Property News & Expat Guide for Spain

Buying a property in Spain is one thing — understanding what it costs to own one each year is another. Running costs vary depending on where the property is located, whether you are a resident or non-resident, and whether the property is a primary home, a holiday home, or a rental investment. This guide covers every annual cost you should budget for, with indicative figures, worked examples, and practical advice on managing each one.

For a broader picture of what Spain costs day to day, the cost of living guide for Spain covers household expenses beyond property ownership. If you are still at the buying stage, the complete costs of moving to Spain covers the one-off purchase costs in full.

IBI — Impuesto sobre Bienes Inmuebles (property tax)

The IBI is Spain's annual municipal property tax and applies to all property owners, whether resident or non-resident. It is levied by your local town hall (ayuntamiento) and is based on the cadastral value (valor catastral) of the property — an administrative value assigned by the Catastro, typically 30% to 50% lower than the market price.

How IBI is calculated

Each municipality sets its own rate, which by law must fall between 0.4% and 1.1% of the cadastral value for urban properties (and up to 1.3% in special circumstances). The person registered as legal owner on 1 January of the tax year is liable for the full year’s bill, even if the property is sold during the year. In some provinces, IBI collection is handled by a provincial tax agency rather than individual ayuntamientos — the most notable example for international buyers is SUMA (Suma Gestión Tributaria) in Alicante province, which handles IBI billing and collection on behalf of most of its municipalities. Other provinces have similar arrangements through their diputación provincial. The system works the same way in practice — billing and payment simply go through the provincial agency rather than the local ayuntamiento.

IBI — indicative annual costs

The table below gives a rough guide to what IBI costs annually, based on common cadastral values and typical municipal rates:

^{Sources: Ley Reguladora de las Haciendas Locales (LRHL); Catastro. Rates vary by municipality — always confirm your specific rate with your ayuntamiento or SUMA.}

 IBI is typically paid between August and November each year. Setting up a direct debit from a Spanish bank account is the most reliable way to ensure it is paid on time — missed payments attract surcharges and, in serious cases, can result in the property being charged with a lien.

Modelo 210 — non-resident income tax

This is the cost that most surprises international buyers and is frequently overlooked entirely. If you are a non-resident property owner in Spain — meaning you spend fewer than 183 days per year in Spain — you are liable for annual income tax on your Spanish property, even if it is not rented out. This is known as the Impuesto sobre la Renta de No Residentes (IRNR) and is filed using Modelo 210.

Modelo 210 for unlet properties

If the property is not rented out, the tax is based on imputed income — a notional rental income calculated as 2% of the cadastral value per year (or 1.1% if the cadastral value has been revised since 1994). The tax rate applied to this imputed income is 19% for EU and EEA residents, or 24% for non-EU nationals. On a property with a cadastral value of €100,000, the annual Modelo 210 liability for an EU resident would be approximately €380 (2% × €100,000 × 19%). It is filed and paid once per year, covering the full calendar year, with a deadline of 31 December of the following year — so the 2025 tax year is due by 31 December 2026. Payment is made to the Agencia Tributaria, either online via the Sede Electrónica or through a Spanish bank using the generated payment reference.

Read more at thinkSPAIN.com