What do foreigners with a property in Spain pay? Allowances, rates, the Mallorca special rule — and why a mortgage can substantially lower the tax burden.
Author & regulatory separation. Content author: Siegfried Perini. Mortgage brokerage in Spain and Portugal is carried out under the §34i permit of Olga Nikushkina (BAFA-notified). This information does not replace legal or tax advice.
Anyone who owns a property in Spain as a non-resident is subject to the Spanish Impuesto sobre el Patrimonio. What is taxed is the net wealth located in Spain — that is, the property value less any mortgage. This is the most important reason why mortgages can be strategically attractive even when you have capital available.
€3m per person. For married couples €6m. Wealth tax applies only above that. In force since 2023.
100% rebate — the tax formally exists but is reduced to zero at the regional level. For Marbella buyers, one of the most important advantages over Mallorca.
National allowance €700,000 per person. Above that, graduated from 0.28% to 3.45%.
Simplified calculation. Actual tax rates and the calculation are graduated. Consulting a Spanish tax adviser is recommended.
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