Tax Law

Expert Tax Advice for Property Owners & Expats in Mijas

Spanish tax law is complex, constantly changing, and carries significant financial penalties for non-compliance. Whether you are a non-resident property owner, a recently arrived expat, or someone planning your estate, having a qualified tax lawyer in Mijas on your side ensures you meet all your obligations while taking advantage of every legitimate reduction and allowance available to you.

For the large number of foreign nationals who own property in Spain without being tax residents, the annual Modelo 210 tax return is a legal obligation that is frequently overlooked or mishandled. Non-resident property owners must file and pay the non-resident income tax (IRNR — Impuesto sobre la Renta de No Residentes) annually, whether or not the property is rented out. Imputed rental income is taxed even for properties used only for personal holidays. Failure to file results in fines, surcharges, and interest. As your tax advisor in Mijas, we handle all non-resident filings accurately and on time.

When selling a Spanish property, non-residents face a mandatory 3% withholding tax by the buyer, and then a final settlement based on the actual capital gain. For EU/EEA residents, the capital gains tax in Spain rate is 19%; for non-EEA residents it is 24% flat rate. Understanding how to calculate the allowable deductions — acquisition costs, improvement costs, legal fees, and inflation adjustments — can significantly reduce your capital gains liability. Our tax lawyer team in Mijas handles all aspects of property sale tax compliance.

For those moving to Spain to work, the Beckham Law (Régimen Especial para Trabajadores Desplazados) offers a highly advantageous flat rate of 24% on Spanish-source income for the first six years of tax residency, rather than the progressive rates which can reach 47%. Planning advice on this regime is one of our most sought-after services. We also provide comprehensive estate planning advice in Mijas to minimise inheritance and gift tax exposure for both residents and non-residents.

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What We Cover

Tax Services in Mijas & Costa del Sol

Comprehensive tax advice and compliance for non-residents, expats and property owners.

Non-Resident Tax (IRNR)

Modelo 210 Property Tax

Capital Gains on Sales

Inheritance & Gift Tax

Wealth Tax (IP)

Annual Tax Returns

Beckham Law Planning

FATCA & CRS Compliance

Areas Covered

Tax Services Across the Costa del Sol

Serving property owners and expats in Mijas, Fuengirola, Marbella and across the coast.

La Cala de Mijas

Our main office — C/Cártama 25, 29649

Mijas

Tax advice for Mijas property owners

Fuengirola

Non-resident tax compliance in Fuengirola

Calahonda

Tax services for Calahonda homeowners

Marbella

Wealth tax & high-value estate planning

Estepona

Tax advice for Estepona residents

Benalmádena

Annual tax returns in Benalmádena

Costa del Sol

Full coast coverage for tax matters

FAQ

Spanish Tax FAQ — Non-Residents & Expats

The most common tax questions from property owners and expats on the Costa del Sol.

Non-resident property owners in Spain are subject to several taxes. The most important is the annual non-resident income tax (IRNR), filed via Modelo 210. If the property is not rented out, an imputed rental income is calculated at 1.1% of the property's cadastral value (catastral), and this is taxed at 19% for EU/EEA residents or 24% for others. If the property is rented, the actual rental income is taxed, with EU residents allowed to deduct expenses but non-EU residents taxed on gross income. In addition, non-residents must pay IBI (Impuesto sobre Bienes Inmuebles), the annual local council property tax, and basura (refuse collection tax). Non-compliance with Modelo 210 results in fines and surcharges that can significantly exceed the original tax due.

For non-resident sellers, the buyer is required by law to withhold 3% of the purchase price and pay it to the Spanish Tax Agency (Agencia Tributaria) on account of the vendor's capital gains liability. The actual capital gains tax rate for non-residents from EU/EEA countries is 19% on the net gain; for non-EEA residents it is 24% flat rate. The taxable gain is calculated as the difference between the sale price (minus selling costs, agency fees, and legal fees) and the acquisition cost (plus purchase costs, improvement costs paid, and certain inflation adjustments for properties held before 1995). If the 3% withholding exceeds the actual tax liability, a refund can be claimed. Our tax lawyer team in Mijas handles all capital gains calculations and filings for non-resident sellers.

The Beckham Law (officially Régimen Especial para Trabajadores Desplazados, governed by Article 93 of Spain's Income Tax Act) is a special tax regime available to individuals who relocate to Spain to work. Named after the footballer who famously used it, the regime allows qualifying taxpayers to be taxed as non-residents on their Spanish income at a flat rate of 24% on income up to €600,000 (and 47% on the excess), rather than under the standard progressive resident income tax scale which can reach 47% on income above €300,000. The regime applies for the year of arrival and the following five tax years — a total of up to six years. To qualify, you must not have been a Spanish tax resident in the previous 5 years and must move to Spain as a result of an employment contract or as a company director. The application must be filed within 6 months of starting work in Spain. Our tax lawyer in Mijas advises on eligibility and handles the Modelo 149 application.

Yes. If you own property in Spain and are a non-resident, you are legally required to file a Modelo 210 non-resident income tax return each year — even if the property is not rented out and even if you only use it for holidays. The return covers the imputed rental income on the property and must be filed by 31 December of the year following the tax year. For rented properties, a Modelo 210 must be filed quarterly. Additionally, if you receive any other Spanish-source income (dividends, interest, rental income, etc.) you have an obligation to declare it. The Spanish Tax Agency (AEAT) has increasingly sophisticated systems to identify non-compliant non-resident property owners, and the fines for late filing or non-filing can be substantial. Our tax team in Mijas ensures full compliance and timely filing of all non-resident tax obligations.

Andalucía has introduced significant reductions in inheritance tax (bonificaciones) that make it one of the most favourable regions in Spain for heirs who are resident in the region. Direct heirs (children, parents, spouses) resident in Andalucía currently benefit from a near-complete reduction that in many cases results in minimal or zero inheritance tax liability. However, non-residents and those in other family relationships face the state tariff which can reach 34% for larger estates. Strategies to reduce inheritance tax exposure include: making lifetime gifts (with careful consideration of gift tax, which is also subject to bonificaciones in Andalucía); structuring property ownership (e.g., through life interests); taking advantage of the available allowances for spouses, children, and parents; and timing the inheritance to take advantage of the best possible regional rules. Early estate planning is far more effective than trying to minimise tax after the event. Our estate planning lawyer in Mijas provides tailored advice for cross-border families.

Tax Lawyer & Advisor in Mijas, Costa del Sol