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:
175 000 €
Townhouse on Costa del Sol, Spain
80 sq.m222
Fantastic townhouse at an attractive price, located in the Guadalmina Alta area. The house has large sunny terraces where you can enjoy your holidays and spend time all year round.The townhouse originally had three bedrooms, but the bedroom on the ground floor was converted into a dining room.
The urbanization is designed in a classic...
ESTATE BARCELONA
250 000 €
Flat on Costa Blanca, Spain
221
Apartment in the famous Aldea de Mar gated complex in Torrevieja on the Costa Blanca. It consists of 2 bedrooms, a living room, a bathroom and an equipped kitchen, fully furnished, good view from the window, 200 meters from the beach.
ESTATE BARCELONA
164 900 €
Flat on Costa Blanca, Spain
108 sq.m332
Apartments in Villamartin, Orihuela Costa. Living room, American kitchen, 2 bedrooms, 2 bathrooms, terrace of 13 m2, storage room. The total area is 79 m2. The complex has green areas with a communal swimming pool and underground parking. Villamartin is a prestigious residential area with developed infrastructure, especially loved by Europeans....
ESTATE BARCELONA
265 000 €
Flat on Costa Brava, Spain
75 sq.m221
Apartment in the best complex in the Fenals area of Lloret de Mar. The complex is the winner of the award for the best architectural design and arrangement of the internal territory. The total area is 75 sq.m. The apartment has 2 bedrooms, 1 bathroom, a spacious living room with access to the terrace, a fully equipped modern kitchen. The price...
ESTATE BARCELONA
650 000 €
Townhouse on Costa del Sol, Spain
252 sq.m444
Residence
Very spacious townhouse, located just a few minutes walk from La Sala, Puerto Banus and the beach. On the ground floor there is a large living room, a dining room, a large kitchen with a breakfast area, a pantry, an ironing and utility room, a bathroom, a toilet and an office.
At the exit from the living room you will find a large covered...
ESTATE BARCELONA
210 000 €
Townhouse on Costa Blanca, Spain
131 sq.m333
Townhouse in Villamartin, Orihuela Costa. Large living room, American kitchen, 3 bedrooms, 3 bathrooms, terrace, solarium, private garden of 98 m2. The total area is 131 m2. The complex has a garden and a communal swimming pool. Villamartin is a prestigious residential area with developed infrastructure, especially loved by Europeans. It is...
ESTATE BARCELONA
310 000 €
Flat on Costa Brava, Spain
96 sq.m332
Ground floor apartment with a large terrace in the town of Playa de Haro on the Costa Brava. The complex is located in the port area. The total area is 96 sq.m. The apartment has 3 bedrooms, 2 bathrooms, a spacious living room with access to the terrace, a laundry room and a separate fully equipped kitchen. The price includes a parking space in...
ESTATE BARCELONA
255 000 €
Apartment in Rojales, Spain
114 sq.m32
. It’s a gated residential, with beautiful green areas, communal swimming pools and parking, designed in Mediterranean style. All of the apartments are overlooking to the pool and the communal gardens. These apartments counts with 2 or 3 bedrooms, 2 bathrooms, living room, kitchen, private garden or private solarium. The exterior is in the...
OLE INTERNATIONAL HOMES S.L.
279 000 €
Penthouse in Orihuela Costa, Spain
95 sq.m32
3 beds luxury penthouse with private solarium in Villamartin . Brand new & key ready 3bedrooms & 2 bathrooms penthousewith a south facing front terrace located in Villamartin.
This unique penthouse enjoys a large private sunny solarium with panoramic views to the surroundings and the sea, and also includes an underground private parking.
The...
OLE INTERNATIONAL HOMES S.L.
297 000 €
Apartment in San Miguel de Salinas, Spain
168 sq.m32
Apartment in Colinas Golf, San Miguel de Salinas. This Residentialsits at one of the highest points of Las Colinas and enjoys views over the Mediterranean forest and the sea from the highest apartments. All south facing and with spacious terraces. All the apartments have their own parking spaces and storerooms, with direct access by lift from...
