The yearly taxes of an owner
| Tax | What it is | Watch out for |
|---|---|---|
| Local property tax (IBI) | Charged every year by the council | Paid by whoever owns the property on the accrual date — when you buy or sell, the parties can agree to share it differently |
| Non-resident income tax on the property | A tax on a notional income when the home is not rented | Due even if you never use it |
| Non-resident income tax on rent | If you rent it out, on the rent received | The rate and what you can deduct depend on your tax residence |
| Wealth taxes | Non-residents pay only on their assets in Spain, above a tax-free threshold | Which rules apply depends on your tax residence and on where in Spain most of your assets are — the Valencian threshold is higher than the State one, and a separate solidarity tax applies to large fortunes |
| Waste collection fee | Municipal fee linked to the property | Set by the council |
Depending on your country of residence you may also need to appoint a tax representative in Spain. And whatever Spain charges, you will usually also declare the property at home — the tax treaty decides how the two fit together.
Renting it out: long-term or holiday let
This is the first decision, and it changes everything: the contract, the tenant’s rights, the taxes and whether you need a licence.
| Long-term let | Holiday (tourist) let | |
|---|---|---|
| Main rules | The Spanish tenancy law (LAU), with strong protection for tenants | Valencian tourism rules and the city’s planning rules, tightened in recent years |
| Registration | Deposit lodged with the Generalitat | Registration with the Valencian tourism register and the national rental register |
| Typical risk | A tenant who stops paying, and the time it takes to recover the home | Fines for letting without the right registrations, and limits on new licences |
There is also a middle ground — seasonal lets for work, study or medical treatment — with its own rules, and the authorities look closely at contracts labelled “seasonal” that are really a main home.
The community of owners has a say
In a block of flats, the community of owners can vote to limit or condition holiday lets in the building. Before buying a flat with the idea of renting it to tourists, the building’s bylaws and recent minutes matter as much as the licence.
Managing it from abroad
- Notifications. Tax and council notices keep arriving whether or not you are here. Missing one usually means surcharges.
- The community of owners. Meetings approve budgets and levies that bind you even if you do not attend.
- Utilities and insurance. Direct debits from a Spanish account avoid most problems.
- Your heirs. A Spanish property is part of your estate; a will that works in Spain saves your family time and money. See inheritance tax in Spain.
This is the map, not the route
What you pay and whether you can rent depends on your residence, the property, the building and the rules in force when you apply — and those have been changing. Before buying to rent, or before signing with a tenant, it is worth checking your specific case.
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