When you prepare for property purchase, it is important to estimate the total amount of your payment. Besides the property cost you have to expect some additional taxes, which you have to pay both at the purchase and after becoming an owner. Let’s talk about taxes in one of the most popular country for foreign buyers.
The first thing we need to establish is the difference between ‘residents’ and ‘non-residents’, because these categories of buyers pay different taxes.
In the context of taxation, residents are considered to be those who meet at least one of these requirements:
Spend more than 183 days a year in Spain, not necessarily continuously.
Declare Spain as the center of their life interests, in other words, their family and business are there.
Buying Spanish property does not make you a Spanish resident. Most foreign owners remain under wing of their native tax system.
Please note! The information in this article is provided for informational purposes only and cannot be considered as legal advice. To calculate the tax burden in each specific case, we recommend contacting professionals.
Taxes When Buying Property in Spain
During purchasing everyone is equal. Locals and foreigners, residents and non-residents pay the same taxes. These taxes are paid immediately after the conclusion of a sale contract. You cannot register your transaction without paying state fees.
The tax rate depends on the type of your property/ Whether it’s residential or commercial, primary or secondary, the rate is different. Even location matters.
Secondary market Property transfer tax (Impuesto sobre Transmisiones Patrimoniales-ITP). Depends on the property location. The average around the country is 8%, but in Catalonia it’s 10%, while in the Canary Islands it’s 6.6%.
Primary market Value added tax, i.e. VAT (IVA, Impuesto sobre Valor Añadido). It’s the same in every region - 10%.
If you buy a land plot or commercial property, the VAT is 21%.
These are the most important taxes you are going to face. But there are also stamp duty, payment for making entries in the register of owners and notary expenses about 2-4% of the price. If you take out a mortgage, additional expenses increase by a couple of percent.
Please note! In Spain taxes are never included in the property that you see in ads for purchase and sale. Therefore, feel free to add about 13-15% to the price and you get the amount of your total expenses.
Taxes on the Maintenance of Real Estate in Spain
In addition to the cost of utilities expect for annual taxes, the amount of which will depend on the price of the property, it’s location, the quality of construction as well as on whether the property is rented or not.
Local authorities issue the main fee to all owners, including foreign ones. It’s called the IBI property tax (Impuesto sobre Bienes Inmuebles).
The tax is calculated from the cadastral value of real estate, which is always much lower than the market value. Each municipality determines the payment procedure independently.
Rates are different in all regions from 0.4% to 1.16%. The table below shows the average IBI property tax rates and the year of cadastral valuation in the Spanish provinces that are popular among foreigners.
Valencia
1998
1.07%
Girona
1990
0.88%
Alicante
1996
0.84%
Barcelona
2002
0.82%
Murcia
2002
0.79%
Malaga
2002
0.72%
Most owners of holiday homes and apartments in Spain receive an annual bill of €200-800. However, the IBI tax may be twice as high, if you buy luxury property in a premium location.
Properties in Spain
640 146 €
Flat in Marbella, Spain
82 m²
Spain. Apartments in Marbella.
No. 55824
Marbella, Costa del Sol
Area: 82 m²
Bedrooms: 2
Bathrooms: 1
Ref: U226939
Energy Certificate
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Apartments and duplexes in the historic center of Marbella
Introducing a new development in the Old Town of Marbella, offering a unique opportunity to live in a historic...
Europe Gmbh
460 000 €
Flat in Estepona, Spain
111 m²
Spain. Apartments in Estepona.
No. 55828
Estepona, Costa del Sol
€460,000
Area: 111 m²
Plot/Outdoor space: 35 m²
Bedrooms: 3
Bathrooms: 2
Ref: U248254
Apartments with 1, 2, and 3 bedrooms in Estepona Golf
This is an exclusive residential project located in the heart of Estepona Golf. Its modern architecture,...
Europe Gmbh
410 000 €
Flat in Manilva, Spain
82 m²
Spain. Apartments in Manilva.
No. 55829
Manilva, Costa del Sol
€410,000
Area: 82 m²
Bedrooms: 2
Bathrooms: 2
Ref: U227209
New 2- and 3-bedroom apartments in Manilva
Introducing a new residential complex in Manilva, located on the Costa del Sol in the exclusive Bahía Las Rocas area. This privileged location,...
Europe Gmbh
2 000 000 €
Villa in Estepona, Spain
196 m²
Spain. Villa in Estepona.
