{"id":13544856,"date":"2026-03-31T13:57:45","date_gmt":"2026-03-31T12:57:45","guid":{"rendered":"https:\/\/grupo-garcia.es\/?p=13544856"},"modified":"2026-03-31T14:30:39","modified_gmt":"2026-03-31T13:30:39","slug":"property-taxes-spain-2026-costa-blanca","status":"publish","type":"post","link":"https:\/\/grupo-garcia.es\/en\/property-taxes-spain-2026-costa-blanca\/","title":{"rendered":"Buying Property in Spain 2026, Taxes Explained for Costa Blanca Buyers"},"content":{"rendered":"

Property taxes on the Costa Blanca comprise several components: IBI (annual local tax), Non-Resident Income Tax (IRNR), and potential Wealth Tax for high-net-worth individuals. When selling, Capital Gains Tax applies to profits, and Inheritance Tax varies significantly by region. In the Valencia region (Costa Blanca), 2026 brings favourable 99% allowances for close family members regarding inheritance.<\/b><\/p>\n

<\/b>People across the world dream of the possibility of moving to the beautiful and sun-kissed region known as the Costa Blanca North. The regulations that constitute tax costs when buying property in Spain currently apply in all autonomous communities, including the Valencia region of Spain, which includes the coastal towns of <\/span>Javea<\/span><\/a>, <\/span>Denia<\/span><\/a>, <\/span>Calpe<\/span><\/a>, and <\/span>Altea<\/span><\/a>. These property taxes in Spain sometimes cast a shadow of concern in the minds of new residents and foreign nationals considering buying property.<\/span><\/p>\n

Here, we\u2019ll explore all the information you need to consider regarding tax costs when buying property in the Costa Blanca, specifically for 2026. We explore in full detail the <\/span>Annual Local Rates (IBI)<\/b>,<\/span> Non-Resident Liability (IRNR)<\/b> and <\/span>Inheritance Tax<\/b>.<\/span><\/p>\n

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Common Misunderstandings of Paying Property Taxes in Spain<\/h2>\n

“I don’t rent it out, so I don’t pay income tax.”<\/b> See also IRNR Non-residents have to pay what is called a “deemed” income tax even if the shutters are closed all year.<\/span><\/p>\n

\u201cI\u2019ll just pay the tax in my home country.\u201d<\/b> Unfortunately, the double taxation agreements (DTAs) that exist between tax authorities mean, in almost every instance, that the property will be taxed in the country where it is physically situated.<\/span><\/p>\n

“The Cadastral Value is the same as the Price.”<\/b> Many owners are pleasantly surprised to find their IBI is based on a value far lower than what they paid for the home.<\/span><\/p>\n

“Inheritance tax is 100% free.”<\/b> While the 99% discount in Valencia is amazing, it only applies to close relatives. Siblings, cousins, and “unmarried partners”<\/span><\/p>\n

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IBI Tax in Spain: How It Works in Costa Blanca<\/h2>\n

IBI Spain explained: the most recurring annual expense you will have to face in Spain is the IBI (Impuesto sobre Bienes Inmuebles). A bit like your council tax or the property rates at home. More specifically, it’s a municipal tax to be paid once a year to the local Town Hall (Ayuntamiento).<\/span><\/p>\n

How is it calculated?
\n<\/strong>It is based on the<\/span> Cadastral Value<\/b> (valor catastral) of each property. The Cadastral Value is the official valuation given by the State to each estate, urban and rustic, and in most cases it is much lower than the real estate market value.<\/span><\/p>\n

Rates
\n<\/b>The rates in each municipality vary, generally falling in the range of<\/span> 0.4%<\/b> and <\/span>1.1%<\/b> of the cadastral value.<\/span><\/p>\n

Who pays? <\/strong>
\n<\/span>The property owner on January 1st of any given year is held responsible for the annual tax, although when a sale is made, the charges are often shared more or less equally between the buyer and seller during the notary act.<\/span><\/p>\n

Pro Tip<\/b>: Set up a standing order (domiciliaci\u00f3n bancaria) for your IBI as late charges start at <\/span>5%<\/b> and rise to <\/span>20%<\/b>.<\/span><\/p>\n

IBI Property Taxes Rates in Javea, Denia, Moraira and Calpe<\/strong>
\n<\/span>The table below outlines the different rates in some of the Costa Blanca\u2019s most popular areas for home buyers. Denia currently has one of the highest IBI rate on the Costa Blanca.<\/span><\/p>\n

 <\/p>\n\n\n\n\n\n\n\n\n\n
Town\u00a0<\/b><\/td>\nIBI Rate (Urban)<\/b><\/td>\nNotes<\/b><\/td>\n<\/tr>\n
Denia<\/span><\/td>\n1.050%<\/span><\/td>\nCurrently among the highest in the region.<\/span><\/td>\n<\/tr>\n
Calpe<\/span><\/td>\n0.867%<\/span><\/td>\nRates have remained steady following a 2024 update.<\/span><\/td>\n<\/tr>\n
Benissa<\/span><\/td>\n0.800%<\/span><\/td>\nStandard rate for urban residential properties.<\/span><\/td>\n<\/tr>\n
Javea<\/span><\/td>\n0.781%<\/span><\/td>\nHistorically stable; varies slightly by specific zones.<\/span><\/td>\n<\/tr>\n
Altea<\/span><\/td>\n0.700%<\/span><\/td>\nKnown for being more competitive than its northern neighbours.<\/span><\/td>\n<\/tr>\n
Moraira<\/span><\/td>\n0.600%<\/span><\/td>\nOne of the most tax-efficient towns in the Marina Alta area.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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Source: <\/b>Official <\/span>SUMA<\/span><\/a> Portal<\/span><\/p>\n

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Non-Resident Property Tax on the Costa Blanca (IRNR Explained)<\/h2>\n

Non-resident tax Spain property 2026. If you own a second home in Spain and you are not physically residing in Spain for more than<\/span> 183 days in any tax year<\/b> and also do not rent out your second home, you will be charged with an annual liability (known as the \u201cpresunto\u201d \u2013 the name given to the assessed annual charge which is imposed and the term deemed is sometimes used in lieu of assessed) for income tax on what is deemed as deriving income or a benefit for owning the home and being able to live there from time to time when wanted.\u00a0<\/span><\/p>\n

The Government\u2019s views are that home ownership \u2013 especially of second homes \u2013 is a luxury privilege for the use of owners, conferring clear benefit for which a tax charge is levied.<\/span><\/p>\n