Although there are accountants, lawyers and gestors in Spain, and a number of overseas specialist tax consultancies in London, there is no other UK based company providing a specialist tax service for non-residents with properties in Spain.
The Spanish tax system is based on self assessment, which means that you are required to:
* Obtain the right tax form
* Calculate the tax due
* Complete the form
* Submit to the Spanish tax office
* Pay the tax!
Many non-resident property owners remain completely ignorant of their tax obligations - until they come to sell their properties. This then prompts the authorities into action, which can lead to some nasty surprises!
There are essentially three areas of taxation, for non-resident property owners.
* Income Tax (Impuesto sobre la renta de no residents)
* Rental Income Tax (Impuesto sobre la renta de personas fisicas)
* Wealth Tax (Impuesto sobre el patrimonio)
Income Tax is payable for each year, during which, you own a Spanish property.
The Taxable amount is based on the rateable value of the property
The tax rate charged is 2%
There are no tax allowances applicable
Rental Income Tax is payable if you rent out your property
The taxable amount is the gross rental income received
The tax rate applicableis 25%
There are no tax allowances applicable
This is payable by property owners holding Spanish assets on the 31st December
The taxable amount is based on the value of Spanish assets held
The tax rate varies between 0.2% and 2.5%
Any debts associated with the assets can be used to offset the "wealth"calculation
If you would like a Free Spanish Tax Guide and to receive details of how Numerological can help you meet your Spanish Tax obligations, just click on the link below:
