Investing in the Spanish real estate market as a non-resident has become one of the most attractive opportunities in Europe. Spain combines legal stability, high housing demand, and competitive taxation compared to other countries in the region.
However, proper tax and legal planning is essential: poor management of taxes or a poorly structured contract can turn a good investment into an expensive problem.
At VBB Abogados, we advise foreign individuals and companies in all stages of the process — purchase, ownership, leasing, or sale — ensuring legal security and tax optimization.
What does being a non-resident mean for tax purposes in Spain?
The Spanish Tax Agency considers as non-resident any person or entity that does not meet the requirements of tax residence:
- Not staying more than 183 days in Spanish territory.
- Not having in Spain the center of economic or vital interests.
- Being subject to the tax laws of another State through a double-taxation treaty.
The non-resident is taxed in Spain only for the income obtained within the country, such as rentals, imputed income, or capital gains from real estate.
Before investing, it is advisable to analyze which international treaties apply in order to avoid double taxation and correctly define the investment strategy.
Información detallada
Taxation at each stage of the real-estate investment
Purchase of the property
The tax regime depends on the type of property acquired:
| Type of operation | Applicable taxes | Observations |
| New development | VAT (10%) + Stamp Duty (AJD 0.5% – 1.5%) | Varies depending on the autonomous community. |
| Resale property | Property Transfer Tax (ITP 6% – 10%) + AJD | Managed by each autonomous community. |
💡 VBB Recommendation: always request a complete tax simulation before signing. Taxes can increase the total investment cost by between 8 % and 12 %.
Ownership or use of the property
During ownership, the non-resident must comply with:
- IRNR for rentals:
- EU/EEA residents: taxed at 19 % on net profit (deductible expenses allowed).
- Non-EU residents: taxed at 24 % on gross income.
- Imputed income: if the property is not rented, the Tax Agency imputes a notional income between 1.1 % – 2 % of the cadastral value.
- IBI: annual local tax managed by the corresponding city council.
Sale or transfer of the property
Upon selling, the non-resident is taxed on the capital gain through IRNR:
- Rate of 19 % (EU/EEA residents) or 24 % (other countries).
- The buyer must withhold 3 % of the price and pay it to the Tax Office using form 211.
- The Municipal Capital Gains Tax (Plusvalía) must also be settled, levied on the increase in land value.
💡 VBB Advice: keeping invoices for renovations and acquisition costs helps reduce the taxable capital gain.
Key elements to optimize investment taxation
- Appropriate legal structure: individual ownership, Spanish company, or foreign vehicle.
- Planning of property use: residence, tourist rental, or long-term investment.
- Application of double-taxation treaties: prevents paying taxes twice.
- Location and regional regulations: each region applies different ITP and AJD rates.
- Exit strategy: plan in advance the taxation of a future sale or inheritance.
Common risks among foreign investors
Failure to comply with tax obligations may lead to serious consequences:
- Penalties for not filing forms 210 and 211.
- Incorrect withholdings in sale transactions.
- Double taxation due to ignorance of international treaties.
- Loss of tax benefits because of poor corporate structure.
- Difficulties in inheritance or cross-border transfers of assets.
👉 A profitable investment begins with a solid legal strategy.
The value of specialized legal guidance
At VBB Abogados, we help our foreign clients to:
- Structure their real-estate investments according to Spanish and European law.
- Analyze the tax impact of each transaction.
- File returns and forms before the Spanish Tax Agency.
- Coordinate the investment with international tax advisors.
Our goal is to guarantee legal security, tax efficiency, and asset protection, both in individual operations and corporate investments.
Frequently asked questions about non-resident taxation
What taxes does a non-resident pay when buying a property in Spain?
It depends on whether the property is new (VAT + Stamp Duty) or resale (Transfer Tax + Stamp Duty).
How is rental income declared when the owner is not resident in Spain?
By submitting form 210, declaring the income obtained and the deductible expenses according to the country of residence.
What happens when a property is sold?
The buyer withholds 3 % of the sale price and pays it to the Tax Office as an advance payment on the seller’s IRNR.
Can double taxation be avoided?
Yes, through international treaties signed by Spain, which allow offsetting taxes paid in the country of origin.
Is it mandatory to appoint a tax representative in Spain?
Yes, in certain cases for non-residents who earn real-estate income or carry out complex transactions.
Legal security: the key to investing with confidence
Real-estate investment in Spain offers great potential but requires thorough planning.
An inadequate tax structure or omission of legal procedures may endanger the profitability of the project.
Having a team of lawyers specialized in non-resident real-estate investment makes it possible to anticipate contingencies, optimize taxation, and ensure that each operation is carried out with complete legal backing.
At VBB Abogados, we work side by side with our international clients so that their investment in Spain is secure, profitable, and sustainable over time.