28/04/2026
Understanding Property Taxes in Spain: A Short Guide for Foreign Buyers
March 2026 | 5 min read
Spain’s property tax system is not complicated once you know the structure. But the numbers vary significantly by region — and the difference can run to tens of thousands of euros on a single purchase.
One of the most common surprises for foreign buyers in Spain is the gap between the agreed purchase price and the total amount they actually pay. That gap is taxes. Not hidden fees, not negotiation errors — taxes, properly structured, that apply to every property transaction in Spain and that vary significantly depending on where in the country you buy.
This article gives you a map of the landscape. It is not tax advice — for that, you need a qualified Spanish tax advisor (asesor fiscal) or gestor. What it is, is an honest orientation so you know the questions to ask before you commit.
The Four Taxes Every Foreign Buyer Needs to Know
6–11%
ITP — Impuesto de Transmisiones Patrimoniales (Transfer Tax)
This is the main purchase tax on resale properties — the most common type of purchase for foreign buyers. It is calculated as a percentage of the purchase price and paid by the buyer. The rate is set by each autonomous community, which is why the same property at the same price can carry a meaningfully different tax bill depending on whether it is in Andalucía, Madrid, or the Canary Islands.
10% + 1.5%
IVA + AJD — VAT and Stamp Duty (New Builds Only)
If you are buying a new-build property directly from a developer, ITP does not apply. Instead you pay IVA (VAT) at 10% of the purchase price, plus Actos Jurídicos Documentados (AJD — stamp duty) at a rate that varies by region but typically sits around 1 to 1.5%. New-build purchases are therefore structured differently from resale purchases for tax purposes, and the total costs differ accordingly.
Varies
IBI — Impuesto sobre Bienes Inmuebles (Council Tax)
The IBI is Spain’s annual property tax, levied by the local municipality based on the cadastral value of the property — not the market value. For most foreign buyers, this is a relatively modest annual cost, though it varies considerably between municipalities and property types. As the owner on January 1st of any given year, you are liable for the full year’s IBI. This is one of the ongoing tax obligations that continues after the purchase completes.
19–24%
IRNR — Impuesto sobre la Renta de No Residentes (Non-Resident Income Tax)
This is the tax that catches many foreign buyers off guard. If you are a non-resident who owns property in Spain and does not rent it out, you are still required to file an annual IRNR declaration and pay tax on a deemed income — calculated as a percentage of the cadastral value of the property. If you do rent the property, the actual rental income is taxed instead. EU and EEA residents pay 19%; non-EU residents pay 24%. This must be filed annually, even if the property sat empty all year.
Why Region Matters More Than You Think
The ITP rate — the main purchase tax on resale properties — is set by each of Spain’s 17 autonomous communities. The range in 2026 runs from 6% at the lower end to 11% at the higher end. On a €400,000 property, that difference is up to €20,000 on this tax alone.
| Region | ITP Rate (resale) |
|---|---|
| Madrid | 6% |
| Canary Islands | 6.5% |
| Andalucía | 7% |
| Comunitat Valenciana | 10% |
| Catalonia | 10% |
| Balearic Islands | 8–11% (progressive) |
Rates are subject to change and may be updated by regional governments. Always verify current rates with a qualified tax advisor before completing a purchase.
Spain’s Golden Visa programme — which previously granted residency to non-EU nationals who purchased property worth €500,000 or more — was formally closed in April 2025. The Spanish government cited housing affordability concerns as the primary reason. Applications received before the closure date were processed, but no new applications are being accepted. Buyers who were planning to use property investment as a route to Spanish residency must now look at alternative pathways.
A common mistake
Many foreign buyers budget based on the purchase price alone, or apply a rough “10% for taxes and fees” estimate without accounting for regional variation. In some regions that estimate is accurate. In others it is significantly too low. Getting the right figures for your specific region and property type before signing anything is not optional — it affects the fundamental financial case for the purchase.
What This Article Does Not Cover
There are tax considerations beyond these four that apply in specific circumstances: capital gains tax (plusvalía and IRPF/IRNR on future resale), wealth tax (Impuesto sobre el Patrimonio — suspended in some regions, active in others), inheritance and gift tax implications for jointly owned or inherited property, and the specific deduction rules that apply to non-EU buyers under rules updated in 2025. Each of these can materially affect the financial picture for a foreign buyer.
“These are the surface-level numbers. The full picture — including deductions, deadlines, and regional quirks — is the kind of knowledge our GIPE members carry for every client interaction.”
GIPE members have access to our updated 2026 tax reference guide for international buyers — including regional ITP rates, IRNR filing deadlines, and a breakdown of total acquisition costs by region and property type.