Owning property in Spain comes with a set of ongoing tax obligations that every buyer should understand before purchasing. While the Spanish tax system can seem complex, breaking it down into individual components makes it manageable — and a good tax advisor is worth their weight in gold.
Annual Property Tax (IBI)
The IBI (Impuesto sobre Bienes Inmuebles) is Spain's equivalent of council tax or property tax. It's calculated based on the catastral value of the property — a government-assessed value typically well below market price. Rates vary by municipality but generally range from 0.4% to 1.1% of the catastral value. For a luxury property in Marbella, expect to pay between 1,500 and 5,000 euros per year.
Non-Resident Income Tax (IRNR)
Even if you don't rent out your property, non-residents must file an annual return on an imputed income: 1.1% of the catastral value where the town's values were revised within the current or the previous ten tax years, and 2% otherwise. That income is taxed at 24% for non-EU residents and 19% for residents of the EU or EEA. The amounts are modest — typically a few hundred euros a year for a standard property.
If you do rent the property, rental income is taxed at 24% for non-EU residents (19% for EU residents), though EU residents can deduct allowable expenses.
Wealth Tax (Impuesto sobre el Patrimonio)
Spain levies a wealth tax on net assets above 700,000 euros (with an additional 300,000-euro exemption for the main home of tax residents). Andalusia has applied a 100% rebate on this tax since the 2022 tax year, so it is not paid there in practice; non-residents can apply the rules of the region where their Spanish assets are located. The national Solidarity Tax on Large Fortunes, in force since 2022, applies to net assets above 3 million euros, and any regional wealth tax paid is credited against it — which is why owners of larger portfolios still need advice even in Andalusia.
Capital Gains Tax on Sale
When you sell a property in Spain, capital gains tax applies on the profit. Non-residents pay a flat 19%, and the buyer must withhold 3% of the price and pay it to the tax office on the seller's behalf; it counts towards the final bill, and any excess is refunded. Residents pay the savings-income scale: 19% on the first 6,000 euros of gain, 21% up to 50,000, 23% up to 200,000, 27% up to 300,000 and — since 2025 — 30% above that. Various deductions and exemptions may apply, particularly for the main home of tax residents over 65.
Plusvalia Municipal
This local tax is levied on the increase in land value during the period of ownership. Following a 2021 Constitutional Court ruling, the calculation method was reformed. The tax is typically payable by the seller, though this can be negotiated.
Community Fees
While not a tax, community fees (gastos de comunidad) are an important ongoing cost. They cover maintenance of shared areas, pools, gardens, security, and building insurance. For luxury urbanisations, these can range from 200 to 800 euros per month.
Our Recommendation
Rates and allowances change often, and this article is a general guide rather than tax advice for your case. We always recommend engaging a specialist tax advisor (asesor fiscal) who understands both Spanish tax law and your home country's tax treaty with Spain. Our team at Triple L Estates can connect you with trusted professionals who serve international clients daily.
