Spanish property taxes catch many American owners by surprise, not because they are high but because they keep arriving. Buying the apartment is a one-off tax event. Owning it is not: Spain taxes a non-resident owner every year, even if the home sits empty and earns nothing, and it taxes rental income every quarter if you let it out. Miss the filings and penalties and interest follow.
This guide explains each of the Spanish property taxes that apply to a U.S. owner of a beach home, using the Spanish Tax Agency’s own rules: the yearly non-resident income tax on an empty home, the local property tax, tax on holiday rentals and the court case that may change it, tax when you sell, and how all of it fits with your U.S. return. Worked examples show what the numbers look like for a typical coastal apartment.
Spanish property taxes at a glance
| Tax | When it applies | Who collects it | How often |
|---|---|---|---|
| Non-resident income tax on imputed income | Every year the home is available for your own use | Spanish Tax Agency (form 210) | Yearly |
| IBI (local property tax) | Every year you own the home | Town hall | Yearly |
| Waste collection fee | Every year you own the home | Town hall | Yearly |
| Non-resident income tax on rental income | When you rent the home out | Spanish Tax Agency (form 210) | Quarterly |
| Capital gains tax | When you sell | Spanish Tax Agency (forms 211 and 210) | Once |
| Municipal capital gains tax (plusvalÃa) | When you sell | Town hall | Once |
| Wealth tax | Only above a high threshold of Spanish assets | Spanish Tax Agency | Yearly, if applicable |
The tax on an empty home: imputed income
The tax most American owners have never heard of is the one on income they do not earn. If your Spanish home is available for your own use, rather than rented out, Spain assumes it produces a notional income and taxes you on it through the non-resident income tax (IRNR). According to the Spanish Tax Agency, the rules are:
- Taxable base: 1.1% of the property’s cadastral value if the town’s cadastral values were revised within the last ten years, otherwise 2%.
- Rate: 24% for residents of the U.S. and other non-EU countries; 19% for residents of the EU, Iceland, Norway and Liechtenstein.
- No deductions: expenses cannot be deducted from this notional income.
- Proportional: the charge is reduced for the part of the year you did not own the home or rented it out.
- Timing: the tax accrues on December 31 and is declared on form 210 during the following year.
The cadastral value is set by Spain’s property cadastre, the Catastro, and it is usually well below the market price. It appears on your annual IBI bill. For co-owned property, each owner declares their share.
Worked example: a €300,000 beach apartment
Assume a sea-view apartment bought for €300,000 with a cadastral value of €120,000. Our calculation:
| Cadastral value revised in the last 10 years | Cadastral value not recently revised | |
|---|---|---|
| Imputed income | €1,320 (1.1% of €120,000) | €2,400 (2% of €120,000) |
| Tax at 24% | €316.80 a year | €576.00 a year |
Small amounts, but owed every year. Owners who never file can find several years of tax, late-filing surcharges and interest waiting for them when they come to sell.
IBI and other local taxes
The Impuesto sobre Bienes Inmuebles (IBI) is the local property tax, charged by the town hall on the cadastral value. Each town sets its own rate within limits set by national law, so the same apartment pays different amounts in Benidorm, Marbella or Palamós. It is the same for residents and non-residents. On top of it, towns charge a fee for waste collection, and some coastal towns add other local charges.
The simplest way to avoid missed payments is to have IBI and the waste fee paid by direct debit from your Spanish bank account. Before you buy, ask the seller for the last IBI receipt; it confirms the cadastral value and the annual amount.
Spanish property taxes on holiday rentals
Many owners rent the apartment in summer to cover costs. For the weeks it is rented, imputed income no longer applies; instead, the rental income is taxed. Under the Spanish Tax Agency’s guidance for non-residents:
- Rate: 24% for U.S. residents, 19% for EU, Iceland and Norway residents.
- Base: the Tax Agency applies the tax to the gross rent with no deductions for non-EU residents. Only EU, Iceland and Norway residents may deduct expenses directly related to the rental.
- Filing: form 210, quarterly when tax is due, in the first 20 days of April, July, October and January for the previous quarter.
- Hotel-type services: if you provide services such as cleaning during the stay, laundry or meals, the activity can be treated as a business, with different rules.
The court case that could change the rules for Americans
The ban on deducting expenses has been challenged in court by a U.S. resident who owned a property in Barcelona. On July 28, 2025, Spain’s National High Court (Audiencia Nacional) ruled that denying the deduction to residents of non-EU countries breaches the EU’s free movement of capital, and said its conclusion is consistent with the non-discrimination clause of the U.S.–Spain tax treaty. The government appealed. According to the law firm Cuatrecasas, the Supreme Court admitted the appeal on July 15, 2026 and has not yet ruled.
What this means in practice: the Tax Agency still applies the no-deduction rule, but American owners now have a credible legal argument. Ask a Spanish tax adviser whether to deduct expenses and defend it, or pay on the gross amount and request rectification of past returns, which is limited to the last four years, while the Supreme Court decides.
Worked example: €12,000 of summer rent
| Approach | Taxable amount | Spanish tax at 24% |
|---|---|---|
| Tax Agency position: gross rent, no expenses | €12,000 | €2,880 |
| If €4,000 of related expenses could be deducted | €8,000 | €1,920 |
Before you rent at all, check that the apartment can legally be let to tourists, since towns, regions and owners’ associations now restrict short-term lets in many coastal areas. Our guide to buying property in Spain as an American covers those checks.
