Spain has introduced a significant change to how non-EU property owners are taxed on rental income. The update aligns non-EU landlords with EU residents, marking a major policy correction that directly affects investors from the UK, United States, Canada, and other non-EU countries.
Learn how capital gains tax in Spain works for residents and non-residents. Mitchell’s Prestige Properties guides you through key rules and exemptions.
If you’re thinking of buying property in Spain, you’ve probably come across the idea of purchasing through a company to reduce transfer tax (ITP) from 7% to just 2%. On a high-value property in areas like Marbella, Mijas Costa, or Estepona, that could mean saving tens of thousands of euros.
But is it really that simple? The short answer: no — the reduced 2% ITP applies only in very specific situations, and failing to meet the requirements can lead to unexpected tax bills, interest, and penalties.
