The notary has signed, the key is on the table and your Spanish property is yours. That does not end the tax story. From that moment on you face a number of taxes and charges that return every year. None of them are shockingly high, but Spanish authorities rarely send you a friendly reminder, and paying late costs money. In this article we set out what you pay after the purchase, when you pay it and what you have to declare yourself.
One-off versus annual
On the purchase itself you pay transfer tax or VAT once, plus notary, registration and lawyer. Count on roughly 8 to 13% on top of the purchase price, depending on the region and on whether you buy new build or resale. We break that item down in full in our overview of the costs of buying a house in Spain. Below we deal with everything that comes afterwards, that is to say the bills you receive again every year.
The IBI: the Spanish property tax
How is the IBI calculated?
The IBI (Impuesto sobre Bienes Inmuebles) is the municipal property tax, comparable to local council property tax. The municipality bases it on the valor catastral, the cadastral value of your property, which is almost always well below market value. The rate varies by municipality and is usually between 0.4 and 1.1% of that cadastral value. For a coastal apartment of around 300,000 euros that works out in practice at roughly 300 to 800 euros per year.
When and how do you pay?
The assessment arrives once a year, in most municipalities in summer or autumn. Almost everywhere you can set up a direct debit (domiciliación) through your Spanish bank account, and that is the only way to be sure you do not forget it. When buying, also check whether the seller has already paid the IBI for the current year, because the tax attaches to the property and not to the person. An outstanding assessment therefore simply passes to you.
Income tax for non-residents
If you do not live in Spain but do own a property there, you have a limited tax liability. You file using form modelo 210. There are two situations, and which one applies to you depends on what you do with the property.
You use the property yourself only
If the property stands empty or you use it exclusively yourself, the Spanish tax authorities apply a notional income of 1.1 or 2% of the cadastral value, depending on when that value was last revised. As an EU resident you pay 19% on that amount. For most coastal apartments this comes to a few hundred euros per year. The return for a calendar year must be filed by 31 December of the following year at the latest.
You let the property
If you let, you declare the actual rental income, on a quarterly basis. As a resident of the Netherlands or Belgium you may deduct the costs related to the letting: community fees, insurance, maintenance, the IBI and depreciation. You pay 19% on what remains. If you let to tourists you also need a licence. How to arrange one is explained in our article on the holiday rental licence in Spain in 2026.
The fixed costs buyers often forget
Besides the taxes there are costs that return every year and that you should put in your budget straight away:
- basura, the municipal waste charge, usually 60 to 200 euros per year
- community fees (comunidad) for garden, pool, lift and security, often 60 to 250 euros per month
- buildings and contents insurance, generally 200 to 500 euros per year
- water, electricity and internet, including in the months when you are not there
In a well-run development those community fees are, incidentally, not money thrown away. A well-kept garden, a clean pool and a working lift keep the value of your property up and make letting a good deal easier.
Wealth tax and your tax return at home
Spain also has a wealth tax (impuesto sobre el patrimonio). There is a generous allowance per person, in most regions around 700,000 euros of Spanish assets, and rates and allowances differ considerably by autonomous region. If you buy together, the allowance counts per buyer. For the vast majority of buyers in the usual price range this tax therefore simply plays no role. If you are above that level, take advice in advance, because the regional differences are large.
In the Netherlands you declare the property in box 3, in Belgium in your personal income tax return. The tax treaty prevents you from paying twice, but the obligation to declare remains. Do not underestimate that: forgetting the Spanish property in your Dutch or Belgian return is one of the most common mistakes, and it comes to light sooner or later. If you finance with a Spanish loan, look at the consequences of that too; we wrote earlier about the mortgage in Spain for Dutch and Belgian buyers.
And if you sell later?
On a sale two further items arise. The plusvalía municipal is a municipal levy on the increase in land value and is as a rule paid by the seller. In addition, as a non-resident you pay 19% on your actual gain. The buyer withholds 3% of the purchase price and pays it over as an advance; if your gain turns out lower, you reclaim the difference. So always base your return calculation on the net proceeds after sale, not on the gross asking price. If you buy off-plan, bear in mind that the cadastral value is only established after completion and that your first IBI assessment therefore arrives later.
How we help you
For every property we offer we set out the annual charges in advance, so that you know what your property costs before you sign, and not only when the first assessment arrives. We also arrange the modelo 210 return and the link to your Dutch or Belgian return together with a regular tax adviser. What you are left with at the bottom line stands or falls with a cost picture that is right from the outset. In the regions we recommend, the gross rental yield is 6 to 7% of your total investment. With capital growth added, the total return comes to an indicative 10 to 15% per year. Still looking for a property? Then have a look at our regional pages for the Costa Blanca, the Costa del Sol and Mallorca.
Frequently asked questions
How much IBI do you pay for a property in Spain?
The IBI is a municipal tax of usually 0.4 to 1.1% of the cadastral value, which is clearly lower than the market value. For an apartment of around 300,000 euros on the coast you therefore often pay 300 to 800 euros per year.
Do I have to pay tax if my Spanish property stands empty?
Yes. As a non-resident you pay on a notional income of 1.1 or 2% of the cadastral value, at a rate of 19% for EU residents. You declare this using modelo 210, by 31 December of the year after the tax year at the latest.
Do I also have to declare my Spanish property in the Netherlands?
Yes, the property belongs in box 3 of your Dutch return, and in Belgium in your personal income tax return. The tax treaty ensures that you do not pay tax twice, but the obligation to declare itself always remains.
Who pays the plusvalia municipal?
As a rule the seller. It is a municipal levy on the increase in value of the land under the property, calculated over the period during which you were the owner. As a buyer you therefore only encounter it at the moment you sell again yourself.