In short
A non-resident who owns a Spanish home pays non-resident income tax every year, even if it is never let: 19% for EU, Iceland, Norway and Liechtenstein residents, 24% for everyone else, on an imputed income of 1.1% or 2% of the cadastral value. It is filed on form 210. The town hall also charges IBI.
The short answer
Buying a Spanish home as a non-resident creates a small set of recurring taxes. Most owners deal with three:
- non-resident income tax (IRNR), paid every year whether or not you let the property;
- IBI, the local property tax charged by the town hall;
- wealth tax, only if your Spanish assets are large enough.
Renting the property out changes the income tax, and selling it brings its own tax and a withholding. None of this is complicated once you know the rules, but each item has a form and a deadline. This guide explains the general framework. It is not tax advice: a tax adviser should confirm your own position.
The yearly tax on a home you do not let
Spain taxes non-resident owners on an imputed income: a notional income the property is deemed to produce simply because you have it available. The Spanish Tax Agency sets out the rule:
| Item | Rule |
|---|---|
| Imputed income | 1.1% of the cadastral value in municipalities whose values were revised in a general valuation that came into force in the last ten tax periods; 2% otherwise |
| No cadastral value | 50% of the higher of the purchase price and the administrative valuation, at 1.1% |
| Tax rate | 19% for residents of the EU, Iceland, Norway and Liechtenstein; 24% for everyone else |
| Deductions | No expenses can be deducted |
| Part-year ownership | Reduced in proportion to the days owned |
The cadastral value appears on the IBI receipt, and it is usually well below the market price. An illustration with a cadastral value of €120,000:
| Imputed income | Tax at 19% | Tax at 24% |
|---|---|---|
| 1.1% × €120,000 = €1,320 | €250.80 | €316.80 |
| 2% × €120,000 = €2,400 | €456 | €576 |
If a couple owns the home in equal shares, each owner declares their half. The amounts are modest, but the obligation is annual and easy to forget, and unpaid tax builds up with surcharges and interest.
Form 210 and its new deadline
Imputed income is declared on form 210. Order HAC/623/2026, published in the Spanish Official Gazette, changed the filing window. The Tax Agency summarises it like this:
| Income for | Filing window |
|---|---|
| 2025 | 1 January to 31 December 2026 (unchanged) |
| 2026 onwards | 1 April to 31 December of the following year |
| 2026 onwards, with direct debit | 1 April to 23 December of the following year |
So income for 2026 is filed between 1 April and 31 December 2027. The same order also changed the deadlines for rental income, which work differently; your tax adviser will confirm the dates that apply to you.
If you rent the property out
When the home is let, the tax is on the rent, not on an imputed income. For the days it is not let, the imputed income still applies, in proportion. The key difference is where you live:
| Owner resident in | Taxable amount | Rate |
|---|---|---|
| EU, or an EEA state with effective exchange of tax information | Rent minus deductible expenses directly linked to it | 19% |
| Anywhere else, including the UK, Switzerland and the US | Gross rent, no deductions | 24% |
To deduct expenses, the Tax Agency asks residents of those states to prove the expenses relate directly to the Spanish income and, according to the form 210 instructions, to attach a certificate of tax residence issued in the last year. An illustration with €12,000 of rent in a year and €4,000 of qualifying expenses:
| Owner | Taxable amount | Tax |
|---|---|---|
| EU or EEA resident | €8,000 | €1,520 |
| Resident elsewhere, such as the UK or the US | €12,000 | €2,880 |
Holiday lettings also need the right licence under municipal and regional rules. Check them with our partner lawyer before you buy, and do not count on rental income to make the mortgage work: lenders rarely accept forecasts.
IBI and other local charges
IBI (Impuesto sobre Bienes Inmuebles) is the annual property tax. It is set and collected locally under the Local Finance Act: each town hall fixes its own rate within the limits of that law and applies it to the cadastral value. It is charged to whoever owns the property on 1 January, so on a purchase the buyer and seller usually agree how to split the year.
Town halls may also charge for waste collection and other local services. Amounts vary widely between municipalities. Ask the seller for the last receipts before you sign, and set up a direct debit from your Spanish bank account so nothing is missed while you are abroad.
Wealth tax
Spain’s wealth tax applies to non-residents only on assets located in Spain, according to the Tax Agency. Under the state rules:
- there is a minimum exempt amount of €700,000 for non-residents;
- only charges on Spanish assets and debts for capital invested in them can be deducted, which includes a mortgage used to buy the property.
The Tax Agency also refers to an option for residents of the EU and the EEA to apply the rules of the region where their Spanish assets are located, and regional rules can differ from the state ones. Other sources describe that option more broadly, so your tax adviser will confirm what applies to you.
