Taxes on second residence in Spain

What taxes do you pay as a second residence owner in Spain? As a property owner in Spain, you are subject to three main taxes: the IBI (municipal property tax), the non-resident income tax (IRNR) and, in specific cases, the wealth tax. For EU residents, income tax generally amounts to 19%, calculated on a flat-rate cadastral income (in case of own use) or on the net rental income (in case of rental). In addition, you should take into account local levies such as waste tax (basura).

1. IBI: The Annual Municipal Tax

The IBI (Impuesto sobre Bienes Inmuebles) is the basic tax for every property owner in Spain, similar to the property tax in Flanders or the property tax (OZB) in the Netherlands.

• Basis: The tax is calculated on the valor catastral (cadastral value), which is usually lower than the market value (often 50-70%).

• Rates: These vary by municipality, but are on average between 0.4% and 1.1% of the cadastral value.

Expert Insight: "Legally, the person who is the owner on 1 January owes the full IBI for that year. However, in practice, when buying and selling property, this amount is often pro rata temporis settled in the notarial deed between buyer and seller."

Payment and collection

Collection is through the municipality or an umbrella body (such as SUMA in the province of Alicante). The payment period usually runs from August to November. It is strongly recommended to direct debit this payment through your Belgian or Dutch bank account to avoid penalties.

2. Non-Resident Tax (IRNR)

As a tax non-resident, you are required to pay annual Impuesto sobre la Renta de no Residentes indicate via Modelo 210. The calculation depends on the use of the property: own use or rental.

Situation A: You do not rent the property (own use)

When the property is vacant or used only by yourself, you pay tax on a notional rental income (imputación de rentas).

• Calculation:

  • 1,1% of the cadastral value (if revised within the last 10 years).

  • 2% of the cadastral value (if the value was revised more than 10 years ago).

  • New construction: If there is no cadastral value yet, one uses Purchase price 50% as the basis, to which the rate of 1.1% is applied.

• Tax rate: As a resident of the EU (Belgium/Netherlands), you pay 19% on this calculated amount.

• Deadline: Declaration and payment must be made before 31 December of the year following the tax year.

Calculation example: The valor catastral is €100,000 (recently revised).

• Basis: €100,000 x 1.1% = €1,100.

• Tax payable: €1,100 x 19% = € 209.

Situation B: You do rent out the property

When renting, you will be taxed on the actual rental income.

• Rate: 19% on net income (for EU residents).

• Deductible expenses: You may deduct costs directly related to the rental period (pro rata). Consider: IBI, basura, insurance, water, electricity, community charges and depreciation (3% on construction value).

• Duty to declare: From tax year 2024, you must declare this income annually between 1 January and 20 January of the following year.

Situation C: Mixed use

Are you only renting out for a few months? Then you need to make two calculations:

1. Rental period: Tax on actual rental income (pro rata cost deductible).

2. Vacancy: Tax on notional income for the days the property was not rented.

3. Wealth tax in Spain

In addition to income tax, Spain has a wealth tax (Impuesto sobre el Patrimonio).

• Exemption: There is a general federal exemption from €700,000 per person. Couples who are joint owners thus enjoy an exemption of up to €1,400,000.

• Rates: For assets above the exemption, the rates vary from 0.2% to 3.5% (depending on the region and power level).

• Regional differences: Some regions (such as Andalusia and Madrid) have implemented specific reductions or abolishments, although this is sometimes thwarted by the national "Solidarity Tax" for wealth over €3 million.

Learn more about wealth tax in Spain here.

4. Other local taxes

Keep in mind smaller, local taxes vary from one municipality to another:

• Basura (waste tax): An annual or semi-annual charge for rubbish collection. Sometimes this is collected separately, sometimes through the water bill.

Read more about the annual cost of a second residence in Spain.

5. Fiscal impact in Belgium and the Netherlands

Owning property in Spain also affects your tax return in your home country. Due to double taxation treaties, you usually do not pay double, but there is a tax return requirement.

For Belgian residents

In Belgium, you have to declare your foreign property for personal income tax purposes.

• Foreign KI: Since assessment year 2022, the tax authorities assign a "Cadastral Income" to your foreign property. You must pass on the current sales value to the General Administration of Patrimony Documentation. This value is converted back to 1975, to which an indexation is applied.

• Tax: The property income is exempt with progression allowance. This means you pay no tax on the Spanish house itself, but your other income may fall into a higher tax bracket.

For Dutch residents

In the Netherlands, a second home in Spain falls into Box 3 (Income from savings and investments).

• Declaration: You indicate the market value of the property.

• Exemption: You are entitled to a double tax avoidance deduction because the right to levy tax on real estate is assigned to Spain. As a result, on balance, you often pay little or no additional Box 3 tax on Spanish property, depending on your overall asset position.

Learn more about property abroad and box 3 here.

Frequently asked questions (FAQ)

1. When do I have to pay the non-resident tax (Modelo 210)? If you do not rent out the property, the return and payment for the previous year must be made by no later than 31 December be in. For rental income (from tax year 2024), the annual declaration should be made between 1 and 20 January of the following year.

2. What happens if I don't pay my Spanish taxes? The Spanish tax authorities (Hacienda) can impose penalties ranging from 50% to 150% of the amount due, plus default interest. When the property is sold, outstanding tax debts are often settled or blocked by the notary.

3. Do I pay tax in Belgium on my Spanish rental income? No, you are not directly taxed on rental income in Belgium. You will be taxed on the basis of the Foreign KI. However, the 'progression allowance' does apply, which may slightly increase your average tax rate on other income.

4. Is IBI the same as non-resident tax? No. The IBI is a local tax on stone property (for the municipality), while the non-resident tax (IRNR) is a state tax on the (notional) income you derive from the property. You have to pay both.

Would you like more information about investing or buying in Spain? Or do you have questions About taxes on a second residence in Spain? Feel free to take contact on using the form below.

About the author: Glenn Janssens is a lawyer specialising in Spanish real estate transactions and tax regulations. Since 2017, he has been helping Belgian and Dutch individuals and entrepreneurs to safely purchase and structure real estate in Spain. He guides files from A to Z: from due diligence, ownership and tax control to estate planning and optimisation for residents and non-residents. Thanks to his years of experience, hundreds of handled files and focus on transparent communication, Glenn makes complex Spanish legislation understandable and practically applicable for every property buyer.

Update: December 2025