TAXES & ADMINISTRATION
INCOME TAXES
The ownership of property in Spain entails a number of tax-obligations. As a non-resident in Spain, you have to pay taxes on your property annually, even if you don't rent out the real estate.
The declaration must be made per owner and per property. The annexes with a separate cadastral number will as well have to be declared.
Even if you do not rent, a flat-rate income of 1,1% will be charged on the cadastral value of the property. On this income, the Spanish tax authorities will charge a tax of 19% for residents of the EU and of 24% for non-EU residents.
The declaration must be made annually before 31 december of the following year. For example: if you had a house in Spain in 2017, the declaration must be made before 31 december 2018.
If you rent out your property, the Spanish tax authorities will charge a tax of 19% on your net rental income.
Applicable deductible items on an annual basis in the declaration:
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IBI or Cadastral income
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Basura or Dirt tax
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Insurance
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Community (annual)
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Possible interests on a Spanish loan
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Commissie agent (Agency)
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Invoices of work and furniture (10 years)
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Invoices of utilities
After deduction of these items you will receive the exact amount of taxes that you will have to the Spanish tax authorities per rental period, per quarter.
As a natural person, you will have to pay taxes again on the fictitious rental value the following year. These are calculated on a calendar year minus the already indicated periods when there was rental activity.
