If you live outside Spain and inherit a property in Tenerife, you will have new tax responsibilities — even if the property is empty. This guide explains them in simple terms.
1. Non-Resident Income Tax (IRNR)
All non-resident property owners in Spain must pay Non-Resident Income Tax once a year. This applies even if you do not rent out the property.
The amount is small but still must be submitted annually to avoid penalties.
2. IBI and Basura
These are local municipal taxes that you must pay every year. IBI is similar to council tax. Basura covers rubbish collection. Both continue to apply after inheritance.
3. Tax if You Rent Out the Inherited Property
Non-residents who rent out their Tenerife property must declare the rental income quarterly. Different rates apply depending on whether you live in the EU or outside it.
Most owners use an accountant to file these returns correctly.
4. Selling the Property Later
Non-residents who sell must pay capital gains tax on the profit, and the buyer must withhold 3% of the price to ensure compliance. This is refunded if no tax is due.
Knowing your tax duties early helps you avoid surprises and penalties later.
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