Legal and Tax Information for Property in Spain

When owning, buying, or selling property in Spain, it’s important for foreign investors to understand the legal framework and the key taxes involved. While the finer details can be handled by lawyers or tax advisors, having a clear overview of the fundamentals is essential, especially for non-residents or those unfamiliar with the Spanish system.

As with any legal system, certain aspects of Spanish property law are unique. For example, notaries play a central and impartial role in the transaction process, which differs significantly from their function in many other countries. Understanding these structural differences can help buyers and sellers navigate the process more confidently.

Taxes and Fees for Sale or Acquisition

Please select one of the guides below for more information:

Understand the full range of taxes and fees involved when purchasing property in Spain.
Taxes and fees for buying

See what costs and taxes apply when selling your property in Spain, including capital gains tax and agency fees.
Taxes and fees for selling

Taxes for Non-Residents on Rental Income from Property in Spain

Non-residents who earn rental income from property in Spain are required to file a tax return using Modelo 210. The applicable tax rate and deduction rules depend on whether the owner is a resident of the EU or EEA:

• EU/EEA tax residents are taxed at a flat rate of 19% on net rental income, after deducting allowable expenses such as property tax (IBI), insurance, maintenance costs, and loan interest.
• Non-EU/EEA tax residents, including UK and U.S. citizens, are taxed at a higher flat rate of 24% on gross rental income, with no deductions permitted.

Rental income must be declared annually by 20 January of the following year. In cases of joint ownership, each owner must file separately based on their share and tax residency status.

If a double taxation treaty exists between Spain and the owner’s country of residence, any tax paid in Spain on rental income is generally creditable against tax due in the home country, avoiding double taxation.

These rules apply regardless of whether the property is rented long-term or as a holiday let. Additional rules may apply at regional level, and owners offering hotel-style services may be subject to VAT.