Buying a property in Spain for €300,000 does not mean you need €300,000 to complete the purchase.
Purchase taxes alone can add tens of thousands of euros, and the amount depends on whether you are buying a resale or new-build home and, crucially, where in Spain the property is located. Once you own the property, municipal taxes and potentially Spanish non-resident income tax also need to be considered. Selling introduces another set of obligations.
For an overseas buyer, the safest approach is therefore to calculate the total acquisition and ownership cost before making an offer, rather than working backwards from the listing price.
Propuno works with international buyers searching across Spain and publishes live inventory across markets including Costa Blanca, Costa del Sol, Marbella, Benahavís and other popular destinations.
Ready to compare your budget against real Spanish property? Browse current properties for sale in Spain with Propuno.
International buyer enquiries: +44 1429 450530.
The Three Stages of Spanish Property Tax
Foreign buyers generally need to think about Spanish property tax at three stages: when buying, while owning and when eventually selling.
At purchase, the major distinction is between resale property, which normally attracts regional Transfer Tax or ITP, and a qualifying new property purchased from a developer, which normally attracts VAT plus regional Stamp Duty or AJD.
During ownership, buyers need to consider municipal IBI and, depending on their circumstances, Spanish non-resident income tax.
At sale, capital gains tax, the 3% non-resident seller withholding and potentially municipal plusvalía can become relevant.
The autonomous community matters because ITP and AJD are partly controlled regionally. That means the tax calculation for a Costa Blanca property can differ materially from an equivalent property on the Costa del Sol.
Resale Property: Transfer Tax or ITP
When purchasing a used property, the buyer normally pays Impuesto sobre Transmisiones Patrimoniales, usually shortened to ITP.
There is no single Spanish ITP rate.
For example, the current general Andalusian rate is 7% for property transfers.
The Comunitat Valenciana changed its general rate in 2026. From 1 June 2026, the standard ITP rate for qualifying property acquisitions up to €1 million is 9%, reduced from 10%. Properties above €1 million remain subject to the applicable higher rate unless another qualifying rate applies.
This is why generic advice saying "Spanish transfer tax is 10%" can be misleading.
If you are considering Costa Blanca alongside Costa del Sol, the regional tax difference needs to form part of the comparison.
New-Build Property: VAT and AJD
A first delivery of a residential property by the developer is generally subject to VAT rather than ITP.
The general VAT rate for a qualifying new residential property is currently 10%. Used homes are instead generally subject to ITP.
Stamp Duty, or Actos Jurídicos Documentados (AJD), can then apply in addition to VAT.
Again, the rate varies by region.
In Andalucía, the general AJD rate is currently 1.2%.
In the Comunitat Valenciana, the general AJD rate is 1.4%.
This means a buyer comparing a resale property with a new development should compare the complete acquisition cost, not merely the asking prices.
For a wider breakdown, read Propuno's Spain Property Buying Costs Guide.
What These Taxes Look Like on Real Propuno Properties
Using real inventory makes the impact much easier to understand.
At the time this guide was reviewed, Propuno was marketing properties including Parque Botánico and Altura 160 in Benahavís, together with Arruzafa Playa I in La Cala de Mijas.
| Current Propuno example | Asking price | Example tax treatment |
|---|---|---|
| Parque Botánico, Benahavís, 1-bed apartment | €286,000 | If confirmed as a standard Andalusian resale at 7% ITP: €20,020 |
| Altura 160, Benahavís, 2-bed apartment | €499,000 | If confirmed as a qualifying developer first delivery: 10% VAT plus applicable AJD |
| Arruzafa Playa I, La Cala de Mijas, 2-bed beachfront apartment | €615,000 | If confirmed as a standard Andalusian resale at 7% ITP: €43,050 |
The Parque Botánico apartment is currently advertised at €286,000 and includes a private terrace, parking, storage and access to facilities including outdoor pools, a heated indoor pool, gym, tennis and padel.
View the Parque Botánico property.
Altura 160 is currently marketed at €499,000 for a two-bedroom apartment, with large terraces, sea and golf views, communal pool, underground parking, storage and underfloor heating.
