- As a non-resident property owner in Spain, do I need to file a Spanish tax return?
- Yes. If you own Spanish property you have an obligation to report your rental income to the Spanish tax authorities.
- When do I need to file Spanish deemed income tax return?
- As a non-resident if your property is an urban property and not let, you must still pay Income tax on ‘deemed’ rental income. In case the property is partially let Spanish Deemed income tax is applicable only for the period in which property was vacant or occupied by the owner for personal use.
- How is Spanish deemed income tax calculated?
- The taxable base of the deemed rental income is calculated at 2% (or 1.1% if the value was revised in the past 10 years) of the rateable (cadastral) value of your property. The taxable base is then multiplied by general income tax rate.
- What is the 'cadastral' value of a property?
- The cadastral value is the value set by the local Town Hall on a property. It is used for calculating the local property taxes (rates) and Spanish Deemed rental income tax.
- When is the deadline for filing a Spanish rental income tax return?
- Income must be reported and taxes paid within a month of receiving rental income in Spain. Alternatively quarter Spanish Rental income tax returns could be filed.
- Am I obliged to pay Spanish wealth tax?
- Non-residents in Spain may pay Wealth Tax depending on the net value of their Spanish property. The tax rate ranges from 0.2% to 3.7% from the value of the property. There is a general allowance of currently €700,000 which is not subject to wealth tax.
- What is the current rate for Spanish Capital Gains Tax?
- Spanish Capital Gains Tax rate is currently 19.00% on the gain from selling the property.
- What are the Spanish CGT implications that I may have as non-resident?
- Under Spanish law, in case the seller is non-resident the purchaser must withhold Public treasury tax at 3% of the purchase price and pay it over to the tax authorities within a month of transfer. A reclaim may be required if the 3% paid exceeds the final Spanish Capital Gains Tax liability.
The Spanish Capital Gains Tax return should be filed and paid within three months of the withholding tax payment.