Spain property tax guide for non-residents: everything you need to know in 2026

Written by  Ines Zemelman, founder and President at TFX

Last updated Jun 25, 2026

Non-residents who own property in Spain must file Modelo 210 annually and may owe taxes even if the property sits empty. There is property tax in Spain at every stage of ownership – when you buy, while you hold the property, and when you sell.

Spain taxes non-resident property owners on imputed rental income, actual rental income, capital gains, and annual IBI – regardless of whether the property generates cash flow.

Depending on your situation, you face up to six obligations:

• imputed income tax at 19% (EU/EEA residents) or 24% (non-EU residents, including US citizens) on 1.1% or 2% of the cadastral value
• annual IBI billed by the local municipality
• tax on rental income
• capital gains tax on sale
• Plusvalía Municipal on the increase in land value since the last transfer
• Wealth Tax if your Spanish assets exceed the threshold

This guide covers all of them, with worked examples and the US reporting that runs alongside your Spanish filings.

If you also need a wider view of your American filing duties while in Spain, see our US tax preparation guide for expats in Spain.

What is property tax in Spain, and who must pay it?

Spain imposes property-related taxes at three stages – purchase, ownership, and sale – and non-residents are subject to all of them under the Non-Resident Income Tax Act (IRNR, Impuesto sobre la Renta de No Residentes).

Any person who owns property in Spain without being a Spanish tax resident – defined as spending fewer than 183 days per year in Spain – is classified as a non-resident for tax purposes and must comply with IRNR obligations.

Tax residency in Spain hinges on the 183-day rule. Spend fewer than 183 days in Spain during a calendar year, and provided your principal economic interests and family are not based there, you are a non-resident for that year.

That classification determines your rate, your filing form, and the deductions available to you. It is the gateway question for every other tax in this guide – residents and non-residents follow entirely different rules.

You also need an NIE (Número de Identificación de Extranjero), Spain's tax ID number for foreigners. Without it, you cannot sign a property deed, open a Spanish bank account, or file any Spanish tax return. You can apply through a Spanish consulate in your home country or at a police station in Spain.

The reverse question – whether foreign nationals with US-source income face US tax – is covered in our guide on foreigners and US tax obligations.

Overview of all property taxes in Spain: buying, owning, and selling

The taxes on property in Spain are grouped into three stages: what you pay at purchase, what you pay each year you own the property, and what you pay on sale or transfer.

Spain has at least eight property-related taxes, and non-residents are liable for most of them depending on the transaction type.

The table below is a full-picture reference for every tax you may encounter as a non-resident owner. The sections that follow cover each one in detail.

Property tax costs in Spain for non-residents at every stage

The mechanics of how gains on foreign property feed into your US return are covered in our guide on capital gains and losses tax information.

Property purchase taxes in Spain for non-residents

The tax on property purchase in Spain depends on one question: are you buying a resale property or a new-build? Resale buyers pay ITP. New-build buyers pay VAT plus AJD. The total acquisition tax burden typically adds 8%–13% on top of the purchase price, depending on the region.

When buying a resale property in Spain, non-residents pay ITP ranging from 6% in Madrid to 10% in Catalonia – not VAT – making regional location a significant cost factor.

The three taxes at purchase:

1. ITP (Impuesto sobre Transmisiones Patrimoniales) – Property Transfer Tax. Applies to resale property and is paid by the buyer to the regional tax authority. Rates vary by autonomous community and property value: Madrid generally applies 6%, Andalusia 7%, while Valencia and Catalonia can apply higher or progressive rates, including special higher-rate cases. ITP is generally filed within 30 business days after the deed is signed. Confirm the applicable regional rate before closing.
2. VAT/IVA – applies to new builds only. 10% on residential, 21% on commercial. In the Canary Islands, IGIC at 7% applies instead.
3. AJD (Actos Jurídicos Documentados) – Stamp Duty. Applied to the notarized deed on new build purchases. Rates run from 0.5% to 1.5% depending on the region.

You can check the cadastral data and the Catastro reference value on the official Catastro portal. The reference value is a separate figure used in transfer-tax calculations.

The US treatment when you eventually sell – including how the cost basis carries forward – is covered in our guide on capital gains tax on foreign property.

Annual property tax in Spain: IBI and imputed income tax

Owning Spanish property as a non-resident triggers two recurring annual obligations. The yearly property tax in Spain for non-residents includes IBI, which is billed by the local municipality, and imputed income tax, which is filed using Modelo 210.

