In short: every owner pays the municipal IBI. If the house is not your main home and you do not let it, the tax authority imputes an income of 1.1% or 2% of the cadastral value; a non-resident pays tax on it at 19% (EU/EEA) or 24%. In the Balearics, wealth tax only applies above €3 million of net wealth, also for non-residents. Above that figure, the national large-fortunes tax comes into play as well.
IBI and municipal charges
The IBI (property tax) is paid by every owner, resident or not. The town council charges it every year on the cadastral value of the home, at the rate set by each municipality on the island. Add the waste collection charge and, where applicable, community fees. It is worth paying them by direct debit: unpaid municipal debts end in surcharges and seizures.
If the house is not let: imputed income
When a home is not the owner's main residence and is not let, the tax authority treats it as producing an income, calculated on the cadastral value:
- 1.1% if the cadastral value comes from a general municipal revaluation in force since 2012.
- 2% in all other cases.
If you are tax resident in Spain, that income is added to your general personal income tax base. If you are non-resident, it is declared on form 210 and taxed at 19% if you live in the European Union or the European Economic Area, and at 24% otherwise. Income for 2026 is declared between 1 April and 31 December 2027.
Example: with a recently revised cadastral value of €600,000, the imputed income is €6,600 a year. A non-resident living in the EU pays €1,254; one living outside the EU, €1,584.
If the house is let
If you are resident, rental income is taxed under personal income tax with its deductible expenses. If you are non-resident, it is also declared on form 210:
- EU or EEA residents: 19% on net income. They can deduct the expenses linked to the letting: loan interest, IBI, community fees, utilities, insurance, management and depreciation of 3% of the value of the building.
- Residents of other countries: 24% on gross income, with no expenses deducted.
From 2026 rental income onwards, the grouped annual return is filed between 1 and 20 April of the following year. The days of the year when the house is not let still generate imputed income.
Wealth tax in the Balearics
The Balearics raised the wealth tax allowance to €3,000,000 from 2024. Below that figure of net wealth, nothing is payable.
- Balearic residents: pay on their worldwide wealth, and the main home is exempt up to €300,000.
- Non-residents: pay only on their assets in Spain and can apply the Balearic rules, with the same €3 million allowance, if the Balearics is where most of the value of their Spanish assets lies.
Above the allowance, the Balearic scale is progressive, from 0.28% to 3.45%. Even if nothing is payable, a return (form 714) must be filed if the gross value of your assets exceeds €2,000,000. The deadline coincides with the income tax campaign, from April to June.
Large-fortunes solidarity tax
This is a national tax on net wealth above €3,000,000, at rates from 1.7% to 3.5%, from which the wealth tax already paid is deducted. Royal Decree-law 8/2023 extended it with no end date. In the Balearics, since the wealth tax allowance is also €3 million, anyone above that figure has to review both taxes together. It is filed in July (form 718).
Indicative calendar
| Tax | Tax year 2026: when it is filed |
|---|---|
| IBI and municipal charges | In the collection period set by each town council |
| Imputed income (non-residents) | 1 April to 31 December 2027 |
| Rental income (non-residents, annual return) | 1 to 20 April 2027 |
| Personal income tax and wealth tax | April to June 2027 |
| Large-fortunes tax | July 2027 |
This guide summarises the rules in force in October 2026. Your tax residence, double taxation treaties or buying through a company change the result: review it with your tax advisor before deciding.
Frequently asked questions
Does a non-resident pay tax even if the house is not let?
Yes. In addition to IBI, every year they declare on form 210 an imputed income of 1.1% or 2% of the cadastral value, taxed at 19% for EU or EEA residents and at 24% for residents elsewhere.
Do I have to pay wealth tax in the Balearics as a non-resident?
Only if your net wealth in Spain exceeds €3,000,000 and you apply the Balearic rules because most of your Spanish assets are there. Even with nothing to pay, you must file if the gross value of your assets exceeds €2,000,000.
Does anything change if I buy through a company?
Yes. The company pays no imputed income tax or wealth tax, but it has its own taxes and running costs. Companies based in non-cooperative jurisdictions also pay a special levy of 3% of the cadastral value every year. Decide it with your advisor before buying.
This guide is general information. It is not tax or legal advice for your specific case: figures and rules change, and they should be confirmed before signing anything.
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