As mentioned above, there are associated costs that can drive up the price of a Spanish property purchase, which include various taxes. These include ownership transfer tax and stamp duty. Following the purchase, you’ll become a property owner in Spain, which means that you’ll be liable for certain Spanish taxes – including state taxes and local taxes. Firstly, there’s the annual Spanish property tax (IBI), which is similar to council tax in the UK. You’ll have to pay up to 1.3% of the property value, depending on the rates set by the local authority. Then there’s Spanish income tax (IRNR), which takes a cut of 19-24% of any income earned within the country – such as rental income, if you let out your holiday home while you’re not there. Should you decide to sell your property in Spain, it’s likely that you’ll be liable for Spanish capital gains tax, or 19% of your income from assets sold in Spain. If you intend to leave your Spanish property to a loved one when you pass away, you’ll need to consult an advisor about local succession laws and ensure that you have a valid Spanish will, and take Spanish inheritance tax rates for your specific relationship and property value into account. Additionally, if you have multiple high-value assets in Spain, you could be liable for Spanish wealth tax. It’s a progressive tax that applies to things like buildings, cars, investments, savings, jewellery, and art above a certain value. Wealth tax rates will vary between regions – they’re generally around 0.2% to 2.5% but can be over 3% in areas like Andalucía.