |
| Comunidad Valenciana | 10% |
| Islas Baleares | 8% - 13% (progressive) |
| Islas Canarias | 6.5% |
| País Vasco | 4% - 7% |
| Galicia | 9% |
| Murcia | 8% |
Practical Example — Purchasing Costs
Buying a resale apartment in Madrid for €350,000:
- ITP: €350,000 × 6% = €21,000
- Notary fees: Approximately €800 - €1,200
- Land registry fees: Approximately €400 - €700
- Legal fees: Typically 1% - 1.5% of purchase price = €3,500 - €5,250
Total estimated purchase costs: approximately €25,700 - €28,150 (7.3% - 8% of the purchase price)
Compare this to the same property in Cataluña, where the ITP alone would be €35,000 (10%), significantly increasing your total costs.
Capital Gains Tax on Selling Property in Spain
When you sell a property in Spain, any profit is subject to capital gains tax (CGT). The rules differ for residents and non-residents.
Capital Gains Tax Rates for Residents (2025/2026)
Capital gains from property sales form part of your savings income (renta del ahorro) and are taxed at progressive rates:
| Capital Gain | Tax Rate |
|---|---|
| Up to €6,000 | 19% |
| €6,001 - €50,000 | 21% |
| €50,001 - €200,000 | 23% |
| €200,001 - €300,000 | 27% |
| Over €300,000 | 28% |
Capital Gains Tax for Non-Residents
Non-residents pay a flat 19% on capital gains from Spanish property sales (for EU/EEA residents). Non-EU residents also pay 19% on capital gains specifically.
Important: The buyer is legally required to withhold 3% of the sale price and pay it directly to the Spanish Tax Agency (Agencia Tributaria) as an advance payment of the seller's CGT. If the actual tax is less than 3%, the non-resident seller can claim a refund.
Exemptions and Reductions
- Principal residence exemption (residents only): If you're over 65 and selling your main home, the gain is fully exempt. For those under 65, reinvestment of the proceeds into a new principal residence within 2 years exempts the gain.
- Inflation adjustment: Properties acquired before 1994 may benefit from transitional relief that reduces the taxable gain.
- Municipal capital gains tax (Plusvalía): In addition to CGT, sellers pay this local tax based on the increase in the land's cadastral value during the ownership period.
Practical Example — Capital Gains
A Spanish resident bought a property in Valencia for €200,000 in 2015 and sells it for €310,000 in 2025. After deducting purchase costs (€16,000) and sale costs (€8,000):
- Capital gain: €310,000 - €200,000 - €16,000 - €8,000 = €86,000
- Tax: First €6,000 at 19% = €1,140; next €44,000 at 21% = €9,240; remaining €36,000 at 23% = €8,280
- Total CGT: €18,660
Use our Spain Income Tax Calculator to see how capital gains interact with your overall income tax liability.
Wealth Tax and Solidarity Tax on Property
Spain levies a Wealth Tax (Impuesto sobre el Patrimonio) on worldwide net assets for residents and Spanish assets for non-residents. Property holdings form the largest component for most taxpayers.
Key Thresholds (2025/2026)
- General exemption: €700,000 per person (some regions differ — Madrid has historically offered a 100% rebate, though the Solidarity Tax now applies)
- Principal residence exemption: Up to €300,000 for residents
- Rates: Progressive from 0.2% to 3.5% depending on the autonomous community
Temporary Solidarity Tax (ITSGF)
Introduced in 2023 and extended through 2025, the Impuesto Temporal de Solidaridad de las Grandes Fortunas targets high-net-worth individuals with assets exceeding €3 million. Rates are:
- €3M - €5M: 1.7%
- €5M - €10M: 2.1%
- Over €10M: 3.5%
This tax primarily affects those in regions like Madrid where wealth tax was previously rebated at 100%.
Common Mistakes and Misconceptions
Property owners in Spain — especially non-residents — frequently make costly errors. Here are the most common:
Assuming no tax is due if you don't rent out the property. Non-residents must pay imputed income tax even on empty holiday homes.
Missing the 3% retention on property sales. Buyers who fail to withhold and pay the 3% to the tax authority face penalties and become jointly liable for the seller's tax.
Confusing cadastral value with market value. Your IBI and imputed income calculations are based on the cadastral value, not the price you paid.
Ignoring regional variations. Property transfer taxes, wealth tax rates, and certain deductions vary dramatically between Spain's autonomous communities. A property in Madrid faces very different taxation than one in Cataluña.
Forgetting about Plusvalía Municipal. This local tax on the increase in land value catches many sellers off guard, particularly after the 2021 legal reforms that changed its calculation method.
Not claiming double taxation relief. Non-residents from countries with a tax treaty with Spain (including the US, UK, France, Germany, and most EU nations) may be able to offset Spanish property taxes against their home country obligations.
Failing to appoint a fiscal representative. Non-EU property owners in Spain are technically required to appoint a tax representative, though enforcement varies.
Frequently Asked Questions
How much is property tax in Spain per year?
The annual IBI property tax in Spain typically ranges from 0.4% to 1.1% of the cadastral value, which usually amounts to between €200 and €2,000 per year for a standard residential property. The exact amount depends on your municipality and the property's cadastral value.
Do non-residents pay more property tax in Spain?
Non-residents pay the same IBI as residents, but they also owe imputed income tax (IRNR) on property held for personal use. Non-EU residents face a higher rate (24% vs. 19% for EU residents) and cannot deduct expenses from rental income.
When is Spanish property tax due?
IBI is typically due between August and November, depending on the municipality. Non-resident imputed income tax (Form 210) is due by December 31 of the following year. Rental income must be declared quarterly.
Can I deduct Spanish property tax in my home country?
This depends on the double taxation agreement (DTA) between Spain and your country of residence. Most DTAs allow you to claim a credit or deduction for property taxes paid in Spain. Countries with active tax treaties with Spain include the US, UK, Canada, Germany, France, Australia, and most EU nations.
What happens if I don't pay my Spanish property tax?
Unpaid IBI accumulates penalties and interest (typically a 5% - 20% surcharge depending on delay). The municipality can ultimately place a charge on the property and, in extreme cases, initiate forced sale proceedings. Unpaid IRNR can result in penalties from the national tax authority.
Key Takeaways and Next Steps
Property tax in Spain for 2025/2026 involves multiple layers of taxation that depend on your residency status, the property's location, and how you use it. Here's a summary of what every property owner should remember:
- IBI is unavoidable — every property owner pays it annually, with rates set by the local municipality.
- Non-residents face additional tax obligations, including imputed income tax and less favorable treatment of rental income (especially for non-EU citizens).
- Purchase taxes vary significantly by region, from 4% in parts of País Vasco to 13% in the Balearic Islands for high-value properties.
- Capital gains tax applies on property sales, with rates up to 28% for residents and a flat 19% for non-residents.
- Wealth tax and the solidarity tax can add substantial costs for owners of high-value property portfolios.
To estimate your specific property tax obligations, use our Spain Property Tax Calculator. For a broader view of your Spanish tax liability including income and capital gains, try our Spain Income Tax Calculator.
This article is for informational purposes only and does not constitute tax advice. Tax laws change frequently; consult a qualified tax professional for advice specific to your situation.