Property Tax in Spain 2026: What Foreign Owners Pay

By Mikael Hansen, Founder & Property Advisor, Plexo Properties · Updated 31 October 2026

Key facts: annual property taxes for owners on the Costa del Sol

Sources and checked date at the end of the article. Your own IBI receipt and valor catastral are the figures that count.

What is IBI and how much is it on the Costa del Sol?

IBI is the annual municipal property tax, the closest Spanish equivalent to British council tax. It is charged on the valor catastral, the official value given to the property by the Catastro, which is usually well below the market price. The rate is set by each town hall within limits fixed by national law: between 0.4% and 1.1% for urban property.

In 2026 the urban IBI rate is 0.4826% in Mijas and 0.65% in Marbella. For a home in Mijas with a valor catastral of €150,000, that is €723.90 a year. Whoever owns the property on 1 January pays the full year’s IBI, which is why buyers and sellers usually split the bill pro rata at completion. You find the valor catastral on the IBI receipt or in the Catastro’s electronic office.

What do non-residents pay on form 210?

If you are not tax resident in Spain and own a home here that you do not let out, Spain taxes you on a notional income from it, the imputed income. This is 2% of the valor catastral, or 1.1% if the municipality’s cadastral values were revised in the last ten years. Mijas last carried out a general revision in 2004, so owners there use 2%.

The rate is 19% for residents of the EU, Norway and Iceland, and 24% for everyone else, including British owners since Brexit. On the same €150,000 valor catastral in Mijas, imputed income is €3,000, so a Danish owner pays €570 and a British owner €720 for the year. The return covers each calendar year and is filed on form 210 by 31 December of the following year. Each co-owner files for their own share.

If you let the property, you declare the actual rental income instead for the periods it is let, quarterly on the same form. Residents of the EU and EEA can deduct expenses such as IBI, community fees and insurance in proportion to the rental period. Residents of other countries, including the UK, are taxed on the gross income.

Worked example: annual taxes on a home in Mijas

Illustrative example for a home that is not let out. The figures change with the valor catastral of your own property.

Do you pay wealth tax on a holiday home in Andalucía?

In practice, most owners do not. Andalucía applies a 100% bonus to the regional wealth tax, and there is a general exemption of €700,000 per person before that. Non-residents can generally apply the rules of the region where their Spanish assets are, so the Andalusian bonus usually benefits foreign owners too.

The exception is very large estates. Spain’s temporary solidarity tax on large fortunes applies to net assets above roughly €3 million, and Andalucía lets taxpayers in that position pay the difference regionally instead. If your Spanish assets approach that level, take advice before you buy.

Taxes when you buy and sell

The annual taxes above are separate from the one-off taxes on a purchase. On a resale home in Andalucía you pay ITP, transfer tax, at 7% in 2026; the Junta has announced a cut to 6.75% for 2027. On a new build you pay 10% IVA plus stamp duty instead. Our article on the 2027 ITP cut explains the details, and the cost calculator works out your total purchase costs.

When you sell, the town hall charges plusvalía municipal on the increase in the value of the land, paid by the seller, and the gain on the sale is taxed as capital gains. A non-resident seller also has 3% of the price withheld by the buyer as a payment on account of that tax.

How to stay on top of your Spanish property taxes

Set up direct debit for IBI and the waste fee with the town hall or the provincial tax office, so the bills are not missed while you are away. Appoint a tax representative or a gestor to file form 210 each year if you are not comfortable doing it yourself. Keep your valor catastral, IBI receipts and community fee statements in one place, because you need them for every return.

We introduce our clients to independent lawyers and tax advisers who work with foreign owners every day. If you are planning a purchase, our buyer guide covers the whole process, or contact us for a conversation.

Frequently asked questions

How much is IBI in Mijas?

The urban IBI rate in Mijas is 0.4826% of the valor catastral in 2026. A home with a valor catastral of €150,000 pays about €724 a year.

Do British owners pay more tax in Spain since Brexit?

On imputed income, yes: non-residents from outside the EU and EEA pay 24% instead of 19%, and cannot deduct expenses against rental income.

Do I have to file form 210 if I never rent out my home?

Yes. Non-resident owners file form 210 every year for the imputed income, even if the home is only used by themselves.

Who pays IBI in the year I buy?

The owner on 1 January is liable for the whole year. Buyer and seller usually agree to split it pro rata in the purchase contract.

Sources: urban IBI rates for Mijas and Marbella from GuíaFiscal (Mijas) and GuíaFiscal (Marbella), based on the municipal ordinances and Catastro data; IBI rate limits in the Ley Reguladora de las Haciendas Locales, art. 72; non-resident income tax rates in the Ley del IRNR, art. 25; imputed income in the Ley del IRPF, art. 85; wealth tax bonus in Decreto-ley 7/2022 of the Junta de Andalucía. Checked 31 October 2026. This article explains how the rules normally work and is not tax advice for your situation. I am not a tax adviser; ask a Spanish tax professional before you file.