A Spanish holiday home can cost money even in a year when nobody stays in it. For overseas buyers asking, “Does Spain tax vacant homes?”, the practical answer is yes – but usually through several different taxes and charges rather than one universal empty-home tax.

The charge many second-home owners encounter is Spain’s imputed income tax: a taxable amount attributed to a property that is available for the owner’s private use but is not let. Annual IBI, Spain’s local property tax, also applies whether the home is occupied or not. On top of that, some councils and regions can apply measures aimed specifically at homes left empty on a permanent basis.

Does Spain tax vacant homes? The short answer

Spain does not have a single nationwide tax bill that automatically applies to every empty flat or villa. Instead, the position depends on who owns the property, where it is located, how it is used and whether the owner is tax-resident in Spain.

For a typical non-resident individual who owns a Spanish second home, the key recurring costs are likely to be IBI and imputed income tax. A property may be used for a few weeks each year, remain empty for the rest and still generate an imputed tax liability. This is not necessarily a penalty for leaving it unused. It is Spain’s way of taxing the assumed benefit of having a property available for private use.

A separate vacant-property surcharge may be relevant where homes are permanently unoccupied in municipalities that have chosen to introduce the measure. The rules depend on whether the municipality is in a designated stressed residential market area, the number of properties owned and how long the property has been vacant. Regional rules can add another layer in certain parts of Spain.

Imputed income tax on a second home

Imputed income tax is often the point that surprises international buyers. It can apply to an urban property owned by a non-resident individual that is not their main home and is not rented out for all or part of the year.

The taxable income is normally calculated from the property’s cadastral value, or valor catastral, shown on the IBI receipt. For the 2023–2026 tax years, the calculation is generally based on 2% of that value, reduced to 1.1% where the cadastral value was reviewed, modified or established through a general collective valuation procedure that took effect on or after 1 January 2012.

The figure is not based on the home’s market value, purchase price or likely rental income.

For non-resident owners, this deemed income is normally taxed under Spain’s Non-Resident Income Tax regime. The applicable rate is generally 19% for tax residents of the EU, Iceland, Norway and Liechtenstein, and 24% for other taxpayers. The relevant factor is tax residence rather than nationality.

A non-resident individual normally declares this imputed income using Form 210. For income relating to 2025 and earlier, the declaration is made during the following calendar year. For income arising from 2026 onwards, the filing period is 1 April to 31 December of the following year. The first filing window under the new timetable therefore begins on 1 April 2027.

Spanish tax residents may also face an imputed-income calculation through their annual personal income tax return, although the rules and tax calculation differ from those applying to non-residents.

A simple illustration

Suppose a holiday property has a cadastral value of €100,000 and qualifies for the 1.1% calculation. The imputed income would be €1,100. A non-resident owner taxed at 24% would have a tax charge of €264 before considering their individual circumstances.

This example is deliberately simple and assumes the property was available for private use throughout the year. Cadastral values, ownership shares, tax residence, the number of days the property was let and changes to local records can all affect the result. Where a property is owned jointly, each owner generally declares their corresponding share.

What if the property is rented out?

Letting a Spanish home does not remove tax obligations. It changes them. Rental income is taxable, and non-resident owners normally declare income for rental periods. For periods when the property was not rented and remained available for the owner’s use, imputed income tax may still apply on a pro-rata basis.

This distinction matters for buyers considering a holiday-rental strategy. A home advertised for rent but without bookings is not necessarily treated as occupied for tax purposes. Equally, a genuine long-term tenancy changes the private-use position but brings its own income tax, tenancy-law and, in many areas, tourism-licensing considerations.

Rental income and imputed income have different reporting rules, so owners should not assume the same Form 210 deadline applies to both.

IBI: the annual local property tax

IBI, short for Impuesto sobre Bienes Inmuebles, is a municipal property tax payable by owners of Spanish real estate. It is an annual tax on property ownership rather than occupation, so an empty property still receives an IBI bill.

The calculation is tied to cadastral value, not how frequently the property is used. The rate is set by the municipality within legal parameters. That means two similar homes in nearby towns can have noticeably different annual IBI charges. Local waste collection charges may also apply separately, depending on the council.

Before committing to a purchase, ask for the latest IBI receipt rather than relying on an estimate from an advert or a seller’s recollection. It gives a useful view of the cadastral reference, stated taxable value and current annual charge. It is also sensible to confirm that previous IBI payments have been settled, as outstanding local liabilities can complicate a transaction.

When can councils charge a vacant-home surcharge?

Spain’s national legislation allows municipalities to impose an IBI surcharge on certain permanently unoccupied residential properties. Crucially, it is optional. A council must adopt the surcharge through its own local tax ordinance; it is not applied everywhere simply because a home has been empty.

The rules were revised in October 2026 and now distinguish between municipalities in designated stressed residential market areas and those outside them.