Propuno also currently lists a two-bedroom apartment in Arruzafa Playa I, La Cala de Mijas for €615,000, with a private terrace, sea views, underground parking, communal pool and front-line beach setting.
View the Arruzafa Playa I apartment.
These examples show why buyers should ask their lawyer to confirm the property's tax classification before relying on an online percentage. Whether a property is legally treated as a first delivery or resale matters as much as the headline asking price.
Valencia vs Andalucía: A Practical Tax Comparison
This regional difference is particularly relevant to Propuno buyers comparing Costa Blanca with Costa del Sol.
Consider a €300,000 resale purchase completed under the standard general rate:
| Region | General ITP Rate | Property Price | Indicative ITP |
|---|---|---|---|
| Andalucía | 7% | €300,000 | €21,000 |
| Comunitat Valenciana | 9% | €300,000 | €27,000 |
On the same €300,000 resale purchase, that creates a €6,000 difference in transfer tax before legal fees, notary costs, registration and other transaction costs are considered.
The cheaper property is therefore not always the cheaper transaction.
Annual IBI After You Buy
Once the property belongs to you, one of the main recurring local taxes is IBI, Impuesto sobre Bienes Inmuebles.
IBI is a municipal property tax based on the property's cadastral value and the rate established by the relevant municipality.
There is no useful nationwide "average IBI bill" for buyers to rely on because the cadastral value and municipal rate vary from property to property.
Before completion, ask for the latest IBI receipt for the actual home you are considering. This gives you checkable information about that property rather than an estimated regional figure.
This is especially useful when comparing properties with very different purchase prices or municipalities.
Non-Resident Income Tax When You Do Not Rent the Property
One of the more surprising obligations for overseas owners is Spain's tax on imputed property income.
A non-resident individual who owns an urban Spanish property for personal use, or leaves it vacant, can be liable for Spanish Non-Resident Income Tax even though the property generates no rental income.
The taxable imputed income is generally calculated using a percentage of the property's cadastral value. Depending on the property's cadastral circumstances, this will generally be 1.1% or 2%.
The applicable tax rate then depends on the owner's tax residence.
Residents of the EU, Iceland, Norway and Liechtenstein generally face a 19% rate.
Other taxpayers generally face 24%. That means a UK-resident owner normally falls into the 24% category after Brexit rather than the 19% EU category.
For example, if a UK owner's applicable imputed-income base was €2,200, applying the 24% rate would give an indicative tax liability of €528.
This is an important distinction for British buyers who may still find older pre-Brexit examples online.
Modelo 210 Rules Changed in 2026
Foreign owners should also be careful with articles describing old Modelo 210 filing schedules.
Spain introduced changes to Modelo 210 filing arrangements during 2026.
For imputed income relating to the 2026 tax year, the new filing window begins on 1 April 2027 and runs to 31 December 2027.
Because filing rules can change, foreign owners should confirm the applicable deadline for the relevant tax year rather than relying on an older property guide.
What If You Rent the Property?
A non-resident owner who lets a Spanish property is taxed on Spanish rental income.
The treatment of deductible expenses can depend on the owner's country of tax residence. Residents of qualifying EU or EEA jurisdictions can receive different treatment from owners resident elsewhere.
That distinction is particularly important for UK residents following Brexit.
Rental tax should therefore be calculated using the owner's actual country of tax residence rather than assuming that every foreign owner receives the same treatment.
Buyers considering a holiday-let investment should have an adviser model the net position after tax, community charges, management, insurance and maintenance, not simply the advertised gross rental yield.
Capital Gains Tax When You Sell
When a non-resident sells Spanish property, the taxable capital gain is generally calculated using the difference between the transfer value and adjusted acquisition value.
Qualifying acquisition expenses, taxes and documented investments or improvements can potentially form part of this calculation. Routine maintenance and repair should not automatically be treated as capital improvements.
For non-residents, the current tax rate on the taxable property gain is 19%.
Consider this example:
A property was purchased for €400,000. Qualifying purchase expenses were €35,000 and documented capital improvements totalled €28,000, producing an adjusted acquisition value of €463,000.
If it later sells for €550,000 and qualifying seller costs are €16,500, the net transfer value is €533,500.
