Costs and TaxesUpdated 15 January 2026

What annual taxes do non-residents pay on property in Spain?

Quick Answer

Non-residents pay three main annual taxes: (1) IRNR non-resident income tax on notional rental income — approximately €200–€800/year on a typical property; (2) IBI local council tax — typically €500–€3,000/year; and (3) Basura refuse collection tax — typically €150–€600/year.

AI Summary

1IRNR (Non-Resident Income Tax) is payable annually even if the property is not rented
2If not renting: tax is based on 1.1-2% of cadastral value multiplied by 19% (EU residents) or 24% (non-EU)
3IBI (local council tax) is billed by the local municipality — typically €500-€3,000/year
4Basura (rubbish collection) is typically €150-€600/year
5If renting: declare rental income quarterly using Modelo 210
6All non-resident taxes must be filed by 31 December of each year
7Appoint a Spanish gestor to handle annual filings — non-compliance penalties accumulate quickly

Key Takeaways

Budget at least €1,500-€5,000/year in ongoing taxes for a typical Costa del Sol property
File IRNR by 31 December each year — late filing penalties start at €100
A Spanish gestor (tax representative) typically charges €150-€400/year to manage all filings

If you own property in Spain as a non-resident and do not rent it out, you are still required to file an annual IRNR (Non-Resident Income Tax) declaration and pay notional rental income tax. You also pay IBI (the local equivalent of council tax) and Basura (refuse collection). If you do rent the property, you must declare rental income quarterly. Failure to comply attracts fines and interest.

IRNR — Non-Resident Income Tax

Even if you do not rent your Spanish property, the tax authority deems you to have notional rental income. This is calculated as 1.1% of the cadastral value (or 2% if the cadastral value has not been revised in the last 10 years), and you pay 19% of that figure if you are an EU or EEA resident, or 24% if non-EU. The annual IRNR return (Modelo 210) must be filed by 31 December.

IBI — Local Council Tax

IBI (Impuesto sobre Bienes Inmuebles) is charged annually by your local municipality based on the cadastral value of the property. In Marbella, IBI on a €500,000 new build typically runs €1,500–€2,500/year. In Estepona, rates are generally 10–15% lower. IBI is billed directly by the Ayuntamiento (council). If you own through a bank account with direct debit, payment is largely automatic.

Basura — Refuse Collection Tax

This local tax funds municipal waste collection and is typically €150–€600/year depending on municipality and property size. It is often included on the same bill as IBI.

Declaring Rental Income

If you rent your property through any platform or directly, you must declare rental income quarterly using Modelo 210. EU residents can deduct allowable expenses including mortgage interest, community fees, insurance, and management fees. Non-EU residents are taxed on gross rental income with no deductions. Rental income from Costa del Sol properties is strong — our rental yield guide covers current achievable figures.

Why This Matters in Costa del Sol

The Costa del Sol hosts one of the largest concentrations of non-resident property owners in Europe. The Spanish tax authority (AEAT) has become increasingly active in identifying non-compliant foreign owners — especially since automatic exchange of financial information was implemented across EU member states. With over 12,000 new units entering the market in the region, understanding ongoing ownership costs is essential to realistic ROI analysis.

Common Mistakes to Avoid

Assuming no tax is owed because the property is not rented

IRNR is payable even on an empty property. The Spanish tax authority assesses notional income regardless of actual use.

Missing annual IRNR filing deadlines

Appoint a Spanish gestor to manage filings. Penalties for late submission start at €100 and escalate with interest.

Excluding ongoing taxes from investment ROI calculations

Include IRNR, IBI, community fees, and management costs in all yield models. Our ROI calculator includes these as inputs.

Real-World Example

A British buyer owns a 2-bed apartment in Estepona with a cadastral value of €120,000. Annual obligations: IRNR €252 (1.1% × €120k × 19%) + IBI €900 + Basura €250 = approximately €1,400/year in tax, before community fees of approximately €2,400/year.

Tax regulations change regularly. This answer is for general guidance only. Always consult a qualified Spanish tax advisor for advice specific to your situation.

Reviewed by

Olga Gorshkova· Costa del Sol Property Specialist

Updated 15 January 2026

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