Buying Property in Spain as a Non-Resident: Every Tax, Step by Step

Buying a home in Spain as a foreigner is simpler than many people fear, but taxes arise at three separate moments: when you buy, while you own the property, and when you sell. This guide walks through all three in the order you will meet them. All 2026 figures cited are general ones; the exact rates depend on the autonomous community and your personal situation, so confirm them before you sign.

Before signing: the NIE and the purchase tax

The first thing you need is an NIE (Número de Identidad de Extranjero, or Foreigner Identification Number), the tax identifier that the Spanish authorities assign to anyone who is not a Spanish national. Without it you cannot sign the deed, pay taxes or set up utilities. Taxes are handled by the AEAT (the Spanish Tax Agency, Spain’s equivalent of the “revenue service”) and, for purchase taxes, by the tax authority of each autonomous community.

Which tax you pay depends on who is selling to you:

• Resale property (from a private individual): you pay ITP (Impuesto sobre Transmisiones Patrimoniales, transfer tax). It is a percentage of the price and is set by each autonomous community, so the same property can be taxed quite differently in Madrid, Andalusia or the Valencian Community. Some regions apply reduced rates in specific cases.
• New-build property (from a developer): you pay VAT (which for a home is usually the reduced rate of 10%) plus AJD (Actos Jurídicos Documentados, stamp duty), a tax on the deed whose rate also depends on the community. Land and commercial premises follow different rules, with VAT at the standard rate.

Add to this notary fees, the land registry and, if you use one, a gestoría (administrative agent). Being a non-resident does not change these purchase taxes: you pay them exactly as a resident would.

While you own it: IRNR and IBI

Even if you do not live in Spain or rent out the property, you pay tax every year. The IRNR (Impuesto sobre la Renta de No Residentes, Non-Resident Income Tax) treats having a property at your disposal as generating imputed income: a theoretical income, even though you receive nothing. It is calculated by applying a percentage to the cadastral value (the administrative value shown on the IBI bill, usually lower than the market value). That percentage is generally 1.1% if the cadastral value was revised in recent years and 2% otherwise. A tax rate is then applied to that base, which is generally 19% for residents of the EU or the European Economic Area and 24% for everyone else.

It is filed using Form 210, once a year, and the usual deadline for this imputed income runs until the year following the year in which the tax accrued. If you rent the property out, you are taxed on the actual rental income: EU/EEA residents can deduct related expenses, while others are generally taxed on gross income. Separately, the town hall charges the IBI (Impuesto sobre Bienes Inmuebles, property tax) every year, a local tax paid by every owner, resident or not.

When you sell: 3% withholding, Form 211 and municipal plusvalía

When a non-resident sells a property, the buyer is required to withhold 3% of the price and pay it to the AEAT using Form 211; only the remaining 97% goes to the seller. This withholding is not an additional tax: it is an advance payment on account of the seller’s capital gain. The seller then settles the actual gain (sale price minus purchase price and allowable expenses) using Form 212, at a rate that is usually 19% for EU/EEA residents and 24% for everyone else, and deducts what has already been withheld. If the 3% exceeds the resulting tax, the seller can apply for a refund of the difference.

Finally there is the municipal plusvalía (Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana, municipal tax on the increase in value of urban land). This is a town hall tax on the increase in the value of the land over the years you have held it. Following the Constitutional Court rulings, its calculation has been reformed and, in general, tax is paid under whichever method is more favourable: an objective calculation or the actual gain; if there was no gain, there may be no tax. Although the seller is legally liable, when the seller is a non-resident the rules usually make the buyer the party required to pay it as substitute taxpayer, something worth agreeing in the deed and allowing for in the price.

How we help at Zythos Business

Many of the investors and expats who buy in Spain end up with a business, a company or a tourist-rental activity as well, and that is where the tax calendar gets complicated. At Zythos Business we handle the bookkeeping and taxes of self-employed professionals and SMEs, and we help you organise from day one the obligations tied to your property assets: Forms 210, 211 and 212, rentals and coordination with your notary. Always check your specific situation with an adviser before taking the step.