Even if a non-resident leaves their Spanish property empty all year, they still owe imputed income tax, calculated as 19% (EU/EEA) or 24% (non-EU) of 1.1% or 2% of the property's cadastral value.

IBI – the local municipal property tax

IBI (Impuesto sobre Bienes Inmuebles) is an annual tax charged on all urban properties. The rate is set by each municipality within state-defined limits, generally between 0.4% and 1.1% of the cadastral value.

The cadastral value (valor catastral) is an official government-assigned value, almost always lower than market value. You will find it on the annual IBI receipt and on the Catastro portal.

Most non-resident owners set up a direct debit from a Spanish bank account to pay IBI automatically – missing the payment can create a lien on the property.

Imputed income tax – the IBI tax in Spain you might not know about

If your property is not rented out, even partially, you must declare a notional income based on a percentage of the cadastral value:

• 2% as the general rate
• 1.1% only when the property meets the current cadastral revaluation conditions for the relevant tax year

That imputed amount is then taxed at 19% for EU/EEA residents or 24% for non-EU residents, including US citizens. The filing deadline is December 31 of the year following the tax year, so the 2025 tax year is due by December 31, 2026.

If you file late without a prior AEAT notice, the surcharge is 1% plus 1% for each full month late. After 12 months, it becomes 15% plus interest; the separate 20% enforcement surcharge applies only once the debt reaches apremio.

The timing of when Spanish tax is "paid" for US Foreign Tax Credit purposes is covered in our guide on reporting timing of foreign income and taxes paid.

How much is the non-resident property tax in Spain? Worked example

Based on a common TFX client scenario: a US citizen owns a Valencia apartment with a cadastral value of €120,000. The cadastral value was last revised in 2017 under a general collective revaluation, so the 1.1% rate applies.

• Step 1 – Imputed income base: 1.1% × €120,000 = €1,320
• Step 2 – Tax owed (non-EU rate): 24% × €1,320 = €316.80, filed on Modelo 210 by December 31, 2026 for the 2025 tax year
• Step 3 – IBI: billed separately by the municipality at, say, 0.6% = €720

Total annual Spanish property tax burden: approximately €1,037.

Tax on rental income from Spanish property for non-residents

The tax on renting out property in Spain falls under IRNR and is filed on the same form as imputed income – Modelo 210. Since 2024, eligible rental income can be grouped annually. If you do not use annual grouping, report each accrual separately, usually on the quarterly schedule. The deadline for the annual grouping is January 1–20 of the year following the tax year, so 2025 rental income is due by January 20, 2026.

A US citizen renting out a Spanish apartment pays 24% tax on gross rental receipts with no deductions – a significantly higher effective burden than an EU resident in the same situation.

The split between EU and non-EU residents is the single most consequential point for US owners:

• EU/EEA residents pay 19% on net rental income after allowable expenses. Deductible costs include mortgage interest, repairs, property management fees, IBI, building insurance, and rental property depreciation on the purchase price.
• Non-EU residents, including US citizens, pay 24% on gross rental income, with no expense deductions permitted under Spanish domestic law as it currently stands.

Until the law changes, non-EU non-residents should follow AEAT's current IRNR rental rules and continue filing on the gross income basis.

A few other mechanics matter:

• Joint owners file separately, each declaring their proportionate share.
• If you rent the property for part of the year and use it personally for the remaining months, file a rental income return for the rented period and a separate imputed income return for the personal-use period.
• US owners must also report the same rental income on Schedule E of Form 1040. The Spanish tax paid can be claimed as a Foreign Tax Credit on Form 1116.

The US side of foreign rental income – including depreciation rules, passive activity loss treatment, and how to handle currency conversion – is covered in our foreign rental income tax guide.

Capital gains tax in Spain on property for non-residents

When a non-resident sells Spanish property, capital gains tax applies to the net gain – the sale price minus the original acquisition cost (including ITP, notary, and registry fees), documented improvements, and selling costs.

When a non-resident sells Spanish property, the buyer must withhold 3% of the total sale price at closing – this is not the final tax but a deposit against the seller's capital gains liability.

