After purchasing your property, taxation depends on the status of the buyer (natural or legal person, with or without economic activity) and the possible exploitation of the property (classic rental, seasonal tourist rental, commercial use, etc.), as well as the location of the property.
Taxation also depends on the Double Taxation Agreements which may, where applicable, exist between the country of tax residence of the buyer and Spain.
As an indication, the owner is mainly subject to the following taxes:
- “Impuesto de bienes mebles (Property tax)”
- “Impuesto sobre la renta de no residentes (Income tax for non-residents)”. The non-resident owner is obliged to make an annual declaration for this tax. If the property is rented, the owner (resident in the EU) must pay a tax equivalent to 19% of the rent collected, after deduction of costs incurred.
There are then various local taxes (such as the tax on household waste, etc.)
Taxation during resale
When reselling the property, the seller must pay the following taxes:
- “Impuesto sobre la renta de no residentes (Income tax for non-residents)”. For owners who are not residents of Spain but residents of an EU country, individuals and legal entities, this tax amounts to 19% of the capital gain realized.
- “Plusvalia Municipal” (Municipal capital gain), the amount of which varies depending on the locality and which is paid directly to the Town Hall where the property is located.