In municipalities outside designated stressed residential market areas, councils may impose a surcharge of up to 50% of the normal IBI liability on qualifying properties that have been continuously vacant without justified reason for more than two years and belong to owners with four or more residential properties. This can rise to 100% where the period of vacancy exceeds three years. A further increase of up to 50 percentage points may apply where the owner has two or more qualifying vacant residential properties in the same municipality.

In municipalities designated as stressed residential market areas, councils may impose a surcharge of up to 50% on qualifying homes vacant for more than two years, without the same four-property ownership threshold. The surcharge can rise to 100% for owners with four or more residential properties. Where vacancy exceeds three years, a further increase of up to 50 percentage points may apply to properties held by owners with four or more residential properties.

Importantly for overseas buyers, the updated legislation expressly recognises a property intended for use as a second residence as a justified reason for vacancy, for up to four consecutive years of vacancy. Other recognised reasons include temporary relocation for work or study, health or dependency circumstances, renovation works and certain legal proceedings. Properties genuinely offered for sale or rent may also qualify for limited periods.

This distinction is particularly relevant to individual holiday-home owners. A second home used periodically may still be subject to imputed income tax and IBI, but it should not automatically be treated as a permanently vacant property for the purposes of this particular IBI surcharge.

Local councils must establish the property’s vacant status through the relevant procedure, give the owner an opportunity to be heard and provide evidence of vacancy. Evidence may include municipal registration information and utility consumption. Buyers should check the precise local ordinance and how the rules are applied in the municipality concerned.

Regional empty-property taxes

Some autonomous communities have introduced their own taxes or housing measures affecting empty dwellings. Catalonia is the best-known example, with its specific tax on vacant homes.

However, this regional tax is not a general charge on every individual who owns a second home. Under Catalonia’s legislation, the tax is primarily aimed at legal entities owning homes that have remained empty without justified reason for more than two years. Certain entities holding rights such as usufruct or surface rights, as well as specified securitisation funds, may also fall within its scope.

For an individual purchasing one personal-use property, this particular regional tax is therefore less likely to be relevant than IBI and imputed income tax. The position can be different for companies, developers, funds, landlords with portfolios or buyers planning to hold property through a corporate structure.

This is one reason a national headline about a “Spanish empty homes tax” can be misleading. Spain’s property taxation is divided between the state, autonomous communities and municipalities. The place where the home is located can be just as relevant as the fact that it is vacant.

Other taxes vacant-home owners should not overlook

Vacancy does not itself trigger every Spanish property tax, but it does not prevent other ownership taxes from applying. Depending on the owner’s circumstances, the value of their Spanish assets and their tax-residence position, wealth tax or the temporary solidarity tax on large fortunes may also need consideration. Non-residents can be within scope in relation to Spanish property held directly.

There is also a separate IBI surcharge that buyers planning to operate tourist accommodation should be aware of. Since October 2026, councils in designated stressed residential market areas have had the option to introduce an additional surcharge on residential properties identified as tourist accommodation under the relevant regional rules. This can reach 50% of the IBI liability, rising to 100% for owners with two or more such properties and 150% for owners with four or more. It is a separate measure from the vacant-home surcharge and only applies where the municipality adopts the relevant provision.

There are practical ownership costs too: insurance, community fees for homes within urbanisations or blocks, repairs and security. A vacant coastal property may need regular checks for water leaks, storm damage and unauthorised occupation. These costs are not taxes, but they should form part of the annual holding budget.

What to check before buying a second home in Spain

A buyer’s pre-purchase review should go beyond the asking price. These checks will provide a more realistic annual cost picture:

• Request the latest IBI receipt and confirm the cadastral value, payment status and local rate.
• Ask the town hall or a local adviser whether a vacant-home IBI surcharge exists and how permanent vacancy is defined.
• Establish whether the municipality is in a designated stressed residential market area and whether any additional local surcharges have been adopted.
• Establish whether you will be Spanish tax-resident or non-resident, as this affects reporting and tax rates.
• If rental income is part of the plan, verify local holiday-let licensing rules and budget for tax during both let and unlet periods.
• If buying through a company or with other investors, obtain advice on the relevant regional and national tax treatment before completing the purchase.

It is also worth reviewing the ownership structure before exchange. Holding a personal holiday home through a company can create administrative and tax consequences that outweigh any perceived benefit. The right approach depends on the buyer’s country of residence, family arrangements, intended use and wider assets.

Spain remains an attractive second-home market precisely because a property can serve several purposes: a place for holidays, a future retirement base, a rental asset or a foothold in Europe. The sensible next step is to price those options with the same care used to compare locations and properties, using current local figures and advice tailored to the home you intend to own.

Disclaimer: This article is intended as general information for prospective Spanish property buyers. It does not constitute legal, financial or tax advice. Tax rules and local ordinances can change, and individual circumstances may affect the tax treatment of a property. Buyers should seek independent professional advice before committing to a purchase.