Taxes in Spain in 2024
The demand for property in Spain among foreigners has been becoming more and more active in recent years. The warm and comfortable climate, the number of sunny days per year, cities with well-developed infrastructure and high security, affordable property prices attract investors and expats from all over the world.
The global change to remote work and the development of digital professions leads to the fact that more and more «digital nomads» consider Spain as a place for relocation or for buying a «second home». According to research in 2023, the cities of Spain, Barcelona and Madrid, took 1st and 3rd place in the world ranking of the best cities for remote workers.
According to the General Council of Notaries of Spain, in the first half of 2023, buyers from Europe, North Africa, as well as from Russia and China concluded the most transactions for the purchase and sale of property in Spain among foreigners. Before the transaction is concluded, Tranio recommends researching the taxation system of this country, which may differ from the rules familiar to foreign citizens.
Who should pay taxes?
Spanish taxes are required to be paid by residents who live in the country for more than 183 days a year and, therefore, are recognized as tax residents. Taxes are applicable to all the owners of Spanish property disregarding their tax residence. In some cases, taxes have to be paid by those who are not residents and do not own property in Spain.
Cases in which it is necessary to pay tax:
- You are a resident of Spain and own property in the country. In this case, all property taxes apply to you. It will also be necessary to pay income tax on all income acquired within and outside of Spain. In addition, you will need to pay social contributions and a garbage collection tax.
- You are a Spanish resident, but not a property owner. For example, you obtained resident status as a «digital nomad». In this case, you will need to pay income tax on domestic and foreign income, as well as social contributions.
- You are not a resident, but you own property in Spain. For example, you have received a Golden Visa as an investor, but stay in Spain for less than 183 days per year. You will have to pay taxes on property and on income earned in Spain.
- You have no resident status and no property in Spain. In this case, you will need to pay income tax only if the income is earned in Spain under the permission to receive income in that country.
Main types of property taxes in Spain
The rates and nature of taxes required to pay for the purchase and ownership of property may vary depending on whether the investor is a resident of Spain or not, as well as whether he purchases estate on primary or secondary market.
540,000 €
Total area 171 m² 4 bedrooms
1,796,000 €
Total area 175 m² 4 bedrooms
320,000 €
Total area 58 m² 2 bedrooms
800,000 €
Total area 90 m² 3 bedrooms
480,000 €
Total area 102 m² 3 bedrooms
397,000 €
Total area 45 m² 1 bedroom
575,000 €
Total area 103 m² 2 bedrooms
595,000 €
Total area 87 m² 2 bedrooms
Taxes in Spain when buying a property
Primary housing:
- VAT (El impuesto sobre valor añadido, IVA). It is 10% of the estate value in case of residential property, or 21% on the cost of a land plot, parking space or commercial property.
- Stamp duty (Actos Juridicos Documentados, AJD). It is unique in each province, averaging 0.5–2%.
Secondary housing:
- Transfer tax (El impuesto transmisiones patrimoniales, ITP). The tax is applied on the transfer of property rights title. Its rate ranges from 6 to 10% depending on the region where the purchased property is located.
ITP rates in the regions of Spain, %
Region | ITP rate,% |
Álava | 6 |
Andalusia | 8–10 |
Aragon | 8–10 |
Asturias | 8–10 |
Balearic Islands | 8–11 |
Biscay | 6 |
Valencia | 10 |
Galicia | 10 |
Gipuzkoa | 7 |
The Canary Islands | 6,5 |
Cantabria | 8–10 |
Castilla–La Mancha | 9 |
Castile and León | 8 |
Catalonia | 10 or 11 |
La Rioja | 7 |
Madrid | 6 |
Murcia | 8 |
Navarre | 6 |
Estremadura | 8, 10 or 11 |
Other taxes on the purchase of property:
- Notary expenses. It is a mandatory payment, consisting of a fixed rate set by the state and a variable component depending on the cost of housing. It ranges from 0.03% to 0.5%.
- Registration of property. It depends on the price of the object, it varies from 0.02% to 2%.
Additional fees for mortgages:
- Cost estimation. In order to issue a loan, the bank needs an official assessment of property by independent experts. The cost is 300-500 euros.
- Insurance. Guarantees that in case of an unforeseen situation, all expenses will be covered by the insurance company, ranging from 200 to 400 euros per year.
Taxes in Spain for homeowners
All property owners in Spain have to pay three main taxes regardless of their tax residence.
