Local taxes in Spain: Everything property owners need to know
IBI, Plusvalía, waste collection fees and more – a practical guide for anyone who owns property in Spain
If you own property in Spain, you'll know the feeling: a letter arrives (or sometimes doesn't) and you suddenly discover a bill was overdue some time ago. Local taxes in Spain aren't complicated, but they work rather differently to what you might be used to back home. If you don't know the basics, you'll likely end up paying more than you should.
Alongside the annual Modelo 210 form, which is compulsory for non-resident property owners in Spain (whether or not the property generates income), there are a number of taxes and charges that go directly to the local council. These apply regardless of whether your property is occupied, let out, or sits empty for most of the year.
How do local taxes work?
Local taxes are not collected by the Spanish central government, but by the relevant Ayuntamiento - the local council. Depending on the region, collection may be handled by a designated agency: on the Balearic Islands this is called the ATIB, whereas in the province of Alicante it is called SUMA. This money goes directly towards the services that make your community function: street cleaning, lighting, rubbish collection and local upkeep. The rule is simple - If you are listed as the official property owner, you are liable for these charges, whether you're based in London or Barcelona.
The main types of local tax
IBI - Local Property Tax
The IBI (Impuesto sobre Bienes Inmuebles) is the tax most owners encounter first, often compared to Council Tax in the UK, although it is based on the property’s cadastral value rather than occupancy. It is charged annually and applies to houses, flats, plots of land, garages and storage units. It applies equally to residents and non-residents.
The bill is calculated using your property's cadastral value – an official government figure – combined with a rate set by your local town hall. How often you visit, or whether the property sits empty all year, makes no difference to what you owe. Payments are between April and November, depending on the municipality.
Important to know: the Spanish system doesn't require the council to chase you. Even if you don’t receive a letter or notification, you are still required to pay on time every year. If your name is on the property, the charge is yours to find and pay.
Rubbish Collection Fee (Tasa de Basura)
In some municipalities, the waste collection fee is billed separately, while in others it may be included in the same receipt or collected together with the IBI. The amounts are relatively modest – typically between €100 and €300 per year – and again, these apply regardless of whether the property is being used or not.
IVTM - Vehicle Tax
If you have a vehicle registered in Spain, you will pay the annual IVTM (Impuesto sobre Vehículos de Tracción Mecánica). It works similarly to Vehicle Excise Duty in the UK and is based on engine power. If your vehicle is only temporarily in Spain and registered abroad, this tax generally does not apply.
Plusvalía Municipal
This tax applies when a property is sold, inherited or gifted. It is levied on the increase in value of the land – not the structure built upon it – based either on official coefficients linked to the cadastral value and years of ownership, or on the actual increase in value, depending on which method is more favourable. It is separate from capital gains tax on property sales, which is handled through the Modelo 210, under which 3% of the sale price is withheld by the buyer as an advance payment towards the seller's capital gains tax..
Community fees (Gastos de Comunidad)
Strictly speaking, this is not a tax, but it is a legally binding obligation. If your property forms part of a residential development, apartment complex or urbanisation, you are required to pay community fees. These cover the maintenance of gardens, swimming pools, lifts, communal areas and security. The amounts vary considerably, from a few hundred to several thousand euros per year.
Failing to pay can lead to legal action, and any outstanding debt attaches to the property itself, meaning it can cause serious complications when you come to sell.
How to pay
Non-residents have several options. If you hold a Spanish or SEPA bank account, setting up a direct debit is by far the simplest approach. Some ayuntamientos offer online card payment; others insist on a Spanish account. Paying in person at the town hall is of course possible, but hardly practical if you're based in the UK or abroad.
Many owners rely on a local gestor, which can work well but often comes at a higher cost and a slower pace than necessary. With online platforms like IberianTax, your recurring tax obligations are handled entirely online for a transparent, one-time fee, offering a simpler and more transparent alternative for managing recurring obligations remotely.
What happens if you don't pay?
