Taxes for Non-Resident Property Owners in Spain

Owning a holiday home in Benalmádena while living in the UK, Scandinavia or elsewhere comes with a handful of yearly obligations. None is complicated, but missing them leads to surcharges. Here is the overview.

Every year, whether you let or not

IBI (municipal property tax)

The Ayuntamiento de Benalmádena charges IBI on the property's cadastral value, plus a separate rubbish collection charge. Both are usually paid by direct debit. The receipt also tells you the cadastral value you need for income tax.

Non-resident income tax on imputed income

Spain taxes non-residents on a notional income simply for owning a property they do not let: 1.1% or 2% of the cadastral value (depending on whether the municipality's values have been revised), taxed at 19% for EU/EEA residents and 24% for everyone else, including UK residents since Brexit. It is declared on form 210, normally by 31 December of the following year. For a typical apartment the bill is usually a few hundred euros.

If you let the property

Rental income is declared on form 210 as well, for the periods it is let. EU/EEA residents pay 19% and can deduct related expenses (IBI, community, repairs, depreciation…); non-EU residents pay 24% on the gross income without deductions. For the weeks it is not let, the imputed income above still applies proportionally.

Holiday lets in Andalucía also need the property registered in the regional tourist register. Check this before buying if letting is part of your plan: see our investment overview.

When you sell

• Capital gains: non-residents pay 19% on the gain. The buyer withholds 3% of the price and pays it to the tax office; you then file form 210 to settle the difference or reclaim any excess.
• Plusvalía municipal: a municipal tax on the increase in land value, normally paid by the seller.

Practical tips

• Get your NIE and a Spanish bank account before buying; both are needed to pay taxes.
• Keep invoices of improvements: they reduce the capital gain when you sell.
• A local tax representative can file form 210 each year for a modest fee.

Planning a purchase? Start with how much it costs to buy in Benalmádena.

General information, not tax advice. Your country of residence and any double taxation treaty affect how this income is taxed at home: check with an adviser in both countries.