Spanish property tax for non-residents: complete guide

A long list of Spanish property taxes for non-residents can feel overwhelming, especially if you're unsure what to expect when buying property in Spain.

Let’s change that!

In this guide, we’ll walk you through the essential information you need about property taxes in Spain for foreigners, helping make the process of purchasing your Spanish property more transparent.

What is the main Spanish property tax for non-residents when buying a property in Spain?

The main Spanish property tax for non-residents depends on the type of property you're purchasing, as well as its location, since tax rates can vary across different regions.

For example, if you're buying a resale property, you'll be required to pay the Property Transfer Tax. If you opt for a new build property, you'll be responsible for VAT and Stamp Duty.

There are taxes that apply to both types of properties, such as the Land Registry fee, which is necessary to officially register the property in your name.

If you're purchasing a property with a mortgage, there are also other taxes to consider. 

We’ll cover each of these to help you better understand the additional costs you'll need to cover, aside from the property price.

Spanish property taxes for resale properties

The main tax you'll need to pay when purchasing a resale property is the Property Transfer Tax.

Known as Impuesto de Transmisiones Patrimoniales (ITP), this tax varies depending on the Autonomous Community. 

It ranges from a minimum of 6% to a maximum of 10% of the property's purchase price, as shown in the table below:

Let's say you are buying a second-hand property worth €350,000 in Madrid and applying for a €200,000 mortgage. Based on these figures, you’ll need €23,675 to cover the additional taxes.

Spanish property taxes for new properties

When purchasing a new-build property in Spain, two main taxes apply:

1. Value Added Tax (VAT), or IVA in Spanish, is set at 10% of the property’s purchase price, except in the Canary Islands, where the rate is 6.5%.
2. Stamp Duty (AJD), or Impuesto de Actos Jurídicos Documentados, varies by region and generally ranges from 0.5% to 2% of the purchase price.

To help you understand how these taxes vary across Spain, here’s a breakdown of VAT and AJD rates by Autonomous Community:

What are the notary fees when buying a property in Spain?

Notary fees depend on the property price and the notary office.

By law, the seller pays for the deed authorization, while the buyer covers the cost of copies.

Fees are regulated by the Tariff and Regulatory Fee, typically ranging from 0.5% to 1% of the property price.

Transactions involving mortgages often have higher notary fees due to additional paperwork and complexities. These fees cover the legal validation of the transaction and ensure all documentation is properly completed and recorded.

Save on your property journey costs with Homevest Spain

If you're looking to increase your property budget with a mortgage, Homevest is the ideal solution. It helps you understand how much you can borrow from Spanish banks and connect with expert brokers. 

With Homevest, you can receive and compare mortgage offers while getting personalized support throughout your journey to choose the best option for your financial situation.

Homevest is a free service designed to help you secure the right mortgage for your property in Spain.

What other taxes should you consider when buying a property in Spain as a non-resident? 

In addition to the taxes mentioned earlier, you will also need to account for land registry fees. On top of these, there are optional costs such as legal services and real estate agent fees.

When opting for a Spanish mortgage, it's important to be aware of additional costs that you'll need to cover with your own funds.

To gain a clear understanding of your out-of-pocket expenses when purchasing property in Spain, whether you're using a mortgage or buying outright, try the Homevest calculator.

Let's now see the additional taxes in detail:

Land registry fees

This fee is paid by the buyer to register the property in their name at the Land Registry.

Typically, the fee ranges from 0.5% to 1%, depending on the location.

Property survey (appraisal)

Spanish banks require a property survey for mortgages, which can be done by the bank’s service or an independent appraiser.

This survey is an important part of your financial planning, as it can significantly increase the total cost of purchasing a property. 

The appraisal typically costs between €250 and €600, depending on the company, property type, and valuation. While some banks cover this cost, others may not, so it's important to check the terms of your loan. The appraisal remains valid for six months from the issue date.

Opening fees

Some banks may charge a fee to open an account or take out a mortgage. This fee is typically tied to the loan amount, as agreed with the financial institution. On average, you can expect a fee of around 1%.

Gestoria

These fees cover the costs of obtaining necessary documents and completing administrative tasks to ensure a smooth property transaction.

Real estate agent fees

Real estate agency fees, which cover the cost of helping you find the right property, usually range from 1% to 6%.

Legal fees

Legal fees vary depending on the services provided, the office, and the property price. They are recommended for handling the legal aspects of the transaction and typically range from 1% to 3%.

Frequently asked questions

What is the 100% property tax in Spain?

The concept of a 100% property tax in Spain is unclear, as it could either refer to a 100% increase in the current property tax or a tax equal to 100% of the property price. There is no timeline for its implementation, and it must be approved by the lower house before becoming law.

The proposal targets non-EU foreigners, including buyers from the UK, the US, and Latin America.

Do I pay taxes if I own a property in Spain?

If you own property in Spain, you are subject to an annual wealth tax based on the net value of your assets in Spain, after permitted deductions like mortgages. 

However, the specific tax amount and regulations depend on the autonomous region where your property is located. In many regions, there's no wealth tax if the net value of your property is below 700,000 EUR.

Do I need to pay wealth tax in Spain even if I am a non-resident?

Even as a non-resident, you are required to pay wealth tax (Impuesto de patrimonio) on your assets if the total gross value of your goods in Spain exceeds 2 million euros.

The tax you need to pay is progressive, meaning it is based on your level of wealth.

For example, the national rate, which applies in regions without their own tax system, ranges from 0.2% to 3.5%.

Do I pay taxes if I rent out my property in Spain?

Yes, you must pay income tax (Impuesto sobre la Renta de No Residentes) on rental income in Spain. 

The tax rate ranges from 19% to 24%, depending on whether you are an EU citizen or not. EU citizens have the advantage of being able to deduct expenses from their rental income before taxation.

What are the property taxes on selling in Spain?

When selling a property in Spain, you are subject to two main taxes:

• Capital Gains Tax currently set at 19% for non-residents from EU countries and 24% for non-EU citizens
• Plusvalía a local property sales tax paid to the Town Hall of the area where your property is located. The amount varies depending on factors such as the property's location and how long you've owned it.

Sources used for this article in January 2025:

1. Sales cost calculator
2. Taxes and fees when buying a property in Spain
3. Wealth tax in Spain
4. Spain proposes 100% tax on homes bought by non-EU residents
5. Tax implications of selling a property in Spain

We recommend obtaining professional or specialist advice before taking or refraining from any action based on the content in this article. The information in this article does not constitute legal, tax, or other professional advice from Homevest Limited. Prior results do not guarantee a similar outcome. We make no representations, warranties, or guarantees, whether express or implied, that the content in this article is accurate, complete, or up to date.