Let the Nordic Consulting Canary Islands take the stress out of administering your tax obligations in Spain.
As a “non-resident” property owner in Spain, whether you rent your property out or not, you must submit a tax return and pay income tax on your rental income.
If you rent your property out, you will be taxed on the income. Also, as unfair as it seems, there is an ‘imputed income tax’ on potential rental income for property that you don´t rent out.
If you own a property in Spain, you will be liable to pay a local property tax called Impuesto sobre Bienes Inmuebles (IBI). The amount is the rental value multiplied by a tax rate set by the local authorities. In addition you ned to pay basura, the rubbish collection tax.
If you sell a property in Spain, you have to pay a property transfer tax, Impuesto Transmisiones Patrimoniales (ITP). When a property is sold, the local authority charges a tax on the increase in value of the land, the plusvalía.
Non-residents in Spain will be charged 3% on the sales price when selling a property. This amount is a retention towards any capital gains tax liability on the sale. But what if you didn´t make a capital gain, or the gain was only a small one?
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