Spain Property Tax Guide for Non-Resident Buyers
Complete guide to Spanish property taxes for non-residents: Andalucía 7% flat ITP, 10% IVA on new builds, annual Modelo 210 IRNR filings, wealth tax thresholds, and 3% capital gains withholding.
Navigating Spanish property tax law as a non-resident buyer requires understanding three distinct fiscal phases: acquisition taxes at purchase, annual non-resident tax filings (Modelo 210), and capital gains withholding upon exit. In Andalucía, regional fiscal reforms have created Southern Europe's most attractive tax environment for luxury real estate owners.
7% Flat
ITP Transfer Tax (Resale)¹
10% + 1.2%
IVA + AJD (New Builds)²
19% vs 24%
Modelo 210 IRNR Tax³
€3.7M / €7.4M
Wealth Tax Free Threshold⁴
¹ Fixed 7% ITP rate across Andalucía, permanently replacing progressive 8%–10% tiers. ² 10% IVA on residential new builds plus 1.2% regional AJD stamp duty. ³ 19% on net profit with deductible expenses for EU/EEA residents; 24% on gross revenue for Non-EU/UK/US residents. ⁴ 100% regional wealth tax rebate in Andalucía; national Solidarity Tax applies only above €3.7M per single owner or €7.4M for couples purchasing jointly.
A note on currency: Spanish tax rates, allowances, and thresholds change by regional and national decree, sometimes annually. This guide reflects our current understanding of the law at the time of writing — confirm the specifics that apply to your situation with an independent Spanish tax advisor (asesor fiscal) before relying on any figure here for an actual transaction.
Phase 1: Transactional Overhead
Acquisition Taxes & Total Purchase Costs
The complete tax and closing cost breakdown when buying property in Andalucía.
When purchasing luxury real estate in Marbella, Estepona, Benahavís, or Sotogrande, statutory purchase taxes depend strictly on whether the property is a resale property or a newly built development:
In 2021, the regional government of Andalucía abolished the legacy progressive ITP tax brackets (which reached up to 10%), enacting a permanent flat rate of 7% across all purchase amounts. On a €3,000,000 villa, this single reform delivers €75,000 in immediate tax savings compared to other Spanish regions.
New construction purchases from a developer incur national 10% VAT (IVA) plus Andalucía's regional Stamp Duty (Actos Jurídicos Documentados — AJD) at 1.2%, totaling 11.2% in statutory acquisition taxes. (Commercial units or development plots purchased from companies are taxed at 21% IVA).
Financing note: if you're buying with a mortgage, the AJD stamp duty on the mortgage deed itself is paid by the lender, not you — since Real Decreto-ley 17/2018 (in force since November 2018), Spanish law makes the bank the taxpayer for mortgage-deed stamp duty on loans issued after that date. This is separate from the 1.2% AJD on the property purchase itself described above, which remains payable by the buyer on new-build purchases.
Additional Closing Costs: In addition to statutory taxes, buyers must budget approximately 1.5% to 2.0% for Notary fees, Land Registry filing (Registro de la Propiedad), independent conveyancing legal fees (typically 1% + IVA), and administrative handling.
All-In Acquisition Budgeting
As a general rule, buyers should budget an all-in total of 8.5%–9.0% on resales and 12.5%–13.0% on new developments above the agreed purchase price.
Explore Step-by-Step Buying Process →Financial Modeling
Worked Acquisition Cost Examples (Andalucía 2026)
Comparing realistic all-in closing costs across four luxury acquisition brackets.
| Purchase Price | Resale Tax (7% ITP) | New-Build Tax (10% IVA + 1.2% AJD) | Est. Notary, Registry & Legal (~1.8%) | Total Acquisition Overhead |
|---|---|---|---|---|
| €1,000,000 | €70,000 | €112,000 | ~€18,000 | €88,000 – €130,000 (8.8%–13.0%) |
| €2,500,000 | €175,000 | €280,000 | ~€40,000 | €215,000 – €320,000 (8.6%–12.8%) |
| €5,000,000 | €350,000 | €560,000 | ~€75,000 | €425,000 – €635,000 (8.5%–12.7%) |
| €10,000,000 | €700,000 | €1,120,000 | ~€130,000 | €830,000 – €1,250,000 (8.3%–12.5%) |
These figures assume ITP is assessed on the agreed purchase price. See Valor de Referencia below — the actual taxable base can be higher.
