A Luxury Owner’s Guide to Non-Resident Property Taxes on the Costa Blanca
Owning a home on the Costa Blanca should feel effortless. The tax side should feel the same—structured, predictable, and handled with discretion.
This guide is informational (not legal or tax advice), grounded in Spanish Tax Agency guidance, and written for non-resident owners who want clarity on Modelo 210 and the most common ownership scenarios.
Confirm your tax status first
Spain’s tax authority explains “habitual residence in Spanish territory” using criteria such as days spent and the center of economic interests—this is central to whether you’re treated as tax resident or non-resident.
If you are non-resident (no permanent establishment), the Spanish Tax Agency’s non-resident framework explains which income is taxed and how.
What Modelo 210 covers
Spanish Tax Agency procedure pages describe Modelo 210 as the form used to declare non-resident income without a permanent establishment, including different income types and relevant rules.
In practical property terms, Modelo 210 is commonly used for:
Imputed income when you own a property for private use
Rental income if you rent it out
and Capital gains declaration connected to a sale (with associated mechanisms such as withholding).
If you do not rent the property: imputed income Spain applies a “deemed” or “imputed” income concept to certain urban properties. The Spanish Tax Agency explains that imputed income is calculated by applying 2% of the cadastral value in general, or 1.1% in specified cases.
The applicable non-resident tax rate depends on residency category:
19% for residents in the EU, Iceland, Norway (and certain other categories), and 24% for the rest.
For imputed income, Spanish Tax Agency guidance also states that deductions are very limited (for example, only certain donation deductions in the relevant legal terms).
If you rent the property: rental income and key filing mechanics For rental income, Spanish Tax Agency examples explain how rental income is declared and highlight a crucial current rule: for rents accrued from 2024, there is an annual grouping option in certain circumstances, with filing windows described (including a January filing period for annual grouping and the standard quarterly-style windows for separate declarations).
For EU/EEA residents, the Spanish Tax Agency example guidance states that certain expenses may be deductible when directly linked to income and properly evidenced.
Because rules can be technical—and because the “right way” depends on payer, income type, and whether withholding applies—many luxury owners choose to have a representative handle filings to reduce risk.
If you sell: capital gains and the 3% withholding mechanism When a non-resident sells Spanish property, Spain uses a protective mechanism: the buyer must withhold and pay 3% of the agreed consideration as an advance payment on the non-resident seller’s tax.
Spanish Tax Agency guidance also notes:
The buyer pays the withholding using Modelo 211 within one month of the transfer.
The seller can credit that withholding against the tax due in their capital gains declaration.
The Spanish Tax Agency states the applicable tax rate for the capital gain from property transfer is 19%.
Other common property-related taxes: IBI and plusvalía
Two other taxes appear frequently in ownership timelines:
IBI (Impuesto sobre Bienes Inmuebles) is regulated as a municipal real-estate tax under Spain’s local finance framework, with official materials describing it as a direct, real tax linked to property rights.
Plusvalía municipal (IIVTNU) is the municipal tax on the increase in value of urban land; Spain’s tax authority consultation materials describe it as taxing the increase in value revealed upon transfer.
Your exact IBI and municipal rules depend on the municipality; for example, municipal tax portals list IBI and plusvalía among local tributes.
EU scrutiny and legal developments to watch
For non-residents, there has been ongoing EU scrutiny of how Spain taxes “deemed income” on dwellings used as habitual residence. In June 2025, the European Commission opened infringement proceedings stating that non-resident taxpayers are required to pay income tax on deemed income (2% of cadastral value) for dwellings used as habitual residence, while resident taxpayers are not taxed on deemed income attributable to their habitual residence.
This is an area to monitor closely because it may affect how rules are applied in future; owners should rely on the most current official guidance and professional advice for their specific situation.