If you are tax resident in Spain
More than 183 days in Spain, or your main economic interests here, and you are taxed here on everything you own worldwide.
One system, and better rules on the property itself
Spanish tax residence follows presence and centre of interests, not intention. It brings worldwide income into the Spanish return, and worldwide assets into Spanish wealth tax — but it also gives you the better position on the property itself: costs are deductible against rent, a main residence gets reliefs that a second home never does, and the imputed income tax on your own home disappears. Residents also file Modelo 720 on assets held abroad.
What you actually declare
While you own it
- IBI and community fees as everyone pays.
- No imputed income tax on your main residence; it still applies to a second property.
- Wealth tax on worldwide assets, Balearic scale, with a €700,000 personal allowance and an extra €300,000 for the main home.
- Modelo 720 for assets abroad above the thresholds.
If you rent it out
- Rental income goes into your IRPF return with costs deductible.
- A long-term residential let can carry a substantial reduction on the net income.
- Holiday letting needs the ETV licence and is treated differently again.
When you sell
- The gain is taxed on the savings scale, 19–30 %.
- Main-residence relief where the proceeds are reinvested in a new main home, and a full exemption for owners over 65 selling their main residence.
- No 3 % retention — that applies only to non-resident sellers.
Five questions for your own adviser
Am I actually resident this year, on days or on interests?
Does this property qualify as my main residence?
What goes on Modelo 720, and by when?
How does Balearic wealth tax treat our joint ownership?
If I let the house, which regime applies — long term or holiday?