Buy-to-let in Spain as a non-resident: the 2026 guide

The buying steps

First get an NIE (foreigner identification number): you need it to sign at the notary, open a bank account and pay taxes.

Open a Spanish bank account: it is used to pay the price and taxes, and later the community fees and IBI by direct debit.

Check the property: the nota simple from the land registry shows the owner and any mortgages; also ask for the energy certificate, the latest IBI receipt and a certificate from the owners’ association (no unpaid fees).

The deposit contract (contrato de arras) reserves the property, usually against 10% of the price. The sale is then signed before a notary and recorded at the land registry.

Buying costs

Resale homes: the transfer tax (ITP) is set by each region. As a guide: around 6% in Madrid, 7% in Andalusia (Málaga), 10% or more in Catalonia and the Valencian Community, with higher rates for expensive properties. Check the rate in force when you buy.

New-build homes (sold by a developer): 10% VAT plus stamp duty (AJD), roughly 0.4% to 1.5% depending on the region.

Add the notary, the land registry and usually a gestoría or lawyer: typically 1–2% of the price. In total, budget around 8–13% of the price on top of the property itself.

Tax on rental income (IRNR)

A non-resident landlord pays non-resident income tax (IRNR) on rent received in Spain.

Resident in the European Union, Iceland, Norway or Liechtenstein: 19% of net income. You can deduct community fees, IBI, insurance, repairs, mortgage interest and depreciation (3% a year of the building value, excluding land).

Resident outside the European Economic Area (including the UK since Brexit, the US…): 24% of gross rent, with no deductions.

You file with Modelo 210. Since 2024, rental income can be grouped and declared once a year; check the Agencia Tributaria calendar for the exact deadline.

If the home is not let all year (for example used for your holidays), deemed income is taxed for the periods it is not let: 1.1% or 2% of the cadastral value, depending on how recent that value is.

Annual taxes and costs

IBI (municipal property tax), a waste collection charge in some towns, community fees and home insurance.

Our simulator includes IBI, fees, tax and the mortgage payment to calculate your real cash flow.

Letting rules

Residential lease: minimum 5 years at the tenant’s option (7 if the landlord is a company), then 3 years of tacit renewal.

Annual rent increases are capped by the IRAV index published by INE: 2.54% (09/2026).

In areas declared “stressed” (notably in Catalonia, including Barcelona), rents on new contracts are capped by a reference index.

Holiday or seasonal letting requires a regional or municipal licence and, since July 2025, a national registration number: check before buying for that purpose.

When you sell

Capital gains are taxed at 19% for non-residents. The buyer withholds 3% of the price and pays it to the tax office as a prepayment of that tax.

The town hall also charges the plusvalía municipal (tax on the increase in land value).

Before you start

These general rules are not personal tax advice, especially when applying the tax treaty between Spain and your country of residence.

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