Taxes payable by non-residents owning a property

If you are a non-resident in Spain and own a property in Spain, it is important to know that you must pay tax which is calculated depending on the use of the property:

 

1.- Properties intended for the owner's own use.

 

The income to be declared is the result of multiplying the catastral value (Rateable Value) of the property by 2% or 1.1%, depending on the location of the property. To the result obtained, in the case of residents in the European Union, they will pay 19% and the rest 24%. This is payable through model 210.

 

2.- Properties destined as leased.

 

The income obtained through model 210, if it is payable, must be declared the first twenty calendar days of the months of April, July, October and January, between 19% for residents in the European Union and a 24 % for the rest.

 

In case the result of the declaration is zero or a negative balance, it may be presented annually, before December 31 of the following year.

 

3.- Profits derived from the sale of real estate.

 

In the sale of a property, the non-resident seller must pay for the equity gain obtained (sale price less purchase price). At the time of sale, the buyer will apply a retention of 3% of the sale price. The buyer has a period of thirty days to declare the purchase made and pay the 3% retained in the deed of sale to the Tax Office with the presentation of a Modelo 211.

 

The Capital gain must be declared by the vendor within a period of three months. Residents in the European Union are taxed at the rate of 19% of the gain obtained and the non-residents in the European Union are taxed at 24% of the gain obtained. Alternatively, if the gain is zero or a negative balance an application to reclaim the 3% retention can be made and must be presented within 3 months from the date of the deed of sale.

 

For more information on terms and possible savings when paying your taxes you can contact tenerifesur@ceconsulting.es.