If you're lucky enough to own a second property in Spain, it's worth being aware of the additional taxes and costs that come with it. While having a second home offers lifestyle and income perks, it also carries certain financial responsibilities, especially if it’s not your main residence.
Here’s a helpful breakdown of what to expect:
All property owners in Spain—whether resident or non-resident—must pay the IBI (Impuesto sobre Bienes Inmuebles), which is a local council tax. The amount varies by municipality and is based on the cadastral value of the property. If you own more than one home, you’ll pay IBI for each one.
If you rent out the property, expect an increased cadastral value over time, which could mean higher IBI bills in the future.
If your second property isn’t rented out, the Spanish tax authorities still assume you're gaining some benefit from owning it—and they tax you for that. This is known as “imputed income tax”. It’s calculated as a small percentage of the cadastral value (typically 1.1% or 2%), and then taxed at the standard rate.
Non-residents pay this annually via their non-resident income tax return (modelo 210).
Renting out your second property? You’ll need to declare your rental income and pay tax on it. The rules vary depending on your residency and where you’re from. For example, EU/EEA residents can deduct allowable expenses (like repairs and maintenance), while non-EU residents generally can’t.
Tax rates are currently:
If you only rent part of the year, tax is only payable for those rental months.
Wealth tax (Patrimonio) may apply if your total assets in Spain exceed €700,000 (not including a €300,000 allowance for your main home). Each region can set its own exemptions and rates. In the Valencian Community, wealth tax may be more applicable for high-end second homes or portfolios.
Don’t forget the regular expenses of owning a second home:
Also, if you ever decide to sell, you’ll face:
A second home in Spain can be a dream come true—but it’s important to be aware of the ongoing financial obligations. Planning ahead for taxes and budgeting for hidden costs will help you enjoy your home without nasty surprises.
At VillaMia, we can connect you with trusted accountants and legal advisors to help manage your obligations, whether you're using the property for holidays, rental income, or both.
Get in touch with our team - we’ll help you find a property that fits your lifestyle and your long-term plans.
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