The withholding and refund mechanics work like this:

1. Calculate the net gain – sale price minus acquisition costs, documented improvements, and selling costs.
2. Apply the rate – 19% for all non-residents, regardless of EU/EEA status.
3. The buyer withholds 3% of the total sale price (not 3% of the gain) and remits it to AEAT via Modelo 211 within one month of the sale, delivering a copy to the seller.
4. If that withholding is higher than the final tax, the seller can claim the excess through Form 210 within the applicable refund window, subject to AEAT's refund deadlines.
5. Refund processing typically takes 6–12 months.

US-side filing for the parallel question of foreign sellers and US capital gains is covered in our guide on non-residents and US capital gains tax. The IRS keeps its core annual brief for US citizens and resident aliens abroad updated each filing season.

Plusvalía Municipal tax when selling Spanish property

Plusvalía (Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana) is a separate municipal tax on the increase in urban land value since the last transfer. It is paid by the seller and runs in parallel to CGT.

Since November 2021, Spanish sellers can opt for the real-gain calculation method for Plusvalía – if the property's land value has not increased, no Plusvalía is owed.

Four points worth knowing:

• Sellers can choose between the objective method (cadastral value multiplied by municipality-set coefficients) or the real-gain method (actual land value increase). Choose whichever produces the lower bill.
• The filing deadline is 30 business days from the date of the sale deed.
• If a non-resident seller fails to pay, the municipality can hold the buyer subsidiarily liable.
• Plusvalía applies to urban land only – rural land is excluded.

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Wealth tax in Spain for non-resident property owners

Non-residents owning Spanish property with a net value exceeding €700,000 (after deductible debts secured on the property) may owe Spanish Wealth Tax. The tax applies to Spanish-situated assets only, not your worldwide net worth.

Non-residents are only taxed on Spanish-situated assets for wealth tax purposes, with rates ranging from 0.2% to 3.5% depending on the autonomous community and asset value.

Two things are material for US owners:

• For wealth tax, non-residents generally apply the rules of the autonomous community where the highest-value Spanish assets are located. Since 11 July 2021, that right applies to all non-residents; EU/EEA residents had the option earlier, from 2015.
• The Solidarity Tax on Large Fortunes (Impuesto de Solidaridad de las Grandes Fortunas, Form 718) applies a progressive 1.7%–3.5% charge on net Spanish assets above €3,000,000 for non-residents. It was introduced in 2023 and remains in force under the existing prorogation pending a broader wealth tax review. Any regional wealth tax paid is credited against it.

Form 714 (Wealth Tax) is due from April through June of the following year, alongside the Spanish personal income tax campaign. Form 718 (Solidarity Tax) filing begins on July 1 of the following year.

For the US treatment of investment income that often overlaps with Spanish wealth tax considerations, see our Net Investment Income Tax (NIIT) guide.

Inheritance tax on property in Spain for non-residents

Non-resident heirs who inherit Spanish property pay Impuesto sobre Sucesiones y Donaciones (ISD) on the Spanish asset value. The national rates run from 7.65% to 34%, but autonomous communities can set their own scales and bonuses – some reducing the effective rate close to zero for close relatives.

Non-resident heirs inheriting Spanish property must file the inheritance tax return within six months of the deceased's death, with a possible six-month extension if requested within the first five months.

Key points for US families:

• Non-EU heirs may be able to apply the autonomous community rules of the region where the property is located, not just EU/EEA heirs, which can dramatically reduce the bill in regions like Andalusia and Madrid. Confirm with a primary citation before relying on this position.
• Filing is with the autonomous community where the property sits, not with the central tax agency.
• US estate tax may apply in parallel. The estate of a US citizen owes US federal estate tax on worldwide assets above the exemption, while Spain taxes the Spanish property. There is no comprehensive US–Spain estate tax treaty, so plan for both sides.
• A Spanish will (testamento) speeds up probate and reduces legal costs for heirs – especially when the deceased held assets in multiple countries.

The mirror-image question – how US estate tax applies to foreigners with US-situated assets – is covered in our guide on federal estate tax for foreigners investing in the US.

US–Spain double taxation agreement: avoiding double tax on property

The US–Spain tax treaty dates to 1990 and was amended by a 2013 protocol. IRS materials also note a later arbitration arrangement. It provides relief mechanisms designed to prevent double taxation on property income and gains and does not eliminate either country's right to tax – it coordinates who taxes first and how the second country gives credit.

