Determining whether you are considered a tax resident or a non-resident in Spain is the first and most important step in tax planning.
Under Spanish tax law, you are generally considered a tax resident if you spend more than 183 days per calendar year in Spain, or if your main centre of economic interests is located there.
Failing to establish the correct status may lead to incorrect filings and exposure to fines. To ensure compliance, it is advisable to obtain professional guidance on your Spanish Non-Resident Income Tax.
Spain’s tax system is complex and frequently updated. Non-residents who own property or investments in Spain are subject to a range of taxes and reporting obligations.
If you live primarily abroad (for example, in the UK) but own property or assets in Spain, you will generally be classed as a non-resident taxpayer. The main taxes that may apply include:
Equivalent to UK council tax, this annual payment to the local town hall or SUMA office is based on the rateable value of the property, also known as the Valor Catastral and typically ranges between 0.4 to 1.1% of the Cadastral rateable value, depending on the region.
Even if your property is not rented out, Spain charges an annual “deemed income” tax on non-resident owners. If your property is rented, on either a long or short term let, rental income is taxed quarterly, even even during periods without rental income. When selling, 3% of the sale price is withheld and paid to the Spanish Tax Agency (Agencia Tributaria) as an advance payment against potential liabilities.
Applies to the net value of assets and investments located in Spain.
When selling any properties, investments or other assets located in Spain, you will need to pay capital gains tax. The current rate of capital gains tax for non-residents is 19% for non-residents from EU/EEA countries or 24% for non-residents from other countries, including the UK.
Applies to non-residents inheriting or receiving assets located in Spain.
In general, non-resident taxpayers are taxed at a flat rate on income obtained in Spanish territory or which arises from Spanish sources, at the general rate of 24% for work income and at the rate of 19% on capital gains and financial investment income arising from Spanish sources. Specific rates apply to certain other types of income.
Spanish income tax and non-residence rules must be considered carefully when buying property or investing in Spain. Essentially there are three categories of foreign resident in Spain:
Declaring worldwide income and assets.
Whose status is uncertain due to time spent between Spain and abroad.
If you own, or plan to purchase, property in Spain as a non-resident, your tax obligations will depend on factors such as:
Unpaid property taxes can accrue surcharges and interest, potentially complicating future sales and even leading to embargoes (account freezes) by the Spanish authorities.
Even if you do not rent out your Spanish property, you are still liable for an annual deemed income tax (Renta Imputada de Inmuebles Urbanos), calculated based on the Valor Catastral.
When selling Spanish property as a non-resident, you will normally be liable for Capital Gains Tax at:
Regional variations and certain deductions or exemptions may apply. Because these rules can be complex and change frequently, consulting a Spanish tax specialist before completing a sale is highly advisable.
Non-residents owning property or investments in Spain should plan for Spanish Inheritance and Gift Tax (ISD). It is usually recommended to have a Spanish Will covering Spanish assets, alongside a separate foreign Will for assets located elsewhere, to avoid legal and tax conflicts between jurisdictions.
Inheritance tax in Spain is assessed on each beneficiary rather than on the estate as a whole. The applicable rates and allowances vary by region and depend on the relationship between the deceased and the heir.
Importantly, inheritance tax is not covered by the Double Taxation Treaty between the UK and Spain, so both systems may apply independently. Coordinated tax and estate planning is therefore essential to minimise potential liabilities and ensure smooth asset transfers.
In addition to understanding your ongoing tax obligations as a non-resident in Spain, it is important to consider how property and assets will be handled in the event of inheritance. For guidance, on drafting Spanish and UK wills, managing forced hiership rules, and understanding inheritance tax implications post-Brexit, please refere to our dedicated page on Spanish Wills, Brexit and Brussels IV
Online “Spanish Non-Resident Tax Calculators” can provide only general estimates and often produce inaccurate results, as they do not reflect the full complexity of Spanish tax law or regional variations.
Factors such as your exact residency status, the type and location of your property, and the nature of your income can all change your tax outcome.
Spanish tax authorities (Agencia Tributaria) do not accept incorrect declarations based on online tools as a defence against penalties.
To ensure compliance and peace of mind, it is advisable to seek professional tax representation. Qualified advisers can also identify legitimate tax optimisation and mitigation opportunities tailored to your circumstances.