A non resident who owns a property in Spain must file three separate tax forms every year:
- Spanish Property Wealth Tax. (this tax is no longer payable as of 1st of January 2009)
Property Income Tax (Tax form 210)
Tax authorities presume that you generate an income by owning a property in Spain and therefore, taxes always at the flat rate of:
- 24.75% of the rental income, for the periods during which the property is rented out. (25% for fiscal years prior to 31/12/2007).
- 24.75% of personal income, for the periods during which the property served a personal use. (25% for fiscal years prior to 31/12/2007).
For owners of a property which is for personal use only (not rented out), a simplified tax return form can be filed within the filing period beginning January 1st through December 31st of the following fiscal year.
Property Wealth Tax For Non-Residents.
Royal Decree 13/2011, 16th of September
Its reintroduction, following the published law, will only be for a two-year period, 2012 and 2013, which corresponds to tax periods 2011 and 2012, respectively.
Spanish name: Impuesto sobre el 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.
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%.
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.