What does a non-resident pay each year on a Costa del Sol home?
Once the purchase is complete, a non-resident owner on the Costa del Sol pays two taxes every year: the town hall's property tax, and Spanish non-resident income tax, even if the home is never let. A third, wealth tax, only reaches very large fortunes under Andalusian rules, provided you file.
Tax on income you never received
If you own a Spanish home that you do not let, Spain assumes it produces an income for you and taxes it. This notional income (renta imputada) is 1.1% of the cadastral value if the town's values were revised in a general revaluation that took effect in the last ten years, or 2% if not. Most Costa del Sol towns, including Mijas (last revised in 2004) and Fuengirola (2005), were revised well before that, so 2% usually applies; your gestoría can confirm it for your town.
The notional income is taxed at 19% if you live in the EU, Iceland, Norway or Liechtenstein, and at 24% if you live anywhere else, including the United Kingdom and the United States. The cadastral value is not the price you paid: it is an administrative value, usually much lower, shown on your IBI bill. Take the €450,000 townhouse in Mijas Costa with a cadastral value of €150,000, not let at any point in the year:
| Dutch owner | British owner | |
|---|---|---|
| Notional income (2%) | €3,000 | €3,000 |
| Tax rate | 19% | 24% |
| Tax due | €570 | €720 |
A couple who own the home jointly each file for their own half, on form 210. From 2026 income onwards, the notional income return is filed between 1 April and 31 December of the following year. A housing decree in force since 8 October 2026 replaces these rates from 2027 with a single banded scale on the total cadastral value of the owner's properties: 1.1% on the first €100,000, 1.5% on the next €400,000, 2% up to €1 million and 3% above. For an owner whose only such property is the €150,000 townhouse, notional income would fall from €3,000 to €1,850. With a general election called for 29 November, it lapses unless parliament's standing committee confirms it by early November 2026.
If you let the home
Rent is taxed in Spain through the same non-resident income tax. Residents of the EU and EEA pay 19% on the net rent, after deducting expenses such as IBI, community and conservation fees, insurance, repairs, mortgage interest and depreciation for the days let. Everyone else, including UK and US residents, pays 24% on the gross rent with no deductions. On €20,000 of rent with €8,000 of expenses, that is €2,280 against €4,800. Since June 2026, rental income is declared once a year, between 1 and 20 April of the following year; in the 2026 transition year, income from January to September 2026 keeps the old quarterly deadlines if you declare each letting separately. For the days you use the home or leave it empty, notional income tax applies instead.
IBI and the waste charge
Every town hall charges an annual property tax (IBI) on the cadastral value at its own rate, generally between about 0.45% and 0.75% on the Costa del Sol, with Málaga city among the lowest at 0.451% in 2026, plus a waste collection charge. The tax for the whole year falls on whoever owns the home on 1 January. In most towns of the province local taxes are collected by the Patronato de Recaudación Provincial, so the bill may come from the Patronato rather than the town hall; Málaga city collects its own. Pay by direct debit from a Spanish account: surcharges for late payment are automatic. The same decree lets town halls in areas declared stressed housing markets add a surcharge to the IBI of tourist lets from 2027; Andalusia had declared no such areas by mid-2026. If your urbanisation has a conservation body, its fees are a separate bill.
Wealth tax: zero, if you file
As a non-resident you are only taxed on your assets in Spain, minus debts on them, and you can choose the rules of the region where most of them are. Andalusia has the most generous regime in Spain: a 100% reduction of the wealth tax bill, for non-residents as well as residents. In practice nothing is due unless your net Spanish assets exceed about €3.7 million, the level at which the national solidarity tax starts.
The catch is that the reduction only applies if you file form 714 and choose Andalusian rules whenever you are required to file. If your net Spanish assets exceed €700,000, or your gross Spanish assets €2 million, ask your adviser whether you must. For wealth tax the home counts at the highest of its cadastral value, the price in your deed and any value set by the tax agency for another tax.
Your yearly calendar
- 1 January: whoever owns the home on this date owes the year's IBI.
- 1 to 20 April: form 210 for last year's rental income, if you let.
- 1 April to 31 December: form 210 for last year's notional income.
- Wealth tax campaign, usually mid-year: form 714, if required, choosing Andalusian rules.
- Dates set by the Patronato or the town hall: IBI and waste charge.
Try your own figures with the free calculator.
More detail in the book. Chapters 8 and 9 of Buying a Home on the Costa del Sol as a Non-Resident cover this with worked examples, deadlines and the risks behind the figures.
General information based on the rules in force in October 2026, not legal or tax advice. Rules change often: check your own case with an independent Spanish lawyer or tax adviser before you act.
Related: Can I let my Costa del Sol home to holidaymakers? · Selling a Costa del Sol home as a non-resident