Property Taxes in Spain: What Buyers, Sellers, and Owners Need to Know

Planning to buy property in Barcelona or any other city in Spain? To avoid unpleasant surprises, it’s important to understand in advance what taxes and expenses to expect. This guide provides a detailed overview of taxation and costs for property buyers, owners, and sellers in Spain.

1. Taxes and Expenses When Buying Property in Barcelona

The prices listed in ads and on websites reflect the net price received by the seller. All taxes and additional expenses are paid separately by the buyer.

Buying new property:

• VAT (IVA): 10% of the purchase price
• Stamp duty (AJD): 1.5%
• Payment deadline: both taxes are paid on the day of signing the deed at the notary's office

Buying resale property:

• Transfer tax (ITP): 10% to 13% (depending on the purchase price)
• Payment deadline: within 30 days after signing the purchase agreement

Important:
If the seller is a private individual registered as a developer, and the property is brand new or fully renovated, the sale may be subject to VAT instead of ITP.

Buying a company that owns property:
If you purchase shares of a Spanish company that owns real estate, the transaction may also be taxed as a regular property acquisition. This depends on the company’s business activity and whether it has employees. Tax authorities track such structures closely.

Additional expenses when buying property:

• Legal services: approx. 1% of the purchase price + VAT. A lawyer is not mandatory, but highly recommended for document verification and transaction support
• Notary and registry fees: from 0.25% of the purchase price; for properties over €1 million — may be reduced to 0.1%
• Bank transfers: most transactions are processed through urgent transfers with commission fees. Check terms when opening an account in Spain
• Mortgage: for those taking out a loan, the buyer only covers the property appraisal (€500 to €2,000). Other fees are paid by the bank
• Technical inspection (optional): especially relevant for resale property. Cost ranges from €300 to €2,000

Frequently Asked Questions:

Do I have to pay tax when buying property in Spain?
Yes. Taxes are mandatory for any purchase. The type and rate depend on the type of property and region.

What pitfalls should I watch out for?

• Incorrect tax or fee calculation
• Delays in opening a bank account or transferring funds
• No legal representation during the transaction
• Unaccounted-for annual property taxes
• Working with unqualified agents

Are there restrictions for foreign buyers?
No. But you must obtain an NIE (foreigner identification number), open a Spanish bank account, and ensure legal due diligence is performed on the property.

2. Annual Property Taxes in Barcelona: What Owners Need to Know

After purchasing property, it’s important to account for ongoing taxes and mandatory yearly payments.

Ownership-related taxes:

Non-resident income tax (Impuesto sobre la Renta de No Residentes):
Applies even if there is no rental income

• Rate: 24% of notional income (1.1% or 2% of the cadastral value)
• Citizens of the EU, Iceland, and Norway: 19%

Wealth tax in Catalonia (Impuesto sobre el Patrimonio):

• Applies to the net value of assets, including property
• Tax-free allowance: €700,000 per person (for tax residents)
• Non-residents are taxed only on Spanish-based assets

Municipal property tax (IBI):

• Equivalent to property ownership tax
• Based on cadastral value and location
• In Barcelona, can range from €1,000 to €10,000 per year

Waste collection tax (Tasa de Basuras):

• Usually under €400 annually
• May be included in the IBI, but is more often billed separately

Community fees (Gastos de Comunidad):

• Covers maintenance of shared areas
• Typically ranges from €200 to €1,000 per year, depending on property type and building

Ongoing utility payments:
Regardless of use, owners are required to pay minimum charges for water, electricity, and other basic services.

Frequently Asked Questions:

Do I have to pay tax if I don’t rent out the property?
Yes, non-residents must pay tax on imputed rental income.

What taxes must an owner pay?

• Non-resident income tax (IRNR)
• Wealth tax (if above threshold)
• IBI
• Waste tax
• Community fees
• Utilities (electricity, water, etc.)

I’m moving to Spain — what changes?
If you spend more than 183 days a year in Spain, you become a tax resident. That means:

• Global income tax — from 19% to 47%
• Wealth tax on worldwide assets
• Mandatory declaration of foreign assets (starting from €50,000)

3. Taxes and Expenses When Selling Property in Barcelona

Planning to sell a property? You should calculate taxes and related costs in advance to avoid financial loss and to set the correct sale price.

Main taxes and expenses:

Municipal capital gains tax (Plusvalía Municipal):

• Local tax based on ownership period and cadastral land value
• Usually paid by the seller

Capital gains tax:

Based on the difference between purchase and sale price, including all related costs (notary, registry, agency fees, etc.)

Rates:

• 24% for non-residents
• 19% for EU/EEA residents
• 25% for legal entities

Agency fees:

• Usually paid by the seller (3–5%)
• For commercial properties, fees are often paid by the buyer

Legal services:
Recommended for legal support, tax planning, and protecting seller interests

Mortgage cancellation:
All costs related to early repayment and closing of the mortgage (notary, registry fees, commissions) are borne by the seller

3% withholding tax:
When a non-resident sells a property, the buyer is obligated to withhold 3% of the purchase price and transfer it to the tax authority
The seller may request a refund

Frequently Asked Questions:

Who withholds the 3%?
The buyer’s lawyer. The amount must be paid to the tax office within 30 days.

Who pays the Plusvalía tax?
The seller. If the seller is a non-resident, the buyer withholds and pays it on the seller’s behalf.

4. Taxes and Expenses When Renting Out Property

If you plan to rent out your property, you must consider both tax liabilities and ongoing operating costs.

Rental formats:

Long-term rental (6+ months):

• Stable income, fewer expenses, no VAT

Short-term rental (tourist stays):

• Higher income potential, but requires licenses and carries more costs
• Subject to 21% VAT

Main taxes:

Income tax (IRPF/IRNR):

• 19% for EU/EEA residents
• 24% for non-EU residents
• Tax residents in Spain — taxed on a progressive scale

VAT (IVA):

• 21% on short-term rentals
• Not applicable to long-term rentals

IBI (municipal property tax):

• Mandatory regardless of rental activity

Contact us to learn more about the taxes and expenses associated with buying, owning, or selling real estate in Spain. GG Real Estate Barcelona’s experts will guide you through every step — professionally, safely, and with full understanding of all legal and financial nuances.