Property Taxes in Spain 2026: Guide for Residents and Non-Residents

Spain has a layered property tax system that applies at different stages of ownership: when you buy, while you hold, and when you sell. The tax treatment differs meaningfully between residents and non-residents. Understanding each tax before you purchase, or before you sell, is essential to avoid surprises. This guide covers every major property tax relevant to owners in Catalonia in 2026.

Overview: all property taxes at a glance

IBI: the annual property ownership tax

IBI is the ongoing annual cost of owning property in Spain and applies equally to residents and non-residents. It is set by each local council and calculated on the cadastral value of the property — which is typically 30 to 60% below market value for most established properties.

IBI rates by municipality in Catalonia generally fall in the 0.5% to 0.9% range. Some practical examples:

Rates are indicative and subject to change. Verify exact rates with the relevant municipality.

IRNR: the non-resident property tax

If you own property in Spain but are not a Spanish tax resident, you must file an IRNR declaration every year, even if you do not rent the property out.

Property not rented out (deemed income)

Spain imputes a notional rental income to non-resident owners of vacant properties:

• 1.1% of the cadastral value if the cadastral value has been revised since 1994 (most urban properties)
• 2% of the cadastral value if the cadastral value has not been revised since 1994

This deemed income is then taxed at:

• 19% for EU citizens and EEA (European Economic Area) residents
• 24% for non-EU, non-EEA nationals

Example: a property with a cadastral value of 80,000 euros. Deemed income = 80,000 x 1.1% = 880 euros. IRNR (EU citizen) = 880 x 19% = 167 euros per year.

Rented property

If you rent out your Spanish property as a non-resident, the net rental income (income minus allowable expenses) is taxed at 19% (EU) or 24% (non-EU). Allowable deductions for EU residents include mortgage interest, IBI, community fees, insurance, depreciation and maintenance costs. Non-EU residents cannot deduct expenses — tax is on gross income. IRNR for rented property is declared quarterly using Form 210.

IRPF: how residents are taxed on property

Spanish tax residents (those spending more than 183 days per year in Spain) report property income through their annual IRPF (income tax) return. Key points:

• Primary residence: no imputed income on your main home
• Secondary or investment properties (not rented): 1.1% of cadastral value is added to taxable income as “imputacion de rentas inmobiliarias”
• Rented properties: net rental income (after all allowable deductions) is added to general taxable income; a 60% reduction applies to long-term residential lettings
• Capital gains on sale: taxed as savings income at 19-27% depending on the size of the gain

Plusvalia municipal: the seller's local tax

The plusvalia municipal is paid by the seller and calculated by the local council. Since a 2021 Constitutional Court ruling, sellers can choose the more favourable of two methods:

• Objective method: cadastral land value multiplied by an official coefficient (published annually by the Ministry of Finance) corresponding to the number of years of ownership
• Real gain method: proportional increase in the land component of the total property value between purchase and sale dates; if land value has decreased, no tax is due