The indicative taxable gain is therefore €70,500.
At 19%, the indicative Spanish capital-gains tax is €13,395.
Keeping formal invoices for legitimate capital improvements therefore matters.
The 3% Withholding When a Non-Resident Sells
There is another important cash-flow issue.
When the seller is non-resident, the purchaser is generally required to withhold 3% of the agreed purchase price and pay it to the Spanish Treasury using Modelo 211.
Using the €550,000 sale above, the purchaser would withhold €16,500.
If the seller's final capital-gains liability were €13,395, the excess could potentially be reclaimed after filing the appropriate return.
The seller's Modelo 210 for a property disposal is generally filed during the three-month period following the first month after completion.
Do Not Forget Municipal Plusvalía
Capital-gains tax is not necessarily the only tax associated with a sale.
Spain also has the municipal Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana, commonly called plusvalía municipal.
The tax concerns increases in the value of urban land when ownership is transferred.
The calculation depends on municipal and property-specific information, so sellers should request an estimate before agreeing their expected net proceeds.
What About Wealth Tax?
Higher-value buyers need additional advice.
Spain's Wealth Tax rules interact with residency, the autonomous community and the location and value of the taxpayer's assets.
A €700,000 general exempt minimum applies in relevant cases under the state rules, while autonomous-community rules can alter exemptions, scales and bonuses.
Buyers acquiring high-value villas, several Spanish properties or other substantial Spanish assets should therefore obtain specialist tax advice before completion.
Real Propuno Evidence for International Buyers
A tax guide should show why the company publishing it is relevant to the reader.
Propuno works specifically with international buyers searching for property across Spain and provides access to live resale and new-build inventory across markets including Costa Blanca and Costa del Sol.
Rather than relying on hypothetical properties alone, buyers can compare actual asking prices, developments and locations while building their acquisition budget.
Browse Propuno properties for sale in Spain.
Calculate the Tax Before Choosing the Property
The most important practical lesson is simple: set your budget using the total cost, not the listing price.
A €300,000 Costa Blanca resale, a €300,000 Andalusian resale and a €300,000 new-build property can produce different acquisition costs even before legal, registration and financing expenses are added.
Before paying a reservation deposit, obtain a written calculation confirming the property's tax classification, applicable regional rate and estimated completion costs.
Propuno can help you compare live Spanish properties against your overall buying budget rather than looking at asking price in isolation.
Browse property for sale in Spain.
Read Propuno's guide to buying property in Spain as a foreigner.
Contact Propuno about your Spanish property search.
International buyer enquiries: +44 1429 450530.
Frequently Asked Questions
How much tax do foreign buyers pay when purchasing property in Spain?
It depends on the property type and autonomous community. A qualifying new residential property generally carries 10% VAT plus the applicable AJD. Resale property normally carries regional ITP. For example, the general Andalucía resale rate is currently 7%, while the standard Valencian rate became 9% from 1 June 2026.
Do British owners pay Spanish tax if they do not rent their property?
Potentially, yes. A UK-resident individual who owns a Spanish urban property for personal use can be subject to imputed non-resident income tax. UK residents generally fall under the 24% non-EU rate for this category.
What capital-gains tax rate applies when a non-resident sells?
The current Spanish tax rate on qualifying capital gains from the transfer of Spanish real estate by a non-resident is generally 19%.
Why does the buyer withhold 3% when a foreign owner sells?
When the seller is non-resident, the buyer generally withholds 3% of the consideration and submits it as a payment on account of the seller's Spanish tax liability.
Do Spanish property taxes vary between Costa Blanca and Costa del Sol?
Yes. Costa Blanca property in Alicante falls within the Comunitat Valenciana, while Costa del Sol property falls within Andalucía. Their regional ITP and AJD rates differ, so buyers should compare the total tax bill as well as the property price.
Where can I see actual Spanish properties at different budgets?
Propuno's live Spain search includes apartments, villas, houses, commercial property and land across destinations including Costa Blanca and Costa del Sol.
Explore properties for sale in Spain.
For help matching your property budget and expected purchase costs, contact Propuno or call +44 1429 450530.