Taxes Non-Residents Pay When Owning Property in Spain

 

Owning property in Spain is a great opportunity, especially in popular areas like Orihuela Costa. However, if you are a non-resident, you must be aware of certain taxes. Here’s a simple guide to the main taxes you need to know about:

Non-Resident Income Tax (IRNR)

Non-residents who own property in Spain must pay Non-Resident Income Tax (IRNR). This applies even if you don’t rent out the property. The tax is based on the property’s «cadastral value,» a value set by the government. If you rent out the property, you will pay tax on the income you earn from rent. The rate you pay depends on whether you are from the EU or outside it. Consulting a solicitor can help ensure you file everything correctly.

Property Tax (IBI)

All property owners in Spain must pay Property Tax (Impuesto sobre Bienes Inmuebles – IBI). This tax is paid annually to the local government. The amount is based on the cadastral value of the property. The rates vary depending on where the property is located. In areas like Orihuela Costa, the rates can be different from other parts of Spain. Make sure to check the local rates.

Wealth Tax

Non-residents may also have to pay Wealth Tax if their assets in Spain are above a certain limit. This tax only applies to what you own in Spain. Each region sets its own rules, so it’s important to know the regulations in your area. If you are unsure, it’s best to get advice from a tax expert.

Capital Gains Tax (CGT)

If you sell your property, you will have to pay Capital Gains Tax (CGT) on the profit. The Spanish government will withhold part of the sale price as an advance payment of this tax. A solicitor can help you make sure that the right amount is paid, and guide you through the process.


Why You Should Seek Professional Help

Understanding the tax system in Spain can be tricky, especially for non-residents. A good solicitor can make sure you meet all legal requirements and avoid penalties. At Legal Help Services, we specialize in helping non-resident property owners, particularly in popular areas like Orihuela Costa. If you want advice on managing your taxes, contact us today in: https://www.legalhelpservices.es/blog/#contacto

 

 

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