Obligations of Property Owners in Spain

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Owning property in Spain comes with a number of legal and tax obligations, whether you are a Spanish tax resident or a non-resident owner.  At Molina Solicitors, we regularly advise both resident and non-resident property owners on their legal obligations and help ensure that properties remain fully compliant. Below is a clear overview of the key responsibilities you should be aware of.

Obligations for Non-Resident Property Owners in Spain

If you own property in Spain but are not tax resident, you still have ongoing obligations, even if the property is not rented out. This is different from many other countries, and is commonly known as “Non-Resident tax”.

Non-Resident Property Tax

All non-resident property owners must file an annual non-resident income tax return to the main tax office.  If the property is not rented, tax is calculated on an imputed income based on the cadastral value. If the property is rented, tax must be declared on the rental income, usually quarterly. Molina Solicitors can assist with non-resident property tax including calculations, filing, and representation.

Please note: We do not assist with the annual Spanish resident income tax return (Renta / IRPF). This needs an accountant, not a lawyer.

SUMA / IBI (Local Property Tax)

All property owners must pay IBI (Impuesto sobre Bienes Inmuebles), which is collected locally, often through SUMA office in the Valencia area. This is an annual local “council” tax. The bill is issued regardless of residency.  Non-payment can lead to enforcement action or property charges.  We strongly recommend setting up direct debit or ensuring bills are properly monitored, particularly for non-residents. There is an excellent website, also in English for SUMA. www.suma.es.

Community Fees

If your property forms part of a community of owners (urbanisation or apartment building), you must pay:

Regular community fees (monthly, quarterly, or annually) Special assessments for repairs or improvements Unpaid community fees can result in:

Legal action by the community

The debt attaching to the property and affecting a future sale

You should contact the Administrator of the Community to set up a direct debit if possible. They do speak English usually.

Utilities and Maintenance Responsibilities

Even when the property is not in regular use, owners are responsible for:

Water, electricity, and waste charges

Property maintenance to avoid damage or nuisance

Compliance with local regulations (especially if renting)

Obligations for Resident Property Owners in Spain

If you are tax resident in Spain, your obligations are broader.

1. Annual Income Tax Return (Renta – IRPF)

Spanish residents must file an annual income tax return declaring:

• Worldwide income

• Employment income, pensions, investments, and rental income.

Molina Solicitors does not handle the annual Renta (IRPF). This is typically managed by a tax advisor or accountant.

2. IBI / SUMA (Local Property Tax)

Resident owners, like non-residents, must pay:

Annual IBI via SUMA or the local authority This applies to all properties owned, including main residences and second homes.

3. Community Fees

Resident owners are equally responsible for:

Community fees

Extraordinary payments agreed by the community Failure to pay can lead to court proceedings, even against resident owners.

4. Other Legal Responsibilities

Depending on circumstances, resident owners may also need to consider:

Rental licences and compliance (if letting the property)

Updating ownership records after divorce, inheritance, or donation.

Ensuring wills and succession planning are aligned with Spanish law (Spanish Wills). In our opinion, it is essential that ALL property owners in Spain have a Spanish Will if possible and are properly advised on this.

How Molina Solicitors Can Help

At Molina Solicitors, we provide clear, practical legal assistance for property owners, including:

✔️ Advice on non-resident property obligations

✔️ Assistance with non-resident tax across Spain

✔️ Property ownership compliance and disputes

✔️ Community fee issues and property-related litigation

✔️ Legal support for sales, inheritance, donations, and ownership changes.

We do not prepare annual resident income tax returns (Renta / IRPF), but we are happy to clarify legal responsibilities and work alongside your tax advisor where needed.

Need Advice About Your Property in Spain?

Whether you are a resident or non-resident property owner, understanding and complying with your obligations is essential to protect your investment.

For clear legal advice contact our team to discuss how we can assist you.