Taxes on the purchase of Spanish real estate are low if you do not plan to make a profit from the object. In the latter case, the country has a single income tax rate for non-residents in the amount of 24%. But foreigners have the right to buy real estate of any type in the country and apply for a Schengen visa, regardless of the purchase amount. If the transaction value exceeds €500,000, the owner can apply for a residence permit for the whole family.
Right and Obligations of Non-resident Owners of Real Estate in Spain
Real estate in Spain can be bought by citizens of any country. You can make a deal for an individual or a legal entity. It is usually not required to obtain additional permits from local authorities (an exception is that in some regions they still request permission from the Ministry of Defense, however, the number of such places is decreasing). To buy an object, you do not need to have a local residence permit or become a resident of Spain.
There are no restrictions on the types of real estate: foreigners can freely buy apartments on the primary and secondary market, land plots, private houses with land, commercial facilities.
The owner of any Spanish property, regardless of its value, can count on a multiple-entry Schengen visa valid for up to 90 days in half a year. In 2013, another opportunity appeared – a so-called "golden visa" for foreigners who purchased real estate in Spain for €500,000. The owner receives a residence permit with the right to work and the opportunity to move his family with him.
The rights and obligations of a foreigner towards owned real estate are no different from those for citizens of the country. That is, you will have to pay taxes, cover utilities, and adapt to the requirements of rental legislation, which has become tougher in recent years.
Taxes paid when buying property depend on the type of object.
Primary market. When buying from a developer, you will need to pay local VAT (IVA – impuesto sobre valor añadido), which, regardless of the region, is 10%. If we are talking about a commercial object, a land plot, an unfinished or commissioned house, parking spaces that are located separately from housing (that is, not on the territory of the complex), the rate is 21%.
Stamp duty or the tax on the legal fixation of the act (IAJD – impuesto sobre los actos jurídicos documentados) is also charged separately for new buildings. Depending on the region, the rate is 0.5-1.5%.
Secondary market. The tax on the transfer of ownership (impuesto sobre transmisiones patrimoniales, ITP) varies depending on the region of the country. On average, it is 8%. The lowest is 6%, for example, in Alava, Biscay, Madrid, Navarre. In the Canary Islands – 6.5%. 8-11% – in Andalusia, Aragon, Asturias, Cantabria, Extremadura, the Balearic Islands. 10% – in Catalonia, Valencia, Galicia.
There are three taxes for owners of Spanish real estate.
Real estate tax (el impuesto sobre bienes inmuebles, IBI). It is charged to both residents and non-residents. It is paid once a year by the owner to whom the property was registered on January 1 of the reporting year. The rate is 0.4-1.1% of the cadastral value of the object, which is usually several times lower than the market. The payment can be made automatically by linking it to a current account in a Spanish bank.
The exact rate depends on the municipality. For example, in Valencia the tax is 0.950%, in Altea - 0.503%, in Benidorm - 0.682%, in Calpe - 0.0867%, in Torrevieja - 0.400%, in Barcelona - 0.825%, in Madrid - 0.604%.
About a month before the deadline for payment, the owner of the property should receive an information letter indicating the amount. But it is worth remembering: even if you did not receive the letter, this does not release you from responsibility – a penalty fee will "drip" for the delay, and sanctions will be imposed as a result. As a rule, you can pay the tax until the end of October of the year following the reporting year.
Income tax for non-residents (impuesto sobre la renta de no residentes, IRNR). Only those who spend less than 183 days a year in Spain and do not indicate it as a center of vital interests pay.
The owner calculates the amount of the fee independently, fills out the declaration, and sends it to the tax service. The specific rate depends on the status of the object and its cadastral value, which can be viewed in the tax receipt received by mail or on the cadastre website. There are two options regarding the status of the object.
The property is not for rent. The declaration must be submitted by December 31 of the reporting year, and the payment must be made by about December 20 of the following year. The imputed tax rate is 24% of 1.1% of the cadastral value. Sometimes 2% is taken as a basis if the revaluation was carried out more than ten years ago. For example, if an apartment in Malaga costs €200,000, the owner will have to pay about €500 per year.
