In Spain you have to be classed as either a resident, or a non-resident. While this may sound harsh, given that you may be from the European Union, however, it is important to know how many people are in Spain living here on a more permanent bases, and those who just have a property in Spain but reside somewhere else.  A resident is of course a person who has decided to reside in Spain for long periods of time, and is usually paying all their taxes in Spain. A non-resident, usually lives somewhere else, but has a property or some type of investment in Spain, whether for private or commercial use. Non-residents are to declare their asset in Spain to be assessed for income tax, which is done through the tax return forms.

Certain taxes are applied to non-resident, for the ownership of assets in Spain, and therefore must submit the corresponding non-resident form for the Spanish tax return declaration to pay their income tax. The income tax will be relatively small as it is not based on the amount that you would have purchased the property for, but it will be a percentage of what the local authorities value it at. What the house is valued at is not a reflection of the housing market, or the going rate for a similar property, and therefore is usually noticeably below market value and below what you paid for it.

If you own a property in Spain then you will have had to pay local standard taxes such as the council tax and other local taxes covering amenities.  You will also have to declare your property in the tax return, which is calculated on the property value that appears on your council tax letter. You must pay income tax just as you pay council tax, and if you don’t there will of course be charges that follow.

If you ever wanted to sell your property at a future date, then you will need to have all your taxes in order. Not having your taxes in order could prevent the sale of your house, because the amount will have accumulated over the years.  Whether you have an income from Spain, like rentals for example, or not you should be paying some taxes in Spain, and it is always a good idea to not let it build up.

Non Resident Tax in Spain

In Spain you have to be classed as either a resident, or a non-resident. While this may sound harsh, given that you may be from the European Union, however, it is important to know how many people are in Spain living here on a more permanent basis, and those who just have a property in Spain but reside somewhere else.  A resident is of course a person who has decided to reside in Spain for long periods of time, and is usually paying all their taxes in Spain. A non-resident, usually lives somewhere else, but has a property or some type of investment in Spain, whether for private or commercial use. Non-residents are to declare their asset in Spain to be assessed for income tax, which is done through the tax return forms.

Certain taxes are applied to non-resident, for the ownership of assets in Spain, and therefore must submit the corresponding non-resident form for the Spanish tax return declaration to pay their income tax. The income tax will be relatively small as it is not based on the amount that you would have purchased the property for, but it will be a percentage of what the local authorities value it at. What the house is valued at is not a reflection of the housing market, or the going rate for a similar property, and therefore is usually noticeably below market value and below what you paid for it.

If you own a property in Spain then you will have had to pay local standard taxes such as the council tax and other local taxes covering amenities.  You will also have to declare your property in the tax return, which is calculated on the property value that appears on your council tax letter. You must pay income tax just as you pay council tax, and if you don’t there will of course be charges that follow.

If you ever wanted to sell your property at a future date, then you will need to have all your taxes in order. Not having your taxes in order could prevent the sale of your house, because the amount will have accumulated over the years.  Whether you have an income from Spain, like rentals for example, or not you should be paying some taxes in Spain, and it is always a good idea to not let it build up.

FAQs

No not really. Even through you are not resident in Spain you still have to pay the Spanish equivalent of council tax and income tax for owning a property in Spain. If in addition to owning a property you also generate income form it then you must also declare that income.

Yes of course. Usually it is a registered financial representative who will arrange payments and calculate the amount so that you re able to pay it, as well as being able to spilt payments if needed. This is good idea to ensure no late charges.

If you permanent address is not in Spain and you do not spend more than 183 days here then you are not classed as a resident, but a non-resident. If you plan to stay for more than 90 days then you apply of residency and if you are here more than 183 days then you must have residency in Spain. In the mean time you are a non-resident and are only eligible for certain taxes.

The taxes you will have to pay between May and July will be the IBI or council tax, and income tax, can be taken directly from your Spanish bank account after you submit the forms. The IBI is an annual tax and is sent out automatically in the form of a letter and so can also be paid directly through a bank. If you have a financial representative they will organise the payments.

The income tax as long as no actual income is generated is relatively small. The IBI, or council tax is a percentage of the property’s cadastral value which is the amount that the local authorities deem a minimum value for the house.

Not much in the beginning, however it will at some point catch up with you and will come with back dated interest and fines.

As a non-resident you are responsible to pay local taxes called the IBI or the Spanish equivalent of council tax as well a type of Spanish income tax for owning a property regardless of whether you generate an income from it or not.

By law in Spain any non-resident property owner is to pay a small tax percentage on a possible income and accumulated value. It´s really an small amount and the Spanish Residents has the same tax on their declarations.