Real Estate Investment

Buying a property Acquisition

Property Transfer Tax (ITP) 6–11%

Applies to: the purchase of second-hand properties. Varies significantly by region: 6% in Madrid, 7% in Andalusia, up to 10-11% in Catalonia.

VAT (IVA) 10%

Applies to: new properties purchased directly from the developer.

Stamp Duty (AJD) 0.5–1.5%

Applies to: the purchase price, varying by region.

Notary and Land Registry fees

Notary: 0.5–1% of the purchase price.
Land Registry: 0.1–0.5% of the purchase price.

Selling a property Disposal

Capital Gains Tax 19–30%

Progressive rates on the gain made on the sale: 19% up to €6,000, 21% up to €50,000, 23% up to €200,000, 27% up to €300,000, and 30% above €300,000. Exemptions may apply for sellers over 65 whose primary residence qualifies, or on reinvestment into a new primary residence.

Municipal Capital Gains Tax (Plusvalía)

Since the 2021 reform, calculated using whichever method is more favourable to the taxpayer: the objective method (cadastral land value × a coefficient based on years of ownership) or the real method (actual gain between sale and purchase price). If there was no real gain, the transfer is not subject to the tax.

Renting out a property Operation

Personal Income Tax, residents 19–54%

Progressive rates on the net rental income (income minus deductible expenses, such as mortgage interest and maintenance). If the property is the tenant's primary residence, a further reduction of 50% to 90% applies to that net income, depending on the terms of the lease.

VAT (IVA) Exempt / 10%

Long-term rentals are VAT-exempt. Holiday rentals are also exempt, unless hotel-style services are provided (regular cleaning, reception, catering), in which case the reduced 10% rate applies.

Non-resident withholding tax 19% / 24%

19% on net income for residents of the EU, Iceland, Norway and Liechtenstein (deductible expenses allowed). 24% on gross income for all other non-residents, generally without any deductions.

Recommendation: we recommend professional tax guidance to ensure compliance and optimise your tax liabilities in any property transaction in Spain. Rates current as of 2026; regional governments revise their brackets frequently.

Taxation on buying, selling and renting property in Spain