The property is for rent. The declaration is submitted every quarter, in the first two weeks of April, July, October, and January. The tax depends on the amount of profit received. The rate is 24%, but actual expenses related to the maintenance and improvement of the facility can be deducted from the tax base. If the property was empty for a certain time, you do not need to pay tax, but you will still have to file a tax return.
The wealth tax (impuesto sobre el patrimonio, IP). Applicable to both residents and non-residents, if the value of the property is more than 700 thousand euros. The rate varies between 0.2-2.5%, but since 2021, in regions that have not approved their rate, the government has increased the maximum tax by 1%. That is, in some parts of the country, the rate maybe 3.5%. You need to file a declaration at the end of the year and pay by the end of June next.
Examples of apartments in Spain:
300 000 €
Flat on Costa del Sol, Spain
120 sq.m222
The apartments are located on the territory of the closed guarded complex Marques de Atalaya on the New Golden Mile. The apartment has 2 bedrooms and 2 bathrooms, 1 bathroom. Fully equipped kitchen, spacious living room with access to a large terrace, from where you can directly access the garden. The rooms are spacious and bright. Very...
ESTATE BARCELONA
149 000 €
Flat on Costa Blanca, Spain
87 sq.m222
Ground floor apartment (in Russian 2nd floor) in Lomas de Cabo Roig, Orihuela Costa.Large living room, American kitchen, 2 bedrooms, 2 bathrooms with heated floors, terrace of 15 m2, AASS preset. The total area is 84 m2. The complex has a communal swimming pool, green areas and Parking.The Lomas de Cabo Roig area is located in close proximity to...
ESTATE BARCELONA
64 900 €
Penthouse in Spain
51 sq.m11
1 bed top floor apartment with large terraces in La Tercia . 1 bedroom top floor apartmentwith a large terrace in La Tercia, a small village only 20 mins. drive to the sandy beaches of Santiago de la Ribera, Lo Pagán and San Pedro del Pinatar.
This property, in a very good condition, has two storeys: On the lower storey there is a living and...
OLE INTERNATIONAL HOMES S.L.
156 900 €
Penthouse in La Mata, Spain
65 sq.m21
2 bed penthouse with sea views in La Mata. 3 bedroom penthouse with sea views in the center of La Mata.
This house enjoys a terrace facing southeast with sea views. It is sold fully furnished and equipped, it also has air conditioning, ceiling fans in all rooms and radiators.
The apartment is located less than 5 min walk from La Mata beach,...
OLE INTERNATIONAL HOMES S.L.
258 500 €
Flat in Vilanova i la Geltru, Spain
77 sq.m321
The project of the new building "Vilanova Port" consists of apartments of different types that will satisfy the needs of each client. The complex consists of 26 apartments with 1, 2, 3 and 4 bedrooms, distributed between the lower and four upper floors. All of them have 1 or 2 bathrooms and a large balcony.
In addition, on the ground floor...
LUXBARCELONA
340 000 €
Penthouse in La Mata, Spain
68 sq.m432
BEAUTIFUL BUNGALOW FOR SALE IN LA MATA, NEXT TO THE BEACH AND 200M FROM THE SEA. EXCELLENT beach bungalow on the top floor with solarium for sale in La Mata, in Azul Beach II, next to the sea and the beach 200 meters away. The apartments from the famous developer TM have two bedrooms, two bathrooms, a living-dining room, an open kitchen. The...
Introducing a new duplex in the Pilar de la Horadada area, next to the Torre de la Horadada. The house has an area of 100 sq. m., with a living room, kitchen, three bedrooms, two bathrooms, a terrace and its own solarium (roof terrace where you can sunbathe, barbecue and enjoy the views of the surrounding area). On a plot of 130 sq.m. there is a...
EspanaTour
339 500 €
Flat on Costa del Sol, Spain
105 sq.m32
It is a modern and vibrant gated residential complex. An ideal place to live just a short walk to the beach with views to the Mediterranean. The development, located in Estepona, consists of 63, two and three-bedroom homes.