US expats who pay Spanish property taxes can use IRS Form 1116 to claim a Foreign Tax Credit, directly offsetting their US tax bill by the amount of Spanish tax already paid on the same income.

How it works in practice:

• Rental income: Spanish IRNR paid on rental receipts is generally creditable against US tax on the same rental income, via Form 1116.
• Capital gains on sale: Spanish CGT at 19% can be claimed on Form 1116 against the US tax on the same gain. Because the US taxes worldwide income, you will likely owe a residual amount if the US rate exceeds the Spanish rate.
• Imputed income tax: Whether Spanish imputed income tax is creditable for US purposes is not definitively settled. Discuss with your CPA before claiming it.
• Treaty articles: Income from real property and gains from its sale are covered under Articles 6 and 13 of the US–Spain treaty.

The IRS publishes the US–Spain income tax treaty and protocol on its Spain tax treaty documents page. For general Foreign Tax Credit rules, see IRS Publication 514 and the Instructions for Form 1116.

For the choice between offsetting Spanish tax with a credit versus excluding foreign-earned income, our guide compares the Foreign Tax Credit and the Foreign Earned Income Exclusion side by side.

FBAR and FATCA reporting for US owners of Spanish property

Direct ownership of Spanish real estate in your own name does not, by itself, trigger FBAR reporting. The Spanish bank account you use to pay IBI, utilities, or the mortgage almost certainly does.

A US citizen with a Spanish bank account used solely to pay property expenses must still file an FBAR if the account balance exceeded $10,000 at any point in the calendar year.

The FBAR reporting requirements you need to know:

• FBAR (FinCEN Form 114): File if the aggregate value of all foreign financial accounts exceeded $10,000 at any point during the calendar year. Deadline is April 15, with an automatic extension to October 15.
• Form 8938 (FATCA): File with your Form 1040 if foreign financial assets exceeded $200,000 at year-end or $300,000 at any point during the year for a single filer living abroad. Thresholds are higher for joint filers.
• Property holding company in Spain (SL or similar): Holding Spanish property through a foreign entity can trigger additional FBAR/FATCA exposure at the entity level – including Form 5471 in many cases. Set this up with cross-border tax advice, not on local advice alone.
• Penalties: Non-willful FBAR violations can carry a maximum civil penalty of $16,536. A willful violation can trigger the greater of the inflation-adjusted dollar amount, $165,353, or 50% of the account balance, depending on the facts.

Spanish residents face a separate obligation, Modelo 720 for foreign assets above €50,000 per category. If you are not a Spanish tax resident, Modelo 720 does not apply to you. It only becomes relevant if your status changes.

FBAR is filed directly with the Treasury through the FinCEN BSA e-Filing System, separately from your Form 1040. For a full breakdown of how FATCA and CRS interact with foreign account reporting, see our FATCA and CRS reporting guide.

How to file Modelo 210: step-by-step for non-residents

Modelo 210 is the non-resident tax return Spain uses for imputed income, rental income, and capital gains on Spanish property. The form covers three different scenarios with three different deadlines – the steps below apply to all of them.

Non-residents must file a separate Modelo 210 for each Spanish property they own; joint owners file separately, each declaring their proportionate share.

The six-step filing sequence:

1. Obtain an NIE. Apply through a Spanish consulate in your country or at a police station in Spain. The Spanish tax identification number NIE is a one-time application and remains valid indefinitely.
2. Find the cadastral value. Look on your most recent IBI receipt, or search the Catastro portal using the cadastral reference number.
3. Calculate the taxable base. For imputed income, multiply the cadastral value by 1.1% or 2%. For rental income, use gross receipts (non-EU) or net of allowable expenses (EU/EEA). For capital gains, calculate the net gain.
4. Complete Modelo 210. File online via the Agencia Tributaria portal using a digital certificate or Cl@ve PIN, or through a Spanish fiscal representative (gestor or representante fiscal).
5. Pay the tax. Options include direct debit from a Spanish bank account, credit card via the AEAT portal, or bank transfer. Direct-debit windows vary by income type: January 1–December 23 for imputed income, January 1–15 for annual grouped rental income.
6. Retain the confirmation. You will need it to claim the Foreign Tax Credit on your US return and to demonstrate compliance when you eventually sell.

How the US system handles taxpayers who need a US ID but cannot get an SSN is covered in our guide on ITINs for non-citizens with US tax obligations.

