How does property tax work in Spain in 2026?

IBI (Impuesto sobre Bienes Inmuebles) is the annual municipal property tax. The ayuntamiento (town hall) sets the rate within national rules and bills the owner listed on 1 January. The base is the valor catastral (cadastral value) from the padrón catastral, not your purchase price. Non-resident owners still owe IBI; living abroad does not cancel the receipt.

Pay through the municipal payment channels or a standing order once you have the reference. Keep the IBI receipt: banks, notaries, and tax advisers often ask for it, and the cadastral value also feeds non-resident imputed-income calculations.

Plusvalía municipal, formally IIVTNU (Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana), can apply when urban land is transferred by sale, gift, or inheritance. The ayuntamiento of the property’s municipality manages it. On a sale the seller usually owes it, but when a non-resident individual sells, Spanish rules can shift payment responsibility to the buyer as substitute taxpayer, so contracts should allocate cash and filings clearly.

Rental income is taxed under IRPF (personal income tax) for tax residents or IRNR (non-resident income tax) for non-residents, often via Modelo 210 filings. Vacant or personally used urban property can create imputed income for non-residents even without tenants. Paying IBI does not satisfy IRNR or IRPF duties.

Purchase-day taxes such as ITP (transfer tax) or IVA plus AJD belong in the closing stack, not the annual IBI line. Budget those on property purchase costs rather than duplicating the whole closing spreadsheet here. After you own, also plan ordinary comunidad quotas: condominium fees.