No. 55831
Estepona, Costa del Sol
€2,000,000
Built area: 196 m²
Plot size: 842 m²
Bedrooms: 4
Bathrooms: 4
Ref: U228067
Modern four-bedroom villa on the Costa del Sol
We present a collection of contemporary villas located within an exclusive gated residential complex on the sunny Costa...
Europe Gmbh
1 085 000 €
Townhouse in Fuengirola, Spain
159 m²
Spain. Townhouse in Fuengirola.
No. 55832
Fuengirola, Costa del Sol
€1,085,000
Area: 159 m²
Bedrooms: 3
Bathrooms: 3
Ref: U228802
Three-bedroom villa with a private pool in El Higuerón
Located on the elevated terrain of El Higuerón on the Costa del Sol, this development offers open views of the...
Europe Gmbh
2 190 000 €
Villa in Estepona, Spain
484 m²
Spain. Villa in Estepona.
No. 55835
Estepona, Costa del Sol
€2,190,000
Area: 484 m²
Plot: 1,130 m²
Bedrooms: 4
Bathrooms: 4
Ref: U230104
4-bedroom villa with a swimming pool in Estepona
This modern villa is located in the prestigious La Resina Golf area of Estepona, surrounded by lush greenery and golf...
Europe Gmbh
995 000 €
Townhouse in Fuengirola, Spain
171 m²
Spain. Townhouse in Fuengirola.
No. 55837
Fuengirola, Costa del Sol
€995,000
Area: 171 m²
Plot: 33 m²
Bedrooms: 3
Bathrooms: 3
Ref: U230884
Three-bedroom townhouses in a prestigious area
This exclusive residential complex blends harmoniously into its surroundings, offering privacy and an authentic Mediterranean...
Europe Gmbh
298 000 €
Commercial property in Barcelona, Spain
185 m²
Spain. Barcelona. Commercial Real Estate. Investment Property.
Commercial space in Eixample #56008
Eixample, Barcelona
€298,000
Area: 185 m²
Yield: 6%
Ref: BA16
Commercial space located in the Sant Antoni neighborhood of Barcelona.
Total area: 185 m².
Currently leased for use as treatment rooms for aesthetic...
Europe Gmbh
432 000 €
Penthouse in Fuengirola, Spain
71 m²322
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Wellness-Focused Apartments in a Luxurious Project in Fuengirola, Málaga
Fuengirola is one of the Costa del Sol's most popular coastal destinations, offering an excellent balance of Mediterranean lifestyle, modern amenities, and year-round activity. The town is known for its long sandy beaches, lively promenade, international restaurants,...
TEKCE
432 000 €
Apartment in Fuengirola, Spain
92 m²222
Online ViewingRemote Transaction
Wellness-Focused Apartments in a Luxurious Project in Fuengirola, Málaga
Fuengirola is one of the Costa del Sol's most popular coastal destinations, offering an excellent balance of Mediterranean lifestyle, modern amenities, and year-round activity. The town is known for its long sandy beaches, lively promenade, international restaurants,...
TEKCE
1 580 000 €
Villa in Estepona, Spain
341 m²544
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Golfside Sustainable Villas with Picturesque Seaviews in Estepona
This new project is located in the municipality of Estepona, one of the best retreats on Costa del Sol. The municipality enjoys an unbeatable Mediterranean climate with over 300 days of sunshine annually making it an ideal destination for sun-seekers and outdoor enthusiasts alike....
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3 400 000 €
Villa in Estepona, Spain
508 m²433
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Detached Villas with Private Lifts in a Sought After Area of Estepona
This new project is located in the municipality of Estepona. Situated along the picturesque shores of Costa del Sol in southern Spain, Estepona boasts a diverse range of properties. Also, with its stunning beaches, mild climate throughout the year, charming old town, and lush...
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645 000 €
Apartment in Estepona, Spain
115 m²322
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Energy-Efficient Apartments with Spectacular Panoramic Views in Estepona, Malaga
This new development is located in the municipality of Estepona, a hidden gem on the Costa del Sol, renowned for its beaches, beautiful landscape with lush vegetation, and panoramic Mediterranean Sea views. This rapidly developing and charming region offers a serene...
