Legal notice: The content of this article is for information purposes only and does not constitute tax or legal advice. Regulations may change and every personal situation is different. We always recommend consulting a tax advisor specialised in non-residents before making any decision.

Buying a home in Spain is much more than signing at the notary. From that moment on, a new stage begins: you enjoy your property, but you also take on a number of annual taxes and fiscal obligations that are important to understand from the very beginning.

If you are a foreign property owner — especially if you are not a tax resident in Spain — this article will help you understand which taxes you must pay after the purchase, when they are due and how to avoid common mistakes.

What taxes do you pay after buying a property in Spain?

Once you are the owner, the most common taxes are:

- IBI (Property Tax)
- Non-Resident Income Tax (Form 210)
- Rental income tax (if you rent the property)
- Local municipal charges
- Wealth Tax (only in certain cases)

Let’s look at them one by one in a simple way.

1. IBI – Property Tax

IBI is a municipal tax that must be paid by all property owners, residents and non-residents.

It is paid once a year.
It is charged by the town hall where the property is located.
The amount depends on the cadastral value of the property.

As a general reference, it usually ranges between 0.4% and 1.3% of the cadastral value.

Practical tip: if you do not live in Spain, it is highly recommended to set up a direct debit to avoid surcharges or forgotten payments.

2. Non-Resident Income Tax (Form 210)

This is the tax that causes the most confusion among foreign owners.

If you are not a tax resident in Spain, you must file Form 210, even if you do not rent out your property.

Property for personal use (not rented)

The tax authorities assume the property generates an imputed income, even if you only use it for holidays.

It is calculated on the cadastral value.
Tax rate:

- 19% if you live in the EU, Iceland or Norway
- 24% if you live outside the EU

It is usually filed once a year.

Rented property

If you rent out your property in Spain, you must declare the rental income.

Returns can be quarterly or annual, depending on the case.
Tax rate:

- 19% for EU residents (you may deduct expenses such as IBI, community fees, maintenance, insurance, etc.)
- 24% for non-EU residents (no expense deductions allowed)

This point is especially important and should be managed correctly from the start.

3. Municipal charges and other local taxes

In addition to IBI, some municipalities charge other fees such as rubbish collection or sewer and urban service fees.

They are usually small amounts, but they are mandatory and normally paid once a year.

4. Wealth Tax

This tax only affects owners with a high level of assets in Spain.

It applies when the exempt threshold is exceeded.
In the Valencian Community, the general exemption is 500,000 € per person.

Not all owners have to pay it, but it is important to check each year whether it applies to you.

What happens if these taxes are not declared?

Failure to comply can result in surcharges, fines, late-payment interest and serious problems when selling the property in the future.

Nowadays, the tax authorities cross-check data automatically, so not declaring is never a safe option.

Quick summary for foreign owners

IBI: yes, every year
Form 210: yes, always if you are non-resident
Rental tax: only if you rent
Wealth Tax: only if you exceed the exemption

Frequently Asked Questions (FAQ)

Do I have to pay taxes in Spain if I don’t live there?
Yes. Owning a property in Spain involves tax obligations, even if you only use it for holidays.

Is Form 210 mandatory even if I don’t rent my house?
Yes. In that case, imputed income must be declared.

Can I deduct expenses if I rent my property?
Only if you are a tax resident in the EU, Iceland or Norway.

What happens if I don’t pay the IBI?
The town hall may apply surcharges and, in extreme cases, start enforcement proceedings.

Do I need a tax advisor in Spain?
It is not mandatory, but highly recommended, especially for non-resident owners.

Final advice

Owning a property in Spain is a wonderful experience when everything is well organised. Correct tax management gives you peace of mind, security and avoids unpleasant surprises.

At Make it Real we do not provide tax advice, but we always recommend working with a tax advisor specialised in non-residents, who can help you comply correctly with all your obligations as a property owner in Spain.