The consequences are more serious than many people assume. Late payment attracts surcharges of between 5% and 20%, depending on how long the payment remains outstanding, with interest on top. Persistent non-payment can result in the Spanish tax authority freezing bank accounts or, in extreme cases, forcing the sale of the property to recover outstanding debt. This applies to non-residents just as it does to Spanish residents.
When selling a property, the notary will also check for any outstanding debts. Unpaid IBI or community fees can delay or even derail a sale. It really is worth keeping on top of things.
Local taxes and the Modelo 210
If you own property in Spain and are not a Spanish tax resident, you are required to file a Modelo 210 with the Spanish tax authorities each year. This applies whether the property is rented, used as a holiday home or sits empty throughout the year.
The link to local taxes is a practical one: the cadastral value used to calculate your IBI is the same figure used when completing the Modelo 210. If you keep hold of your IBI bill, you already have one of the key pieces of information you'll need for your annual non-resident tax return.
IberianTax offers a fully digital solution designed specifically for non-resident property owners. Filing is completed through a simple online form, which takes just a few minutes and starts from as little as €34.95. The platform and customer support is fully available in English, sends automatic email reminders ahead of key tax deadlines and involves no office appointments, no paperwork and no surprise additional fees.
Local taxes in Spain are nothing to be scared of, but they do follow their own rules. Understanding the basics and keeping your payments in order will save you a good deal of hassle. And if you'd prefer a reliable service to handle most of it for you, IberianTax is well worth a look.
Enjoy 10% off your first Modelo 210 filing with IberianTax using the discount code SPAINTODAY10
If you own property in Spain but don’t live there, you must pay tax – whether you use it as a holiday home, rent it out or sell it.
IberianTax helps non-resident property owners file their Modelo 210 tax forms quickly and securely. Our easy-to-use online platform simplifies the process of filing the Modelo 210 tax form, ensuring full compliance with Spanish tax laws. With step-by-step support and affordable pricing starting at just €34.95, filing your taxes has never been easier or stress-free.
Join thousands of non-resident homeowners who have chosen IberianTax as their trusted tax partner in Spain. Visit our website and sign up for your free account now.
What is the Modelo 210 tax form?
The Modelo 210 is Spain’s tax form for non-residents who own property in Spain. It is used to declare taxes related to your property.
There are different types, depending on the tax:
- Imputed Income (Modelo 210): Owning a property for personal use (i.e.: holiday home).
- Rental Income (Modelo 210): For income earned from renting out your property.
- Capital Gains (Modelo 210): For tax due when you sell your property.
How to file your non-resident Modelo 210 tax with IberianTax in 3 steps
- Create an Account: Sign up for free to start. You can get a free tax estimate by using our tax calculator and only pay when you submit your Modelo 210.
- Enter Your Details: Complete the simple IberianTax questionnaire with your property and personal information. Step-by-step guidance and examples are included.
- Submit Your Tax: Choose your payment method, and IberianTax will file your Spanish non-resident tax return online for you. Simple!
Why use IberianTax to file your Modelo 210?
- Fast & Easy: File your Modelo 210 online in minutes.
- Simple: Step-by-step questionnaire – no tax knowledge needed.
- Affordable: Services from €34.95 VAT inc., far less than typical €150+VAT.
- Flexible: File anytime, anywhere, with multiple payment options.
- Accurate: Built by tax experts with automatic checks.
- Secure: Data encryption and safe online payments.
- Certified: Approved by the Spanish tax authorities.
- Multilingual: English, French and German support available.
Whether you need to file taxes for personal use, rental income, or capital gains, IberianTax offers a comprehensive, reliable, and cost-effective solution for non-resident property owners in Spain.
Get started now on the IberianTax website and enjoy a 10% discount or, if you have any further questions, the team will be happy to answer them. Just use the contact box above, or fill in the contact form on their website.
Alternatively, you can send an email to contact@iberiantax.com and they will get back to you as soon as possible.
