Annual taxes and charges of a property owner in Spain (2026)
Buying is only the beginning of the expenses. A property owner in Spain pays several taxes and charges every year, even when the apartment or house stands empty. Below is a summary of what usually needs to be taken into account. We described the taxes on the purchase itself (ITP, VAT, AJD) separately on the page Costs and taxes when buying in Spain.
Annual costs in brief
| Tax or fee | When and to whom | Indicative cost |
|---|---|---|
| IBI (property tax) | every year, the municipality | 0.4–1.1% of the cadastral value |
| “Imputed income” tax (when you do not rent out) | every year, form 210 | 19% of 1.1% or 2% of the cadastral value (for EU/EEA citizens) |
| Tax on rental income | form 210 | 19% of net income after deducting costs (EU/EEA) |
| Refuse collection fee (basura) | every year, the municipality | usually a few dozen to a few hundred € |
| Community (comunidad) | monthly or quarterly | depends on the development, from a few dozen to a few hundred € a month |
| Property insurance | every year | usually a few hundred € |
| Wealth tax | with assets in Spain above about €700k | depends on the region |
IBI
IBI is an annual municipal tax paid by the owner. The rate depends on the municipality and is usually in the range of 0.4–1.1% of the cadastral value (valor catastral), not of the purchase price. The cadastral value is usually lower than the market price and you will find it on the IBI bill. It is most convenient to set up automatic payment from a bank account. Unpaid arrears can encumber the property, which is why when buying it is worth checking that the bills have been settled.
Tax when you do not rent out
A non-resident who owns a property in Spain and does not rent it out pays an annual tax on so-called imputed income. The base is 1.1% or 2% of the cadastral value (depending on whether the value was recently officially revalued), and the rate for EU and EEA citizens is 19% (24% for others). The tax is settled on form 210, at the latest by 31 December of the year following the tax year.
Example: with a cadastral value of €100,000, IBI will be roughly €400–1,100, and the tax on imputed income about €209–380.
Tax on rental
If you rent out the property, you pay tax on the actual income: 19% of net income for residents of the EU and EEA (costs such as IBI, the community and insurance can be deducted) or 24% of gross income without deductions for others. The rules concerning tourist rentals themselves are described in a separate post. As a Polish tax resident, also settle your rental income in Poland. A double taxation treaty applies, so it is worth consulting a tax adviser on the settlement.
Community, refuse and insurance
Besides taxes there are fixed charges. The homeowners’ or development community (comunidad) charges fees for the upkeep of pools, gardens and common areas. The municipality charges a refuse collection fee. It is also worth insuring the property. On top come utilities (electricity, water, internet), even with low consumption.
Wealth tax
A non-resident with assets in Spain (mainly property) above about €700k after deducting debts may be subject to wealth tax (Impuesto sobre el Patrimonio, form 714). The rules and reliefs differ between regions. For assets exceeding €3 million, a solidarity tax on large fortunes also applies. With a typical purchase of an apartment or house by the sea this usually does not concern the owner, but it is worth checking with more expensive transactions.
How to prepare
Plan in your annual budget about 1–2% of the purchase value for IBI, the community, refuse, insurance and utilities, depending on the location and the standard of the development. Collect documents: the notarial deed, IBI bills and confirmations of community payments. For your first settlement use the help of a tax adviser. This is general information, not tax advice. We will discuss the details with you at the time of purchase, contact us. See also the guide to buying in Spain and the post on the mortgage.
Frequently asked questions
Do I have to pay tax in Spain if I do not rent out the property?
Yes. A non-resident pays IBI and an annual tax on imputed income (form 210), calculated on the cadastral value.
Do I need a tax representative in Spain?
Not always. In some situations, e.g. with wealth tax, one may be required. The scope of obligations will be determined by a tax adviser.
How much should I set aside each year for the upkeep of the property?
Roughly 1–2% of the purchase value, depending on the location, the level of community fees and whether the property is rented out.
Updated: 13 October 2026. Sources: Agencia Tributaria, Sede Electrónica del Catastro.
Main photo: Ximonic (Simo Räsänen) (CC BY-SA 4.0) — Wikimedia Commons.
