GIFT TAX When gifting assets Inheritance tax calculations are applied to the gifted patrimony with exception of the reductions, which would be non applicable. The important novelty is that on the resulting quota 99% is bonified if the person who is beneficiary of the gift belongs to one of the following groups. Group I: Descendants. […]
Tax for Residents
An individual is a tax resident in Spanish territory when any of the following circumstances apply:
That the person remains more than 183 days during the calendar year in Spanish territory. To determine this period of stay in Spanish territory sporadic absences will be computed unless the taxpayer proves his fiscal residence in another country. In the case of countries or territories classified as tax havens, the Tax Administration may require proof of permanence in the same for 183 days in the calendar year. Read more
By law as non-resident Income Tax has to be paid annually:
If you let the property the rate is as stated below on rent obtained. You are now allowed to deduct costs directly related to the generation of the rental income, as long as you are an EU resident.
You would be therefore entitled to deduct costs paid by you with the limit that they cannot be higher than the income itself, although you can roll them over with the same limit for four years, i.e.: financial costs (interest), rates (IBI), rubbish tax, water, electricity (prorate to the days rented), agents fees, legal fees etc. Read more
IBI is an abbreviation of “Impuesto sobre Bienes Inmuebles”, literally translated as “property tax”. However, it is better explained as the Spanish equivalent of “council tax” or “rates” that are paid every year to your local town council.
The amount will depend on the cadastral value which takes into account the classification of the land the property is built on and the size of the plot. Each Town Council has different percentages applied to this value and thus they may vary from one to another. Read more
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