You've signed at the notary, collected the keys and flown home. Congratulations: you now own a piece of Valencia. But in Spain, owning property as a non-resident comes with a small set of yearly obligations that apply even if the apartment sits empty most of the year.
We've already covered what it costs to buy in Valencia. This article is about what it costs to keep a property here, year after year. With the 31 December deadline for non-resident property tax coming up, now is the right moment to check you're on top of it.
1. Non-resident income tax, even when you earn nothing
This is the one that surprises most owners. If you are not tax resident in Spain and you keep a home here for your own use, Spain taxes you on an imputed income. The idea is that owning a second home has a value, even if no rent comes in.
How it works in practice:
- The base is a percentage of the property's cadastral value (valor catastral), shown on your IBI bill: usually 2%, or 1.1% if the cadastral value was revised in the last ten years.
- The rate is 19% for residents of the EU, Iceland and Norway, and 24% for everyone else.
- The form is Modelo 210, filed once a year.
- The deadline is 31 December of the following year. So the tax for 2025 must be filed by 31 December 2026.
The amount is usually modest. On a cadastral value of €80,000 at 2% and 19%, it comes to around €300 a year. The real risk is forgetting it: missed years add surcharges and interest, and they tend to come to light when you sell.
2. If you rent it out, the rules change
Once the apartment earns rent, imputed income no longer applies for the period it is let. Instead you pay tax on the real rental income.
- Filing is quarterly, again on Modelo 210, in the first 20 days of April, July, October and January.
- EU and EEA residents pay 19% on net income, after deducting costs such as IBI, community fees, insurance, repairs, mortgage interest, management fees and depreciation.
- Other non-residents have traditionally been taxed at 24% on the gross rent, with no deductions. This point is under legal challenge, so check the current position with your advisor.
For the months the property stands empty, imputed income still applies. Keep your rental contracts and invoices together: they are your proof of both income and deductible costs. And if you are thinking about holiday lets, read our recent article on Valencia's new short-term rental rules first.
3. Local taxes: IBI and the waste fee
IBI (Impuesto sobre Bienes Inmuebles) is the annual municipal property tax. It is calculated on the cadastral value and billed to whoever owns the property on 1 January. For a typical city apartment it usually runs to a few hundred euros a year. Set up direct debit (domiciliación): it keeps you from missing a payment while you're abroad.
Waste collection is the newer cost to budget for. From 2026, the City of Valencia charges its waste fee as a separate annual bill, and the metropolitan waste fee (TAMER) is billed on top. Together they can add a couple of hundred euros a year, so make sure the bills reach you and not an old address.
4. The running costs of the building and the home
Beyond taxes, a few fixed costs arrive whether you visit or not:
- Community fees (cuota de comunidad) cover the building's cleaning, lift, lighting and shared insurance. Expect anything from about €30 a month in a simple block to much more with a pool, concierge or garage. Ask about planned derramas (one-off levies for works) before you buy.
- Home insurance is not always compulsory, but your bank will require it with a mortgage, and it matters more when nobody is there to spot a leak.
- Utilities keep billing on an empty flat: standing charges for electricity, water and internet. Many owners lower their contracted electricity power to cut the fixed charge.
- Maintenance adds up faster in a coastal climate. Air conditioning, damp and humidity need a regular check.
A useful rule of thumb: budget around 1% to 2% of the property's value a year for running costs and upkeep.
5. Wealth tax and the paperwork around it
Spain's wealth tax (Impuesto sobre el Patrimonio) and the national solidarity tax on large fortunes only apply above high thresholds of net assets held in Spain. Most owners of a single apartment will never reach them, but if you hold several properties or a high-value home, ask your advisor to check each year.
Two practical points apply to almost everyone:
- Keep your NIE and Spanish bank account active. Tax payments, direct debits and any future sale all depend on them.
- Appoint a fiscal representative if you live outside the EU. Non-EU owners are generally required to name one in Spain for their tax affairs.
Your yearly owner's calendar
|
When |
What |
Who it applies to |
|---|---|---|
|
1–20 January, April, July, October |
Modelo 210 for the previous quarter's rental income |
Owners who rent out |
|
Through the year (per municipal calendar) |
IBI and waste fee bills |
All owners |
|
Monthly or quarterly |
Community fees |
All owners in a shared building |
|
By 31 December |
Modelo 210 imputed income for the previous year |
Owners whose home was not rented, fully or partly |
|
Once a year |
Review insurance, utility contracts and wealth-tax position |
All owners |
How Bluekey Homes helps after the keys
Our work doesn't stop at the notary. Through the Globexs Group, Bluekey Homes refers owners to trusted tax advisors who can take care of Modelo 210 filings and other tax questions. We can also put you in touch with property management and rental services if you'd like your apartment to earn while you're away.
We know the Valencia market from the inside, and we know the questions international owners ask in their first year. If you already own here and aren't sure you're up to date, or you're planning a purchase and want a realistic budget for owning, get in touch with our team. A 31 December deadline is much easier to meet in October.
This article is general information and not tax or legal advice. Rules and rates can change, so always confirm your own situation with a qualified advisor.