We all know the great feat that is to have a property in the great country that is Spain after a great closing in 2017 this 2018 is ahead that is even better considering an increase in mortgages, rents, rents and the sale of new properties. This can be the great opportunity to establish our heritage in this country. But careful not everything can be so easy, we need to have some considerations when venturing to buy some real estate in this beautiful nation. To your knowledge every owner of a property in Spain must pay different types of taxes and non-compliance with them can lead to very high fines
What types of taxes should I pay if I am a resident of Spain?
-If you present a property and you are a resident of Spain, you must pay three types of income tax taxes and this tax varies depending on the income you have through the work you do as an employee does not affect this income tax you own in your business, and you must also take into consideration if you get any income from leases or dividends. We will also find the Annual Property Tax (IBI) this type of tax as its name says it is charged annually and varies from the, 4% to the 1.1% of the property’s cadastral value, at this point we have to have much care in the purchase sale because it is paid at the reference cadastral value, which appears in the cadastral office and many times the physical description is not agreed with the one that appears in the title of owner and to take into consideration a tax of the municipal type so not in all cities is the same. Finally, we have the Tax on the Patrimony, but this only it must pay the properties with a value greater than 700,000 euros.
What type of tax should I pay if I am not a resident?
-The non-residents in this country are still subject to pay the Income Tax, these depend on the use you give to the property if you rent the property must make a statement of the income derived from the rent at the end of each quarter, but if you are not a resident, but occupy it for your own use, this consists of 1.1% of the property’s cadastral value and you must self-manage the calculation, compliance and validation through the internet of the correct payment of this. They are also exposed to paying the property tax if they present the clauses of that tax.
Other considerations that I must have as a foreign homeowner.
-There is a special tax established for people who own a Spanish property and who reside in one of the countries belonging to the so-called tax haven which consists of 3% of the property’s cadastral value, but for those owners whose tax residence is not included in the community of these countries (tax haven) they should only provide the Tax Agency with an authorized email address where all communications and messages from this agency will be received.
Finally, we must consider the taxes and taxes that may be presented by each municipality, such as, for example, the garbage fee for the provision of garbage collection and disposal services.
In ForSaleInSpain we are professional ready to help you choosing and purchasing the home of your dreams. Contact us!