Property taxes for non-residents - Spanish Property Insight

Property taxes for non-residents

The following tables explain the taxes that non-residents are obliged to pay to the Spanish tax authorities as a consequence of owning property in Spain.

Income tax for non-residents who do not rent out their property (standard declaration)

Spanish name	Impuesto de la renta de no residentes, declaración ordinaria (IRNR)
Description	You pay this version of income tax in Spain if the following conditions apply: 1) You do not reside in Spain, 2) You own property in Spain, 3) The property is exclusively for personal use and you do not rent it out, 4) You have no other source of taxable income in Spain. Although you do not earn an income from the property, in the eyes of the Spanish tax authorities you still derive a benefit from owning a property in Spain and therefore have to pay an imputed income tax.
Tax base and rate	Tax base: 2% of the cadastral value of the property (found on the IBI receipt), or 1.1% if the cadastral value has been revised since 1st January 1994. Tax rate: 24% (temporarily increased to 24.75% for 2012 &2013). It used to be 25% in 2006 and before.
Form	Use general section 210-A and indicating income type 02.
Dates	Presented before the 30th June each year. For example you have from 1st January to 30th June 2006 to declare tax on income during 2005.
Example	Cadastral value of property = 200,000 Euros Base = 2,200 Euros Tax = 24% x 2,200 Euros = 528 Euros (or 24.75% x €2,200 = €544.50 in 2012 & 2013)

Wealth tax for non-residents

Spanish name	Impuesto sobre el Patrimonio (Patrimonio) Note: This tax was eliminated as from 01/01/2008 but has just been reintroduced (September 2011) with several important changes and other issues that are explained in depth in the section on Spain’s patrimonio wealth tax
Description	Everyone who owns property in Spain (residents and nonresidents alike) has to pay an annual wealth tax based on the net value of their assets in Spain after permitted deductions, such as mortgages. This tax is collected by regional governments.
Tax base and rate	The tax is based on the net value of you property (less mortgage, if any) or another value deemed appropriate by the tax authorities, with a tax-free allowance of €700,000. The tax rate works on a sliding scale with marginal rates starting at 0.2% and rising to 2.5%.
Form	714
Dates	Presented in June for previous calendar year.
Example	Depends upon the autonomous region where your property is located. No wealth-tax to pay in most regions if the net value of your property does not exceed €700,000

Income tax for non-residents who do not rent out their properties, combined with the wealth tax

Spanish name	Impuesto de la renta de no residentes, y Patrimonio (IRNR y Patrimonio) Note: See changes to the ‘patrimonio’ wealth tax above. Until the wealth tax situation is clarified it is hard to say if this form will be brought back. But it is likely that, for most non-residents, the form 210 (see above ‘Declaración ordinaria Impuesto sobre la Renta de no Residentes’) will suffice for 2011 and 2012.
Description	Under certain conditions non-residents can pay the two taxes mentioned above (IRNR and Patrimonio) in the same declaration and using the same form. Therefore this is not an extra tax, just a more convenient way of paying the two taxes previously mentioned. To present these taxes together in the same form you have to meet the following conditions: 1) You do not reside in Spain 2) you only own one property in Spain, and 3) this property is exclusively for personal use and is not rented out.
Tax base and rate	The value of the tax is the sum of the two taxes as explained above.
Form	214
Dates	Presented any time during the following calendar year, deadline 31 December. So you present in 2013 for taxes in 2012.
Example	N/A

Income tax for non-residents who rent out their property (ref)

Spanish name	Impuesto de la renta de no residentes, declaración ordinaria (IRNR)
Description	If you 1) do not reside in Spain 2) own property in Spain and 3) rent out your property, you have to pay income tax on the rent instead of the imputed tax described above. (If you rent out your property to a Spanish company the company will deduct tax at source and pay it to the tax authorities. Under these circumstances a nonresident is not obliged to present the forms 210 or 215.)
Tax base and rate	The tax base is the net rent, deductions of expenses allowed (since 01/01/2010), and the Tax rate: 24% (temporarily increased to 24.75% for 2012 &2013). It used to be 25% in 2006 and before.
Form	210 (use general section 210-A and indicating income type 01) or 215
Dates	210 = Monthly, one month after rent is due 215 = Quarterly, in the first 20 days of the month following the end of the quarter.
Example	Annual net rental income of 20,000 Euros Tax @24% = €4,800 (@24.75% in 2012/2013 = €4,950)

Municipal property tax

Spanish name	Impuesto sobre Bienes Inmuebles (IBI)
Description	This tax is the Spanish equivalent of the rates and is collected by local government.
Tax base and rate	The tax base is the cadastral value of the property and the rate varies from 0.405% to 1.166% depending upon the region. The following table shows rates per regions, and the year in which the cadastral value was lasted updated.
Form	N/A
Dates	Payment period determined by the local authority.
Example	Varies, but 200 Euros – 800 Euros per annum will be common.

NOTES

Cadastral value	The cadastral value (valor catastral) is the rateable value of a property as determined by the municipal government. The cadastral value is usually much lower than the market value of the property. The cadastral value of a property is identified on municipal property tax receipts (IBI).
Joint ownership	Bear in mind that if a property is owned by a married couple or shared by various individuals, in many cases they will be treated as separate taxpayers and must file returns separately.
Capital gains tax	When they sell-up, non-residents have to pay capital gains in Spain on the difference between the sale and the acquisition value of their property.
Resources	+ SPI section on taxes in Spain + Spanish tax bureau

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