Escura would like to inform you through this newsletter of the principal tax consequences of being considered Spanish Tax non-resident and owning a property in Spain.
In general, individuals who spend less than 183 days during the calendar year in Spain are considered Spanish Tax non-residents. Non-resident taxpayers in Spain are taxed on their income and assets from Spanish source only.
Therefore, Spanish Tax non-residents who own a property in Spain are subject to taxation and will have to file a tax return depending on the type of income obtained.
Please find below a summary of the different tax returns which will have to be filed depending on the type of income obtained as a consequence of owning a property in Spain:
|
Income obtained |
Result of the tax return |
Deadline to file the tax return |
Applicable tax rate | |
| If the property is empty |
presumed income |
Tax payment |
Year after the accrual date (deadline 31st December) | General rate: 24%. For residents in other EU member states or European Economic Area (EEA) countries with which there is an effective exchange of tax information, the rate is 19% |
| If the property is rented |
Rental income |
Tax payment |
first 20 days of April, July, October and January for those income which accrual date would be the previous quarter |
General rate: 24%. For residents in other EU member states or European Economic Area (EEA) countries with which there is an effective exchange of tax information, the rate is 19% |
|
Tax refund |
From 1 February after the year in which the income has been accrued. Deadline: 4 years |
|||
|
No payment due |
Between the 1-20th after year following the year on which the income has been accrued |
|
If the property is transferred |
Capital gain generated from the transfer of the property |
Indifferent |
During the 4 months after the deadline of the transmission of the property |
19% |
Non-residents are subject also to Wealth Tax in Spain, which is levied only on the individual’s Spanish wealth net value. However, they are entitled to a Euros 700,000 general deduction.
