Non Resident Tax In Spain On Property?

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 I pay tax on 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. .