Spanish non-resident property tax — the 2026 reality

This is not legal advice. It's a working summary written in plain English for buyers who want to understand the shape of the tax position before engaging Spanish counsel. Every number below should be confirmed with a Spanish abogado before any transaction.

The four taxes that matter

1. ITP (Impuesto sobre Transmisiones Patrimoniales). Transfer tax on second-hand property purchases. Varies by autonomous community — 8–10% in most of Spain, 11.5% in Catalonia at the highest band. Paid by the buyer.
2. IVA (VAT). Applies to new-build purchases instead of ITP. 10% on residential. Plus AJD (stamp duty) at 1.2–1.5% depending on region.
3. IRNR (Non-Resident Income Tax). Applied annually on imputed rental value (1.1–2% of cadastral value, taxed at 19%/24%) even if you don't actually let the property. Often forgotten by UK owners.
4. Wealth tax (Impuesto sobre el Patrimonio). Region-dependent. Madrid, Andalucía, and the Balearics have relief regimes. Catalonia and Valencia apply it at standard rates.

The 2026 changes worth knowing

• Solidarity Tax extension. The temporary solidarity tax on large fortunes has been extended through 2026, applying to net worth above €3.7m at 1.7–3.5%. Relevant for substantial portfolios.
• Golden Visa unwind. The Spanish Golden Visa (residency by property investment) was phased out for new applications from April 2025. Existing holders retain status, but new property purchases no longer confer residency rights.
• Beckham Law tightening. The special expat regime now excludes property income from its preferential treatment if you become Spanish-resident.

What we tell buyers to budget

For a typical second-hand purchase at €2m in Marbella or Mallorca:

• ITP (8.5% avg): €170,000
• Notary + Land Registry: €5,000–€8,000
• Spanish counsel fees: €15,000–€25,000
• Annual IRNR (non-let): €4,000–€8,000
• Annual local IBI tax: €2,500–€6,000

Round number: budget 10–11% of purchase price for closing costs, plus €10k+/year in holding costs. Wealth tax varies dramatically by region and is the single biggest decision variable.

The tax position changes the right region as often as the property changes it. Choose the autonomous community before you choose the street.

Practical sequence

Before viewings, we usually introduce you to a Spanish abogado and (if the brief warrants) a Spanish tax adviser. They review your structure — personal name vs UK SPV vs Spanish SL — and the wealth tax position. That conversation typically reframes the regional shortlist.

If you want a working introduction to counsel as part of the search, that's part of the standard engagement. Send a brief.