A Detail The Worked Examples Above Assume Away
Valor de Referencia: Why You Might Be Taxed On More Than You Paid
Since 1 January 2022 (introduced by Ley 11/2021), Spain's Dirección General del Catastro publishes an annual Valor de Referencia — a reference value — for every property, based on notarised sale prices in the area. For resale purchases, ITP is calculated on whichever is higher: the price you actually agreed, or the official reference value — not simply the purchase price stated in the deed. The worked examples above, like most published tax tables, assume the two figures match; where a property's reference value exceeds the agreed price, the real ITP bill is higher than the table shows.
This applies to resale purchases (ITP) and to inheritance and gift tax (see below) — it does not apply to new-build purchases, where IVA is calculated on the contractually agreed price regardless of the reference value.
The reference value can be checked before completion via the Catastro's own portal, and it can be formally challenged with the cadastral office if a buyer believes it overstates a property's real market value, though the procedure requires a documented case. Ask your conveyancing lawyer to check the current reference value against the agreed price before signing — it directly affects the number in the "Resale Tax" column above.
Phase 2: Ongoing Obligations
Annual Taxes for Non-Resident Owners (Modelo 210 & IBI)
All non-resident property owners in Spain are legally required to file annual Non-Resident Income Tax returns (Impuesto sobre la Renta de No Residentes — IRNR) via Modelo 210, even if the property generates zero rental income.
Imputed Income Tax (Renta Imputada)
Spain taxes non-residents on the deemed economic benefit of owning a second home. The tax base is calculated as 1.1% (or 2% if not updated in 10 years) of the official Cadastral Value (Valor Catastral), taxed at:
- • 19% for EU / EEA Tax Residents
- • 24% for Non-EU / UK / US / Swiss Tax Residents
Filing Deadline: December 31st of the following calendar year.
Rental Income Tax
If your property is rented out (long-term or tourist holiday lets), returns must be declared on a quarterly basis:
- • EU/EEA Residents: 19% on net profit (full deduction of maintenance, management, mortgage interest, and utility expenses).
- • Non-EU/UK/US Residents: 24% flat on gross rental income (zero expense deductions permitted).
Filing Deadline: Within first 20 days of April, July, October, January.
Local Municipal Taxes: IBI & Basura
Separately from national IRNR filings, owners pay annual municipal council tax (Impuesto sobre Bienes Inmuebles — IBI) directly to the local Town Hall (or the Patronato de Recaudación Provincial in Málaga). IBI ranges between 0.4% and 1.1% of the cadastral value (typically €800 to €3,500/yr for luxury villas). A minor annual refuse tax (Tasa de Basura, ~€100–€300/yr) is billed concurrently.
Andalucía 100% Wealth Tax Exemption & The National Solidarity Tax
Under regional tax legislation, the Autonomous Community of Andalucía grants a 100% tax rebate (bonificación del 100%) on standard regional Wealth Tax (Impuesto sobre el Patrimonio).
Exempt up to €3,700,000 in net Spanish assets (€3,000,000 general statutory baseline + €700,000 personal tax-free allowance).
Couples purchasing real estate jointly in equal 50/50 shares enjoy a combined tax-free threshold of €7,400,000 before the national Solidarity Tax applies.
Mortgage Deductibility: For properties exceeding €3.7M/€7.4M, bank financing and mortgages directly reduce the net taxable wealth base, providing an effective structuring tool for high-net-worth foreign buyers.
Phase 3: Exit Strategy
Resale Taxes & The 3% Capital Gains Withholding (Modelo 211)
When a non-resident owner sells property in Spain, Spanish tax law establishes a strict safeguard to guarantee that capital gains taxes are settled:
The Mandatory 3% Notary Retention (Retención del 3%)
Under Article 25 of the Non-Resident Income Tax Law, the buyer is legally required to withhold 3% of the total agreed purchase price at Notary completion and remit it directly to Hacienda via Modelo 211 within 30 days.
