A Complete Glossary of Spanish Tax Terms for Foreign Property Owners in Spain

The tax terminology when it comes to property ownership in Spain can feel like a bit of a maze, especially if you’re a non-resident. Between the unfamiliar acronyms, local tax agencies, and forms you’ve never heard of, it’s completely normal to feel a bit lost. And if you’re a non-resident who doesn’t speak Spanish, the challenge can feel even bigger.

To make life easier, we’ve put together a practical glossary of the most important Spanish tax terms you’ll come across as a property owner. Keep this guide handy whenever you need clarity on forms, agencies, or tax rules that affect you! 

A

ATIB (Agencia Tributaria de las Islas Baleares)

This is the Balearic Islands Tax Agency. They manage local tax collection in Mallorca, Menorca, Ibiza, and Formentera, including property taxes for non-resident owners in these islands.

AEAT (Agencia Estatal de Administración Tributaria)

This is Spain’s national tax agency. They handle everything, including tax collection and enforcement, as well as managing taxes like IRNR and the filing of non-resident taxes in Spain. 

C

Capital Gains

This is the profit made when selling a Spanish property. Non-residents must pay capital gains tax on the difference between the purchase price and the sale price. 

Cadastral Value (Valor Catastral)

This is a notional value assigned to every property in Spain and it’s usually lower than the market value. It’s used to calculate local taxes such as IBI and the imputed income tax declared on Modelo 210.

Catastro

This is the national property register responsible for assigning cadastral values. It’s a nationwide database that contains detailed information about every property’s physical characteristics. 

D

Digital Certificate

A digital certificate is an encrypted document that allows government websites, such as the tax office, to securely identify a user. If you don’t have a digital certificate, IberianTax can help you here.

DNI (Documento Nacional de Identidad)

This is the Spanish national identity document for citizens of Spain. Although non-residents only use an NIE number typically, you may still see this term on official forms. 

E

Embargo

An embargo is when the Spanish tax authority (AEAT) places a legal hold or freeze on your assets because of unpaid taxes. An embargo affects money in a Spanish bank account, even if you’re a non-resident. They can also embargo property rental income, wages, vehicles and even the property itself in severe cases. 

Escritura Pública

The Escritura Pública is the official, legally binding deed that is signed in front of a Spanish notary when you buy or sell a property in Spain. It’s one of the most important documents you’ll receive as a homeowner.

G

Gastos Deducibles (Deductible Expenses)

These are the expenses that non-resident landlords can deduct from their rental income, such as repairs, maintenance, community fees, IBI, and insurance - until now, this has only applied to EU/EEA residents; however, a recent court ruling may extend these deductions to non-residents outside the EU/EEA as well. ‘Gastos No Deducibles’ are expenses that cannot be deducted for tax purposes.

H

Hacienda

This is perhaps one of the most common terms for Spain’s tax authority (AEAT). They manage and enforce tax compliance, including non-resident property obligations.

I

IBI (Impuesto sobre Bienes Inmuebles)

Spain’s annual local property tax, calculated from the cadastral value. Every property owner, including non-residents, must pay this every year.

Impuesto sobre Sucesiones y Donaciones (Inheritance and Gift Tax)

This is Spain’s Inheritance and Gift Tax. It applies when a non-resident inherits or receives Spanish property.

Imputed Income

This is the notional income applied to properties that are not rented out, also known as the Imputed Income tax. Non-resident owners must declare it annually on Modelo 210, using 1.1% or 2% of the cadastral value, depending on the property’s valuation date.

IRNR (Impuesto sobre la Renta de No Residentes)

This is the Spanish abbreviation for Non-Resident Income Tax in Spain. It covers rental income and imputed income from property owned by individuals who are not Spanish tax residents.

IRPF (Impuesto sobre la Renta de las Personas Físicas)

This is the Personal Income Tax for Spanish residents. Non-residents typically deal with IRNR instead, except in rare cases where they are deemed residents. 

ITPAJD (Impuesto sobre Transmisiones Patrimoniales y Actos Jurídicos Documentados)

This is the tax on property transfers and certain legal acts. Non-residents pay this when purchasing resale properties in Spain.

IVA (Impuesto sobre el Valor Añadido)

This is Value Added Tax or VAT in Spain. It applies to goods and services. Non-resident property owners mainly encounter it when buying new-build property or contracting various services in Spain.

