Owning property in Spain comes with ongoing tax obligations. Whether resident or non-resident, several taxes apply to property ownership, rental income, and eventual sale. Tax rates and rules can change.
IBI: The Annual Property Tax
IBI (Impuesto sobre Bienes Inmuebles) is paid by every property owner regardless of residency. Based on catastral value, typically 400-1,500 euros/year in Jávea area.
Non-Resident Income Tax (Modelo 210)
Non-resident owners must file annually even without rental income. For unrented properties, tax is 19% (EU/EEA) on 1.1% of catastral value. If rented, EU/EEA residents can deduct expenses and pay 19% on net profit; non-EU pay higher rate on gross.
Plusvalía Municipal
Local tax on increase in land value when property is sold or transferred. Since 2021 Constitutional Court ruling, cannot apply when no real increase in value. Two calculation methods available — taxpayer chooses the lower.
Capital Gains Tax on Sale
Progressive rates 19-28% for residents. Flat rate for non-residents. Buyer retains 3% as advance payment of seller CGT. Exemptions exist for over-65s selling main home.
Rental Income Tax
EU/EEA residents deduct expenses and pay 19% on net. Non-EU pay higher rate on gross. Double taxation treaties generally prevent being taxed twice.
Wealth Tax
Applies above certain thresholds. Valencian Community has its own allowances and progressive rates. Primarily affects high-value property owners. Rules change frequently.
Important Reminders
Spanish tax law is complex and changes frequently. Non-compliance results in penalties and interest. Professional tax advice covering both Spanish and home-country obligations is strongly recommended.
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Disclaimer: This article is provided for general informational purposes only and does not constitute legal, tax, or financial advice. Tax laws and regulations are subject to change and may vary depending on individual circumstances. No solicitor-client relationship is created by reading this article. For advice specific to your situation, please contact a qualified legal professional. Tomas Ballestero Lawyers accepts no liability for actions taken based on the information contained herein.
Need help understanding your Spanish property taxes? Our experienced property lawyers in Costa Blanca & Valencia offer a free initial consultation. Call +34 965 792 946.