Property Taxes in Fuerteventura
for Non-Residents:
2026 Tax Guide

Taxation is one of the most overlooked aspects when buying property abroad — and one of the most expensive if not managed correctly. As a non-resident owner of a property in Fuerteventura, you have tax obligations both in Spain and in your home country. This guide explains everything you need to know to stay compliant and optimise your tax position.

The tax framework for non-residents in the Canary Islands

If you are a resident of another country and own property in Fuerteventura, you are considered a non-resident for Spanish tax purposes. This brings specific tax obligations, different from those of Spanish residents.

The main taxes affecting non-resident property owners in the Canary Islands are:

• IBI — Impuesto sobre Bienes Inmuebles (annual municipal property tax)
• IRNR — Impuesto sobre la Renta de No Residentes (non-resident income tax)
• Plusvalía municipal — municipal tax on the land value increase at sale
• Foreign asset reporting obligations in your home country (specific requirements vary by country)

IBI — The annual municipal property tax

The IBI (Impuesto sobre Bienes Inmuebles) is the Spanish equivalent of council tax or rates. It is paid each year to the municipality (Ayuntamiento) where the property is located.

How it is calculated:

• The taxable base is the cadastral value of the property, generally well below market value
• The rate varies by municipality: in Corralejo (municipality of La Oliva) it is approximately 0.4–0.6% of the cadastral value
• For an apartment with a cadastral value of €80,000: IBI = €320–480/year

IBI is paid directly to the municipality, usually between July and October. If you are not physically in Spain during the payment period, you can set up a direct debit from a Spanish bank account or authorise a local representative.

IRNR — Tax on rental income

When you rent out your property in Fuerteventura, the income generated is subject to IRNR (Impuesto sobre la Renta de No Residentes). The rate applicable to EU/EEA residents is 19%.

For EU/EEA residents, the taxable base is the net income: you can deduct costs directly linked to the rental activity (cleaning, OTA commissions, maintenance, proportional service charges for rented periods, mortgage interest, depreciation on the property and furnishings).

This is an important advantage compared to non-EU/EEA non-residents, who pay 24% on gross income with no possibility of deducting costs.

Practical example:

• Annual gross revenue: €20,000
• Deductible costs: €7,000 (cleaning, OTA, maintenance, etc.)
• IRNR taxable base: €13,000
• IRNR at 19%: €2,470

The IRNR return (modelo 210) is filed quarterly or annually. A local gestor fiscal handles this for around €200–400/year.

IRNR on deemed income (even without renting)

Be aware of a little-known rule: even if you do not rent your property, IRNR still applies on a deemed (imputed) income. The Spanish state considers the property a potential source of income.

How deemed income is calculated:

• Cadastral value × 1.1% (or 2% if the cadastral value has not been updated in the last 10 years)
• Apply the IRNR rate of 19% to this amount

Example: property with cadastral value €80,000 → deemed income €880 × 19% = €167/year of notional IRNR. A modest figure, but one that must be declared every year.

Capital gains at sale

If you sell your Fuerteventura property, you are subject to two separate taxes on the gain:

1. IRNR on capital gains

• Rate: 19% on the net gain (sale price − purchase price − associated costs)
• The buyer is legally required to withhold 3% of the sale price as an advance IRNR payment to the Spanish tax authority
• If your actual IRNR liability is lower than the 3% withheld, you can claim a refund of the difference

2. Plusvalía municipal

• Municipal tax on the increase in the cadastral land value over the period of ownership
• Rate varies by municipality: 5–30% of the cadastral increment
• Constitutional Court ruling 2021: you can challenge the plusvalía if the property was sold at a loss or if the actual increase is lower than the tax charged

Tax obligations in your home country

As a non-resident with overseas property, you will also have reporting obligations in your country of residence:

Foreign property reporting

• Most European countries require you to declare foreign real estate assets in your annual tax return
• The applicable rate varies by country but typically ranges from 0.5% to 1% of the property's value (cadastral value or purchase price)
• You may be able to offset the IBI already paid in Spain, avoiding double taxation on the same base

Rental income in your home country

• Rental income from Fuerteventura must generally be declared in your home country as well
• Spain has double taxation treaties with most EU countries. These agreements provide that real estate income is primarily taxed in the country where the property is located (Spain)
• The credit method typically applies: you can offset taxes already paid in Spain against your home-country tax liability
• In practice, if you have already paid 19% in Spain, the additional tax in your home country will be significantly reduced or nil for most taxpayers — but always verify with a specialist

Annual tax summary for a typical owner

Estimate for a property with rental revenue of €18,000–22,000/year. Figures vary depending on individual circumstances.

Conclusions

Taxation on a Fuerteventura property is manageable and predictable — but it requires attention. Key takeaways:

• IBI is paid every year to the municipality — set up a direct debit so you never miss it
• IRNR at 19% applies to net rental income, with all costs fully deductible for EU/EEA residents
• Even without renting, there is a deemed income you must declare each year
• The double taxation treaty between Spain and most European countries prevents effective double taxation on rental income
• A local gestor fiscal (€200–400/year) is more than worth the cost

Questions about your specific tax situation, or want to know how to optimise the tax position of your property? Message us on WhatsApp — we'll connect you with our partner tax specialists who work with European property owners in the Canary Islands.