Spain Property Tax for Foreigners 2026: Non-Resident Guide

From July 2025, all short-term rental landlords must register in the national registry and obtain a Número de Registro de Alquiler (NRA). Without an NRA, listings on Booking, Airbnb, Vrbo will be removed. From February 2026, owners are required to submit an annual declaration of rental activity.

Wealth Tax (Impuesto sobre el Patrimonio)

This is a regional tax applied to net assets in Spain if their value exceeds a certain threshold. For non-residents, only assets located in Spain are considered. The national threshold is 700,000 euros, but some regions may set their own thresholds and rates (e.g., Madrid has a 100% bonus, effectively eliminating this tax). Rates are progressive, from 0.2% to 3.5%. The declaration is filed using Modelo 714, usually at the same time as income tax (in June).

Taxes on Selling Property in Spain for Non-Residents

When selling property, non-residents also face several types of taxes that must be considered.

Capital Gains Tax (IRNR on Sale)

A non-resident selling Spanish property at a profit pays IRNR on the capital gain (ganancia patrimonial). The tax rate is 19% of the profit, regardless of the seller’s country of residence. Profit is calculated as the difference between the sale price and the purchase price, minus documented purchase expenses (ITP/IVA+AJD taxes, notary, registration, lawyer), sale expenses (agency commission), and costs for property improvements. The declaration is filed using Modelo 210 within 4 months of the transaction.

3% Withholding (Retención del 3%)

When a non-resident sells property, the buyer is obliged to withhold 3% of the sale price and transfer it to the tax authorities within one month of the transaction using Modelo 211. This is an advance payment towards the seller’s non-resident IRNR. If the actual capital gains tax is less than the withheld amount, the non-resident can request a refund of the difference. If it’s more, they must pay the difference.

Municipal Plusvalía Tax Spain

Impuesto sobre el Incremento del Valor de los Terrenos de Naturaleza Urbana, or Plusvalía Municipal, is a tax on the increase in the value of urban land. It is levied upon the sale, donation, or inheritance of property and is paid by the seller (or donor/heir). The basis for calculation is the cadastral value of the land (not the building), multiplied by a coefficient depending on the number of years of ownership. The rate is set by the municipality and varies significantly (from 0.5% to 2% of the value increase, varying twofold in different cities).

New Plusvalía rules have been in effect since November 2021. Taxpayers can choose the lower of two calculation options. If the market value of the property at sale is less than the purchase price, Plusvalía tax Spain is not payable. The declaration is filed with the municipality within 30 working days after the transaction.

Summary of Spain Property Tax for Foreigners (2026)

Filing Declarations (Modelo 210 Spain)

Modelo 210 is a key form for most taxes paid by non-residents in Spain. It is used to declare both imputed income and rental income, as well as capital gains tax on sales. It is important to complete this form carefully, taking into account all current rules and deadlines. For non-EEA non-residents, the inability to deduct expenses when renting out property is a significant point to consider when planning investments in Spanish real estate.

FAQ: Frequently Asked Questions about Spain Property Tax for Foreigners

What is the main Spain property tax for foreigners, even if I don’t rent it out?

The primary annual tax is IRNR (Impuesto sobre la Renta de No Residentes) on imputed income. Even if your property is vacant or used only for personal living, Spain considers that you receive an “imputed income” from ownership. The rate is 19% for EU/EEA residents and 24% for residents of other countries, applied to 1.1% or 2% of the cadastral value. The declaration is filed using Modelo 210.

Can I deduct expenses when renting out property as a non-resident?

This depends on your tax residency. Residents of EU/EEA countries can deduct expenses related to earning rental income (e.g., mortgage interest, IBI Spain, repairs, depreciation). Non-residents from non-EEA countries (including the UK, USA, Canada) are not allowed to deduct expenses and pay 24% of the gross rental income. This is an important nuance for those planning to receive Spain rental income tax or considering how to get a residence permit in other countries.

What is the “3% withholding” when a non-resident sells property?

When a non-resident sells property, the buyer is obliged to withhold 3% of the sale price and transfer it to the Spanish tax authorities as an advance payment for the seller’s capital gains tax. If the actual capital gains tax is less than 3%, the seller can request a refund of the difference. If it’s more, the seller must pay the difference.

What is Plusvalía Municipal and who pays it?

Plusvalía Municipal is a municipal tax on the increase in the value of urban land. It is paid upon the sale, donation, or inheritance of property and is calculated based on the cadastral value of the land and the duration of ownership. The payer is the seller (or donor/heir). Since 2021, if the market value of the property at sale is less than the purchase price, Plusvalía tax Spain is not payable.

How often do I need to file the Modelo 210 declaration for rental income?

From 2024, the Modelo 210 declaration for rental income is filed annually. The filing period is from January 1st to 20th of the following year for the previous tax period. If the property was rented for part of the year and vacant for another part, two declarations must be filed: one for rental income and another for imputed income for the vacant period.

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