Property tax and law in Spain: the complete guide (2026)
Buying, owning, renting out, selling or inheriting in Andalusia: every rule and tax in one place, including what changes in 2026. For British, Belgian, Dutch and international buyers. Checked every month.
In short
What you need to know
Last checked on 23 October 2026
Short answer: if you buy a resale home in Andalusia, you pay 7% transfer tax (ITP). On a new build it is 10% VAT plus 1.2% stamp duty. As an owner who does not live there, you pay the municipal IBI every year plus tax on deemed income (modelo 210). If you rent the property out, EU residents pay 19% on their net rental income, while residents outside the EU or EEA (including the United Kingdom) pay 24% on the gross rent. When you sell, the buyer withholds 3% of the price as an advance on your capital gains tax. Andalusia has fully relieved wealth tax, and direct heirs receive a reduction of 1 million euros.
This guide is the starting point of our knowledge base. For each topic we explain the main rules and link to a detailed article. What's new is at the top. Every month we check everything against official sources such as the Spanish Tax Agency (AEAT), the Official State Gazette (BOE) and the Andalusian Official Gazette (BOJA).
This is general information, not legal or tax advice. Your personal situation determines what applies to you. We are happy to put you in touch with an independent lawyer or tax adviser.
What's new
What changes in 2026
Last checked on 23 October 2026
- 12 November 2026 (scheduled)Vote on housing decree RDL 29/2026. The decree has been in force since 8 October 2026 but still has to be ratified by the Spanish Congress. Among other things, it introduces 10% VAT on furnished lets of 30 nights or fewer (for stays from 1 December 2026), caps rent increases at 2% until the end of 2027 and tightens the rules on seasonal lets. We will update this guide after the vote. Read all the new rules.
- 23 June 2026New deadlines for modelo 210. Under Orden HAC/623/2026, you file the return for rental income in the fourth quarter of 2026, or a grouped annual return for the whole of 2026, between 1 and 20 April 2027. Deemed income for 2026 is declared between 1 April and 31 December 2027. Tax on a second home.
- 19 May 2026National short-term rental register annulled. The Spanish Supreme Court (Tribunal Supremo, judgment 620/2026) annulled the national registration number for short-term rentals. Registration in the Andalusian tourism register and guest registration remain mandatory. Renting out property in Spain.
- 24 January 2026Andalusian housing law (Ley 5/2025) in force. Landlords no longer have to lodge the rental deposit with the regional government. Estate agents must be listed in an Andalusian register by 24 January 2028, so ask your agent about their registration.
- 3 April 2025End of the golden visa and stricter rules for holiday lets in apartment buildings. A residence permit through a property investment of 500,000 euros is no longer possible. Anyone who wants to start holiday letting in an apartment building needs the express approval of three fifths of the owners.
Buy
Buying property: taxes and legal steps
Last checked on 23 October 2026
In Spain the buyer pays the purchase tax. Which tax applies depends on whether you buy a resale home or a new build. In Andalusia, budget roughly 9 to 10% on top of the price for a resale property, and 12 to 13% for a new build.
| Cost | Resale property | New build (first sale) |
|---|---|---|
| Purchase tax | 7% transfer tax (ITP) | 10% VAT (IVA) |
| Stamp duty (AJD) | Not applicable | 1,2% |
| Notary and Land Registry | Usually 0.5 to 1% combined | |
| Independent lawyer | Usually around 1% of the price | |
The legal steps
- NIE number: your tax identification number, needed for the deed, the bank and your taxes.
- Independent lawyer: they check ownership and debts through the nota simple, the licences, the community fees and the IBI.
- Reservation and purchase contract with deposit (contrato de arras), usually 10% of the price.
- Deed at the notary (escritura) and registration in the Land Registry.
If you buy off-plan, the developer must protect your payments with a bank guarantee or insurance policy (Ley 38/1999). Spanish banks usually lend non-residents up to 60 to 70% of the value. Since the 2019 mortgage law, the bank pays the notary, the Land Registry and the stamp duty on the mortgage deed. You pay for the valuation.
Want to know what your purchase will cost in total? We'll prepare a free, tailored cost breakdown.
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Taxes as the owner of a second home
Last checked on 23 October 2026
If you own a home in Spain but don't live there, you are a non-resident. Each year you pay:
- IBI: the municipal property tax, calculated on the cadastral value. The rate varies by municipality and is shown on your bill.
