INTRODUCTION TO TAXES IN SPAIN FOR NON RESIDENTS 2018
A person is resident for tax purposes in Spain if he is physically present in Spain for more than 183 days in any calendar year.
2.1. Property Taxes
Impuesto sobre Bienes Inmuebles (Annual Rates): This is the main local property tax affecting owners of properties in Spain payable yearly to the Town Hall.
The amount of the tax is calculated by reference to the “valor catastral” (official value of the property) registered in respect of all properties in Spain. The percentage charged varies from area to area.
Basura (Rubbish): A local tax related to rubbish collection to be paid to the Town Hall every 6 months.
2.2. Personal Taxes
Impuesto sobre la Renta de las Personas Físicas (Income Tax) : Non-residents are also liable for imputed income tax on their property in Spain. This tax is calculated on the basis of 2% or 1,1% (depending if the value has been recently revised) of the “valor catastral” (rateable value) of the property.
The tax rate for 2017 and 2018 are the following :
| 2017 | 2018 | |||
| Residents in UE, Norway and Iceland | Rest of taxpayers | Residents in UE, Norway and Iceland | Rest of taxpayers | |
| 01/01/2017-11/07/2017 | 12/07/2017-31/12/2017 | |||
| 19% | 19% | 24% | 19% | 24% |
Income and Wealth Taxes are payable in arrears, for example the tax due for the tax year 2016 is paid in 2017, before the 31st December.
Impuesto sobre Incremento de Patrimonio (Capital Gains Tax): Non-residents pay capital gains tax on profits arising from the sale of their Spanish assets. The tax is based on the difference of the value of the property when it was purchased and the value on its sale. As a general rule, the authorities require that buyers from non-resident sellers deposit 3% of the purchase price with the Spanish Tax Authorities.
The tax rate for 2017 and 2018 are the following:
| 2017 | 2018 | |
| 01/01/2017-11/07/2017 | 12/07/2017-31/12/2017 | 19% |
| 19% | 19% | |
Impuesto sobre el Patrimonio (Wealth tax): Non-residents are also liable for wealth tax for all the goods located in Spain when the value of all these goods exceeds 700.000 Euros. If the value of all the goods in Spain does not exceeds 700.000 Euros, non-residents do not have to pay taxes for the Spanish wealth and do not have to issue any tax form. The tax rate will depend on the value of the goods.
We suggest property owners to appoint a Fiscal Representative who will undertakes on behalf of the tax payer all dealings with the Spanish Tax Authorities.