Understanding Spanish Property Taxes as a Foreign Buyer

Taxation is the most misunderstood aspect of Spanish property investment. This guide covers every tax relevant to non-resident property owners in Spain.

Purchase Taxes

IVA (VAT) on new builds: 10% -- All new build properties carry 10% IVA on the purchase price. AJD (Stamp Duty): 1.5% -- Applies in addition to IVA on new builds. Total purchase cost on a EUR 250,000 new build: approximately EUR 283,000-286,000 (13-14.5% above asking price).

Annual Taxes

IBI -- Based on catastral value, typically EUR 300-800/year for an apartment. IRNR -- Non-resident income tax at 19% (EU) or 24% (non-EU) on rental income.

Total Annual Cost Example

For a EUR 250,000 new build generating EUR 10,000 rental income: IBI EUR 450, IRNR EUR 1,140, community fees EUR 1,440, insurance EUR 250, management EUR 1,500. Total annual cost: EUR 4,780. Net income: EUR 5,220.

Consult a qualified Spanish tax advisor for advice specific to your situation.