Income and wealth tax for non-residents in spain

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.

It has to be settled during the first 20 days of April, July, October and January for each quarter, by a self-assessed form we produce.

 

If you lease the property to a company to exploit it as holiday & seasonal lettings, 19% will be applicable only to the net income received as costs are assumed by the company in the lease agreement.

Tax rate:

Residents in the EU, Iceland and Norway 19%

 

If you do not let the property, or for the periods it is not let,  you pay the same rate on a presumed income which will be a percentage of the rateable value of your property, to which the 19 % is applied.

 

Wealth Tax is a progressive rate applied to the value of the assets in Spain. Each Community in Spain has it own rate and in Andalucia and Madrid there is a total exemption