By Sem Grijpink · 8 September 2026 · 6 min read
Annual taxes as a non-resident property owner in Spain
Buying a property in Spain isn't the end point: as a non-resident owner, you'll face a number of recurring taxes every year. Here's what they are, how they're calculated, and which exemptions apply in Andalusia.
IBI: the municipal property tax
The Impuesto sobre Bienes Inmuebles (IBI) is Spain's equivalent of Dutch municipal property tax, levied annually by the town hall based on your property's cadastral value (valor catastral). The rate varies by municipality, typically between 0.4% and 1.1% of that cadastral value.
The town hall doesn't always send the assessment to a foreign address, so we recommend setting up automatic direct debit from a Spanish bank account. That way you avoid penalties for an assessment you never received.
Non-resident income tax (IRNR)
Even if you don't rent out the property, you file an annual non-resident income tax return (IRNR, modelo 210). If you use the property yourself, a deemed income of 1.1 or 2% of the cadastral value applies (depending on when it was last revised), taxed at 19% for residents of the EU, Iceland, and Norway.
If you rent out the property, you declare actual rental income, per quarter, and as an EU resident you may deduct allowable costs (maintenance, community fees, IBI, mortgage interest). A higher rate applies for non-EU residents, and these deductions don't apply to them.
Wealth tax: the €700,000 exemption
As a non-resident, you're assessed for wealth tax on your Spanish assets, with an exemption of €700,000 per person. If you buy with two people, that exemption doubles, i.e. €1,400,000 for the couple or the two buyers together.
Andalusia also applies a 100% rebate on the regional wealth tax. Above €3 million in Spanish assets, however, the national solidarity levy still applies, and it doesn't follow this regional rebate. Our tax adviser calculates your situation before you buy, so you know exactly where you stand.
Community fees and other recurring costs
If you live in an apartment complex or an urbanisation with shared facilities, monthly or annual community fees (cuota de comunidad) are added on top, covering upkeep of the pool, garden, lift, and communal areas. The amount varies significantly by development.
We lay out all these recurring costs for you before you buy, so the full picture of your annual outgoings is accurate, not just the one-off purchase costs.
Questions about your own situation?
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