Non resident property tax in Spain

Last updated on June 5th, 2026 at 01:16 pm.

What often confuses non-resident property owners in Spain is that there is more than one tax to pay. Most people understand that there will be some form of local property tax that must be paid annually. In addition to this, however, non-residents may also be liable for:

• Rental income tax if they rent out their property
• Imputed income tax if they don’t

It is the imputed income tax that causes the most confusion. As a non-resident, your Spanish property is considered to generate imputed income, even if it is not rented out and you do not receive any actual rental income.

In this article, we will explain the main taxes that non-resident property owners should be aware of in Spain. However, it is important to remember that Spanish tax regulations can be complex and may change over time. Failure to submit the correct tax returns or meet filing deadlines can result in penalties and interest charges. For this reason, we strongly recommend seeking professional tax advice to ensure compliance and avoid unnecessary complications.

Which non resident property tax in Spain will I have to pay?

Local Council tax (IBI)

Council tax in Spain must be paid by every home owner whether they are resident or non-resident. It is a local tax and goes by the name of IBI (Impuesto Sobre Bienes Inmuebles). It is payable directly to the town hall or via a tax collection office, for example SUMA, in some regions.

IBI is the tax that goes towards paying for local services such as the maintenance of facilities, parks and leisure areas and all kinds of infrastructure provided by the Town Hall. It is collected annually and the period during which it is collected depends on where your house is located.

How much you pay is based upon the rateable value of your property or valor catastral. Rubbish collection is charged for separately either as part of your water bill or as a separate service charge issued by the Town Hall or tax collection agency such as SUMA.

Rental Tax

If you rent out your Spanish property as a non-resident, you must declare the rental income earned and pay Non-Resident Income Tax (IRNR).

Rental income tax is declared annualy, with the deadline being the 20^th of January of the following year the previous years rental income.

The tax treatment depends on your country of residence. Residents of countries within the European Union and European Economic Area may be able to deduct certain allowable expenses directly related to generating the rental income, while owners resident in other countries are taxed on gross rental income without the ability to include costs.

Rental income tax is only payable for the periods during which the property is rented. For any periods when the property is available for your personal use and not rented, imputed income tax may apply.

Imputed income tax

Imputed income tax is a tax payable by non-residents who own property in Spain that is not their main residence and is not rented throughout the entire year.

The Spanish tax authorities assume that ownership of a second home provides an economic benefit to the owner, even if no actual income is generated. As a result, a notional income is calculated and taxed.

Although many foreign property owners are surprised by this tax, the amount payable is often relatively modest because it is based on the property’s cadastral value rather than its market value.

If the property is rented out for only part of the year, the imputed income tax is calculated proportionally for the periods during which the property was not rented.

How is imputed income tax calculated?

Imputed income tax can be calculated either using the purchase price of your property or the rateable value. It is important to be aware that the rateable value (Catastral value) is usually much lower than the purchase price.

Therefore, if you do have the rateable value it is this that should be used to calculate your imputed income tax. The rateable value of your property can be found on your Spanish council tax bill. Using the purchase price for the calculation leads to more tax to pay, as you can see from the examples below.

Example 2:

How to avoid complications?

Our recommendation is that all non-residents employ the services of a fiscal representative to make sure that you pay your property taxes in Spain on time, to speak for you when necessary and be on hand to answer any doubts you might have. Contact us and we will offer you a free consultation without obligation.