Our conveyancing lawyers in Marbella, specialised in buying and selling property in Spain, explain all the taxes involved and that can arise when buying a property in Spain. The taxes arising in the purchase of a property do not vary whether the property is acquired by an individual or by a company, resident or non-resident company in Spain.
Non-Resident Income Tax in Spain
The Spanish Non-Resident Income Tax is a self-declaration tax that all Non-Fiscal Residents in Spain individuals owning a property in Spain should present to the Spanish Inland Revenue on an annual basis.
When the property is owned by a married couple, or by more than one person, each person is an independent taxpayer and an individual tax form should be presented.
Depending on the use of the property, the Income Tax in Spain will be calculated as follows:
– Calculation of the income, considering the exclusive personal use of the owners. A determined rate is applied on the cadastral value of the property.
– Calculation of the income in case the property is rented out: the rental price without the deduction of any costs will be taken into account.
In both cases, for European non-residents, the rate to be applied in 2022 is 24%.
Wealth Tax in Spain
There is an 100% bonifications as from 2022.
Acquisition by an SL company in Spain: Spanish company tax
– General rate: 25%.
New companies created on or after 1 January 2015, carrying out economic activities, in the first tax period in which the tax base is positive and in the following tax period shall be taxed at 15%.
Special non-resident company tax in Spain
Entities resident in a country or territory that has the status of a tax haven that own real estate in Spain are subject to the Non-Resident Income Tax through a special tax that accrues on December 31 of each year and must be presented to the Tax Authorities in the following January.
The tax base is constituted by the cadastral value of the property and the tax rate is 3%. When the cadastral value is not available, the tax is worked out over the purchase price.