Municipal property tax (El impuesto sobre bienes inmuebles, IBI). The annual tax is calculated on the basis of the cadastral value of property and is dependent on the region. It varies from 0.4% to 1.1%. On average, it comes to about 200-800 euros per year.
Municipal property tax rates, %
City | Tax rates,% | City | Tax rates,% | |
Ávila | 0.57200 | Madrid | 0.60424 | |
Alicante | 0.84700 | Málaga | 0.72320 | |
Albacete | 0.40500 | Murcia | 0.79970 | |
Almería | 0.49000 | Oviedo | 0.83160 | |
Badajoz | 0.91300 | Orense | 0.54000 | |
Barcelona | 0.82500 | Palencia | 0.60280 | |
Burgos | 0.46200 | Palma | 0.80800 | |
Valencia | 1.07100 | Pontevedra | 0.70400 | |
Valladolid | 0.67580 | Salamanca | 0.79200 | |
Guadalajara | 0.66000 | Zamora | 0.62480 | |
Granada | 0.74030 | Santander | 0.52700 | |
Girona | 0.88600 | Zaragoza | 0.64911 | |
Cádiz | 1.11100 | Seville | 0.93170 | |
Cáceres | 0.82500 | Segovia | 0.49400 | |
Castellón | 0.88000 | Soria | 0.45760 | |
Córdoba | 0.76090 | Ciudad Real | 0.98000 | |
Cuenca | 0.68000 | Tarragona | 1.02080 | |
A Coruña | 0.59500 | Tenerife | 0.68750 | |
Las Palmas | 0.73700 | Teruel | 0.67100 | |
León | 0.86900 | Toledo | 0.42000 | |
Logroño | 0.58300 | Huelva | 1.16600 | |
Lugo | 0.71500 | Huesca | 0.97200 | |
Lleida | 0.66500 | Jaén | 0.66000 |
Income tax on property for non-residents (El impuesto sobre la renta de no residentes, IRNR). Non-resident property owners must pay tax on income acquired from their property in Spain, even if it is not rented out. In such a case, income tax is calculated at the rate of ordinary income tax. The tax rates are the following:
- The property is rented out. The owners have to pay tax at a fixed rate for non-residents, which amounts to 24%. Expenses for the maintenance of property can be deducted from the tax base, including costs of repair, renovation and improvement of the object. This tax is paid on a quarterly basis.
- The property is not rented out. The income tax is still applicable. It is calculated at a fixed rate of 24% of 1.1% of the cadastral value.
Luxury tax (El impuesto sobre el patrimonio). The tax applies in specified cases. Each autonomous community (region) of Spain sets its own limit for the value of property, below which the luxury tax is not applicable. If the value limit is not set in a particular region, then the tax is required to be paid on a value exceeding 700,000 euros. The tax rate is also determined by each region individually and amounts to 0.2–2.5% of property value. If the rate is not determined by the autonomous community, then it is calculated according to the following scales.
State tax rates
Taxable amount, euro | Rate, % | Maximum amount, euro |
Less than 167 129 | 0,2 | 334 |
167 129 — 334 253 | 0,3 | 836 |
334 253 — 668 500 | 0,5 | 2 507 |
668 500 — 1 337 000 | 0,9 | 8 523 |
1 337 000 — 2 673 999 | 1,3 | 25 904 |
2 673 999 — 5 347 998 | 1,7 | 71 362 |
5 347 998 — 10 695 996 | 2,1 | 183 670 |
More than 10 695 996 | 2,5 | — |
You need to submit a declaration at the end of the year, and pay taxes by June next year.
1,690,000 €
Total area 310 m² Land area: 341 m²
1,675,000 €
Total area 217 m² 4 bedrooms
1,820,000 €
Total area 235 m² 5 bedrooms
453,000 €
Total area 106 m² 2 bedrooms
Taxes for property sellers
Capital gains tax (El impuesto sobre la venta de inmuebles) is applied to property sellers. The tax base is the difference between the purchase and sale price of an estate. The rate for non-residents is fixed at 24%. If the owner is a Spanish resident, the tax rate is calculated in proportion to the amount of capital gains on a progressive scale from 19% to 45%.
