Taxation on properties

Firstly, for all taxation purposes, it is essential to establish whether or not you are classed as a Spanish resident.You may be considered a resident of Spain if:

  • You are physically present in Spain for more than 183 days of the calendar year – including occasional absences
  • The main base of your professional activities or economic interests are in Spain.
  • Your spouse and children reside in Spain.

If you are categorised as a resident, property owners are subject to two types of taxation:

  • Personal Income Tax (IRPF)
  • Property Tax (IBI)

Property tax slips are issued by the municipality, normally between the months of September and November. The rate of tax is usually between 1.1% and 2.0% of the cadastral value of the property.

If you do pay IRPF, remember to file the relevant forms exempting you from income tax in your home country.

Non-residents must also pay property tax (IBI), but are also required to pay two different taxes:

  • Non-residents Personal Income Tax (IRNR)
  • Additional non-residents property tax

IRNR is only paid on income from property in Spain; taxation on salaries is only applicable for Spanish residents.

Additional non-residents property tax must be paid, regardless of the property value. It is calculated based on three values:

  1. The cadastral value of the property
  2. The value as assessed by the Spanish tax office
  3. The purchase price

When you own an apartment in Spain you also have to pay the Community fees. This fee is for the maintainance of the building, cleaning of the communal areas, electricity in the communal areas, the service of the concierge, etc. This tax can vary according to the area and each building.



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