Alicante Lawyers

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.

Specialist legal assistance for Real Estate Taxes in Spain

Our legal team assists you in drafting and granting a valid Power of Attorney in Spain, ensuring that your representative can legally act on your behalf in financial, legal, property, or administrative matters

In which country do you currently reside?

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.

Our attorneys help you stay compliant with Spanish tax authorities while avoiding double taxation in your Non-Resident Income Tax, or help you to optimize your Corporate Income Tax.

Expats living in Spain

Non residents with properties in Spain

Foreign investors in Spanish real estate

Individuals planning property transfers or gifts

Heirs and beneficiaries of property in Spain

Businesses and real estate developers

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

  • Applies to second-hand property purchases in Spain.
  • Paid by the buyer at the time of purchase.
  • Tax rate depends on the autonomous region, usually 6%–10% of the purchase price.
  • New properties are not subject to ITP; they are taxed with VAT (IVA) instead.
  • Regional tax differences can significantly affect the total acquisition cost for foreign buyers.

Annual Property Tax (IBI)

  • A municipal tax paid annually by all property owners in Spain, including non-residents.
  • Calculated based on the cadastral value of the property.
  • Rates typically range between 0.4% and 1.3%, depending on the municipality.
  • Late or unpaid IBI may result in fines or legal issues with tax authorities.

Capital Gains Tax (CGT) on property sales

  • Applies when selling property in Spain and is calculated on the profit from the sale.
  • Rates for non-residents:
    • 19% for EU/EEA residents
    • 24% for non-EU residents
  • 3% withholding tax is deducted from the sale price at completion and later adjusted according to the final tax due.
  • Tax liability may be reduced through deductions for renovation costs, legal fees, and estate agent commissions.

Wealth Tax (Impuesto sobre el Patrimonio)

Spain applies a Wealth Tax (Impuesto sobre el Patrimonio) on high-value assets, including real estate. 

  • Applies to high-value assets, including real estate.
  • Non-residents are taxed only on assets located in Spain; residents on worldwide assets.
  • Tax rates range from 0.2% to 3.5%, with regional variations.
  • Key exemptions and deductions include:
    • €700,000 personal allowance per individual (varies by region).
    • Additional allowances for primary residences.
  • Proper structuring and tax planning can reduce or optimize wealth tax exposure.

Inheritance and Gift Tax (ISD)

For non-residents, inheritance tax planning is crucial, as Spanish authorities tax worldwide assets in some cases. 

  • Applies when property is transferred by inheritance or gift.
  • Tax depends on:
    • Relationship between donor and recipient (closer relatives usually pay less).
    • Value of the property.
    • Region where the property is located, as regional rules vary widely.
  • Some regions offer significant exemptions and reductions, making regional tax planning essential.
  • In certain cases, Spanish authorities may tax worldwide assets, making planning especially important for non-residents.

Our real estate tax services

Property tax planning and optimization

Strategic planning to structure property ownership, reduce tax liabilities, and optimize real estate investments in Spain.

Exemptions and deductions

Identify available deductions, renovation costs, legal expenses, and regional tax benefits to reduce overall property taxes.

Tax advice for property transfers

Legal guidance for gifts, inheritances, and donations, structuring transfers efficiently while ensuring compliance with Spanish tax law.

Capital gains tax calculation and reduction

Accurate CGT calculation, deduction analysis, and assistance recovering the 3% withholding tax for non-resident sellers.

Assistance with IBI and other local taxes

Management of IBI and municipal taxes as Plusvalía Municipal, ensuring timely payments, correct assessments, and representation in disputes.

Tax services for real estate investments

Comprehensive tax advice for property investors, covering acquisition structures, VAT, transfer taxes, and portfolio optimization.

Why choose Pellicer & Heredia for real estate tax services in Spain

Pellicer & Heredia provides expert legal support for real estate taxes in Spain, especially for expats, non-residents, and foreign investors. With over 20 years of experience, their tax lawyers assist with annual tax filings, capital gains tax, inheritance planning, and property transfers. The firm offers multilingual services (English, French, German, Russian, and more) and flexible support both in person and remotely, ensuring clear guidance and personalized solutions for international clients managing property in Spain.