An example of calculating capital gains tax for a resident of Spain:
Tax period | 4 years |
Cost growth, % per year | 3,7 (in 4 years —14,8) |
The cost of the object, euro | 500,000 |
Taxable amount, euro | 74,000 (500,000 x 14,8 %) |
Rate, % | 45 |
Tax amount, euro | 33,300 (74,000 x 45 %) |
Tax in Spain on inheritance and donation of property
Inheritance tax (El impuesto de sucesiones) is paid upon transfer of property, regardless of the degree of kinship. For non-residents, the tax must be paid only in case of transfer of ownership on property located in Spain. Residents of Spain must pay tax for the inheritance of any domestic and foreign properties. The rate varies from 7.65% to 34% depending on the property value.
Income tax
Income tax in Spain is calculated at a progressive rate from 19 to 45%. Residents of Spain must pay tax on all income acquired in Spain and outside the country. The 19% rate is applied if the amount of income does not exceed 12,450 euros per year, 24% — on the income range from 12,450 to 20,200 euros, then 30% — in the range between 20,200 and 35,200 euros, and 37% — in the range from 35,200 to 60,000 euros. If the income exceeds 60 thousand euros, the tax rate will be 45%.
Income tax in Spain
Limit, euro | Rates, % (2023) |
0 | 19 |
12 450 | 24 |
20 200 | 30 |
35 200 | 37 |
60 000 | 45 |
Non-residents owning property in Spain must pay income tax in this country if they receive income from renting out Spanish property. The tax has a fixed rate of 24%.
Tax rates in Spain
The current tax rates in Spain are presented in the table below.
Tax type | % |
VAT | 10 or 21 |
Tax on the transfer of property rights | 6–11 |
Registration fee (including notary services) | 0,5–2,0 |
Municipal property tax | 0,4–1,1 |
Luxury tax (the cost of property is over 700 thousand euros) | 0,2–2,5 |
Capital gains tax | 19–45 |
Inheritance tax | 7,65–34 |
Income tax | 19–45 |
Tax on income from property (if the property is rented) | 24 for non-residents 19–45 for EU residents |
Tax on income from property (if the property is not rented) | 24 on 1.1% from the cadastral value of the object |
Ways to reduce taxes in Spain
Double taxation can be avoided thanks to the concluded Conventions between Spain and many other states. After relocation, taxes payable in both countries are generally calculated as follows: if taxes were fully paid in a former country of residence, one needs to submit a declaration in a new country of residence, indicating the previously paid amount for the tax deduction.
In specific cases, it is recommended to ask tax consultants who can help you calculate taxes in your individual situation and advise you on how to optimise them.
The Tranio team provides professional consultations for our clients. We will help you choose the property according to your needs and suggest the best investment strategy.
Contact us
Penalties for tax evasion in Spain
In case of tax avoidance, owners of a Spanish property receive heavy fines, and may also face refusal to a residence permit extension, deportation from Spain and a ban on visiting other EU countries. The municipality can block existing accounts, as well as confiscate property, the value of which is comparable to the amount of unpaid tax. Tranio’s experts recommend paying property bills in a timely fashion in order to avoid adverse consequences.
Frequently Asked Questions about property taxes in Spain
If you purchase primary housing, you will need to pay VAT and Stamp duty, and when buying secondary housing, you will need to pay a transfer tax, which already includes Stamp duty. In both cases, notary fees and property registration must be paid.
- VAT is 10% or 21% (for commercial property).
- The tax on the transfer of property rights is from 6 to 11%.
- Registration fee (Stamp duty) — from 0.5 to 2%.
- The municipal property tax is from 0.4 to 1.1%.
- The luxury tax for property values over 700 thousand euros ranges from 0.2 to 2.5%.
- Capital gains tax — from 19 to 45%.
- Inheritance tax — from 7.65 to 34%.
- Income tax is from 19 to 45%.
- The tax on income from property, if it is rented out, is 24%.
- The tax on income from property, if it is not rented, is 24% or 1.1% of the cadastral value of the object.
The tax is paid annually. Owners receive notification of the amount of tax due. This amount can be transferred on a one-time basis, or in several payments. There is a service for automatically debiting the required amount from the card in order to avoid late payments.
This is a municipal property tax for homeowners. The annual tax, calculated on the basis of the cadastral value of property, depends on the region. The rate varies from 0.4% to 1.1%. On average, it is about 200-800 euros per year.
If the owner of the property has the status of a resident of Spain, then the payment of rental income occurs in the same way as income tax — at a progressive rate. In case of absence of residency: if the owner receives income from rent, he is subject to a fixed tax of 24% of income, if the owner does not rent the property, it is necessary to pay 24% of 1.1% of the cadastral value of housing.
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