L

Liquidación de Recargo (Surcharge Settlement)

This is the final calculation of surcharges owed for late tax payments. Non-residents typically encounter this when IBI or Modelo 210 payments are overdue.

M

Modelo 720 (Declaration of Overseas Assets)

This is a form for Spanish tax residents (including non-residents who meet residency criteria) to declare their overseas assets that are worth over €50,000.

Modelo 210

This is the essential form for non-resident property owners. This is the form used to declare rental income or imputed income on an annual basis. 

Modelo 211

This form is used during the sale of property by a non-resident to declare and pay the 3% withholding tax retained by the buyer.

Multa

This is the Spanish term for ‘fine’ or ‘penalty.’ A fine is issued by the AEAT when a taxpayer either: files late, files incorrectly, fails to respond to a request, doesn’t declare rental income or doesn’t resolve earlier warnings. Amounts vary depending on how late, the type of error/omission/ignoring AEAT.

N

NIE (Número de Identificación de Extranjero)

This is the identification number required for all foreigners in Spain. It’s essential for buying property, paying taxes, opening a bank account, and filing the Modelo 210 form.

NIF (Número de Identificación Fiscal)

This is Spain's main tax identification number for individuals and entities. Your NIE number typically acts as your NIF.

P

Patronato de Recaudación

This is the local tax collection body for the Málaga province in Spain. They issue IBI bills and manage payments for non-resident property owners in this region.

Propuesta de Liquidación de Recargo

This is a preliminary notification that additional tax or surcharges may be due, and is often sent when past payments have not been completed on time.

Plusvalía Municipal

This is a local tax that’s paid when selling urban property. It is calculated based on the cadastral value of the land and the number of years the property has been owned.

R

Recargo Ejecutivo (Executive Surcharge)

This is a 5% surcharge that’s applied to overdue tax payments once enforcement proceedings begin.

Referencia Catastral (Cadastral Reference)

This is a unique alphanumeric code that identifies your property in the Spanish Cadastre. It’s required for almost all property-related tax filings, but you can find this on your IBI receipt.

Rental Income

This is any income gained from renting out your Spanish property, whether it’s short term or long term. Non-residents must declare this on Modelo 210 on an annual basis.

S

SUMA

This is the tax authority in the Alicante region. They’re responsible for collecting local taxes like IBI, waste collection tax, and vehicle tax.

T

Tasa de Basura (Waste Collection Tax)

This is the local municipal tax charged for rubbish and waste collection services.

Tax Residency

This determines whether you are taxed as a resident or non-resident in Spain. It affects tax rates, obligations, and forms such as IRPF or IRNR.

Tax Year

Spain’s tax year runs from the 1st of January to the 31st December, and it’s the period used for calculating and filing most taxes.

Frequently Asked Questions

What’s the difference between IRPF and IRNR?

IRPF is for Spanish residents; IRNR is for non-residents. This is one of the most common areas of confusion. IRNR is the Spanish abbreviation for Non-Resident Income Tax in Spain.

Do I need to know all of these terms to file non-resident taxes in Spain?

No - IberianTax handles all the calculations and the compliance. But understanding the vocabulary helps you to read official documents and avoid any potential mistakes. 

Are these terms the same across all regions of Spain?

For the most part, yes, but some terms vary slightly by region (e.g., ATIB in the Balearic Islands or SUMA in Alicante). Spain’s tax system is decentralised, so some agencies differ.

Why do some people call the Spanish tax authorities ‘Hacienda’?

In Spain, ‘Hacienda’ originally referred to the Spanish Ministry of Finance, called the ‘Ministerio de Hacienda.’ Over time, people started using the word for the entire tax system. In an official setting, it’s called the Agencia Tributaria or ‘AEAT.’

Why do some terms appear in Spanish even on English documents?

Because they are legal tax concepts that do not have exact English equivalents. Spanish authorities use their official terminology even when translating documents.

What if I don’t understand one of these terms on an official tax letter?

You can upload the letter when you contact our support team via email – we’ll translate and explain it. 

Need help understanding your tax obligations?

If some of these terms still feel a bit overwhelming, you’re not alone. Spanish tax rules can be confusing, especially when you’re managing a property from abroad. But at IberianTax, we make the whole process simple and clear. Check out the full glossary on our website for more tax terminology here.

Whether you have one property or several, we’re here to make sure everything is filed correctly, on time, and without the usual stress of doing it alone, or hiring an accountant. 

Ready to take the hassle out of your non-resident taxes in Spain? Create your free account with IberianTax and start filing today.