Property Investment

Are You Familiar with Tax Laws for Owning a House in Spain?

If you own a property in Spain, while living in England, you are considered as a non-resident in Spain. Here we give you an overview over the taxes and fees you are obligated to pay as a non-resident.

  • Income tax must be paid for all of your incomes in Spain. If you rent out your home, this tax includes your rental income, calculated based on the actual income or a percentage of the rental value.
  • Wealth tax is only relevant after deduction of €700.000 per person
  • Property tax varies depending on the property value and is paid annually
  • Municipal waste tax is around €70-200 annually and is paid twice a year
  • Common rental property expenses are expenses related to things such as gardeners, security etc. that every owner in a commonhold property must pay. These varies depending on the size of your entire property, and is calculated based on the budget that is decided at the annual General Assembly.

How are you planning to finance your home?

Negotiating favorable mortgage terms before the loan is processed is crucial, as you will have to pay a fee for changing the terms or cancel the mortgage afterwards. Are you considering taking up a mortgage in England or Spain? If so, there are several considerations to take.

Due to the financial crisis in Spain, many banks are more careful these days. Still, non-residents usually get loans for up to 70 percent of the property value. The repayment period varies between banks, but the longest repayment period is 30 years.

Our lawyers know exactly what taxes and expenses you – as a non-resident – are obligated to pay in Spain. We can guide you safely through the legal system, so you do not have to worry.


How we can advise on your tax and fee matters in Spain

Being aware of what taxes and fees you will have to pay when you are buying a new home in Spain is crucial. If you handle this process in the correct way from the start you remove the risks of encountering problems in the future.

Inheritance tax, property tax, income tax, registration fee and municipal tax. These all some of the taxes and fees that you have to pay before, during and after the property purchase. The amount of these depend on several factors, among all whether you are planning to rent out your home, the regional laws in the area where you are buying your home, and how to move forward if you ever plan to sell your property.

Our accounting experts have comprehensive legal experience within taxes, financing and accounting.

We can help you with:

  • General tax rules for businesses and individuals
  • Creating Tax Identification Number (NIF) for companies and individuals
  • Allocate a tax Repräsentant in Spain who will help you with tax declaration, annual accounts for companies etc.
  • Tax evaluations regarding sales and purchase of property, enterprises and limited liability companies etc.
  • Advice regarding relocation from England to Spain, and questions about Spanish citizenship By involving us in the process from the beginning we can ensure that everything follows procedure, and that you avoid any unpleasant legal or economic surprises later on.
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