Spanish Tax for British Expats in Costa Blanca — 2026 Guide
Model 210, ITP Valenciana (10%), rental income tax, inheritance and the post-Brexit 24% non-EU rate. IgeraGestories answers in seconds from the actual law.
Key tax differences for Costa Blanca (Comunitat Valenciana)
The Comunitat Valenciana has its own regional rates and regulations that differ significantly from Madrid or Andalusia.
10% ITP — highest Valenciana rate
Property resale tax in CV is 10% — significantly higher than Madrid (6%) or Andalusia (7%). New builds: 10% IVA + 1.5% AJD.
IEE Energy Certificate (Decreto 1/2021 CV)
All properties in the CV must have a valid Informe de Evaluación del Edificio (IEE) before sale or long-term rental. Affects UK sellers.
Tourist rental: Decreto 10/2021 CV
Viviendas de uso turístico must register with the Generalitat Valenciana. Rental without registration risks fines up to €600,000.
24% IRNR on gross rental income
Post-Brexit, UK owners are non-EU. No expense deductions on rental income — 24% applies to gross receipts. EU owners pay 19% and can deduct costs.
Costa Blanca British Expats — Frequently Asked Questions
Do I pay Spanish tax if I own a property in Costa Blanca but live in the UK?
Yes. As a non-resident property owner you are subject to IRNR (Impuesto sobre la Renta de No Residentes, RDL 5/2004). If the property is not rented out, the AEAT imputes an income of 1.1% of the cadastral value, taxed at 24% (non-EU rate post-Brexit). You must file Model 210 annually between 1 January and 31 December of the following year. Failure to file triggers interest and penalties under Art. 26 LGT.
What is the property purchase tax (ITP) in the Comunitat Valenciana?
Resale properties in the Comunitat Valenciana are subject to ITP (Impuesto de Transmisiones Patrimoniales) at a flat 10% rate — one of the highest in mainland Spain. New builds are subject to IVA (VAT) at 10% plus AJD (Actos Jurídicos Documentados) at 1.5% of the purchase price. The legal basis is the national LITPAJD (RDLeg 1/1993) as modified by the Comunitat Valenciana regional decree.
I rent out my Costa Blanca apartment to tourists. What tax do I pay?
Non-residents pay IRNR at 24% on GROSS rental income — no expense deductions are permitted for non-EU owners (including UK nationals post-Brexit). File quarterly Model 210 (periods ending January, April, July, October). Additionally, you must register the property with the Generalitat Valenciana as tourist accommodation under Decreto 10/2021 CV (viviendas de uso turístico). This registration obligation is separate from your IRNR tax filing.
Does the UK-Spain double taxation treaty still apply to Costa Blanca owners?
Yes. The Convenio entre España y el Reino Unido (CDI UK-Spain, 1975, updated 2013) applies fully post-Brexit. It covers: rental income (taxable in Spain where the property is located), UK pension treatment (Art. 17 for private pensions; Art. 18 for government service pensions taxed only in the UK), and the tie-breaker rule for determining tax residency. UK owners can claim a credit in the UK for Spanish IRNR paid on rental income, avoiding double taxation.
What inheritance tax applies if I inherit a Costa Blanca property?
Spanish Inheritance and Gift Tax (ISD, Ley 29/1987) applies. Since the 2015 reform (RDL 17/2015 implementing ECJ ruling C-127/12), non-EU heirs — including UK nationals post-Brexit — can apply the Comunitat Valenciana regional reductions rather than only the less generous national scale. The CV gives significant reductions for direct family (Groups I and II). File Modelo 650 with the Conselleria de Hisenda, with a deadline of 6 months from the date of death (extendable to 12 months).
How does IgeraGestories help British owners in Costa Blanca?
IgeraGestories indexes the complete LIRNR, CDI UK-Spain (1975/2013), LIRPF, ISD (Ley 29/1987), Decreto 10/2021 CV (tourist apartments), and Decreto 1/2021 CV (IEE energy performance certificates). Ask any tax question in English and receive an answer in 2-4 seconds citing the exact article and legal source — no waiting for a gestor appointment.
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