Find out about the non-resident property tax which must be paid on Spanish properties depending on the residency and tax status of the property owner…
The non-resident property tax (Impuesto Sobre la Renta de no Residentes) is a tax on rental income for non-Spanish residents. If a property is rented, then income tax must be paid on the gross amount of rental income received at a rate of 24.75 percent (although since 2010, EU residents have been permitted to deduct allowable expenses).
Another tax applies to anyone who owns a property that is not their main home, and, if not rented out, a notional rental income is deemed to arise. The amount is derived from the cadastral value of the property. This amount can be found on the IBI council tax bill. The tax payable for a non-Spanish resident is 24.75 percent of a taxable amount calculated as 2 percent of the property’s cadastral value (found on the IBI bill). This should be submitted using tax form 210. The same taxable amount applies to residents of Spain, but this is added to other income, and taxed at the scale rates.
The tax rates, scope and reliefs may change. Any statements concerning taxation are based upon Blevins Franks’ understanding of current taxation laws and practices which are subject to change. Tax information has been summarised; an individual must take personalised advice.