AREA
A place to enjoy, located in Estepona (Málaga), between Arroyo de Guadalobón and the Arroyo Vaqueros beach, and...
Mercury Group
332 500 €
Flat on Costa del Sol, Spain
123 sq.m32
The development consists of 115 homes with 1, 2, 3 and 4 bedrooms, penthouses, large terraces and sea views surrounding excellent common areas consisting of a swimming pool, gym, outdoor coworking area, a wellness/running space, hammock area and chill-out (hammocks...), children's games, petanque court, giant chess, recreational and leisure area...
Mercury Group
257 000 €
Apartment in Guardamar del Segura, Spain
79 sq.m322
Incredible new development emerging in Guardamar, in the El Raso area. The community features a tennis court, swimming pools, a gym, and much more. Prices start at 249,000€ for apartments ranging from approximately 78m2 to 98m2. Only a few units left in this development. Great and spacious floor plans available. Ground floor apartments offer...
Habita International Estates Ltd
825 000 €
Penthouse in Fuengirola, Spain
103 sq.m432
ResidenceOnline ViewingRemote Transaction
Prestigious Apartments with Sea Views in Fuengirola
The apartments are in a prestigious project located in a prime area of Fuengirola between Benalmadena. The region has a right to fame to offer wide options of amenities. In addition, the sunny Mediterranean climate helps the area be an ideal residential for people.
The complex is an...
TEKCE
195 000 €
Apartment in Calafell, Spain
58 sq.m321
EuropaHome
467 000 €
Apartment in Casares, Spain
180 sq.m543
Online ViewingRemote Transaction
High Quality Golfside Apartments with a Timeless Design in Casares
Apartments for sales in Casares Spain are located in the municipality of Casares, nestled along the stunning Costa del Sol. The municipality extends from the southern foothills of the Ronda mountain range to the Mediterranean Sea, offering a perfect blend of coastal beauty and...
TEKCE
1 449 000 €
Flat in Madrid, Spain
186 sq.m33
Residence
Located in the vibrant heart of Madrid, this centrally located flat on the first floor captures the essence of modern living. With a welcoming east orientation, the completely refurbished property features three generously sized bedrooms, including two en suite, accompanied by a convenient laundry room and pantry. The interior is a testament to...
Mercury Group
859 000 €
Flat in Madrid, Spain
99 sq.m33
Residence
Recently refurbished 99 m² apartment located in the heart of Madrid. Situated on the fourth floor of a well-maintained building with a convenient lift, this home offers a perfect blend of comfort and contemporary apartment boasts three bedrooms, each with its own dedicated bathroom, providing both residents and guests with utmost privacy and...
Mercury Group
283 000 €
Apartment in Benijofar, Spain
72 sq.m432
Online ViewingRemote Transaction
2, 3, 4 Bedroom Elegant Apartments with a Communal Pool in Benijófar
Stylish apartments situated in Benijófar a small town located in the province of Alicante, in the Valencian Community of Spain. It is situated in the Vega Baja del Segura region, close to the popular tourist destination of the Costa Blanca. Benijófar enjoys a Mediterranean...
TEKCE
59 000 €
Studio in Torrevieja, Spain
22 sq.m11
Online ViewingRemote TransactionCredit
Ref: bppt317
atelier
Torrevieja
The area is 22m2
Rooms 1
Bedrooms 0
Bathrooms 1
Floor 6
Del Cura Beach area
350m to the sea
The annual tax is 90€
Utilities-20€
Planeta Spain
300 000 €
Apartment in Pilar de la Horadada, Spain
75 sq.m322
Online ViewingRemote Transaction
2 Bedroom mode Ground Floor Flat Close to the Beach in Torre de la Horadada
A contemporary apartment in Torre de la Horadada for sale is located on the southern Costa Blanca coast of Spain and is often considered a pleasant place to live by many people. It's known for its beautiful beaches, pleasant climate, and relaxed atmosphere. The area...