Spanish property taxes when you sell
When a non-resident sells a Spanish home, the profit is taxed in Spain at 19%. To make sure the tax is paid, the buyer must withhold 3% of the sale price and pay it to the Tax Agency on form 211 within one month of the sale. You then file form 210 to declare the actual gain: if the 3% withheld is more than the tax due, you claim the difference back; if it is less, you pay the rest.
| Example | Amount |
|---|---|
| Sale price | €360,000 |
| Gain after purchase price and allowable costs (assumed) | €60,000 |
| Spanish tax on the gain at 19% | €11,400 |
| Withheld by the buyer (3% of €360,000) | €10,800 |
| Still to pay with form 210 | €600 |
The town hall also charges the municipal capital gains tax, known as plusvalÃa municipal, on the increase in the value of the land, normally paid by the seller. And the sale must be reported in the United States too, as described below.
Wealth and inheritance taxes
Spain has a wealth tax that can apply to non-residents on the net value of their Spanish assets, but only above a high exempt amount, generally €700,000. A single beach apartment with a mortgage is usually below it; several properties or a villa may not be. Spain also levies inheritance tax on Spanish property when the owner dies, whoever the heirs are, with rules that vary by region. Both are reasons to plan ownership structure and wills with a cross-border adviser when you buy.
How Spanish property taxes fit with your U.S. return
As a U.S. citizen you are taxed by the IRS on worldwide income, so Spanish rental income and gains also appear on your U.S. return. The U.S.–Spain income tax treaty, available on the IRS website, lets Spain tax income from Spanish real estate, and the United States generally gives you a foreign tax credit for the Spanish tax paid on that income, which prevents most double taxation.
- Rental income: reported on your U.S. return, where you can deduct expenses and depreciation even though Spain may not let you. Under the Tax Cuts and Jobs Act rules, foreign residential rental property is generally depreciated over 30 years.
- Foreign tax credit: Spanish tax paid on the rental income or gain can usually be credited against the U.S. tax on the same income.
- Imputed income: the U.S. does not tax notional income on an empty home, so the Spanish tax on it may not be creditable in the same way. Ask your adviser how to treat it.
- Sale: the gain is reportable in the U.S., calculated in dollars, so exchange rate movements between purchase and sale affect it.
- Bank accounts: the property itself is not reported on the FBAR or Form 8938 when held directly, but your Spanish bank account generally is once it passes the thresholds.
A yearly calendar of Spanish property taxes
| When | What to do |
|---|---|
| January, April, July, October (first 20 days) | Form 210 for rental income of the previous quarter, if you rented |
| During the year after each December 31 | Form 210 for imputed income on the periods the home was not rented |
| When the town hall issues the bill | IBI and waste fee, ideally by direct debit |
| April (U.S. filing season) | Report Spanish rental income on your U.S. return and claim the foreign tax credit; file the FBAR if required |
| When you sell | Buyer withholds 3% (form 211); you file form 210 for the gain; plusvalÃa to the town hall; U.S. reporting |
Many owners hire a Spanish gestorÃa or tax adviser to file form 210 for them every year for a modest fee. It is one of the best value services you can buy as a non-resident owner, especially if you rent. And keep insurance in mind alongside tax: a home left empty for months needs cover for water and storm damage, and your own trips need travel cover; see our guide to travel insurance for Spain.
Frequently asked questions
Do I pay Spanish property taxes if I never rent my apartment?
Yes. You pay IBI to the town hall and non-resident income tax on imputed income: 1.1% or 2% of the cadastral value, taxed at 24% for U.S. residents, filed on form 210.
Can Americans deduct expenses from Spanish rental income?
The Spanish Tax Agency says no; only EU, Iceland and Norway residents can. A July 2025 National High Court ruling in favor of a U.S. resident says they should be able to, and the Supreme Court admitted the government’s appeal in July 2026.
What is the tax when a non-resident sells property in Spain?
19% of the gain. The buyer withholds 3% of the price and pays it to the Tax Agency, and you settle the difference on form 210. PlusvalÃa municipal is also due to the town hall.
Will I be taxed twice on rental income from Spain?
Generally not. Spain taxes it first, and the United States usually allows a foreign tax credit for the Spanish tax under its rules and the U.S.–Spain treaty.
When is form 210 due?
For rental income with tax to pay, quarterly in the first 20 days of April, July, October and January. For imputed income on a home you use yourself, during the year after the December 31 accrual date.
Sources
- Spanish Tax Agency — Imputed income on urban property for own use
- Spanish Tax Agency — Worked example of imputed income
- Spanish Tax Agency — Non-resident income tax on rentals
- Vozpópuli — National High Court ruling on expense deductions for non-EU owners (2025)
- Cuatrecasas — Supreme Court admits appeal on rental expense deductions (September 2026)
- Notarios y Registradores — Taxation of property gains by non-residents
- IRS — Spain tax treaty documents
- IRS — Guidance on Section 168(g) depreciation under the Tax Cuts and Jobs Act
- IRS — Comparison of Form 8938 and FBAR requirements
Disclaimer: This article is general information and is not tax or legal advice. Tax rules, rates and court decisions change, and individual circumstances matter. Use a Spanish tax adviser and a U.S. tax professional familiar with both systems. Information checked in October 2026.
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