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Spain Taxes & Fees Guide for International Property Buyers & Investors


Understanding taxes and fees in Spain is essential for high-net-worth buyers and investors planning to purchase holiday homes, rental properties, or permanent residences. Spain applies several taxes during and after property acquisition, which can affect investment returns.

The main taxes for property buyers include Transfer Tax (Impuesto de Transmisiones Patrimoniales, ITP) for resale properties and VAT (IVA) for new-build properties. Additionally, notary fees, land registry charges, and legal costs must be considered. Proper planning helps investors optimize their expenditure and protect capital.

For legal guidance, see our Legal Process page. For investment advice, see our Investment Locations page.



Annual property taxes include IBI (Impuesto sobre Bienes Inmuebles), similar to council tax, and garbage collection fees. Non-resident property owners must also pay Non-Resident Income Tax (IRNR) on rental income or deemed income if the property is not rented. High-net-worth investors should account for both short-term rental earnings and long-term capital gains when budgeting.

External tax resources for international buyers include:


For rental property investors, compliance with local regulations and accurate declaration of rental income is critical. Engaging a Spanish accountant or tax advisor ensures proper filing and maximizes allowable deductions. Property management companies can also assist with tax reporting and compliance.

For rental management advice, see our Rental & Investment Management page. For banking and currency transfers, see Banking and Transferring Money.


High-net-worth buyers should also consider inheritance and gift taxes when planning their Spanish property portfolio. Spain’s tax system varies by region, and tax rates depend on property value, residency status, and region-specific regulations. Early planning reduces liability and ensures compliance.

External resources for inheritance and wealth tax guidance:


Proper understanding of all property-related taxes and fees in Spain allows international buyers and investors to optimize their investment strategy, maintain cash flow, and protect capital while enjoying a luxury lifestyle. Combining expert legal and tax advice with local market knowledge ensures a smooth property ownership experience.


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