By Carlos Baos (Lawyer) •
Updated: 31 Jul 2023 • 10:03
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What taxes must be paid when owning a property in Spain? Non-Tax Residents In Spain. Legal advice by Spanish Solicitors in Marina Alta
The convenience of becoming a tax resident, or not, in Spain, is a question not without complexity, due to its consequences at fiscal level, that we have approached in a multitude of occasions. In this week’s article we want to address this issue from a different perspective: What taxes must pay a non-tax resident in Spain that owns a property in our country?
Wealth tax. In the first place we find the wealth tax, which taxes the wealth of individuals. However, the first €700,000 are exempt from payment.
IBI and garbage. Probably the two taxes that our readers are most familiar with when owning a property in Spain. The first one taxes the mere ownership of a property. The second one is related to the tax collection services usually provided by the municipality.
Non-Resident Income Tax. This tax has different modalities, depending on whether the property is rented, at the disposal of its owner or has recently been sold.
When the seller is a non-resident, the buyer is obliged by law to withhold 3% of the price and deposit it into the bank account of the tax office. This withholding is considered an advance on the capital gains tax of the seller. If there is no real gain, a refund can be requested. However, please be aware that if you are not up to date with your non-residents income tax previously discussed, the Spanish taxman could refuse the reimbursement of the 3% retention.
At White Baos Lawyers we are experts in conveyancing, renting, tax advice to expats, etc. If you have any doubt related to the tax obligations that you may have as non-resident owning a property in Spain, do not hesitate to contact us. We will offer you expert legal advice on these and other issues related to Real Estate Law.
You may be interested in the following services and articles:
Municipal Plusvalia Tax. Liability of the buyer if the vendor is non tax resident in Spain.
Foreigners in Spain: Giving a Spanish property to children or family.
Are you Non Tax Resident, selling a property in Spain? Know the taxes to be paid.
Carlos Baos (Lawyer)
White & Baos.
Tel: +34 966 426 185
White & Baos 2023 – All Rights Reserved.
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Lawyer Carlos Baos has been advising on variety of expat-related legal issues for years and weekly column offers free weekly insights.
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