Property Purchase Taxes in Spain: EU vs Non-EU Citizens
When buying property in Spain, there is no tax difference between EU citizens and non-EU citizens. Tax obligations are the same for all foreign buyers. Here are the main taxes and fees:
Main purchase taxes:
- IVA (VAT) – 10%
- Applies only to new properties
- For commercial properties, the rate is 21%
- ITP (Transfer Tax) – 6-10%
- Applies to second-hand properties
- Rate varies by region
- Andalusia: 7%
- Valencia: 10%
- Catalonia: 10%
- Madrid: 6%
Additional fees:
- Notary fees: 0.5-1%
- Registration fees: 0.5-1%
- Legal services: 1-2%
Total costs: Buyers should expect additional costs of 10-14% above the property purchase price.
Annual taxes after purchase:
- IBI (Property Tax)
- Annual property tax
- Amount depends on property value and location
- Usually 0.4-1.1% of property value
- Non-resident Income Tax
- If property is not rented: approximately 0.5% of cadastral value
- For rented properties: 19% of net income for EU residents, 24% for non-EU residents
- Wealth Tax
- Only applies to properties above a certain value
- Varies by region
- Has progressive rates from 0.2% to 3.5%
We recommend always consulting with a local tax advisor about your specific tax situation, as rates may change and there may be various exceptions or additional regional fees.
