If you are reading this, you are probably the proud new owner of property in Spain. Or are you about to buy a property. Apart from the 8-10% transfer tax you will have to pay yearly environmental tax (basura) and property tax (IBI) and as a non-Spaniard also Impuesto Sobre la Renta de No Residentes. Because as a non-resident property owner, who does not rent out his property and has no other income in Spain, you have to pay income tax based on the value of your property.
What is important to pay attention to?
- The tax is calculated based on a percentage of the cadastral value, which you can find on your IBI receipt (issued annually by the municipality, read more about IBI here);
- The amount is based on a taxable amount of 1.1% of the cadastral value and is taxed at a rate of 19% for EU citizens and 24% for non-EU citizens. For example, for a property of €100,000 you have to pay €190 per year or €240 as a non-EU citizen for IRNR.
- You must take responsibility for arranging and paying this to the Spanish tax authorities (hacienda);
- Certain costs (such as insurance, VvE costs, IBI, environmental tax (basura) are deductible;
- Also known as Spanish rental value tax.
How does it work
You can file a tax return yourself after installing a digital certificate.
Our advice is to outsource this to an accountant, or gestor. After you have authorised this body, it can take care of your quarterly declaration. And let you know which rules apply specifically to you, and which costs you can deduct for tax purposes. Unless you choose a very expensive Spanish accountant where the costs and benefits are perhaps less in proportion, you will actually always get the investment out of it. Not only are you assured that the tax return is correct, but the accountant often has good ideas to minimise the tax you have to pay.
Each quarter, you send a statement of the costs that the property has incurred to the gestor, and they will take care of the tax return for you.
Do you live on the Costa Daurada and do you need an accountant for your property tax return for non-residents in Spain? Please mail to firstname.lastname@example.org when you want to make your first declaration, which property it is and what exactly you are looking for. We will bring you in contact with an accountant who can help you with this, and let you know the rates. If you wish to be assisted in Dutch, this is also possible. The declaration and communication is done online, but if you wish you can also meet the accountant at his office (in Tarragona or Barcelona).