Real Estate Tax in Spain
Expert attorney for expats, non-resident and investors property
Real estate tax in Spain can be complex, especially for expats, non-residents, and foreign investors who are unfamiliar with the country’s tax system. Whether you own property, plan to buy or sell, or need guidance on inheritance and gift taxes, ensuring compliance while optimizing tax efficiency is crucial.
Without proper planning, unexpected tax liabilities can arise, leading to financial losses or legal complications. For non-residents and foreign investors, real estate taxes in Spain differ from those applied to residents, requiring careful financial management and legal expertise. Understanding your obligations is essential to avoid overpayment or penalties.
At Pellicer & Heredia, our expert real estate tax attorneys provide professional legal guidance to help you minimize tax burdens, claim deductions, and ensure full compliance with Spanish tax regulations.
Key real estate taxes in Spain
Understanding the main real estate taxes in Spain is essential to ensure legal compliance and proper tax planning. Whether you are buying, selling, or inheriting property, being aware of your tax obligations helps you avoid unnecessary costs and take advantage of potential deductions or exemptions.
Transfer tax (ITP) for property purchases
The Impuesto de Transmisiones Patrimoniales (ITP) applies to the purchase of second-hand properties in Spain. The tax rate varies by region, typically ranging between 6% and 10% of the purchase price. Unlike new properties, which are subject to VAT (IVA) instead, ITP is paid by the buyer at the time of purchase.
Non-residents and foreign investors should be aware that regional differences in tax rates can affect the total cost of acquiring property. Our real estate tax lawyer can help you understand the exact tax rate applicable in your region and explore possible exemptions or reductions.
Annual property tax (IBI)
The Impuesto sobre Bienes Inmuebles (IBI) is a local municipal tax paid annually by all property owners in Spain, regardless of their residency status. The amount is calculated based on the cadastral value (a government-assigned value) of the property, and rates generally range from 0.4% to 1.3%, depending on the municipality.
For non-residents and expats, failing to pay IBI on time can lead to fines or legal issues with Spanish tax authorities. A tax planning service ensures that this obligation is met efficiently and without delays, helping property owners stay compliant and avoid penalties.
H4: Capital gains tax on property sales
When selling property in Spain, non-residents and expats are subject to Capital Gains Tax (CGT), which applies to the profit made from the sale. The tax rates for non-residents are:
- 19% for EU/EEA residents
- 24% for non-EU residents
Sellers may be able to reduce their tax liability through deductions for renovation costs, legal fees, and real estate agent commissions. Additionally, non-residents selling property are subject to a 3% withholding tax, which is deducted at the time of sale and later adjusted based on the actual capital gain.
Wealth tax for high-value properties
Spain applies a Wealth Tax (Impuesto sobre el Patrimonio) on high-value assets, including real estate. Non-residents are taxed only on their Spanish assets, while residents are taxed on their worldwide assets. Tax rates range from 0.2% to 3.5%, with regional variations.
However, there are exemptions and deductions available, such as:
- A €700,000 exemption per individual (varies by region).
- Additional allowances for primary residences.
- Strategic tax planning options to reduce wealth tax liability.
For foreign investors and high-net-worth individuals, working with a real estate tax attorney ensures proper structuring of investments to optimize tax efficiency and take advantage of available deductions.
Inheritance and gift tax for property transfers
Inheritance and gift tax (Impuesto de Sucesiones y Donaciones – ISD) applies to real estate received through inheritance or as a gift. The tax rate varies significantly based on:
- The relationship between the donor and recipient (closer relatives often pay lower rates).
- The value of the property.
- The region where the property is located, as some regions offer generous exemptions and deductions.
For non-residents, inheritance tax planning is crucial, as Spanish authorities tax worldwide assets in some cases. Proper legal guidance ensures that property transfers are structured efficiently, minimizing tax burdens and ensuring compliance with Spanish regulations.
Download the most complete guide on taxes in Spain
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Get the practical insights you need to avoid mistakes and stay fully compliant with Spanish tax law.
Our real estate tax services
At Pellicer & Heredia, we offer a full range of real estate tax services designed specifically to help you minimize your tax burden, ensure full legal compliance, and make the most of your property investment through careful planning and strategic advice.
Property tax planning and optimization
We provide tailored tax planning to help you manage and optimize your real estate tax obligations in Spain. Whether you own one property or a portfolio, our lawyers develop strategies to legally reduce your tax liability and ensure you are taking advantage of all available benefits. From ownership structures to timing of sales or purchases, we align your tax plan with your investment goals.
