Property

Spain — Property: Property Taxes

Annual IBI (Impuesto sobre Bienes Inmuebles) is a municipal property tax on cadastral value, ranging 0.4-1.1% for urban properties, set independently by each town hall; under the Ley de Vivienda, town halls may apply a vacancy surcharge of up to 150% of the base IBI on homes empty 2+ years without justification. Non-residents owning Spanish property that isn't rented or their primary residence pay imputed income tax (Modelo 210) on a notional rental base of 1.1% (if cadastral value revised within the last 10 years) or 2.0% of cadastral value, taxed flat at 19% (EU/EEA) or 24% (non-EU) — note: some sources express this combined effect as an approximate 1.9%/2.4% effective annual charge on cadastral value; this has not been fully reconciled against the 1.1%/2.0% base × 19%/24% rate figures above and should be verified against a regional tax advisor before relying on either framing. On acquisition, resale properties incur ITPO (Property Transfer Tax), which is regional: Madrid applies a flat 6%, Catalonia and Andalucía use a progressive 7-10% scale, and Valencia is set to reduce its rate to 9% for properties up to €1M from 1 June 2026 (previously up to 10%); ITPO is calculated on the higher of purchase price or official reference value. New-build properties are ITPO-exempt but subject to 10% VAT (4% for subsidized housing) plus Stamp Duty (AJD) of 0.5-1.5% regionally.

Agencia Tributaria (AEAT) · Last verified 2026-07-17

Key Facts

  • Annual IBI (municipal property tax) ranges 0.4-1.1% of cadastral value, set by each town hall.
  • Vacancy surcharge under the Ley de Vivienda can add up to 150% of base IBI for homes unoccupied 2+ years.
  • Non-resident imputed income tax (Modelo 210): 1.1% or 2.0% of cadastral value as notional rental base, taxed at 19% (EU/EEA) or 24% (non-EU) — effective annual charge sometimes cited as ~1.9%/2.4%, pending reconciliation.
  • ITPO (resale transfer tax) is regional: Madrid flat 6%, Catalonia/Andalucía progressive 7-10%, Valencia reducing to 9% (up to €1M) from 1 June 2026.
  • New-build properties are ITPO-exempt but pay 10% VAT (4% for subsidized housing) plus 0.5-1.5% Stamp Duty (AJD).
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