- Waste tax (basura), often collected by the town hall or the province.
- Tax on deemed income via modelo 210, even if you don't rent the property out: 1.1% or 2% of the cadastral value, taxed at 19% (EU and EEA) or 24% (other countries, including the UK).
- Wealth tax: since tax year 2022 Andalusia has applied a 100% relief, and as a non-resident you can use this regional rule for your Andalusian property. Only very large estates (a taxable base above 3 million euros, after the 700,000 euro allowance) may be liable for the national solidarity tax.
You usually have to declare the property in your home country too. Double taxation treaties prevent you from being taxed twice; how the property is reported depends on where you are resident, so check with a tax adviser at home.
Renting out
Renting out your property: licence, registration and tax
Last checked on 23 October 2026
Holiday rental
- Registration as a holiday rental (vivienda de uso turístico) in the Andalusian tourism register, with the registration number in every listing.
- Your building's bylaws must not prohibit it. Since April 2025, new holiday lets in an apartment building need the approval of three fifths of the owners.
- Register guests via SES.Hospedajes within 24 hours.
- VAT: if decree RDL 29/2026 is ratified, 10% VAT will apply from 1 December 2026 to furnished lets of 30 nights or fewer.
Long-term rentals
Letting a property as the tenant's main home falls under the Spanish Tenancy Act (LAU). A private landlord grants a term of up to 5 years and the deposit is one month's rent. In Andalusia you no longer have to lodge that deposit with the regional government since 24 January 2026.
Tax on rental income
| Where are you resident? | Rate | Deduct costs? |
|---|---|---|
| EU, Iceland, Norway, Liechtenstein | 19% | Yes, under conditions |
| United Kingdom and other countries | 24% | No, you pay on the gross rent |
Planning to rent out? Request our free 2026 Rental Guide: ten pages covering every step, cost and rule.
Request the Rental GuideContact formSell
Selling your property: withholding, capital gains and plusvalía
Last checked on 23 October 2026
- 3% withholding: if you sell as a non-resident, the buyer withholds 3% of the price and pays it to the Tax Agency within one month of the deed (modelo 211). This is an advance payment on your capital gains tax. With modelo 210 you declare the gain and reclaim any excess that was withheld. Ask the buyer for a copy of modelo 211.
- Capital gains tax: as a non-resident you pay 19% on the difference between the sale price and the purchase price, after deducting buying and selling costs and certain improvements.
- Plusvalía municipal: the municipal tax on the increase in land value. It is paid by the seller. If the seller is a non-resident, the buyer withholds the amount from the price and pays it to the town hall. Since late 2021 you can choose the more favourable of two calculation methods, and if there is no gain, you pay nothing.
- Documents: a valid energy performance certificate, the latest IBI receipt, a certificate from the community of owners confirming there are no debts, and the title deed.
If you live in Spain, the gain goes into your normal Spanish tax return and there is no 3% withholding. If you reinvest in a new main residence, an exemption may apply.
Thinking of selling? We'll give you a free valuation and an overview of what you'll keep after costs and taxes.
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Moving to Spain or spending the winter there
Last checked on 23 October 2026
- EU citizens may live freely in Spain. If you stay longer than three months, you register as an EU citizen (green certificate) and with the town hall (padrón).
- You become a tax resident if you spend more than 183 days in Spain in a calendar year, or if your main economic interests or your family are based there. You then pay Spanish tax on your worldwide income.
- Assets abroad above 50,000 euros per category must be reported by residents on modelo 720, before 31 March.
- British and other non-EU citizens may stay in the Schengen area without a visa for 90 days in any 180-day period. Staying longer requires a visa or residence permit.
Inheritance and gifts
Inheriting property in Spain
Last checked on 23 October 2026
Spanish property is always subject to Spanish inheritance tax, even if the deceased and the heirs live elsewhere. Andalusia is one of the most favourable regions:
- Children, spouses and parents (groups I and II) receive a reduction of 1 million euros per heir, followed by a 99% relief on the tax.
- Heirs from the EU and, according to case law, from outside the EU as well can apply the Andalusian rules.
- The return must be filed within 6 months of the death. You can request a 6-month extension within the first 5 months.
