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Investment property in Spain

Buying Guide

Ownership Costs

Maintaining your new property

So now you have a Spanish home. Next step is maintaining it.

There are several annual taxes that all property owners must pay.

Impuesto sobre Bienes Inmuebles: this is a property ownership tax and is calculated at 0.4%-1.1% of the valor catastral (administrative value of the property which is usually lower than the market value of the property).

Impuesto sobre Patrimonio: a wealth tax payable on the 31 December on all assets located in Spain and based on the escritura value, catastral value or assigned by the tax office - normally between 0.2%-2.5%.

Community Fees: communal areas in developments are looked after and the amount you pay depends on their size and costs of maintaining them.

Insurance (buildings and contents): a sensible measure not to be overlooked.

IBI and Basura: Similar to annual rates/Council Tax.

Selling on

If the time comes to change your dream home for an even dreamier home, then sellers must pay plusvalia, a municipal tax applied to the increase in value of the land on which your property is built, payable at the time of transfer and will be calculated on the basis of duration of ownership.

Capital gains tax is another exit cost which from 1 January 2007 drops from a hefty 35% for non-residents to an easier to swallow 18%.

Key facts

• The property ownership tax or Impuesto sobre Bienes Inmuebles is 0.4%-1.1% of the administrative value of the property - much lower than the property value
• A wealth tax or Impuesto sobre Patrimonio of 0.2%-2.5% is payable on all Spanish-located assets on 31 December every year
• Properties with common parts incur varying community fees for their maintenance
• Taking out insurance (buildings and contents) is sensible
• IBI and Basura, similar to annual rates/Council Tax, are liable
• Sellers pay the municipal plusvalia tax on the increase in the value of the land on which the property is built, payable at the time of transfer
• Since January 2007, capital gains tax for non-residents has dropped to 18%

Downloadable Reports and Documents

		Spain property investment report (418Kb) A concise but thorough analysis. A must for all potential investors in Spain's real estate.
		Spain country guide (999Kb) General information about the country, its people, history, economy, politics and much more.
		Spain property buying guide (965Kb) This property buying guide provides essential information about purchasing property in Spain.

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