IBI Tax vs. Non-Resident Tax in Spain: Key Differences Explained (2025)

Introduction

For non-resident property owners in Spain, understanding the different taxes applicable to real estate is crucial to ensuring compliance and avoiding unnecessary fines. Two of the most commonly confused taxes are IBI (Impuesto sobre Bienes Inmuebles) tax and Non-Resident Income Tax (IRNR – Impuesto sobre la Renta de No Residentes). While both are property-related, they serve different purposes and must be handled separately.

In this guide, we explain the key differences between IBI tax and non-resident tax, how they are calculated, payment deadlines, and how Taxadora can help you manage them efficiently.

What is IBI Tax?

IBI tax (Impuesto sobre Bienes Inmuebles) is a municipal property tax levied by local councils on all property owners in Spain, whether resident or non-resident. It is similar to council tax in other countries and is used to fund local services such as street maintenance, waste collection, and public infrastructure.

Key Features of IBI Tax:

• Who pays it? All property owners in Spain (residents and non-residents).
• How is it calculated? Based on the cadastral value (valor catastral) of the property, set by the municipality.
• Tax rate: Varies depending on the location, typically between 0.4% and 1.3% of the cadastral value.
• Payment deadline: Annually, with due dates set by each municipality (usually between September and November).
• How to pay: Direct debit, bank transfer, or at designated payment locations.

🚀 Important: IBI tax does not require a tax return—it is simply a direct payment to the local council.

What is Non-Resident Income Tax (IRNR)?

Non-Resident Income Tax (IRNR) applies specifically to non-resident property owners in Spain. Even if you do not rent out your property, the Spanish tax system assumes that it generates a notional income (renta imputada), which is subject to taxation.

Key Features of Non-Resident Tax:

• Who pays it? Only non-resident property owners in Spain.
• How is it calculated? Based on the cadastral value of the property: 
  • Not rented out: Tax is calculated as 2% of the cadastral value (or 1.1% if updated after 1994), taxed at 19% for EU/EEA residents and 24% for non-EU residents.
  • Rented out: Tax is based on actual rental income.
• Payment deadline: Annually, with returns due by December 31 of the following year.
• How to pay: Filed through Modelo 210 tax return.

🚀 Important: Unlike IBI, non-resident tax must be declared in a tax return. Failure to declare it can result in penalties.

Key Differences Between IBI Tax and Non-Resident Tax

Why You Need Taxadora’s Services

Managing multiple tax obligations as a non-resident property owner can be complicated and missing a deadline can lead to unnecessary fines.

With Taxadora, you don’t have to worry about keeping track of different taxes. We ensure that your non-resident tax is filed correctly and on time, and we provide expert guidance on all property-related tax matters.

✅ How Taxadora helps:

• Non-Resident Tax Filing (Modelo 210): We handle everything, ensuring your taxes are calculated correctly and submitted on time.
• Automated Reminders: Never miss a deadline with our notification system.
• Tax Optimization: We check for possible deductions based on your property’s value and status.
• Bilingual Tax Experts: English and Spanish-speaking professionals ready to assist you.

📌 Need help filing your Non-Resident Tax? Let Taxadora handle it for you!

Conclusion

Understanding the difference between IBI tax and non-resident tax is essential to managing your tax responsibilities in Spain. While IBI is a local property tax, non-resident tax applies to income from the property, even if it is not rented out.

Taxadora makes tax compliance easy by handling your Modelo 210 filing, ensuring you meet all tax obligations hassle-free.

💡 Want to ensure full tax compliance as a non-resident? Let Taxadora take care of your Spanish property taxes! Learn more here