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A person is resident for tax purposes in Spain if he is physically present in Spain for more than 183
days in any calendar year.
Property Taxes
Impuesto sobre Bienes Inmuebles (Annual Rates) : This is the main local property tax affecting
owners of properties in Spain payable yearly to the Town Hall. The amount of the tax is calculated
by reference to the "valor catastral" (official value of the property) registered in respect of all
properties in Spain. The percentage charged varies from area to area.
Basura (Rubbish) : A local tax related to rubbish collection to be paid to the Town Hall every 6
months.
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Personal Taxes
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Impuesto sobre Patrimonio (Wealth Tax) : A owner of a Spanish property must, every year, submit
a Wealth Tax Return. This must show the value of all of that person's assets located in Spain. The
tax is based upon the real value of the property. For values up to 27.262.000 Pts of assets, the
wealth tax is 0,2 %. Above this level, the rates of tax increase slowly.
Impuesto sobre la Renta de las Personas Fisicas (Income Tax) : Non-residents are also liable for
imputed income tax on their property in Spain. This tax is calculated on the basis of 2% of the
"valor catastral" (rateable value) of the property. The tax rate is 25% of the taxable base.
Income and Wealth Taxes are payable in arrears, for example the tax due for the tax year 2000 is
paid in 2001, before the 31" December.
Impuesto sobre Incremento de Patrimonio (Capital Gains Tax) : Non-residents pay capital gains tax
of 35% on profits arising from the sale of their Spanish assets. The tax is based on the difference of
the value of the property when it was purchased and the value on its sale. As a general rule, the
authorities require that buyers from non-resident sellers deposit 5% of the purchase price with the
Spanish Tax Authorities.
We suggest property owners to appoint a Fiscal Representative who will undertakes on behalf of
the taxpayer all dealings with the Spanish Tax Authorities.
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