25 Questions for a Tax Adviser Before Investing in Spain

Before meeting an asesor fiscal (Spanish tax adviser), a property investor in Spain should hold a list of 25 questions in six groups: tax status, purchase, ownership and rental, renovation and IVA (value added tax), sale, and the SL (sociedad limitada, limited company) and taking money out. The answers fix the rate and the deadlines, not some abstract "taxes in Spain". This does not replace a consultation: the article does not know your residence, your structure or the country where you pay tax. The rules were checked against the BOE (Spain's official gazette) on 12 October 2026.

How to use the list

Bring the property in question, a draft of the contract, a document proving tax residence and the planned structure (an individual or an SL). Ask the questions in order: the answers to the first group change the rest. Ask for a written opinion on the key points, especially the IVA rate on renovation and the filing deadlines.

Status and residence

1. Am I a Spanish tax resident, by staying more than 183 days a year or by having my centre of economic interests there (art. 9 LIRPF)?
2. Which country am I resident in, and is there a double taxation treaty with Spain?
3. Which certificado de residencia (tax residence certificate) do I need, who issues it and how often must it be renewed?
4. Do I need to appoint a representative in Spain? The tax authority may require a resident of a non-EU country to appoint one because of the size and nature of the income, and for a resident of a country with no exchange of tax information who owns property in Spain it is an obligation (art. 10 TRLIRNR).

Purchase

1. What ITP (transfer tax) will I pay on the 10–13% scale, and do I fall into gran tenedor (large holder) status with a 20% rate (ATC)?
2. What is the ITP base: the price in the contract or the valor de referencia (official reference value)?
3. If I buy from a developer or with a waiver of the IVA exemption, which IVA and AJD (stamp duty, 1.5% or 3.5%) apply and who pays them (ATC guide)?
4. Which purchase costs will count towards the acquisition value for the future tax on sale (art. 35 LIRPF)?
5. Should I buy as an individual or through an SL, and how does that change the tax on rental, sale and taking money out?

Ownership and rental

1. Who pays the IBI (local property tax) for the year of purchase or sale, if the tax accrues on 1 January (art. 75 TRLRHL)?
2. Do I pay tax on imputed income while the property is empty or under renovation (art. 85 LIRPF)?
3. Which IRNR (non-resident income tax) rate applies to my rental, 19% or 24%, and which expenses can I deduct? The article on tax on a non-resident's rental income covers this.
4. How should I account for the dispute over deductions for third countries: the Audiencia Nacional ruling of 28 July 2025 and the appeal in cassation before the Tribunal Supremo of 15 July 2026?
5. Which deadline and which form apply to my rental: Modelo 210, from 1 to 20 April, for income of 2026 onwards?
6. Does the Impuesto sobre el Patrimonio (wealth tax) apply to me, and how is it calculated?

Renovation and IVA

1. Do my works count as rehabilitación under the LIVA (IVA law): more than 50% of the cost on structure, facades and roof, and more than 25% of the purchase price excluding land (art. 20.Uno.22.B LIVA)?
2. Which IVA rate will the contractor's invoice carry, 10% or 21%, and does Real Decreto-ley 29/2026 change it for housing let on long-term rentals from 1 December 2026?
3. Does the inversión del sujeto pasivo (reverse charge) apply, and what must the invoice state (art. 84.Uno.2.f LIVA)?

Sale

1. How is the gain calculated and which rate applies to my status: 19% for a non-resident, 19–30% for a resident or 25% for a company?
2. How much will the plusvalía municipal (municipal land value tax) be, by when and who pays it (art. 106 and 110 TRLRHL)?
3. How does the 3% withholding work and by when is the final Modelo 210 filed (art. 14 of the IRNR Regulation)?
4. Is the property sold without IVA as a second transfer, or does the renovation make the sale a first transfer with 10% IVA?

The SL and taking money out

1. Which corporate income tax scale applies to my SL, and could it count as an entidad patrimonial (asset-holding company) (art. 5 and 29 LIS)?
2. How do I take profit out: 19% withholding on dividends, the treaty limit, the parent company exemption (art. 25 and 14 TRLIRNR)?
3. How do I document the owner's loan to the SL so that the terms count as arm's length, and how will the interest cap of 30% of operating profit affect the project (art. 16 and 18 LIS)?

Who this list does not suit

It does not suit deals with several owners, inheritances, gifts or structures spanning several countries: there are more questions there. Nor does it replace the contract: a lawyer checks the project terms (questions for a lawyer before signing the contract).

A general map of taxes is in the article on investor taxes, and the deadlines are in the tax calendar. You can first work through the deal in the investment analysis and go to the adviser with the numbers.