Spanish Property Owner Taxes

Spanish Property Owner Taxes

The following information is provided by Numerological

Although there are accountants, lawyers and gestors in Spain, and a number of overseas specialist tax consultancies in London, there is no other UK based company providing a specialist tax service for non-residents with properties in Spain.

Tax declarations

The Spanish tax system is based on self assessment, which means that you are required to:

* Obtain the right tax form
* Calculate the tax due
* Complete the form
* Submit to the Spanish tax office
* Pay the tax!

Many non-resident property owners remain completely ignorant of their tax obligations - until they come to sell their properties. This then prompts the authorities into action, which can lead to some nasty surprises!

Taxes payable during ownership of your property

There are essentially three areas of taxation, for non-resident property owners.

* Income Tax (Impuesto sobre la renta de no residents)
* Rental Income Tax (Impuesto sobre la renta de personas fisicas)
* Wealth Tax (Impuesto sobre el patrimonio)

Income Tax (Impuesto sobre la renta de no residents)

Income Tax is payable for each year, during which, you own a Spanish property.

The Taxable amount is based on the rateable value of the property

The tax rate charged is 2%

There are no tax allowances applicable

Rental Income Tax (Impuesto sobre la renta de personas fisicas)

Rental Income Tax is payable if you rent out your property

The taxable amount is the gross rental income received

The tax rate applicable is 25%

There are no tax allowances applicable

Wealth Tax (Impuesto sobre el patrimonio)

This is payable by property owners holding Spanish assets on the 31st December

The taxable amount is based on the value of Spanish assets held

The tax rate varies between 0.2% and 2.5%

Any debts associated with the assets can be used to offset the "wealth"calculation

Taxes payable on disposal of your property

Taxes due on the sale of your property

Capital Gains Tax

* The taxable amount is based on the gain made between the sales price and the purchase cost, excluding any relevant expenses.
* The tax rate payable is 18%
* The costs of both purchasing and selling the property can be offset against the gain, plus inflationary allowances, plus the costs of any improvements.

Taxes due on property gifts

Gift Tax

* Tax is payable when you give all or part of a property to someone * The taxable amount is the "value" of the gift
* The tax rate varies between 7.65% and potentially 81%
* There are no tax allowances applicable

Taxes payable on death

Inheritance Tax (Impuesto sobre sucesiones y donaciones)

Tax is payable on the death of an individual Taxable amount: the value of the beneficiary’s inheritance Tax rate: varies between 7.65% and potentially 81% Tax allowances: approximately €16k or €8k allowance for certain family members

If you would like a Free Spanish Tax Guide and to receive details of how Numerological can help you meet your Spanish Tax obligations, just click on the link below:


Numerological Spanish Taxation Services

The Numerlogical service is designed for those non-residents that have bought a Spanish property, and focuses on those taxes that become applicable after you have been through the buying process.


Numerological has a packaged service which ensures that:

* You are informed as to your Spanish tax obligations.
* All potential tax liabilities are minimised, wherever possible, based on your specific circumstances.
* All annual tax obligations are met on time.
* All communication with the Spanish Tax Office is met on your behalf.
* You are continually updated with regard to changes in the Spanish tax system.
* You always have someone, informed about your situation, to talk to about any changes or plans for your Spanish property.

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