CA Homes Marbella

Paying tax in spain

Once you have purchased your new home in Spain, there are certain tax, local and government, that you will have to pay which really doesn’t differ from what we would have to do back home.

The tax you pay, and the declaration you have to make, largely depends upon whether you rent out your property or not. Below you can find 2 examples of the ones most commonly Taxes paid by foreigners however please keep in mind that applicable taxes can change depending on personal circumstances:

Standard Tax for EVERYONE living in Spain permanently Foreigner or not

# Municipal property tax, which would be the equivalent of Council Tax.

It is paid once a year and varies from area to area depending where you live in Spain.

#Basura, which mean Garbage Tax which is also collected by your local government.

For NON RESIDENTS, – Foreigners and Spanish people who own a property here in Spain but live abroad.

Income tax for non-residents who do not rent out their property (standard declaration)

You pay this version of income tax in Spain if the following conditions apply:

1) You do not reside in Spain,

2) You own property in Spain,

3) The property is exclusively for personal use and you do not rent it out,

4) You have no other source of taxable income in Spain.

Although you do not earn an income from the property, in the eyes of the Spanish tax authorities you still derive a benefit from owning a property in Spain and therefore have to pay an imputed income tax.


Income tax for non-residents who rent out their property

If you

1) do not reside in Spain

2) own property in Spain and

3) rent out your property,

you have to pay income tax on the rent instead of the imputed tax described above.

It may sounds a little confusing but if you really think about it, its common sense and also done back home.

We have a Tax Accountant who would be more than happy to help you navigating through these Tax issues. Usually our clients take advantage of our Tax Accountant to deal and perform

tax returns on their behalf.