We are tax specialists for non-residents in Spain.
Taxes when purchasing a property in Spain cannot be avoided and you have a liability to pay them. There are also yearly taxes which must be paid – Non-Resident Income Tax (Form 210) & Local Tax (IBI).
The threshold for being considered Non-Resident is spending less than 183 days per annum residing in Spain.
If you are renting your property you must complete a quarterly tax form in April, July, October and January. The taxes are calculated on the number of days the property has been owned by you.
If you are fiscal resident of another EU country, Norway or Ireland then you can offset any rental related expenses.
These expenses include charges for things such as council tax, trash collection fees paid to the Town Hall, Estate Agent management fees, insurance, solicitor fees, interests paid on a mortgage, maintenance, furniture or property improvements.
Capital Gains and Plusvalía taxes must also be paid when selling a property.
Capital Gains Tax
This is calculated as taxable income – the difference between the purchasing price and the selling price.
This is a tax that is calculated and administered by your Local Council (Ayuntamiento) on the increase in the value of the URBAN land. This is taxed only on the plot on which your house sits and not on the value of the building.
Each individual Council sets their own rates and amounts paid can vary dramatically between neighbouring areas. The tax value of the land (plot) called the ‘Valor del Suelo’, can be found on the bill for your IBI
Late payment or avoidance of taxes can result in hefty fines.
Regardless of your fiscal situation, we can help ensure your tax liabilities and obligations are fulfilled on time and thus avoid unwanted penalties.
We can offer impartial advice to any individual or corporation explaining all of the tax liabilities they have in Spain.
We can take care of the preparation and payment of your annual taxes and act as your fiscal representative to deal with all tax affairs before the Spanish Revenue.
We can advise on double taxation agreements between countries and how they apply to your fiscal responsibility in Spain.
We can apply for an NIE (Numero Identificación Extranjeros) for you which is used in the same way in Spain as your National Insurance number is in the UK.