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995 000 €
Penthouse in Estepona, Spain
153 m²433
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Energy-Efficient Apartments with Spectacular Panoramic Views in Estepona, Malaga
This new development is located in the municipality of Estepona, a hidden gem on the Costa del Sol, renowned for its beaches, beautiful landscape with lush vegetation, and panoramic Mediterranean Sea views. This rapidly developing and charming region offers a serene...
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599 000 €
Apartment in Fuengirola, Spain
90 m²322
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Ready-to-Move Apartment in Valley Collection, El Higuerón Fuengirola
This 2-bedroom apartment is in Valley Collection, one of the most complete residential complexes in El Higuerón, the green hillside district of Fuengirola on the border with Benalmádena. The building was completed in March 2026, so the apartment is ready to move in today, with...
TEKCE
900 000 €
Apartment in Manilva, Spain
186 m²543
Online ViewingRemote Transaction
Beachfront Flats with Mediterranean Views in Manilva
Manilva is a charming coastal destination on the western Costa del Sol, known for its beautiful beaches, traditional Andalusian character and relaxed Mediterranean atmosphere. The municipality combines the authentic charm of its whitewashed village with the lively coastal areas of San Luis de...
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930 000 €
Penthouse in Manilva, Spain
134 m²432
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Beachfront Flats with Mediterranean Views in Manilva
Manilva is a charming coastal destination on the western Costa del Sol, known for its beautiful beaches, traditional Andalusian character and relaxed Mediterranean atmosphere. The municipality combines the authentic charm of its whitewashed village with the lively coastal areas of San Luis de...
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1 320 000 €
Penthouse in Manilva, Spain
154 m²543
Online ViewingRemote Transaction
Beachfront Flats with Mediterranean Views in Manilva
Manilva is a charming coastal destination on the western Costa del Sol, known for its beautiful beaches, traditional Andalusian character and relaxed Mediterranean atmosphere. The municipality combines the authentic charm of its whitewashed village with the lively coastal areas of San Luis de...
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780 000 €
Penthouse in Manilva, Spain
99 m²322
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Beachfront Flats with Mediterranean Views in Manilva
Manilva is a charming coastal destination on the western Costa del Sol, known for its beautiful beaches, traditional Andalusian character and relaxed Mediterranean atmosphere. The municipality combines the authentic charm of its whitewashed village with the lively coastal areas of San Luis de...
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790 000 €
Apartment in Manilva, Spain
112 m²322
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Beachfront Flats with Mediterranean Views in Manilva
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The next government fee in Spain is the IRNR income tax (Impuesto sobre la Renta de No Residentes). It depends on your status in Spain, as well as on how you dispose of real estate. It applies to non-residents only.
Property tax in Spain for non-residents, who do not rent out their property:
If you do not make any profit in Spain and use the property yourself, the tax base for you is 2% of the cadastral value, or 1.1% for properties with the assessment carried out after 1994.
The IRNR tax rate for residents of the European Union, Iceland and Norway is 19%, and for all others it’s 24%.
Property tax in Spain for foreigners, who rent out their property:
If you make a profit from your Spanish real estate, the income tax IRNR is calculated on the amount of the annual rent. The rates are the same: 19% for European citizens, 24% for all other foreigners.
Owners of luxury real estate in Spain also pay the annual wealth tax (Impuesto sobre el Patrimonio). It was entered in 2008, when the Spanish economy was going through a crisis. The debate about the need to cancel this tax is still on.
The tax is collected by local municipalities. The tax base depends on the region, but in most cases owners of properties less than €700 000 are freed from payment (€1 400 000 for married couples). Various encumbrances such as mortgages can be deducted from the tax base. The stakes are rising along with the price of from 0.2% to 2.5%.
Property owners in Spain have one more fee to pay, which is the municipal tax on garbage disposal. It’s collected by the local authorities and used to keep surrounding areas clean.
The size of this tax depends on the location of the property. Usually, you will receive a check for €100-200 per year.
Please note! It is a duty of the owner to pay all fees and taxes on time. The city authorities send a notification to the Spanish address after you officially registrate as the owner. If you lose this notification or do not notice it (or it does not reach, which also happens), and as a result, the money is not paid, you will be charged a penalty. You will not be able to sell or mortgage real estate until you pay it. In cases of large debts, property can be seized by a court order, but in practice it rarely happens.
To simplify the calculation you can set the automatic payments from your bank account in Spain. Many agencies also offer a real estate management service to foreign owners, which includes monitoring and paying all bills.