We present a luxury penthouse with sea views in Torrevieja. Torrevieja is a popular Spanish resort town and municipality in the province of Alicante in the southern part of the Costa Blanca. The city is considered the third largest in the province after Alicante and Elche. The resort is popular because of the favorable Mediterranean climate,...
EspanaTour
480 000 €
Flat on Costa Blanca, Spain
116 sq.m32
Luxury apartment in a prestigious residential complex boasting exclusive sea and beach views. This apartment offer spacious interiors with 3 bedrooms, 2 bathrooms, a separate kitchen with a utility room, and 2 large terraces overlooking the sea andled in Punta Prima, just 3 km from Torrevieja and close to Alicante International Airport (47 km),...
Mercury Group
4 995 000 €
Penthouse in Marbella, Spain
757 sq.m544
ResidenceOnline ViewingRemote Transaction
High-End Apartments with Spacious Terraces on Marbella's Golden Mile
This new development is located in Marbella, an exclusive resort on Costa del Sol. The municipality is blessed with a unique microclimate that guarantees mild temperatures throughout the year with more than 300 days of sunshine. Known as the cradle of luxury and glamour,...
TEKCE
235 000 €
Apartment in Elche, Spain
109 sq.m542
Online ViewingRemote Transaction
Modern 3 and 4 Bedroom Apartments Near Amenities in Elche, Costa Blanca
These state-of-the-art modern apartments are situated in Elche, a charming city in the Alicante province of the Valencian Community. Rich in history, known for its beautiful palm groves, and blessed with a mild Mediterranean climate (comfortable winters and hot summers),...
TEKCE
365 000 €
Flat in Montgat, Spain
90 sq.m432
Fantastic 90m2 penthouse with a spectacular 80m2 private terrace with sea views, located at the top of the house. It is located very close to the Montgat Town Hall, and just 1 minute walk from the beach, public transport, and the Montgat Nord train station.
It has a living room with access to a small balcony, kitchen with a large gallery,...
LUXBARCELONA
415 000 €
Apartment in Villajoyosa, Spain
65 sq.m322
Online ViewingRemote Transaction
Sea Views Properties in Villajoyosa, Alicante in Costa Blanca Region
This complex is located in Villajoyosa, a coastal town in the Alicante province. This area belongs to Costa Blanca, a Mediterranean region with favorable weather most of the year.
Villajoyosa is a picturesque town with paradisiac beaches and all the services needed for a...
TEKCE
380 000 €
Apartment in Mijas, Spain
108 sq.m432
Online ViewingRemote Transaction
Golf Front Apartments with Large Terraces in Mijas
The apartments are located in a highly-demanded area in Mijas, Costa del Sol. Mijas is a famous tourist area. It is located between the towns of Marbella and Fuengirola. The apartments are in La Cala de Mijas, one of the ideal places to buy apartment in Mijas Spain.
The apartments are located...
TEKCE
199 000 €
Penthouse in Torre-Pacheco, Spain
80 sq.m322
Online ViewingRemote Transaction
Elegant Apartments with 2 and 3 Bedroom with Communal Pool in Torre-Pacheco Murcia
Modern apartments are situated in Torre-Pacheco a municipality located in the Region of Murcia, southeastern Spain. Torre-Pacheco is situated in the Vega Media del Segura region and is known for its agricultural activities, with a landscape dominated by fields and...
TEKCE
920 000 €
Flat in Madrid, Spain
196 sq.m534
The offered duplex in Barrio Niño Jesús, right in the heart of the Retiro district, represents a unique opportunity for comfortable living in one of the most picturesque and tranquil areas of the city. Residence 1 offers a cozy master bedroom with its own bathroom, a spacious living-dining room with stunning views of Retiro Park,...
ESTATE LINK
595 000 €
Townhouse in Marbella, Spain
289 sq.m33
Residence
The modern townhouse is located in Lomas de Sierra Blanca, in close proximity to shopping malls, restaurants and other infrastructure facilities.The townhouse includes three bedrooms with private bathrooms, an open-plan kitchen, a spacious living room with a fireplace and access to a covered terrace.The house is fully furnished and equipped in a...