TEKCE
376 000 €
Apartment in Alicante, Spain
104 sq.m542
Online ViewingRemote Transaction
Seaside View Apartments in Alicante, Spain
Nestled within Alicante, these apartments offer an exquisite coastal living experience. This municipality is an integral part of the renowned Costa Blanca region, celebrated for its inviting Mediterranean beaches, favorable climate, and delectable gastronomy. Alicante city holds a distinguished place...
TEKCE
99 900 €
Apartment in Torrevieja, Spain
65 sq.m321
The building is located near the center of La Mata, just a few minutes away from La Mata Natural Park, which is suitable for leisurely walks or long bike rides, and also has a children's play area. All amenities, shopping centers, and Quirón de Torrevieja Hospital are nearby. The beach is approximately 350 meters away.
The income tax rate for renting out real estate is 24% for non-EU residents and 19% for EU residents. The tax base can be reduced due to depreciation, which is 2-3% per year and confirmed receipts for the costs of improving and maintaining housing. Note that for residents of Spain, the income tax rate is 19-45%, depending on the amount of annual income.
Features of the rental market
Regardless of whether you rent a property for short-term or long-term rent, the object must be registered with the Ministry of Tourism. And even with zero income, you will need to file a declaration.
The rental rate is set based on a personal agreement – this moment is not regulated by law. All obligations of the parties are prescribed in the lease agreement, which is initially concluded, as a rule, for a year. It lists the available furniture and appliances, describes the condition of objects, defects, and damages. It is possible to raise the rate during the first five years only commensurate with the level of inflation.
Utilities are usually paid by the homeowner, after which the tenant reimburses the amount based on checks. According to Spanish law, the costs of capital and cosmetic repairs fall on the shoulders of the owner of the property, and minor repairs are carried out by the tenant. But before you change something in the house, you need to get the permission of the owner.
Regardless of the deadline, information about tenants should be submitted to the local police department.
Only the direct owner or the person for whom a notarized power of attorney has been issued can sell real estate in Spain. If you entrust this issue to the agency, be sure to check the availability of the appropriate license.
Capital gains tax (IRPF) is paid by the seller, the rate is 24% for non-EU residents. The taxable base is the difference between the cost of purchase and sale. For residents of Spain, a rate of 19-45% is used, depending on the amount of profit. In some cases, Spanish residents do not pay capital gains tax – for example, if they used the property as their main place of residence for three years before the sale.
Depreciation expenses can be deducted from the tax base, as well as investments in home improvement, taxes on the purchase.
You will also have to pay the land value gain tax (IIVTNU). The rate depends on the specific district, the final amount is usually several hundred euros. If the land on which the house stands has not risen in price during the period of ownership– you will not have to pay the tax.
Examples of houses in Spain:
2 471 475 €
Villa on Mallorca, Spain
917 sq.m444
Beautiful luxury villa located in the picturesque area of Nova Santa Ponsa.
The master bedroom is located on the ground floor with a very spacious dressing room and bathroom. Two other equally spacious bedrooms are also located on the ground floor, both with en-suite bathrooms. In addition, at the entrance to the villa there is a separate...
Property Investor
8 570 000 €
House on Costa del Sol, Spain
700 sq.m555
Residence
One of the last mansions with a spacious plot, located on the first line of the sea. It has a wonderful location also because it is only a 5-minute drive from Puerto Banus and the center of Marbella.The villa has an area of 700 m2, the house has 5 bedrooms with bathrooms on one floor.The windows of the house face south and southwest, offering...
ESTATE BARCELONA
1 600 000 €
House on Costa del Maresme, Spain
639 sq.m665
Residence
Villa in a classic style in the elite urbanization Can Teixidó of the city of Aleja on the coast of Maresme. The distance to the center of Barcelona is 20 km, the distance to the sea is several hundred meters. The total area is 639 sq.m. on the territory of 1263 sq.m. The house has 6 bedrooms, 5 bathrooms, a spacious living room, a dining room,...
