Figures from Spain's Tax Agency reveal that non-resident tax revenue in the province of Malaga has surged from €93.5 million in 2019 to €275 million in 2025. This remarkable 194% increase makes it the fastest-growing tax category in Spain.
The Spanish Notary Association links this spike to a sharp rise in property purchases by non-resident buyers. Individuals who earn income in Spain but do not reside in the country full-time are required to pay non-resident income tax, which replaces both personal income tax and corporate tax.
When non-residents acquire property in Spain for rental purposes, they fall under this tax regime. Currently, they account for approximately 42% of all property buyers in Malaga, more than double the national average of 20%. Notably, 67% of foreign property owners in Malaga do not live in Spain full-time, according to the Agencia Tributaria.
“"The non-resident income tax is soaring in Malaga mainly due to the foreign property boom and the growth in rentals, reinforced by higher prices and tighter tax controls."
Although non-resident income tax covers various income streams, including interest, dividends, and business profits, experts indicate that the primary driver of this growth is the property sector. Economist Jorge Onrubia, from Madrid's Complutense University, told Diario SUR that this surge is attributable to three key factors: an increase in foreign home purchases, a boom in tourist and mid-term rentals, and rising rental prices.