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:
1 500 000 €
Villa on Costa Daurada, Spain
307 sq.m
Residence
Spain
Costa Dorada, Tarragona
province, Comaruga
New villa on the waterfront
Stunning new modern villa with panoramic sea views and with access to the promenade and the beach. Elite, the best area of the city of Komaruga - El Vendrel, the first line from the sea.
Quiet area, but only 5 minutes walk to the main...
INDOM
598 000 €
House on Costa Brava, Spain
274 sq.m554
Residence
Price reduction!!! The old price is 645,000 euros!!! The rustic house is located in a quiet urbanization of Blanes on the Costa Brava. The distance to the sea is about 2 km. The house was built in 2005 with 3 floors. The total area is 274 sq.m. on the territory of 513 sq.m. The house has 5 bedrooms, 4 bathrooms, a spacious living room with...
ESTATE BARCELONA
599 000 €
House on Costa Brava, Spain
296 sq.m555
Residence
House with sea view in the urbanization of Blanes - Santa Cristina. The distance to the city center is 5 minutes drive, the distance to the sea is a few minutes walk. The total area is 300 sq.m. The house has 6 bedrooms, 6 bathrooms, 3 fully equipped kitchens, a technical room and several salons. It is possible to obtain a tourist license and...
ESTATE BARCELONA
1 200 000 €
Villa in Lloret de Mar, Spain
200 sq.m44
Online ViewingRemote Transaction
We offer for sale a villa located in the elite urbanization of the resort town of Loret de Mar (1h from Barcelona airport and 30min from Girona airport) on the 2nd line of the sea.
In a three-storey house with an area of 200 m2:
1st (lower) floor - guest bedroom suite with shower and dressing rooms, lounge with access to the garden to the...
NV-COMPANY
365 000 €
House on Costa Blanca, Spain
260 sq.m42
Spectacular home in Zona Golf, 2 minutes walk from the European College. Three-storey bungalow with four spacious bedrooms, three bathrooms, kitchen, living room and double patio, one at the entrance to the house and the other with a terrace that looks out over the urbanization with a pool and direct access to Hole 13 of the Golf Course. With...
Mercury Group
310 000 €
House on Costa Blanca, Spain
85 sq.m32
The bungalows are located in Gran Alacant, in a residential complex located near Carabassi beach. All necessary services are nearby. The complex has a swimming pool, gym, playground for children, jacuzzi, barbecue area and parking for residents. The houses are 2 or 3 bedrooms, 2 bathrooms and have a fully furnished kitchen equipped with...
We present a new semi-detached villa with two floors in the city of Algorfa in an elite area in La Finca Golf. The house has a total area of 198 sq. m. The apartment consists of two bedrooms, one bathroom and a guest toilet on the ground floor, a spacious living room with a dining area, a modern kitchen. The house is located on a plot of 176 sq....
EspanaTour
488 000 €
House on Costa Blanca, Spain
157 sq.m43
The villas are located in Villamartín, in a private residential complex. The residential is surrounded by golf courses and the necessary services are close: supermarkets, pharmacies, public transport, banks and etc ... The Zenia Boulevard shopping center and the blue flag beaches are five minutes away by urbanization offers several different...
Mercury Group
825 000 €
House on Costa Blanca, Spain
291 sq.m33
Residence
Impressive newly built villa in Altea. Located in an unbeatable area full of pine trees and nature and close to the Mediterranean house is designed on one floor consisting of 3 bedrooms and 3 bathrooms, one of which is en-suite. It has a fully fitted kitchen with white goods, air conditioning, underfloor heating and pre-installation of...
We present a bungalow in a modern style in a new gated complex with 18 apartments in Finestrat. Finestrat is a cozy urbanization with a sea view, a seven–minute drive north of Benidorm, three minutes to a shopping center, supermarkets, as well as theme parks with attractions and exotic animals - all these are unique characteristics of Finestrat....
