#nonresidenthomeownersspain

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Non-Resident Property Tax

How Much Tax will you Pay on your Spanish Property?

At the end of December 2016 owners of property in Spain will have to submit their non-resident tax declarations. Non-residents with property in Spain often have many questions about what they are required to pay in Spanish taxes. Ideally you should get the advice of a Spanish lawyer but in the meantime here is a brief summery.

Who Classified as a Non-Resident Property Owner in Spain?

Property owners who reside in Spain for more than 183 days a year are considered residents. Less than that and you are a non-resident property owner.

Which Property Taxes do Non-resident Spanish Property Owners Pay?

IBI Tax: Non-resident Spanish property owners are required to pay IBI (Impuesto Sobre Bienes Inmuebles) or municipal taxes. IBI is paid annually by all home owners to the municipal city hall or SUMA office. The rate of IBI is determined by the rateable value of your property, better known as the valor catastral (catastral value).

Imputed Income Tax (rental tax): Property owners are required to pay rental tax whether they rent out their property or not. Rental tax is collected quarterly on the 20th of the first month of each quarter (20th of April, July, October and January). 

Continued Imputed Income Tax: Even if you don’t rent your property you will need to pay the imputed income tax. Imputed income tax is an estimated amount which you could in theory make if you did rent out your property. Another name for this is “ letting value tax.” Imputed tax is paid on a second home you are not renting out and is paid to the Spanish Tax Authority when you make your annual non-resident annual tax declaration.

The imputed income tax is calculated using the valor catastral as the base figure which is then multiplied by a percentage – 2% of the valor catastral if the valor catastral has not been updated in the last 10 years and 1.1% if it has. (If there is no valor catastral the purchase price is used and if divided by two to find the base figure. ) After this calculation the resulting figure is then multiplied by 10.5% for EU citizens and 24% for non-EU citizens.

Do I still pay this tax if I pay tax in my home country?

Yes, as the tax has nothing to do with actual income rather with potential income from renting out the property.