What unexpected tax burdens might non-residents face in 2026?

Non-residents buying property on the Costa del Sol in 2026 may encounter several unexpected tax burdens beyond the initial purchase. One significant area is the annual wealth tax (Impuesto sobre el Patrimonio), which applies to a non-resident's net assets in Spain. While there are national allowances, regional differences, particularly in Andalusia, might introduce a separate regional allowance or impact thresholds, and proposed changes to this tax are always a possibility, making it crucial to monitor the 2026 fiscal landscape. Another often overlooked cost is the imputed income tax (Impuesto sobre la Renta de No Residentes - IRNR) for properties that are not rented out. This tax is levied on the theoretical rental income, even if the property remains vacant. The taxable base is a percentage of the cadastral value, currently 1.1% or 2%, depending on when the cadastral value was last revised, and the tax rate for non-EU residents is higher than for EU residents. Furthermore, when considering selling the property in the future, the capital gains tax can be substantial. While initial purchase taxes (ITP or IVA) are usually factored in, non-residents sometimes underestimate the impact of capital gains tax (which applies to the profit made from the sale) and the municipal 'plusvalía' tax, which is levied on the increase in the value of the urban land where the property is located, from the date of acquisition to the date of transfer. Changes to these rates or calculation methods for 2026 could significantly alter financial projections. Legal and financial advice from specialists in Spanish non-resident taxation is indispensable to accurately forecast these potential liabilities and avoid surprises.