Spain's tax system is notoriously complex, particularly for foreign property owners in Arenal, Jávea. From annual non-resident income tax filings to capital gains on property sales, understanding your obligations is essential to avoid penalties. Bufete Padilla's tax team has been advising expats in Arenal and the wider Costa Blanca since 1976, ensuring full compliance while minimising your tax burden through legitimate planning strategies.
Local property market: El Arenal is the beach hub of Jávea, with apartments on the Paseo Marítimo (€220,000–€500,000) and a strong holiday rental demand. Many buyers acquire as a hybrid investment / second home.
Urban-planning notes: New short-term rental rules (NRA) since 2025 require registration in the Registro Único, plus the Jávea ordinance limits new tourist licences in some buildings. We register every Arenal client correctly.
Recent case in the zone: In 2025 we secured a NRA registration plus tourist licence renewal for a Belgian investor with three Arenal apartments, avoiding €30,000 in potential sanctions.
Distance to our office: El Arenal is a 15-minute drive from our Moraira office.
Our tax advisory practice in Arenal covers:
We file all returns electronically and handle all communication with the Spanish tax authorities on your behalf.
We frequently see these costly mistakes from Arenal property owners:
Not filing Modelo 210: Even if you don't rent your property, non-residents must file annual imputed income tax. Penalties start at €100 and increase with time.
Ignoring the 3% retention: When a non-resident sells property, the buyer retains 3% of the sale price and pays it to the tax office. Sellers can reclaim overpayment within 4 years.
Wrong tax residency status: Living in Spain more than 183 days makes you a tax resident, requiring worldwide income declaration. Many expats are caught between two systems.
Missing Plusvalía deadline: Must be filed within 30 working days of a sale. Late filing incurs surcharges.
Not claiming treaty relief: Double taxation treaties can eliminate or reduce Spanish tax on pensions, rental income, and capital gains.
Bufete Padilla's proactive tax planning prevents these issues and ensures you only pay what is legally required.
Yes. Non-resident property owners must file Modelo 210 annually (imputed income tax based on the catastral value, typically €200-500 per year) and pay IBI (council tax). If you rent the property, you must also declare the rental income. We handle all filings on your behalf.
EU/EEA residents pay 19% on the net profit (sale price minus purchase price, costs and improvements). Non-EU residents (including post-Brexit UK nationals) pay 19% as well since recent harmonisation. The buyer retains 3% of the sale price as an advance payment — you can reclaim any overpayment. Additionally, Plusvalía Municipal (municipal capital gains) applies based on the period of ownership.
The Wealth Tax (Impuesto sobre el Patrimonio) applies to net assets above €700,000 per person in the Valencian Community. If your Spanish property plus other Spanish assets exceed this threshold, you must file and pay annually. Rates range from 0.2% to 3.5%. Non-residents are only taxed on their Spanish assets.