Property Tax in Spain: The Complete 2026 Cheat Sheet — Every Tax on One Page
This is the property tax Spain cheat sheet that every buyer, owner and investor needs — every tax you will pay when buying, holding and selling property in Spain, on one page, with Andalusia-specific rates, filing deadlines and worked examples. Save it. Print it. Give it to your gestor. Because the single most expensive mistake foreign property owners make in Spain is not a bad purchase — it is failing to file a tax return they did not know existed. The Modelo 210 imputed income declaration. The wealth tax filing obligation. The annual IBI. The plusvalía on sale. Each one is a silent obligation that AEAT (the Spanish tax authority) will not remind you about — until the surcharges arrive.
Taxes When Buying Property in Andalusia (2026)
| Tax | Rate (Andalusia) | On a €1M property | Notes |
|---|---|---|---|
| ITP (Transfer Tax) — resale | 7% flat | €70,000 | Resale properties only. Paid within 30 days of signing |
| IVA (VAT) — new-build | 10% | €100,000 | New-build only. Plus AJD below |
| AJD (Stamp Duty) — new-build | 1.2% | €12,000 | Andalusia rate. Only on new-build (with IVA) |
| Notary fees | €2,000-€4,000 | ~€3,500 | Regulated scale based on property value |
| Land Registry fees | €1,500-€3,000 | ~€2,500 | Regulated scale |
| Lawyer fees | 1-1.5% | €10,000-€15,000 | Independent lawyer. Non-negotiable. See our 30-day checklist |
| TOTAL (resale) | ~10-11% | €86,000-€91,000 | |
| TOTAL (new-build) | ~13-14% | €128,000-€134,500 |
See our hidden fees guide for the complete breakdown including non-tax costs.
Taxes While Owning Property (Annual Obligations)
| Tax | Who pays | Rate / amount | On a €1M property (€350K cadastral) | Filing |
|---|---|---|---|---|
| IBI (council tax) | All owners | 0.4-1.1% of cadastral value | €1,400-€3,850 | Auto — direct debit from Spanish bank |
| Basura (rubbish) | All owners | €100-€300/year | ~€200 | Auto — direct debit |
| Modelo 210 (imputed income) | Non-residents with empty property | 1.1% of cadastral × 19% (EU) or 24% (non-EU) | €731 (EU) / €924 (non-EU) | Self-filed by 31 Dec following year |
| Wealth tax | Non-residents with Spanish assets >€700K | Andalusia: 0% (100% bonification). But ITSGF solidarity tax applies >€3M | €0 (under €3M in Andalusia) | Form 714, June 30 |
| ITSGF (solidarity tax) | Net Spanish assets >€3M | 1.7% (€3-5M), 2.1% (€5-10M), 3.5% (>€10M) | €0 (under €3M) | Form 718, June 30 |
The trap: the Modelo 210 imputed income tax applies even if your property sits empty all year. AEAT does not send you a bill or a reminder. If you do not file, surcharges of 5-20% plus interest accumulate silently. This is the #1 tax mistake foreign owners make. See our ugly truth guide.
Taxes on Rental Income
| Buyer profile | Tax rate on rental income | Deductible expenses? | Filing |
|---|---|---|---|
| EU/EEA resident | 19% on NET income | Yes — IBI, community, insurance, repairs, mortgage interest, depreciation, agent fees | Modelo 210, quarterly |
| Non-EU resident (post-Sept 2025 ruling) | 24% on NET income | Yes — same deductions (SAN 3630/2025 ruling). Retroactive refunds available for 2021-2024 | Modelo 210, quarterly |
| Spanish tax resident | IRPF progressive (19-47%) | Yes — plus 60% reduction for long-term residential lets | Annual IRPF declaration |
2025 game-changer for non-EU owners: the September 2025 court ruling (SAN 3630/2025) confirmed that non-EU owners can now deduct expenses before calculating rental tax — previously they were taxed on gross income. This significantly reduces the effective tax rate and retroactive refunds are available for 2021-2024. Ask your tax advisor. See our rental income calculator and our VFT guide.