Exemptions and deductions
Spanish tax law offers a range of exemptions and deductions, but many expats and non-residents are unaware of them. Our team helps identify all the deductions you’re eligible for—such as renovation costs, legal fees, and local tax allowances—to reduce the total amount of taxes you owe. We also advise on regional benefits that may apply depending on the location of your property.
Tax advice for property transfers
Transferring property, either through a gift, donation, or inheritance, can trigger significant tax obligations. We offer expert legal advice to structure these transfers in a way that minimizes tax exposure, ensures compliance, and protects your assets. We also handle all documentation and liaise with the tax authorities on your behalf.
Capital gains tax calculation and reduction
If you’re selling property in Spain, our team calculates your capital gains tax (CGT) accurately and explores all available deductions and exemptions to reduce the amount owed. We also assist in recovering the 3% withholding tax applied to non-resident sellers, ensuring that your transaction is as tax-efficient as possible.
Assistance with IBI and other local taxes
We manage your obligations related to local property taxes, such as the IBI (Impuesto sobre Bienes Inmuebles) and Plusvalía Municipal, making sure payments are made correctly and on time. We can also appeal excessive tax assessments and provide representation in case of disputes with local authorities.
Tax services for real estate investments
Whether you’re buying your first property in Spain or managing a real estate portfolio, we provide comprehensive tax support for property investors. From VAT and transfer tax implications to structuring purchases through a company or trust, we ensure your investment is optimized from a tax perspective. Our team helps you make decisions that are not only profitable, but also legally sound and tax-efficient.
International and specialized assistance for real estate tax in Spain
Who can benefit from our expert tax advice?
We specialize in offering strategic real estate tax advice to international clients. Whether you’re living in Spain, investing from abroad, or managing a property transfer, our legal team provides tailored tax solutions that protect your assets and optimize your obligations.
Expats living in Spain
Expats who reside in Spain often face dual tax obligations and need to understand the differences between resident and non-resident taxation. We help expats plan for annual property taxes, capital gains, and inheritance taxes, ensuring compliance while taking advantage of deductions and regional exemptions.
Non residents with properties in Spain
If you own property in Spain but live abroad, you’re still subject to several taxes, including Non-Resident Income Tax (IRNR) and IBI. Our attorneys help you stay compliant with Spanish tax authorities while avoiding double taxation through careful tax planning and representation.
Foreign investors in Spanish real estate
Real estate investors benefit from our guidance in structuring purchases, minimizing capital gains, and optimizing the transfer of high-value properties. We also provide support with wealth tax and investment returns, making sure your operations are both profitable and tax-efficient.
Individuals planning property transfers or gifts
Whether you’re gifting property to a family member or planning for the future, we ensure the process is done legally and with minimal tax burden. Our legal advice covers gift tax, donation structures, and planning strategies to help you transfer assets with peace of mind.
Heirs and beneficiaries of property in Spain
Inheritance procedures in Spain can be complicated, especially for non-resident heirs. We assist with the legal and tax aspects of inheriting property, including inheritance tax filings, exemptions, and the formal transfer of ownership, ensuring a smooth and tax-optimized process.
Businesses and real estate developers
Businesses and developers involved in real estate projects face unique tax challenges, from VAT on new constructions to Corporate Income Tax on profits. We provide tailored advice to help you navigate these complexities and optimize your tax position.
Why choose Pellicer & Heredia for real estate tax services in Spain?
When it comes to real estate tax in Spain, choosing the right legal partner can make all the difference—especially if you’re an expat, non-resident, or foreign investor unfamiliar with Spanish tax regulations. At Pellicer & Heredia, we offer a unique combination of expertise, trust, and personalized service, helping you manage your property taxes with complete confidence.
Our team of experienced tax lawyers and attorneys provides comprehensive guidance, from annual tax declarations and capital gains calculations to inheritance planning and property transfers. With over 20 years of experience advising international clients.
We offer services in multiple languages, including English, French, German, Russian, and more, ensuring that you fully understand every legal and financial aspect of your case. Whether you need in-person assistance or prefer to work remotely from abroad, Pellicer & Heredia provides responsive, accessible, and professional legal support tailored to your goals.
Need help with real estate tax in Spain? Contact us today and let our lawyers handle everything for you.
☎️ Call us now: +34 965 480 737
📩 Email us: info@pellicerheredia.com
