How are the local property taxes and wealth taxes for non residents treated when a property is owned equally by 4 persons. Does each person have to make a tax return, and is the value of the property divided by 4 as well?
Fractional ownership is also possible without having to buy through a company. In fact it’s more common – i.e. when a husband and wife each own 50%.
The local rates (IBI) will be charged to one person. You should then settle up privately. For wealth tax and income tax you need to submit individual returns, and yes, the value is divided in proportion to your part, i.e. 25% if 4 equal parts. However best you check the detail with a Spanish tax advisor.
Thanks to all who replied. I will be going down the route of a purchase based on 4 family members. I understand that the wealth and income tax are assessed for each non resident owner, but I was concerned about the tax base being fixed on the whole value of the property in each case for the wealth tax, and non resident income tax being based on the same value.
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