Your home country may also levy inheritance tax, with rules to avoid double taxation. A separate Spanish will for your Spanish assets speeds up the process.
By client profile
EU resident, UK resident or international buyer: what's different?
Last checked on 23 October 2026
| EU resident (BE, NL, FR, …) | UK resident | Other countries | |
|---|---|---|---|
| Tax on rental income | 19% on net | 24% on gross | 24% on gross |
| Deemed income (not let) | 19% | 24% | 24% |
| Capital gain on sale | 19% | 19% | 19% |
| Stay without a visa | Unlimited (registration after 3 months) | 90 days in 180 | Depends on nationality |
| Mortgage from a Spanish bank | Usually 60 to 70% | Usually lower, often 50 to 60% | |
A proposal to impose a heavy tax on purchases by non-EU buyers was announced in 2025, but it was not included in the new housing decrees of October 2026. We are keeping track of it.
Buying through a company? Then different tax rules apply on the Spanish side, including corporate tax, and a lot depends on the country where your company is based. Read buying, renting out or selling property through a company.
Glossary
The Spanish terms you'll come across
Last checked on 23 October 2026
- NIE
- Número de Identidad de Extranjero: your Spanish tax identification number as a foreigner.
- TIE
- Residence card for non-EU citizens. EU citizens receive a green registration certificate.
- Nota simple
- Land Registry extract showing the owner, mortgages and charges.
- Contrato de arras
- Purchase contract with a deposit. If the buyer pulls out, they lose the deposit. If the seller pulls out, they repay double.
- Escritura
- The notarial deed transferring ownership.
- ITP, IVA, AJD
- Transfer tax, VAT and stamp duty on the purchase.
- IBI
- Annual municipal property tax.
- Plusvalía municipal
- Municipal tax on the increase in land value on sale or inheritance.
- Modelo 210, 211, 720
- Non-resident tax return, return for the 3% withholding on a sale, and the declaration of assets abroad.
- Padrón
- Registration on the town hall's population register.
- Gestor
- An administrative agent who handles tax returns and paperwork.
- VUT
- Vivienda de uso turístico: a registered holiday rental.
Frequently asked questions
Questions about tax and law
Last checked on 23 October 2026
How much tax do you pay when buying a property in Andalusia?
For a resale home, 7% transfer tax (ITP). For a new build, 10% VAT plus 1.2% stamp duty (AJD). Including notary, Land Registry and lawyer, you end up at roughly 9 to 10% for a resale property and 12 to 13% for a new build.
Do I have to pay tax if I do not rent out my Spanish property?
Yes. As a non-resident you pay an annual tax on deemed income of 1.1% or 2% of the cadastral value, at 19% for EU residents and 24% for others, plus the municipal IBI.
How much tax do you pay on rental income in Spain?
EU and EEA residents pay 19% on the net rent, after deducting expenses. Residents of the United Kingdom and other countries pay 24% on the gross rent.
What is the 3% withholding on a sale?
When a non-resident sells, the buyer withholds 3% of the price and pays it to the Spanish Tax Agency using modelo 211. It is an advance payment on the 19% capital gains tax.
Do I have to pay wealth tax in Andalusia?
In practice, no: since tax year 2022 Andalusia has applied a 100% relief. Only very large estates, with a taxable base above 3 million euros after the 700,000 euro allowance, may be liable for the national solidarity tax.
How often is this guide updated?
We check the guide against official sources every month and update it as soon as a new law or rule is published. The date on each topic shows when we last reviewed it.
Sources
Where our information comes from
Last checked on 23 October 2026
- Agencia Tributaria (AEAT): non-residents, modelo 210 and 211, note on Orden HAC/623/2026
- Boletín Oficial del Estado (BOE): Real Decreto-ley 29/2026, Ley Orgánica 1/2025, Ley 5/2019, Ley 38/1999
- Boletín Oficial de la Junta de Andalucía (BOJA): Ley 5/2025 de Vivienda de Andalucía, Ley 5/2021 (taxes)
- Junta de Andalucía, Consumo Responde: costs of a mortgage
- Tribunal Supremo, judgment 620/2026 of 19 May 2026 (national short-term rental register)
Written by the Imagine Marbella editorial team. Last checked on 23 October 2026. This is general information, not legal or tax advice.
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