Banking & Finances
Tax changes for foreign property owners in Spain (2025)
Published: August 2025
If you own property in Spain as a foreign resident, 2025 brings several important tax changes you need to be aware of. These updates affect both EU and non-EU citizens and are aimed at increasing transparency and compliance.
Key Tax updates for 2025
- Increased Non-Resident Income Tax: The non-resident tax rate on rental income has increased from 19% to 21% for EU citizens and from 24% to 26% for non-EU citizens.
- Mandatory Digital Tax Filing: All property owners must now file their Spanish property taxes digitally via the official tax portal, regardless of residency status.
- Stricter Penalties for Late Payment: Late tax payments now incur higher penalties and interest rates. Timely filing is more important than ever.
- New Reporting Requirements: Foreign owners must declare all rental income, even if paid outside Spain. Failure to report can result in significant fines.
- Property Value Reassessment: The Spanish tax authorities are reassessing property values in 2025, which may affect your annual property tax bill (IBI).
What should foreign owners do?
- Consult a qualified tax advisor familiar with Spanish law and international property ownership.
- Register for digital tax filing if you haven’t already.
- Keep detailed records of all rental income and expenses.
- Pay attention to deadlines for tax declarations to avoid penalties.
Useful links
Disclaimer: This article is for informational purposes only and does not constitute legal or tax advice. Always consult a professional for your specific situation.
