Farrand and Co
Spanish Taxation on Non-Residents

• Tax Returns
• Wealth Tax
• Deemed Income

• Personal Taxation
• Capital Gains Tax
• Tax Planning
 

 
All non-residents with property in Spain are obliged to submit annual tax returns. The deadline is 31st December following the end of each tax year. The return for 2008 must be submitted by 31st December 2009.

However, if you rent out your property quarterly tax returns are required.

If you do not make this tax declaration problems could arise at the time of sale. When you sell your property as a non resident, 3% of the sales price is automatically withheld from you and paid to the tax office. At this time the tax authorities may make a detailed review of the tax history of your property. If you have not submitted annual tax returns, this could result in penalties and other problems.
 

The taxable base is the cost of your property minus the mortgage on it. This figure is divided by the number of owners and the result is the net wealth of each owner.

The first 167,000€ of net wealth, per owner, is taxed at 0.2%.

However, it is proposed to abolish this tax as from 1st January 2008.  
 

This is the tax on the notional rental income on your property. It is calculated on the rateable value (Valor Catastral) of the property.

Please contact us if you require any further information or assistance.