EspanaTour
275 000 €
House in Fuente Alamo, Spain
169 sq.m432
ResidenceOnline ViewingRemote TransactionCredit from 3%
We present a comfortable house with a large plot at the foot of the mountain in Fuente Alamo. Fuente Alamo is a city and municipality in Spain, part of the province of Murcia within the autonomous community of Murcia. The municipality is part of the Campo de Cartagena district. Korver Airport is 30 minutes away by car. Hacienda del Alamo Golf...
EspanaTour
685 000 €
Villa in Villajoyosa, Spain
150 sq.m433
ResidenceOnline ViewingRemote Transaction
Detached Villas Featuring Private Pools in Villajoyosa Alicante
Discover these elegant villas situated in the charming town of Villajoyosa. Located within the renowned Alicante province, this area is part of the internationally acclaimed Costa Blanca region, celebrated for its stunning beaches, captivating landscapes, and delightful climate....
TEKCE
1 690 000 €
Villa in Finestrat, Spain
584 sq.m655
ResidenceOnline ViewingRemote Transaction
Detached Villa with Sea View in Finestrat Alicante
Nestled within Finestrat, a municipality in Alicante's Costa Blanca region, this villa offers captivating views of the sea. Costa Blanca is renowned for its distinctive beaches, while its sunny and warm climate prevails for most of the year.
Finestrat provides a complete range of services,...
TEKCE
2 065 000 €
Villa in Spain
497 sq.m435
Elegant and Luxurious Contemporary Villa with Breathtaking Sea Views in Costa Blanca
Nestled in the picturesque coastal settlement of Benitachell, in the northern region of the Alicante province, lies this exquisite chic villa. Situated in the renowned Costa Blanca, a sought-after tourist destination celebrated for its pristine beaches,...
TEKCE
341 000 €
Chalet in Calafell, Spain
139 sq.m431
A villa with a garden and a swimming pool for the price of an apartment. Close to the sea and all city services. The house area is 130 m2, the garden area is 500 m2. 3 bedrooms, 1 bathroom, living room, separate kitchen. Garage. A garden and a lovely swimming pool. All necessary city services are nearby. It is built of high-quality materials....
EuropaHome
389 900 €
House on Costa Calida, Spain
121 sq.m32
Welcome to these magnificent newly built villas located in an exclusive residential area in Los Alcazares, surrounded by the natural beauty of the Costa Blanca. Set in a tranquil environment, these villas offer the perfect combination of tranquillity and convenience. Just 2 minutes drive from the beautiful beaches and a stone's throw from the...
Mercury Group
1 125 000 €
House on Costa Brava, Spain
337 sq.m1043
Residence
Distributed in two levels, in the main floor we find a spacious living-dining room, open plan fully equipped kitchen, toilet and double bedroom suite with private bathroom.
On the ground floor there are three double bedrooms, one of them with private bathroom, storage room and complete bathroom.
In the exterior area there are spacious...
Mercury Group
1 600 000 €
House on Costa Blanca, Spain
197 sq.m44
Residence
Beautiful villa located in Campoamor, in one of the best areas with wonderful views and lots of vegetation, it is an ideal area for nature lovers. The villa is built with the best quality materials and has underfloor heating in the bathrooms and a private property has 4 bedrooms and 4 bathrooms. It includes lighting, blinds, air conditioning,...
A modern house for sale in a popular area in Orihuela Costa. Urbanization of Lomas de Don Juan villas with good infrastructure: a short distance from supermarkets, shopping malls, bars and restaurants. Orihuela Costa's most popular golf courses are 1 km away. The distance to the sea is 3 km. The house is in good condition with an area of 144...
EspanaTour
599 000 €
Villa in Marbella, Spain
256 sq.m33
Residence
The luxury villa is located in one of the most prestigious gated residential complexes in the Golden Mile, a five-minute drive from Puerto Banus and the center of Marbella, in close proximity to the beach. The residential complex, designed by renowned architect Donald Gray, consists of 80 houses made in the traditional Andalusian style.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.
