What yearly taxes must I pay?
First of all you need to pay your local property taxes: Impuestos sobre Bienes Inmeubles (IBI), rubbish collection and sewage rights. These taxes are to be paid by all property owners, residents and non-residents alike. It is set and collected by SUMA in name of the town hall, similar to council tax in the UK. Once you have registered at SUMA all these local property taxes are generally paid by direct debit.
Why must I pay income tax in Spain?
Spanish tax law requires that non-resident owners of property in Spain have to pay Spanish income tax even if they have no Spanish earnings such as rental income. This non-resident tax issue can be confusing. Why should owning a holiday home entail paying income tax?