Taxes When Selling
| Tax | Rate | How it works |
|---|---|---|
| Capital gains tax | 19% (EU/EEA) or 24% (non-EU) | On profit (sale price minus purchase price minus deductible costs). Buyer withholds 3% of sale price (Modelo 211) as advance. Seller files Modelo 210 within 4 months to reclaim overpayment |
| Plusvalía Municipal | Municipal calculation based on land value increase | Paid to Town Hall. When seller is non-resident, buyer typically pays as substitute taxpayer. Separate from capital gains — both apply to the same sale |
| 3% retention | 3% of sale price | Buyer withholds and pays directly to AEAT (Modelo 211, within 30 days). Acts as advance payment of seller’s capital gains. Overpayment refunded after filing |
Worked Example: €1M Property Lifecycle (EU Non-Resident, Andalusia)
| WHEN BUYING (Year 0) | |
| ITP (7%) | €70,000 |
| Notary + Registry | €6,000 |
| Lawyer (1.2%) | €12,000 |
| Buying total | €88,000 |
| WHILE OWNING (per year, empty property) | |
| IBI | €2,500 |
| Basura | €200 |
| Modelo 210 (imputed income) | €731 |
| Wealth tax (Andalusia, under €3M) | €0 |
| Annual total | €3,431/year |
| WHEN SELLING (after 5 years at €1.4M) | |
| Capital gain (€1.4M – €1.088M costs) | €312,000 |
| Capital gains tax (19%) | €59,280 |
| 3% retention by buyer (on €1.4M) | €42,000 (advance, refund overpayment) |
| Plusvalía municipal (estimate) | €3,000-€8,000 |
| Selling total | €62,280-€67,280 |
| 5-YEAR TAX TOTAL | €167,435-€172,435 |
| Net profit after all taxes | €227,565-€232,565 |
Filing Deadlines Calendar
| Tax | Deadline | Form |
|---|---|---|
| Modelo 210 (imputed income) | 31 December following tax year | Modelo 210 |
| Modelo 210 (rental income) | Quarterly: 20 Apr, 20 Jul, 20 Oct, 20 Jan | Modelo 210 |
| Wealth tax / ITSGF | 30 June | Form 714 / Form 718 |
| Capital gains (sale) | 4 months after sale | Modelo 210 |
| 3% retention (buyer obligation) | 30 days after sale | Modelo 211 |
| IBI | Auto — varies by municipality (typically Sept-Nov) | Direct debit |
5 Most Expensive Tax Mistakes Foreign Owners Make
- Not filing Modelo 210 on an empty property. Even if your property sits empty all year generating zero income, you owe imputed income tax. AEAT does not send reminders. Surcharges of 5-20% plus interest accumulate silently for every year unfiled
- Confusing cadastral value with market value. IBI and imputed income are calculated on the cadastral value — typically 30-50% of market value. A €1M market-value property may have a cadastral value of €350K. Do not panic when you see the tax base — it is not your purchase price
- Not appointing a fiscal representative. Non-residents with tax obligations must appoint a fiscal representative (representante fiscal) to liaise with AEAT. Your gestor or tax advisor can serve this role. Budget €500-€1,500/year
- Forgetting the 3% retention on sale. When buying from a non-resident seller, the BUYER must withhold 3% of the sale price and pay it directly to AEAT (Modelo 211, within 30 days). If you forget, you — the buyer — are liable for the seller’s tax
- Non-EU owners filing rental tax on gross income (pre-2025). The September 2025 court ruling confirmed non-EU owners can deduct expenses. If you filed on gross income for 2021-2024, claim retroactive refunds — the difference can be thousands of euros per year
LUXO Estates
Buy with Full Tax Clarity
At LUXO Estates, we ensure every buyer understands their tax obligations before signing — not after. We connect you with specialist cross-border tax advisors who prevent expensive mistakes and optimise your position from day one.
