Do You Own A Property In Spain? Find Out About Your Tax Obligations, Even If You Live Abroad
Published in Legal & Tax, Living in Gran Canaria, Buyer tips
If you own property in Spain, you must comply with certain tax obligations, even if you have your tax residence in another country. It is important to know that these responsibilities apply to all non-resident owners, and we want to make sure you are well informed to avoid surprises.
Here is a summary of the main taxes you need to be aware of as a property owner in Spain.
Municipal (Property) Tax IBI
The ‘Impuesto sobre Bienes Inmuebles’ (IBI) is a municipal tax which is paid to the town hall every year, usually in two periods (May/June and October/November). This tax can be paid by direct debit to your bank account for your convenience. It is important that you check annually that the IBI has been paid correctly, as well as other municipal taxes such as rubbish collection, vehicle taxes or vados, if applicable.
Non-Resident Income Tax (personal) via Form 210
In addition to IBI, you will have to file an annual income tax return (Form 210), regardless of whether or not you generate income from the property. If you rent the property, you will have to pay tax on the income obtained. And even if you do not rent it out and it is only for personal or family use, the tax authorities consider a presumed income based on the cadastral value of the property. This ‘imputed income’ is calculated on 2% of the cadastral value (or 1.1% in some cases), with a tax rate of 19% for EU citizens and 24% for non-EU citizens.
The tax return for this tax must be submitted each year in relation to the previous tax year (i.e. the tax for 2023 is payable in 2024).
At Cardenas Real Estate, we offer a complete service to act as your tax representative in Spain: taking care of your annual tax filing and registering as your contact person with the tax office in Spain so that you can receive any type of information or notification on your behalf. We offer you peace of mind, security and certainty: knowing that you will receive timely information and the best assistance regarding your tax obligations in Spain.
If you have any queries regarding tax management or property transfer, please do not hesitate to contact us! We are here to help you.
