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Spanish non residents real estate taxes obligations

Spanish non residents real estate tax obligations

Tax advice in connection with the services after the acquisition of real estate property in Spain by non residents:

We assume the following:

(i) Currently you are resident in the European Union (aside form Spain), Iceland or Norwegian.

(ii) You acquired a real estate property in Marbella (Spain).

In this case, please be informed about the tax obligations of non-residents once you acquire the properties in Spain:

1. Non-Resident Income Tax (Impuesto sobre la Renta de No Residentes, or IRNR)

Owners of a real estate asset in Spain, when such property is not rented to third parties, will be taxed on the amount obtained by applying 2% to the cadastral value of this property and applying tax rate of 19,50% (2015).

If you have not been the owner of the property during the whole year, or if it has been rented for any period, only the proportional part of this amount is to be declared.

This yield is calculated once per year, on the 31st December and declared on Form 210. The declaration and payment can be made at any time during the following tax period.

2. Wealth Tax (Impuesto sobre el Patrimonio)

It is compulsory to submit in the case of individuals with a net tax liability or, otherwise, in case the value of assets or rights  exceeds €2,000,000. Nevertheless, a minimum exemption is set at the amount of €700,000.

3. Local Real Estate Tax (IBI) and Garbage Tax (Basuras).

Property owners will be taxed at a rate determined by the municipality where the real estate assets are located. These taxes can be paid by direct debit to your bank account.