Spanish income tax for non residents – wealth tax in Spain

Rental – Deemed Income Tax

All non residents owning a property in the Spain Territory have the legal obligation to present a Non Resident’s annual Tax Return.

Even if your Spanish property is left empty or you do not rent it out to a third party, the Spanish Law presumes a “Deemed Rental Income” and all owners of the same are required to fill up a personal tax declaration and issue the corresponding payment due.  The tax to be paid should be calculated annually as it depends on several factors which may vary from one year to another.

During 2015 there was a revision of the tax rates applicable to the Income of all Non resident Tax Payers in Spain without permanent establishment.   See table below stating the general tax rate standpoint:

Our firm will be able to assist you in the tax computation, filling up the tax forms and paying the taxes due on your behalf.  We may also advise you on all other Fiscal matters.

1. Wealth Income Tax

The Wealth Income Tax was re-established temporarily for tax years 2011, 2012, 2013, 2014, 2015 and 2016, accruing on 31 December of each of these years. This was planned to end up on January 2017 but it is likely that during the period 2017 the tax will continue to be in force as it has been stated on the Economical budget Plan, but due to some government delays has not been approved up to date.

Tax base: The tax base will be reduced, as exempt minimum, by 700,000 euros.

Obligation to declare: All taxpayers with a positive tax liability are obliged to file a tax return. Those taxpayers whose assets and rights have values greater than 2,000,000 euros are also obliged to file a tax return, even when their liability proves negative.

Do not hesitate to contact one of our English speaking accountants in Marbella. Welex, your lawyer and accountant under one roof!.