Taxes for property owners in Spain
Owning property in Spain can create several recurring and transaction-related tax obligations. The position depends particularly on the owner's tax residence and whether the property is used privately, rented or sold.
Municipal property tax – IBI
The Impuesto sobre Bienes Inmuebles, or IBI, is a recurring municipal property tax. It is calculated on the basis of the cadastral value under the rules and tax rates of the relevant municipality.
IRNR for non-residents
A non-resident property owner can have a Spanish tax liability even where the property is used only privately. Rental income must also be declared where the property is let.
Taxes on wealth
Depending on the value of the assets, tax residence and other circumstances, Spanish wealth-related taxes may also create filing or payment obligations.
Sale
A sale may generate tax on a capital gain and municipal plusvalía. Where the seller is non-resident, the general three-per-cent purchaser withholding must also be considered.
How we can help
We advise resident and non-resident owners on IBI, IRNR, Form 210, letting, sale and other Spanish property-related tax obligations.