Have you ever wondered what taxes you have to pay for owning a property in Spain as a non-resident?

Well, in the following article,  our expert finance guru Enrique Sempere will explain how to deal with taxation in relation to non-residents who own property in Spanish territory, and who obtain an economic return through its rental, sale, or simply its mere possession for their use and enjoyment.





In this case, we will be dealing with taxpayers of the Non-Resident Income Tax (IRNR). It is the tax through which the income of individuals and non-resident entities is taxed in Spain.


In this case, we will focus on the taxation of income obtained by a non-resident individual who, by holding a real estate property in Spain, obtains income from it.


We, therefore, focus on 3 possible sources of income derived from real estate property in Spain:


– If you do not have it rented, you must pay tax on form 210 for the imputation of income, i.e. for the mere possession and use of the real estate, generated during the financial year. The value to be declared in the IRNR depends in this case on the cadastral value of the property in question.


– However, if the property is rented, the tax must be paid on form 210, this time on a quarterly basis, for the sum of the income obtained during the three months in question. In this case, there is the possibility of deducting certain expenses related to the property from the income received, provided that the owner of the property is a member of an EU Member State.


– Finally, in the event that the property is transferred, Form 210 must be filed for the capital gain or loss generated, the result of which is the difference between the sale value and the acquisition value. From this result, 3% of the total sale price that the purchaser previously withheld from the seller will be deducted, as when a non-resident sells a property in Spain this withholding is applicable.




In addition to the IRNR, tax on the Increase in Value of Urban Land, normally known as “capital gains tax”, must also be paid.


Other taxes to be taken into account that may arise from the ownership of a property in Spanish territory are:


o Impuesto sobre Bienes Inmuebles, an annual tax levied by the town councils of each locality, calculated on the cadastral value of the property owned.


o Wealth Tax. If the non-resident owns a set of assets in Spain, whether real estate, money, shares, etc., worth more than €700,000, this tax must be paid.



It is important to consult a specialized professional who can advise you on how to comply with the tax obligations arising from the property you own and thus avoid any possible conflict with the Spanish tax authorities.


In this subject, we highly recommend Sempere Consulting as they have a team with years of experience in tax matters for non-residents. They will answer your questions, carry out all kinds of formalities with the Inland Revenue, or even be your tax representative in the country so that you do not have to worry about fulfilling your obligations to the Spanish authorities.


Contact them today for your peace of mind.






Contact Details:

Phone: (+34) 606 44 51 14



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