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What Tax Will I Have to Pay? |
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It is advisable once you own property in Spain to appoint a Gestoria. They are officially recognised financial representatives who can keep your paper work in order and ensure that all your taxes are paid annually. They are usually a great source of information when it comes to 'the system' in Spain.
You qualify as a resident in Spain if you spend 183 days in any one calendar year in Spain.
Non-Residents
Imputed Income Tax – this is an annual charge on an ‘imaginary’ rental income resulting purely by virtue of ownership of a property and this is charged as 0.5% of the catastral value of the property. (Catastral is a term used often for tax calculations - it is approximately 50% of the title deed value)
Capital Gains Tax (CGT) 18% will be charged on any declared profit on a sale.
Spanish Inheritance Tax and inheritance laws are complex, so we strongly recommend that you consult a local solicitor as soon as you purchase a property to ensure that your estate planning is protected by a separate Spanish Will.
Residents
Capital Gains Tax is payable on second homes in Spain(18% on declared profit) plus you’ll be charged Income Tax on your world-wide income. A note of reassurance – Spain recognises international double taxation conventions to ensure that you only pay income tax on earnings and investments once (i.e. in one country)!
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Finances