Real Estate Tax for Non-Residents in Spain

Investing in Spain as a non-resident means understanding a specific tax framework. Non-resident income tax (IRNR) applies at 19% for EU residents and 24% for other nationalities.

VAT (IVA) on the purchase of a new property is 10%, while resale properties are subject to the property transfer tax (ITP), which varies between 6% and 10% depending on the autonomous community. In Valencia, the rate is 10%.

Real estate capital gains are taxed at 19% for EU residents. It is essential to keep all receipts for renovation work and acquisition costs, as these will reduce the taxable base.

Wealth tax (Patrimonio) applies above €700,000 of assets in Spain, with progressive rates. The Valencian Community applies its own scales.

Our team works with specialised tax advisors to optimise the structure of your investment. Do not hesitate to contact us for a personalised assessment.