Income tax in Spain for non-residents. Taxation for owning a property in Spain.

In the event that you are non fiscal resident in Spain and own a real estate in Spanish territory, you will have to file a tax return on Non-resident Income Tax. It is a self-assessment tax return that all non-resident taxpayers in Spain, who own a real estate in this country, must present, yearly, to the Spanish Agency of Tax Administration.

When the property has been acquired by a married couple, or by more than one person, each person is an independent taxpayer and must file an individual Spanish Income Tax form.

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 2016 is 24%.

Wealth tax in Spain.

Since 2011, the Wealth Tax in Spain has been reactivated for natural persons with equity of more than 700,000 €.

Spanish Wealth Tax is a progressive tax based on the value of your equity and an applicable rate from 0.2% to 2.5%. The rate may vary from an autonomous community where the rights and assets are situated.

As an example, a property with a value of 1,000,000 € would pay an approximate sum of 733 €, as follows:

  • EUR                                             1,000,000
  • Less than                                     700,000   Exempt
  • EUR                                             300,000  Amount subject to Wealth Tax

  • VALUE                                           TAX
  • To EUR 167,129.45                        334.26 (0.2%).
  • Rest EUR 132,870.55                     398.61 (0.3%).
  • TOTAL                                          732.98

Find out more about the Income Tax for non-residents and Wealth Tax by contacting us now.

Welex: Legal and tax experts in spain.

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Contact our Spanish law firm in Marbella without any commitment. We will be keen to help and explain to you clearly and precisely the best tailor-made solutions to your doubts and issues.

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Income tax and wealth tax in Spain

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