By WeLex, your leading law firm in Spain!

Non Resident’s Income Tax in Spain

Non Resident’s Income Tax in Spain

 

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%

 

Do not hesitate to contact our leading law firm in Marbella now! WeLex, English  speaking lawyers and accountants under one roof!.

 

Welex, accountant in Marbella, accounting  in Spain, accountants costa del sol, tax consultants Marbella, tax planning in Marbella