Buying property in Spain is exciting, but it also places you inside one of Europe’s most complex tax systems. Between changing regulations, regional differences, and new 2025–2026 rulings that dramatically reshape obligations for foreign investors, it’s easy to feel lost.

At Paton & Mayr, we help international buyers understand exactly what they will owe, before and after purchase, so you can invest confidently and avoid costly mistakes. This guide consolidates everything you need to know for 2026.

1. Tax Obligations Every Non-Resident Property Owner Must Understand

Most foreign investors assume that buying property in Spain is a simple pay-once-and-forget process. But Spain’s tax system applies several independent obligations throughout the year.

From the project files: “Non-residents are obligated to pay separate taxes, IRNR, Wealth Tax, IBI, and more, each with its own documentation, deadline, and format.”

Let’s break them down one by one.

1.1. Non-Resident Income Tax (IRNR)

If you rent your property: As of the July 2025 ruling, non-EU investors can now deduct legitimate expenses. This is a major shift and still unknown to most investors.

• Tax rate: 19% (on net income)
• Common deductible expenses: maintenance, management fees, interest, insurance, utilities, depreciation
• Required filing: Modelo 210 (quarterly or annually)

Why this matters: The ruling effectively reduces taxation for non-EU owners from 24% on gross to 19% on net, saving tens of thousands annually.

If you do not rent your property: Spain applies a presumed income tax (“imputed rent”) even on vacant properties.

• Rate: 19% on a percentage of the cadastral value
• Form: Modelo 210 (annual)

1.2. Wealth Tax (Patrimonio)

Applies to non-residents if your net assets in Spain exceed €500,000.

• Rates: 0.2%–3.5%
• Form: Modelo 715
• Important: Rates and exemptions vary dramatically by region.

Catalonia, for example, applies some of the highest brackets.

1.3. Solidarity Tax on Large Fortunes (ITSGF)

Created as a “temporary” tax but still active in 2026.

• Applies when: Net wealth in Spain exceeds €3M
• Rates: 1.7%–3.5%
• Annual filing required

1.4. Local Property Tax (IBI)

Paid yearly to the municipality.

• Rate: typically 0.4%–1.1% of cadastral value
• Billing: annual invoice
• Common issue: Unpaid IBI from previous owners can transfer to you.

Our due diligence routinely identifies past unpaid IBI to prevent clients inheriting debts.

1.5. Community Fees (Ordinary and Extraordinary)

Not technically a tax, but a perpetual obligation under Spanish law. Many foreign buyers are surprised to learn they inherit past debts. In some cases these exceed €50,000.

2. Taxes When Buying a Property in Spain

Whether you pay VAT or ITP depends on whether the property is new or resale.

2.1. Transfer Tax (ITP) for resale properties

• Typical range: 6%–10%
• Catalonia: 11%

2.2. VAT (IVA) + Stamp Duty (AJD) for new properties

• VAT: 10%
• Stamp Duty: 1%–1.5% depending on region

3. Taxes When Selling Property

If you later sell your Spanish property, the following taxes apply:

3.1. Capital Gains Tax

• Non-residents: 19%
• Residents: 19%–45% (depending on income)

3.2. Plusvalía Municipal

A municipal tax on the increase in land value, calculated using cadastral values and years of ownership.

4. New 2025–2026 Changes Foreign Buyers Need to Know

Spain is entering a new regulatory phase. For investors, the most impactful update is:

• Non-EU investors can finally deduct expenses.
• This ruling equalizes US, UK, Canadian, and Australian investors with EU residents, after years of discrimination.

Impact example:

• Property generating €250,000 revenue
• Old rule: 24% on gross → €60,000
• New rule: 19% on net → often €40,000+ savings per year

5. Long-Term Tax Obligations After Buying

Owning property in Spain is a long-term financial commitment. According to the project files, clients require ongoing support for 30–50 years.

Your annual obligations include:

• Modelo 210 (income or imputed income)
• Modelo 715 (Wealth Tax)
• ITSGF (Large Fortunes)
• IBI municipal tax
• Community fees
• Compliance for short-term rentals (NRUA registration)
• Permit requirements for renovations
• Inheritance and succession planning
• Exit strategy or future sale
• Ongoing tax optimization