Property Related Tax

These notes are intended as a guideline to income tax in Spain and should not be used as a substitute for proper professional advice. Please contact us and we will be happy to assist you.


Sale of Spanish property by non-residents

In order to comply with EU non-discrimination regulations, capital gains tax rates for both residents and non residents were equalised from 1st January 2007 onwards. Current tax rates and allowances.

For properties purchased after 1986, 3% of the declared sales price is withheld from the vendor at the point of sale. This is paid by the purchaser (normally via their solicitor) by submitting form 211, within one month of the sale.

The balance of tax payable / reclaimable is settled by the vendor on submitting form 210, within a further two months.

To Top                           Contact Us


Sale of Spanish property by residents

Current tax rates and allowances.

Rollover relief

This is available when the proceeds of the sale are reinvested, within two years of the sale, in the taxpayer's new main residence. The taxpayer must have lived in property for 3 years, or had to sell because of change of job, marriage or separation. The gain is deferred and taxed on the sale of the new property. The sale must still be declared in the annual tax return.

Absolute relief

This is available for resident taxpayers over 65, who have lived in property for at least 3 years.

To Top                           Contact Us


Taxation of Spanish rental income of non-residents

Rental income is taxable at the following rates:

Citizens/ residents of EU countries, Norway and Iceland 19%
Others 24%

For residents of the EU, Norway and Iceland, all rental expenditure (including mortgage interest) is tax deductible. For others, there are no allowable tax deductions and the entire rental income received is taxable. This must be declared by submitting Form 210.

For non-rented properties an annual tax return, Form 210, must also be submitted. Further information on non-residents´ tax in Spain.

To Top                           Contact Us


Wealth Tax- Impuesto Sobre el Patrimonio

After having been previously abolished in Spain on 1st January 2009, Wealth Tax then re-introduced on a "temporary" basis for the years 2012 and 2013, and then again from 2015 onwards.

The current tax-free allowance for non-residents is 700k Euros.

To Top                           Contact Us


Local property tax- Impuesto Sobre Bienes Inmuebles (IBI)

This is an annual tax based on the cadastral value of the property. The rate varies according to the local authority.

To Top                           Contact Us


Transfer tax on purchase of Spanish property- Impuesto sobre Transmisiones Patrimoniales (ITP)

This is payable in situations where there is no VAT (e.g. purchase of a second hand property). The rate depends on the area of Spain (Comunidad Autónoma).

To Top                           Contact Us


Plusvalía municipal (land appreciation tax)

This is payable by the vendor, although sometimes the purchaser agrees to reimburse the vendor as part of price negotiations. The rate of taxation is determined by each local authority.

To Top                           Contact Us

We use cookies to enhance your web browsing experience. By continuing to browse the site you agree to our policy on cookie usage.
OK | more information.