As a firm of lawyers and accountants specializing in Spain, we are here to provide you with clear and accurate information about non-resident income tax in Spain. In this article, we will explore the requirements to ensure that you comply with your tax obligations in Spain. Our aim is to provide you with reliable guidance and facilitate your understanding of this tax for successful financial management in the country.

Being a non resident and owning a property in the Spanish territory you will be subject to the Non Resident Income Tax.

When the property is owned by more that one person regardless if are married on not, each owner will be treated as an independent taxpayer and therefore each owner should file its own personal tax form.

 

Non Residents Income Tax in Spain– property for the owner’s personal use

The annual income will be calculated applying the percentage in forced to the rateable value of the property published by the local authorities on the local property tax (IBI).  In general, this is 2% or the reduced percentage of 1,1% if the rateable value has been reviewed in the last previous ten years.

 

The income is accrued at the end of the tax period , 31 of December and required to be submitted during the following 12 months.

 

If you have only been owner of the property during part of the year or this has been leased part of the year, then the proportional part should be applied.

 

Tax rate in forced (as per published date):

  • Residents in the EU, Iceland & Norway:       19%
  • Other tax payers:                                          24%

 

Non Residents Income Tax in Spain – Income from leased properties

 

The income declared should be the full amount received by the lessee without deducting any expenses.

To calculate the tax base due please note that only Residents in the EU, Iceland & Norway can deduct some expenses as long as this expenses can be linked directly and inseparable from the lease activity and therefore completely linked to the income received from the Spanish property.

The tax form should be submitted on a quarterly basis including the income due for the period whether it has been received or not by the owner.  And, other amounts actually received even if this corresponds to income from another future period.

 

Tax rate in forced (as per published date):

  • Residents in the EU, Iceland & Norway:       19%
  • Other tax payers:                                          24%

 

If you need advice or have any queries regarding non-resident income tax in Spain, please do not hesitate to contact us. Our team of lawyers and economists will be happy to assist you and provide you with personalised solutions. We are here to make sure that your interests are protected and that you comply with all tax regulations effectively – we are at your disposal for any such matters!