TAX collected from foreigners in Malaga has nearly tripled since before the pandemic, new data shows – as a surge in property purchases by non-residents fuels the boom.
Figures from Spain’s tax agency revealed that non-resident tax revenue in the province jumped from €93.5 million in 2019 to €275 million in 2025 – a whopping 194% increase.
It is now the fastest-growing tax category in the country, with Spain’s notary association linking the spike to a sharp rise in property purchases by non-resident buyers.
People who earn income in Spain but do not live in the country full-time must pay non-resident income tax, which replaces both personal income tax and corporate tax.
When non-residents buy property in Spain to rent it out, they fall under this tax regime. Today, they make up around 42% of all property buyers in Malaga – more than double the national average of 20%.
In an eye-catching detail, 67% of foreign property owners in Malaga do not live in Spain full-time, according to the Agencia Tributaria – and yet, under the country’s current system, they are partly behind the spike in tax revenue.
Although non-resident income tax covers a range of income – including interest, dividends and business profits – experts say the real driver is property.
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Economist Jorge Onrubia, of Madrid’s Complutense University, told Diario SUR the surge comes down to three key factors: more foreign home purchases, a boom in tourist and mid-term rentals, and rising rents.
“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,” he said.
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