Assessed on net capital gain: (Sale Price – Legal Costs & Agency Fees) – (Purchase Price + Taxes + Documented Capital Improvements).
If the 3% withheld exceeds the actual 19% CGT liability (or if the sale incurred a loss), the seller files Modelo 210 to claim a full refund from the Tax Agency.
Plusvalía Municipal (IIVTNU): Sellers are also responsible for paying local Municipal Plusvalía to the Town Hall, calculated on the increase in the cadastral land value during the period of ownership. Under current Spanish law, if you sell at a verifiable loss, no Plusvalía is owed.
Legal Structuring
Individual Ownership vs. Corporate Holding
Evaluating holding structures for private vacation use vs. investment portfolios.
Personal Ownership
Simplest structure with zero annual corporate maintenance overhead. Ideal for private second homes under €3.7M where Andalucía's 100% wealth tax rebate applies directly to individual owners.
Spanish S.L. Entity
Protective vehicle for multi-property commercial rental portfolios. Enables 25% corporate tax rate and full operational expense deductibility, subject to Spanish accounting filing requirements.
Foreign Holding / Trust
Utilized by international family offices for generational succession. Spain applies strict anti-avoidance transparency rules (Art. 314 LMV), requiring specialized cross-border tax advice.
Phase 4: Succession Planning
Inheritance & Gift Tax on Spanish Property
The tax mechanics behind the succession structuring referenced above — what actually happens when Spanish real estate passes to the next generation, by gift or by inheritance.
Inheritance Tax (Impuesto de Sucesiones)
Spain levies inheritance tax on assets located in its territory regardless of the deceased's or heir's residency, so Spanish real estate stays inside the Spanish tax net even where neither party is Spanish or resident. State-level rates are progressive and can reach into the 30%+ range before regional relief — but Andalucía applies one of Spain's most favourable regional regimes: a €1,000,000 reduction of the taxable base per heir, plus a 99% rebate on any tax due above that, for spouses, descendants, and ascendants (Groups I & II). In practice, this reduces the tax on a typical parent-to-child inheritance in Andalucía close to zero.
The taxable base uses the same Valor de Referencia mechanic described above — the higher of the property's declared value or its official reference value. Non-EU heirs' ability to apply Andalucía's regional relief rather than the less generous state default has been a live legal question following EU case law on non-discrimination; this is exactly the kind of cross-border detail that depends on the heir's specific nationality and residency, and needs independent legal advice rather than a general answer.
Gift Tax (Impuesto de Donaciones)
Lifetime transfers of Spanish property — gifting a villa to a child rather than leaving it in a will — are taxed under the same Inheritance and Gift Tax law, with state rates running roughly 7.65% to 34% before regional relief. Andalucía extends materially the same relief to lifetime gifts between spouses, descendants, and ascendants as it does to inheritances: a €1,000,000 base reduction per beneficiary plus a 99% rebate on the remainder (a smaller €10,000 reduction applies to more distant Group III beneficiaries).
Gift tax is assessed in the region where the property is located, filed via Modelo 651. Whether gifting during your lifetime or leaving property by will is more tax-efficient depends on the donor's and recipient's residency, nationality, and the wider estate picture — a decision for independent tax and succession counsel, not a general rule.
EU Succession Regulation 650/2012 also lets many foreign nationals choose their national law rather than Spanish forced-heirship rules to govern who inherits — a choice that must be made explicitly in a will and is worth raising with a cross-border succession lawyer well before it becomes relevant.
Download 2026 Non-Resident Tax & Cost Calculation Sheet
ITP vs IVA breakdowns, Modelo 210 formula guide, and wealth tax thresholds (PDF).
Need Guidance on Structuring Your Acquisition?
Daniel Herovic can walk you through how these tax mechanics apply to your specific purchase, and will point you toward an independent Spanish tax attorney (asesor fiscal) for formal structuring advice and compliance with international double taxation treaties.
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