ESTATE BARCELONA
695 000 €
House on Costa Blanca, Spain
143 sq.m443
Residence
2-storey Mediterranean style villa on the first line of golf in Las Ramblas, Orihuela Costa. Spacious living room with dining area, fireplace, 3 bedrooms, the master bedroom has access to a terrace with stunning views of the surrounding area, 2 bathrooms, separate kitchen, terrace on the ground floor, private pool, sauna, Jacuzzi. Separate...
ESTATE BARCELONA
1 590 000 €
House on Costa Blanca, Spain
300 sq.m445
Residence
2-storey villa in Villamartin, Orihuela Costa, Alicante. Salon, American kitchen, 4 large bedrooms, 5 bathrooms, 137 m2 terrace, solarium. The total area is 300 m2. On a plot of 1300 m2 there is a garden with a private pool and a garage.Villamartin is a prestigious residential area with developed infrastructure, especially loved by Europeans. It...
ESTATE BARCELONA
3 550 000 €
House on Costa Brava, Spain
658 sq.m886
Residence
House in the first line of the sea in the urbanization of Blanes on the Costa Brava - Cala San Francesc. The distance to the center of Barcelona is 60 km, the distance to the city center is 5 minutes by car or 20 minutes on foot. The total area is 658 sq.m. on the territory of 1400 sq.m. The house has 8 bedrooms, 6 bathrooms, a spacious living...
ESTATE BARCELONA
5 250 000 €
Villa in Denia, Spain
685 sq.m47
Online ViewingRemote Transaction
We offer for sale a 2-storey villa of modern design with an area of 685 m2, located on the first line of the sea in Denia (Costa Blanca). The house has high windows and glass doors, beautiful views of Spanish nature are accessible from any part of the villa.On the 1st floor there is an entrance hall, a spacious living room with access to the...
NV-COMPANY
445 000 €
House on Costa Blanca, Spain
150 sq.m32
Beautiful villa located 700 metres from the sea, in La Zenia (Orihuela Costa). On a plot of 660 m2, this villa of 150 m2, has 3 bedrooms, 2 bathrooms, independent kitchen, living-dining room, terrace, swimming pool and parking villa has air conditioning and central heating. Close to all kind of services.
Mercury Group
620 000 €
House on Costa Blanca, Spain
133 sq.m32
Residence
Beautiful villa on one level, located in a luxury residential complex inted on a plot of 445 m2, this villa of 133 m2 has 3 bedrooms, one of them with dressing room, 2 complete bathrooms with underfloor heating, kitchen, living room, terrace of 56,35 m2, private garden with private swimming pool of 7 x 4 m and parking space in theonal basement...
We present a duplex in a gated residential complex in Orihuela Costa in the Villamartin area. Villamartin - in fact, the area is part of the popular resort of Orihuela Costa. The city is located three kilometers from the sea, surrounded by golf courses and pine forests. Villamartin attracts golf lovers from all over the world. There are many...
Villa for sale in a popular area by the lake in Torrevieja. The city of Torrevieja is located on the shores of the Costa Blanca. It has a great sunny climate and stunning beach areas. The city borders not only with the Mediterranean Sea, but also with two salt lakes: pink – Salinas de Torrevieja and emerald – Salada de la Mata, whose water and...
EspanaTour
960 000 €
House on Costa Brava, Spain
213 sq.m664
Residence
Two adjacent houses that can be connected into one, located in one of the best urbanizations on the Costa Brava (Santa Maria de Llorell), 6 bedrooms, 4 bathrooms, 1100 m2 plot, swimming pool, 2 independent garages, sea view, possibility of building an additional house on the plot, private security and tourist license. These wonderful 1,100 m2...
ESTATE BARCELONA
2 950 000 €
House on Costa Blanca, Spain
691 sq.m46
Residence
A contemporary masterpiece nestled on a generous 1168 m² plot, this iconic villa redefines luxury living. Its 21st-century design harmoniously blends form and function, while its south-west orientation ensures captivating sunsets and panoramic views of the Mediterranean Sea.
