Insurance in Spain

October 14, 2026

Buying, owning or selling property in Spain? Learn how ITP, VAT, AJD, IBI, non-resident tax, capital gains tax and plusvalía may apply in 2026.

Property Taxes in Spain: What You Need to Know

Buying a property in Spain is an exciting step, but the taxes that come with it can feel confusing at first. Different charges apply when you buy, while you own the property and if you decide to sell it later on.

The good news is that property taxes in Spain are much easier to understand when you look at them stage by stage. Depending on the type of property, you may need to pay taxes such as ITP, VAT or AJD when you buy, IBI while you own the home, and capital gains tax or plusvalía when you sell.

The exact amount will depend on factors such as where the property is located, its value and your tax-residence status. In this guide, we explain the main taxes you should know about, when they apply and what you can expect at each stage, so you can plan your property journey in Spain with fewer surprises.

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Taxes when buying a property in Spain

Spain taxes resale homes and new builds differently.

Type of purchase	Main tax	General rate	Who sets it
Resale home	ITP	Often around 6%-11%, depending on the region	Autonomous community
New build	IVA (VAT)	10% for ordinary housing	State
New build	AJD	Often around 0.5%-1.5%, depending on the region	Autonomous community

In the Community of Madrid, the general ITP rate is 6%, with a 10% bonus on the tax for a main residence worth up to 250,000€, subject to regional conditions. For a new build, 10% VAT on housing applies, plus AJD on the notarised deed at the regional rate.

Annual property ownership taxes in Spain

Tax	Who pays	Basis and rate
IBI	Every owner, resident or not	0.4%-1.1% of the cadastral value for urban property, set by the town hall.
Imputed income (non-residents)	Non-residents with an urban property for personal use or empty	2% of the cadastral value, or 1.1% if values were recently revised. Taxed at 19% (EU, Iceland, Norway, Liechtenstein) or 24% (others) on Form 210.
Imputed income (residents)	Residents with a second home	Declared in the Spanish income tax return.
Wealth tax	Owners above the allowance	700,000€ general allowance, with up to 300,000€ of a qualifying main home exempt. Regions can vary. The Solidarity Tax applies above 3,000,000€.

Example. A cadastral value of 100,000€ at 2% gives imputed income of 2,000€, which means 380€ of tax at 19%.

Taxes when selling a property in Spain

Capital gains tax

The gain is the sale value minus the acquisition value, adjusted for qualifying costs. Keep purchase and improvement invoices.

Seller	Rate	Key points
Tax residents	19% to 30%	2025 scale on savings income: 19% to 6,000€, 21% to 50,000€, 23% to 200,000€, 27% to 300,000€, 30% above. Exemptions can apply, including some reinvestment cases.
Non-residents	19%, inside or outside the EU	A capital gain on Spanish property is declared on Form 210. The buyer withholds 3% of the price using Form 211, and it is credited against your tax.

Plusvalía municipal

What it is. A local tax on the increase in value of the urban land under the property, officially the Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana.
Who pays. The seller normally pays it, with exceptions.
How much. The town hall sets the coefficients within legal limits, and the real increase can be used when it is lower.
No gain, no tax. If there is no increase in the land value, the tax should not be due.

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Protecting your property investment with home insurance in Spain

Taxes are only part of the cost of owning a home. Home Insurance in Spain can help protect you against everyday problems, with 24-hour English-speaking telephone assistance and, depending on the policy, cover for water damage, civil liability, handyman services, computer assistance and travel support.

Check the level of cover carefully and choose the option that best fits your home and lifestyle.

When it comes to property taxes in Spain, planning ahead makes all the difference. Know what you may need to pay when you buy, while you own the property and when you sell, and check the latest official rates before making a decision. With the right information and protection in place, you can enjoy your home in Spain with greater peace of mind.