Non Resident Property Tax In Spain?

Spanish income tax – Spanish Income Tax does not apply to the principal residence of a resident owner. However, it does apply to a second residence. In the case of a non-resident , as this property is not considered a principal residence, the tax must be paid on an annual basis.

The tax payable is 2% of the cadastral value of the property as fictitious rental income;
It can be reduced to 1;
1% if the cadastral value has been raised since 1994 – and in many cases it has been;
For residents, this tax is paid as if it were a profit;

For low income, the percentage to pay is 15% and for high income, the percentage is 30% or even 40%. A non-resident is always taxed at a fixed rate of 24% on any income arising in Spain. This 24% income tax should not be confused with the 21% capital gains tax on profits from the sale of assets, such as a house or shares in a company.

Do you have to pay property tax in Spain?

Taxes on buying a Spanish property – Spanish property taxes vary depending on whether you are buying a new home or a resale property. New refers to a property that has never changed hands before – in this case; it is usually sold directly by the developer.

Resale refers to homes that have been sold at least once before. This includes new properties that were bought by banks or taken on by them in case of default on mortgage payments, for example. Expect to pay between 8% and 11.

What taxes do you have to pay when buying property in Spain?

Buying property tax: How much is buying property tax in Spain? – Purchasing a property in Spain involves the payment of different taxes, ranging between 8% and 11. 5%, whether the property is newly built, generally sold by banks or construction companies, or the property has already been owned by another person, a resale. .