Property Taxes in Spain — FACT FILE
So you are about to purchase that ideal property – If you require finance or don’t you still have to take into account the payment of property taxes. In Spain.
You have to pay an income tax “Impuesto de la renta” and a wealth tax –“Patrrimonio”. This is arranged on a sliding scale climbing to 2.5% on properties over €10.7m. The base rate for the tax“Impuesto de la renta” – income tax is 1.1% of the cadastral value of the property. This determined by the size and location. Non residents pay 25% of the tax base.
If you are renting out the property the tax rate you have to pay is 25% of the annual rent. You are not allowed to make deductions for expenditure.
When you sell the property a non-resident is subject to 35% capital gains tax, however you can take off the costs for improvements during ownership.
There is also a local tax“Impuesto sobre bienes inmuebles” This based on the cadastral value of the property.
It is probably worthwhile using an accountant to assist you with these tax returns.
The above information is given without responsibility of accuracy. ©jml Property Services 09/05
Holiday Home Property Insurance for France, Spain, Portugal, Greece, Italy, Ireland, Germany, Belgium, Holland, Denmark, Sweden, Malta, Cyprus, England, Scotland and Wales — visit our Holday Home Insurance section.
FURTHER READING See also
Tips and Topics in Spain CLICK HERE
Buy to Let Europe CLICK HERE
Pet Travel Scheme (PETS) CLICK HERE
Accepting Payments in Euros can prove Expensive CLICK HERE
Travel in Lanzarote Spain CLICK HERE
The Undiscovered Paradors of Spain CLICK HERE
Spain Facts and Figures CLICK HERE
A Fresh look at Ibiza CLICK HERE
_________________________________________________________________________________________________
Looking for a hotel for your holiday in Spain or the Spanish Islands ? — Use the search facilty below