Digital Version Guide 005 - Flipbook - Page 99
The cadastral value, assigned by the government, is used to calculate many
taxes, including IBI and Wealth Tax. It’s typically lower than market value but
can be appealed if you feel it’s too high.
OWNERSHIP
Once you own a property in Spain, several annual taxes apply, regardless of
whether you are a resident or non-resident.
Property Ownership Tax (IBI)
Similar to council tax, this is calculated based on the property’s cadastral
value. Rates range from 0.4% to 1.1%, depending on the municipality.
- Paid annually, often in instalments.
Non-Resident Income Tax (IRNR)
Non-residents who rent out property must pay tax on rental income:
- 24% for non-EU residents (no deductions).
- 19% for EU residents, Norway, and Iceland, with deductible expenses like
repairs and maintenance.
Non-residents who do not rent their property still pay a tax based on imputed
income:
- 1.1% or 2% of the cadastral value, depending on location.
Resident Income Tax (IRPF)
Residents are taxed on worldwide income, including rental income, at
progressive rates (19%-47%).
- Deductible expenses for residents include mortgage interest and repairs.
Capital Gains Tax on Sales
Residents: Taxed at 19%-26%, with exemptions for those over 65 selling their
primary residence.
Non-residents: Pay 24% (or 19% for EU residents) on gains from property
sales.
Wealth Tax
Andalusia offers a subsidy on Wealth Tax for assets over €2M, though
reporting is still mandatory.
The national Solidarity Tax applies to wealth over €3.7M.
Inheritance and Gift Tax
Rates depend on the relationship between the donor and recipient, with
Andalusia offering significant reductions for close family members. Nonresidents may also owe inheritance tax in their home country.
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Plan for an additional 9%-13%
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taxes and fees altogether
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The Role of the Cadastral Value
