Short answer: as a non-resident with a second home in Spain you mainly pay three things each year: the municipal property tax IBI, the waste tax from the town hall, and the Spanish non-resident income tax on deemed income of 1.1% or 2% of the cadastral value, on which as an EU citizen you pay 19% . If you have more than 700,000 euros in net assets in Spain, wealth tax is added, with a 100% relief in Andalusia for EU citizens. You also declare the property in your home country.
A second home in Spain is about enjoyment, but it also comes with some paperwork. The good news: for most owners the annual Spanish taxes are manageable. The bad news: forget them and years later you get a bill with penalties and interest. The tax on deemed income for a property you don't let out is the one most often overlooked.
In this article we list all the annual taxes, with 2026 sources and a worked example. Do you let your property? Extra rules apply, which you'll find in our article on renting out your property in Spain.
Overview: which taxes do you pay each year?
| Tax | Paid to | How much | Who pays |
|---|---|---|---|
| IBI (property tax) | Municipality | A percentage of the cadastral value, set by the town hall | Every owner |
| Waste tax (basura) | Municipality | Fixed annual amount, by municipality | Every owner |
| Non-resident income tax (IRNR) on deemed income | Spanish Tax Agency | 19% (EU) or 24% (outside the EU) on 1.1% or 2% of the cadastral value | Non-residents who don't let the property |
| Wealth tax | Spanish Tax Agency | Only above 700,000 euros net assets in Spain; 100% relief in Andalusia for EU citizens | Those above the threshold |
| Solidarity tax on large fortunes | Spanish Tax Agency | Only above 3 million euros in net assets | Those above the threshold |
| Tax in your home country | Tax authority in your home country | According to your country's rules | Residents of that country |
IBI and waste tax: the town hall
IBI (impuesto sobre bienes inmuebles) is the Spanish property tax. You pay it to the town hall each year, based on the cadastral value of your property. That value is usually well below market value. Each town hall sets its own rate. For comparison: in the city of Málaga the rate in 2026 is 0.451%, which for a cadastral value of 100,000 euros is about 451 euros a year. Your town hall's rate and the exact amount are on your IBI bill (recibo).
The town hall also charges a waste tax (tasa de basura). Tip: pay both taxes by direct debit from your Spanish account, so you never miss a deadline.
Non-resident tax on a property you don't let
This is the tax most often forgotten. Spain assumes that a second home gives you a benefit, even if you don't let it. That's why you pay tax on deemed income (imputación de rentas):
- 1,1% of the cadastral value if it has been revised in the last ten years, otherwise 2%.
- On that you pay 19% if you live in the EU or EEA, or 24% if you live outside it, for example in the United Kingdom.
- If there are two owners, each files a return for their own share.
- Let for part of the year? Then you only pay deemed income for the days the property is not let.
Worked example: cadastral value 200,000 euros, revised: 1.1% is 2,200 euros deemed income. At 19% you then pay 418 euros a year. With two owners, each pays 209 euros.
You file the return using modelo 210. For deemed income in 2025 the deadline is 31 December 2026. For deemed income in 2026 the window runs from 1 April to 31 December 2027, according to the Spanish Tax Agency (AEAT, note on Orden HAC/623/2026).
Wealth tax: only from 700,000 euros
As a non-resident you pay wealth tax (Impuesto sobre el Patrimonio) only on your assets in Spain, and only if your net assets there exceed 700,000 euros per person . The main-residence exemption does not apply to non-residents.
Good news if you live in the EU or EEA: you can apply Andalusia's rules, and Andalusia grants a 100% relief. According to the source, British residents do not qualify since Brexit.
Do watch out for the temporary solidarity tax on large fortunes. It applies above 3 million euros net and is not covered by the Andalusian relief. If you have to file a return, it is usually between early May and 30 June of the following year. Have your situation checked by a tax adviser.
And in your home country?
Netherlands. A second home in Spain falls under box 3, even though you pay tax in Spain. You declare it at market value. A mortgage is not simply deducted from the property; it counts as a separate debt. The tax treaty gives you a reduction to avoid double taxation. The box 3 system is changing over the coming years, so have this checked every year.
Belgium. You must report foreign property. The cadastral income of the Spanish property goes into your Belgian return. Under many treaties it is exempt, but it can affect the rate on your other income (exemption with progression). Your adviser at home can calculate it for you.
An annual calendar for owners
| What | When (indicative) |
|---|---|
| IBI and waste tax | According to your town hall's calendar, often in one or more instalments |
| Modelo 210 deemed income (previous year) | In 2026 until 31 December (2025 income). From 2027, 1 April to 31 December |
| Wealth tax and solidarity tax | Early May to 30 June, if you are above the threshold |
| Return in your home country | According to your own country |
Five mistakes that cost you money
- Not filing modelo 210 because you don't let the property.
- Using the purchase price instead of the cadastral value.
- Applying 19% as a British resident. Since Brexit it's 24%.
- Not declaring the property in your home country.
- No direct debit for IBI and waste tax, so you miss deadlines.
How we help
We put you in touch with a reliable gestor who handles your annual returns, and we help with the practical side of your property. Considering a second home on the Costa del Sol? We'll also work out the annual costs together, so you know what you're getting into. Get in touch or send us a WhatsApp message. No strings attached.
Want to know what a second home in Spain costs you each year? We're happy to work it out with you. No obligation.
Get in touchSend us a WhatsAppRead also: renting out your property in Spain, tax when selling as a non-resident and what living in Marbella really costs.
This article is part of our guide to tax and law for property in Spain: all the rules for buying, owning, renting out, selling and inheriting in one place, checked every month.
Frequently asked questions
Which taxes do I pay each year on a second home in Spain?
The municipal IBI and waste tax and, as a non-resident, non-resident income tax on deemed income. Above 700,000 euros net assets in Spain, wealth tax may be added.
Do I have to pay tax if I do not rent out my Spanish property?
Yes. You pay non-resident income tax on deemed income of 1.1% or 2% of the cadastral value, at 19% if you live in the EU.
How much is that in practice?
With a revised cadastral value of 200,000 euros, deemed income is 2,200 euros and the tax 418 euros a year for an EU citizen.
Do I pay wealth tax on my home in Spain?
Only if your net assets in Spain exceed 700,000 euros per person. In Andalusia, EU citizens then receive a 100% relief. Above 3 million euros the solidarity tax does apply.
Do I also have to declare my Spanish home in the Netherlands?
Yes. A second home falls under box 3. The tax treaty gives you a reduction against double taxation.
Do I have to declare my Spanish home in Belgium?
Yes. You report foreign property and declare the cadastral income. Under many treaties it is exempt, but it can affect the rate on your other income.
Sources
- BM Consulting, IRNR alquiler no residentes, modelo 210 2026 (updated 22 October 2026) and Guiafiscal, Modelo 210 IRNR 2026 (11 October 2026)
- Pellicer & Heredia, Impuesto de no residentes en España 2026: modelo 210 y plazos
- Agencia Tributaria, Nota sobre la modificación de los plazos de presentación del modelo 210 (Orden HAC/623/2026 of 12 June 2026), consulted 23 October 2026
- Frank & Partners, Impuesto sobre el Patrimonio en Andalucía 2026 (4 May 2026)
- Rankia, Tipo impositivo IBI por municipios en 2026
- Mondi, A second home abroad and the tax office in 2026 (Dutch) and Secondhome Buitenland, Box 3 and a second home in Spain in 2026 (Dutch)
Written by the Imagine Marbella editorial team. Updated October 2026. This is general information, not tax advice: always have your situation checked by a gestor or tax adviser.