Key Features:
Quality and Style: Every detail of the Azure Vista...
Mercury Group
1 650 000 €
Villa in Malaga, Spain
170 sq.m432
ResidenceOnline ViewingRemote Transaction
3-bedroom Semi-detached Homes in El Limonar, Malaga
Homes for sale in Malaga, a vibrant and historic city located on the southern coast of Spain, in the autonomous community of Andalusia. It is the capital of the province of Malaga and is situated along the Costa del Sol, a region known for its beautiful beaches and Mediterranean climate.
The...
TEKCE
995 000 €
Chalet in Barcelona, Spain
624 sq.m657
Residence
A spacious manor house with a large house on a plot of 2.000m2. Not far from Barcelona.
EuropaHome
336 500 €
House on Costa Calida, Spain
117 sq.m33
One or two-level villas in a new luxury complex with private pool, terrace and solarium with summer villa has 2 or 3 bedrooms and 2 or 3 fitted bathrooms. They are designed with a contemporary style and open planned concept with a fully-fitted kitchen and a dining residential complex is located in Roldán (Murcia) and has security control. Nearby...
Mercury Group
1 400 000 €
Villa in Finestrat, Spain
316 sq.m645
ResidenceOnline ViewingRemote Transaction
Newly Villas a Few Steps Away from the Beach in Finestrat Alicante
The well-located villas are nestled in the picturesque municipality of Finestrat, situated in the northern part of Alicante province. This charming area is part of the renowned Costa Blanca, a highly sought-after tourist region famous for its abundant leisure options, stunning...
TEKCE
370 000 €
Villa in Orihuela, Spain
95 sq.m433
Online ViewingRemote Transaction
3, 4 Bedroom Bungalow Style Detached Villas with Nature and Lake Views in Orihuela Costa
Modern detached villas with private pools can be found in Orihuela, Costa Blanca. These villas are situated in the southern part of the Costa Blanca region, known for its pleasant year-round weather, with an average temperature of 18°C. The development is...
TEKCE
2 595 000 €
House in Costa del Garraf, Spain
440 sq.m445
Residence
Brand new house in the final stage of construction on the Costa Garraf with panoramic sea views and in close proximity to the best port on the coast.
5 REASONS WHY YOU SHOULD DEFINITELY BUY THIS HOUSE:
Reason 1. You will be the first owner of this property.
In this location, there is not a single house of a comparable level and, at the...
Inheritance and donation taxes are paid by everyone and in any case, regardless of the degree of kinship. But this applies to non-residents only if the property is located in Spain, and residents, if we are talking about any object anywhere in the world.
Depending on the category of the heir, benefits are provided
Hereditary and adopted children under the age of 21 – €15,956.87.
Hereditary and adopted children over the age of 21, parents/adoptive parents, spouses - €15,956.87.
Brothers and sisters, nephews/nieces, uncles/aunts - €7,993.46.
There are no benefits for relatives of the fourth degree, friends.
After deducting the corresponding benefit, a rate is applied, the amount of which depends on the cadastral value of the property. The rate varies from 7.65% if the price is lower than €7,993.46, to 34% if more than €797,555.08. For example, you will have to pay 15.3% for an apartment worth €75,000 inherited or as a gift, and €350,000 - already 25.5%.
How to Save on Taxes
First of all, it is worth remembering that the tax service closely monitors the fulfillment of tax obligations. Therefore, in case of delay, at least you may be refused an extension of a visa or residence permit, while simultaneously setting a penalty for each day of non-payment. In the worst case, the municipality blocks the accounts and takes the property for payment.
If you decide to repay the debt voluntarily, you are entitled to a substantial discount, which can reduce the size of the real debt several times.
Otherwise, almost the only real way to reduce property taxes for a non-resident of Spain is to contact a tax consultant before buying the property. The specialist will advise the region to which it is most profitable to pay attention, explain how to distribute property, and avoid wealth tax if the estimated transaction amount is over €700,000. It will also specify what and when you will have to pay, depending on how you plan to use the property.
