Note
Second home or investment property in Spain
Quick answer
A home you use yourself and a home you rent for income pull in different directions. Personal use limits letting and changes the tax. An unlet home still triggers imputed income for a non-resident. Decide the main purpose first and let it set the choice of place and type.
Applies toBuyers who want both to use a Spanish home and to earn from it, and are unsure which goal should lead.
On this page: 9 sections
§ 1Two goals
A second home is chosen for where you want to be. An investment property is chosen for what it earns. Many buyers want a bit of both, and the compromise carries costs in tax, rules and choice of home. This page belongs to the chapter in the chapter on investment strategy.
§ 2Choosing the place
If you will use the home, location, light, quiet, neighbours and travel time count. If you will let it, demand, rules, rents, and access for tenants or guests count. A beautiful home in a village with little demand may be a poor investment, and a good rental flat in a busy block may be a poor holiday home.
§ 3Letting around your own use
Letting around your own stays is possible with long lets only if you choose a tenant for a fixed term, and the tenant law then governs the lease. Short tourist lets fit around personal use better, but tourist rules, licences, regional registration and the community’s approval and vote apply, as more on investor risks explains in general terms. Consider the wear and the management: guests, cleaning, keys and repairs.
§ 4Tax when you mix
A non-resident owner whose home is not let is taxed on imputed income, a share of the cadastral value, and no expense can be deducted. For the months the home is let, the rent is taxed instead, and in general on the gross amount. The costs section explains both, and the home-country rules of the owner apply too, as the nationality section explains.
§ 5Money
If you borrow, the lender may ask how the home will be used, and the rent may count or not in the lender’s assessment. The mortgages section explains the loan. Keep funds for the empty months and for repairs.
§ 6The cost of both
A home that is also let must meet the standards the rules require, and it wears faster. A home that is held for personal use must carry its costs without income. Compare the costs of each plan honestly.
§ 7Changing your mind
Plans change. You may retire there, or sell because you rarely visit. Choose a property that suits more than one future, with papers in order and demand in the area.
§ 8Decide
Write down the purpose in a sentence, the budget, the rules that would stop the plan and what you would do then. Then read the chapters on long lets and tourist lets in this section.
§ 9A test
Ask whether you would still buy the home if it earned nothing, and whether you would still buy it if you could never stay in it. If the first answer is yes, treat income as a bonus. If the second answer is yes, you are buying an investment and should judge it as one.
FAQRelated questions
Can I use my home and rent it out?
Yes, if the rules allow it. Letting part of the year means you owe tax on the rent for those months and on imputed income for the rest. Tourist lets also need the right licence and the community’s consent.
Which goal should lead?
The one you would regret losing. If you want to use the home often, choose it for place and comfort, and treat rent as a bonus. If income leads, choose by rules, demand and costs, and accept that you may rarely stay there.
Does personal use change the tax?
Yes. A home not let and not used for a business is taxed on imputed income for a non-resident owner, and part-year lets split the year. The costs section explains it, and your adviser should confirm the position in your country too.
Sources
- Agencia Tributaria: Worked example of imputed income (renta imputada) (official source, opens in a new window), Percentages of cadastral value and rates (2018 accrual)Last checked 17 October 2026
- Agencia Tributaria: Rental income of non-residents: specific questions on property (official source, opens in a new window), Rates, gross base, deductible expenses, imputed income for unlet monthsLast checked 17 October 2026
Tax note. Rates depend on the region, the type of property and the buyer, and they change. Figures here are dated and sourced; examples are illustrative and show their assumptions. Confirm yours with the regional tax agency or a tax adviser.