For very large holdings there is a second, separate tax. Law 38/2022 created the temporary solidarity tax on large fortunes, which, after a €700,000 exempt amount, taxes the part of net wealth above €3,000,000 (in practice, net wealth above about €3.7 million). Despite its name, it is still administered: the Tax Agency updated form 718 in June 2026 for the 2025 returns. Most holiday-home buyers are far below these figures, but they are worth checking if you own substantial assets in Spain.
When you sell
Selling brings two items.
Capital gains tax. A non-resident pays 19% on the gain from selling Spanish property, according to the Tax Agency’s rate table.
The 3% withholding. Under article 25.2 of the Non-Resident Income Tax Act, the buyer must withhold 3% of the price and pay it to the Tax Agency on form 211. It is a payment on account of your tax, not an extra tax. A simplified illustration, before purchase and sale costs:
| Item | Amount |
|---|---|
| Bought for | €300,000 |
| Sold for | €380,000 |
| Gain | €80,000 |
| Tax at 19% | €15,200 |
| Withheld by the buyer (3% of €380,000) | €11,400 |
| Balance to pay on form 210 | €3,800 |
If the withholding is more than the tax, you can claim the difference back. The municipal plusvalía, the local tax on the increase in land value, is charged to the seller under the Local Finance Act; when the seller is a non-resident individual, the law makes the buyer liable as a substitute, so it is usually retained from the price at completion.
Your home country
Spain taxes the property because it is in Spain. Your country of residence may tax the same income or gain too, and a double taxation convention usually decides how the two interact and how relief works. That is a question for a tax adviser in your own country, ideally before you decide whether to let the property.
How RCG coordinates it
RCG Finance is a real-estate credit intermediary registered with the Bank of Spain under number E760, with an office in Salou. We include the yearly running costs in your budget before you commit, because a lender will look at everything you pay, and prepare your mortgage file for the lenders that finance non-residents. Our team attends the notary signing in person.
Around the mortgage, we coordinate our partner lawyer for the NIE, the Spanish bank account, licences and the review of the contracts, and a currency exchange partner for the transfer of your funds in euros.
We do not give tax advice. The filing of form 210 and any wealth tax return is for your tax adviser.
What to do next
Estimate the purchase taxes first with the purchase costs calculator, then add the yearly items in this guide to your budget. The areas guide compares prices and taxes along the coast, and the non-resident mortgage checklist lists the documents you will need.
If you live in the UK, our guide to buying after Brexit covers the 24% rate in more detail. When the numbers work, our non-resident mortgage service takes the file to the right lenders.
Sources and review
Prepared by the RCG Finance editorial team (RCG 2026 S.L., Bank of Spain register of credit intermediaries no. E760) and reviewed by Rafael, founder of RCG Finance and former debt and M&A advisor at KPMG and PwC, under our editorial standards. Last source review: 22 September 2026.
- Spanish Tax Agency — Imputed income on a home for own use
- Spanish Tax Agency — Non-resident income tax rates
- Spanish Tax Agency — Income from rented property
- Spanish Tax Agency — Form 210 filing deadlines after Order HAC/623/2026
- Spanish Official Gazette — Order HAC/623/2026
- Spanish Tax Agency — Form 210 instructions
- Spanish Official Gazette — Local Finance Act, articles 72 (IBI) and 106 (plusvalía)
- Spanish Tax Agency — Wealth tax for non-residents
- Spanish Official Gazette — Law 38/2022, article 3 (solidarity tax on large fortunes)
- Spanish Tax Agency — Changes to form 718 (June 2026)
- Spanish Official Gazette — Non-Resident Income Tax Act, article 25.2
- Spanish Tax Agency — Form 211 instructions (3% withholding)
Frequently asked questions
Do I pay tax in Spain if my holiday home is empty?
Yes. A non-resident owner pays non-resident income tax on an imputed income of 1.1% or 2% of the cadastral value, at 19% for residents of the EU, Iceland, Norway and Liechtenstein and 24% for everyone else. It is declared on form 210.
When is form 210 due for imputed income?
Order HAC/623/2026 moved the window. For 2026 income onwards, it runs from 1 April to 31 December of the following year (23 December if you pay by direct debit). Income for 2025 keeps the old window, 1 January to 31 December 2026.
Can I deduct expenses if I rent the property out?
Only if you are resident in another EU member state or in an EEA state with an effective exchange of tax information, and you can prove the expenses relate directly to the Spanish income. Everyone else is taxed on the gross rent, without deductions.
Do non-residents pay wealth tax in Spain?
Possibly, on assets located in Spain. The state rules allow a minimum exempt amount of €700,000 for non-residents, and debts used to buy those assets, such as the mortgage, can be deducted. Regional rules may also apply, so your tax adviser will confirm your position.
