Introduction: A Common Concern, A Legal Solution 
Buying a property on the beautiful Costa Blanca is a dream, but it can raise a major tax concern: double taxation.
If you reside abroad and acquire a property in Spain, both Spanish law and the law of your country of origin may attempt to tax the same income, assets, or capital gains. Nobody wants to pay tax twice!
The good news is there is a legal solution: the Double Taxation Treaties (DTTs) that Spain has signed with more than 90 countries (including Norway, Germany, France, and the Netherlands, among others).
What is Double Taxation and How Does it Affect You? 
Double taxation occurs when the same taxable base is taxed by two different tax jurisdictions. For a non-resident for tax purposes in Spain, this generally occurs in two scenarios:
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Property Income (Rental or Imputed Income)
If you rent out your property, you must pay Non-Resident Income Tax (IRNR, Form 210) in Spain. Risk: Your country of origin may also want to tax this income, as you are a resident there. The DTT Solution: The treaty stipulates that, as a general rule, income must be taxed in the country where the asset is located (Spain). Your country of origin will then apply an exemption or a deduction to prevent double taxation. -
Capital Gains (When Selling the Property)
If you sell the property and make a capital gain, you must declare this gain in Spain. Risk: Your country of habitual residence may also tax this gain. The DTT Solution: The treaty generally grants the taxing authority over capital gains from property to the country where the asset is located (Spain).
Fundamental Step: The Fine Print of Your Agreement 
Double Taxation Treaties are not all the same. It is essential to consult the exact text of the specific treaty between Spain and your country of residence, as each one has critical nuances that define:
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Taxing Powers: Which country has the priority right to tax your income in your specific case?
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The Elimination Method: Does your country apply the exemption or the deduction method, and how must you justify it to the authorities?
The correct application of these points is the key to fiscal peace of mind.
Conclusion: Peace of Mind with a Simplified Process and Expert Assistance 
International taxation is complex, but entirely manageable with the right help. If you are in the process of purchasing and have chosen a property with Rosam H, know that our collaboration facilitates and streamlines all the documentation management so that you do not have to worry about double paperwork. Enjoy your new home without the tax burden!
For more details on taxation: consult here for more information.
Need Help? Your Peace of Mind Starts with a Call!
If you want to know exactly how the treaty in your country affects you, and receive a personalized analysis of your tax obligations, we invite you to contact us directly with our specialist team.
Contact Legal Help Services: contact
