Buying is a one-off cost. Owning is not. If you keep a home in Fuengirola while remaining tax resident in another country, there are a handful of taxes and bills to budget for every year. None is large on its own, but Spain taxes you even if the property earns nothing — something many owners only discover when a fine arrives.
IBI: the municipal property tax
The Impuesto sobre Bienes Inmuebles (IBI) is charged by Fuengirola town hall every year to whoever owns the property on 1 January. It is calculated on the property's cadastral value (valor catastral), which is usually well below the market price, and is paid by direct debit or at the council's tax office.
Your cadastral value appears on the IBI receipt, so ask the seller for the last one before you buy. You will need that number for the next tax too.
Owners registered as residents in the town can qualify for discounts that non-residents do not. And if the home is a holiday let, the council withdraws the 30% IBI discount available to registered residents (see our article on tourist rental rules).
Non-resident income tax on a home you do not rent out
This is the one people miss. If the property is for your own use or stays empty, Spain assumes it generates notional income and taxes it through the Impuesto sobre la Renta de No Residentes (IRNR):
- Take the cadastral value.
- Apply 1.1% if it has been revised since 1994, or 2% if not. The result is the "imputed income".
- Apply the rate: 19% for residents of the EU, Iceland and Norway; 24% for everyone else, including the UK since Brexit.
It is declared on form 210, once a year, for the whole of the previous year: the deadline is 31 December. If you only owned the property for part of the year, the income is prorated.
Example
A flat with a revised cadastral value of €120,000:
| EU owner | UK / non-EU owner | |
|---|---|---|
| Imputed income (1.1%) | €1,320 | €1,320 |
| Rate | 19% | 24% |
| Tax per year | €250.80 | €316.80 |
Small amounts, but each one is a separate return, and several years of missed filings add up with surcharges.
If you rent it out
Once the property earns rent, you declare the actual rental income instead of the imputed figure, also on form 210, for the periods it is let.
- EU, Iceland and Norway residents pay 19% on the net income: they can deduct costs such as IBI, community fees, insurance, repairs, interest and depreciation.
- Everyone else pays 24% on the gross income, with no deductions.
For a UK owner that difference is significant, and it is worth running the numbers before choosing between long-term and seasonal letting. Remember too that in Fuengirola most flats cannot become new holiday lets.
The other yearly bills
- Community fees (comunidad): for any flat or development with shared areas. Ask for the current amount and the minutes of the last meetings before buying; they reveal upcoming works and special levies.
- Waste collection charge (tasa de basura), billed by the town hall.
- Utilities and home insurance. The insurance is not a tax, but a mortgage lender will require it.
When you sell
Two more taxes appear on sale: the municipal plusvalía, usually paid by the seller, and tax on any capital gain. As a non-resident seller, the buyer will withhold 3% of the price and pay it to the Tax Agency as an advance on that tax. We explain it from the buyer's side in what it costs to buy in Fuengirola.
Keep it simple
Most non-resident owners hand all of this to a local gestor or tax adviser for a fixed annual fee, with IBI and community fees on direct debit from a Spanish bank account. It costs less than a single late-filing penalty.
Figures reviewed in September 2026. Your country's tax treaty with Spain and your personal circumstances may change the result, so confirm with a tax adviser. This article is general information, not tax advice.