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Beckham Law and Golden Visa: special tax regimes for property investors

Two Spanish regimes come up regularly for foreign property buyers: the Beckham Law (a tax regime for inbound Spanish tax residents) and the Golden Visa (a now-closed residency-by-investment route). Neither changes your obligations while you are still a non-resident, but both shape the planning if you intend to relocate.

The Beckham Law can dramatically reduce the tax burden for high-earning professionals who become Spanish tax residents, but it does not eliminate non-resident property tax obligations for the years before residency is established.

The Beckham Law (Royal Decree 687/2005, significantly amended in 2023) in brief:

• Lets qualifying new Spanish tax residents pay a flat 24% rate on Spanish-source employment income up to €600,000 (47% above that) for up to six years.
• Investment income, including rental income from a Spanish property and capital gains, is taxed under the IRNR rules during the Beckham years.
• Eligibility: not a Spanish tax resident in the five years prior to the move; employed or self-employed in Spain, or director of a qualifying Spanish company.
• Election is made with Form 149 within six months of entering Spain or, where applicable, within six months of the qualifying activity starting or the relevant Social Security registration. Annual returns under the regime use Modelo 151.

The Golden Visa Spain property investment route has been closed to new applications since April 3, 2025. Existing Golden Visa holders keep their residency rights, but the €500,000 property purchase no longer grants a new visa. Alternative routes for property-linked relocation include the Non-Lucrative Visa and the Digital Nomad Visa.

A real client example of how the FEIE can be unexpectedly denied when residency facts change is set out in our FEIE denied case study.

Property tax rates in Spain: regional comparison for 2025

ITP, IBI rate ranges, wealth tax relief, and CGT all interact with where in Spain the property sits. Two properties of identical market value can carry tax bills that differ by tens of thousands of euros depending purely on the autonomous community.

When buying resale property in Spain, ITP is filed via Form 600 and commonly ranges from 6% to 13% depending on the region and property value, with special higher rates in some cases, such as Catalonia's 20% rate for certain large-holder or whole-building transactions.

IBI property tax in Spain and other rates by autonomous community (2025)

For the wider US treatment of foreign rental properties on Schedule E, see our guide on foreign rental properties and your US return.

Common mistakes non-residents make with Spanish property taxes

The non-resident tax return Spain requires is self-assessed – AEAT does not send you a bill. That single fact drives most of the costly mistakes in this list.

The most costly mistake non-resident property owners make in Spain is failing to file Modelo 210 for imputed income on an empty property – a silent obligation with no reminder from AEAT and escalating surcharges for every month it goes unfiled.

The seven mistakes we see most often:

1. Assuming an empty property means no tax is owed. IBI and imputed income tax both apply regardless of whether the property is rented or occupied.
2. Missing the December 31 Modelo 210 deadline for imputed income. The obligation is yours to self-assess and file – no notice arrives.
3. Misunderstanding the fiscal representative requirement. A fiscal representative can be useful, but whether one is legally required depends on the specific tax and your residency status – it is not a blanket rule for every non-EU property owner.
4. Not accounting for the 3% CGT withholding when planning a sale. Sellers often budget the net proceeds without subtracting the 3% the buyer is legally required to withhold at closing.
5. Overlooking Plusvalía when calculating net sale proceeds. Plusvalía is a separate seller's liability on top of CGT, due within 30 business days of sale.
6. Not reporting the Spanish bank account on FBAR. An account used only to pay property costs is still reportable if it exceeded $10,000 at any point.
7. Forgetting to claim the Foreign Tax Credit on Form 1116. Spanish taxes paid on rental income and capital gains can offset US tax dollar-for-dollar. Leaving the credit unclaimed means paying twice on the same income.

Avoiding these seven errors is the difference between routine compliance and a multi-year cleanup.

Property tax in Spain for foreigners is structurally the same as for Spanish nationals – the rates, deadlines, and filing forms apply equally – but the self-assessment burden and, where applicable, the fiscal representative obligation fall harder on non-residents who do not have day-to-day visibility on Spanish deadlines.

US-specific risk on green card holders with undisclosed foreign assets is covered in our article on green card holders with undeclared foreign assets and IRS risk.

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Ines Zemelman

founder and President at TFX

Ines Zemelman, EA, is the founder and president of TFX, specializing in US corporate, international, and expatriate taxation. With over 30 years of experience, she holds a degree in accounting and an MBA in taxation.

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