Pienzenauer in Spanien
Pienzenauer in Spanien

Which taxes you should pay as non-resident with a property in Spain?

Are you thinking of buying a Spanish property, but you have doubts about the taxes you will have to pay for your future vacation home? No problem, we are happy to explain here what taxes you have to pay during and after the purchase of a Spanish property.

Even if you don’t live in Spain, various taxes apply if you own property in Spain or at least plan to buy one. It does not matter whether you buy the Spanish property for personal use or as an investment.

  1. Buying a new Spanish property: If you buy a newly built property, you will have to pay the following taxes:
  • Value Added Tax (VAT), which is 10% of the purchase price throughout Spain, with the exception of the Canary Islands. There it is only 6,5%.
  • The tax on documented legal transactions (AJD). The total amount to be paid is a percentage of the purchase price and varies in each municipality. Here you can find the current general percentages by municipality.

 2.Purchase of a second hand property: On the other hand, if you buy a second hand real estate, the following taxes are applying:

  • The tax on documented legal transactions (AJD).as well as on the acquisition of new Spanish real estate. 
  • The Real Estate Transfer Tax (ITP).: The amount payable depends on the respective autonomous community and ranges from 6 to 11% of the purchase price. 

What taxes are due after buying a property in Spain?

Even after the purchase of a Spanish property, the following taxes are due as a non-resident.

  • Property tax (IBI): This is a municipal tax calculated annually by the municipality based on the cadastral value of the property.
  • Non-resident Income Tax (IRNR): The tax rate payable is 19% for residents of the European Union. Here, it does not matter whether you have rented out the property or not. The deadline for filing income tax is by the 20th day of January, April, July, October if your taxable income is positive. If the taxable income is negative, the declaration only has to be submitted once a year.

Note that depending on the laws of the country, you may have to declare your worldwide income on your tax return in the country where you are registered for tax purposes. We recommend that you seek the advice of an expert here to avoid any inconvenience later on.

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