By Netlex, your tax advisor in Marbella!
Many foreigners who buy a property in Spain are unaware of the tax obligations they must meet in our country.
On many occasions they become aware of this breach when it is warned by a tax advisor, a lawyer or an economist, on other occasions they realize it when they receive a request from the tax administration.
Professional practice has taught us that there are many foreigners who reside permanently in Spain, and continue to pay taxes in their native country as non-residents. Well, these foreigners should know that if they stay more than 183 days in Spain, the Spanish tax agency could consider them residents in our country. If so, they could require you to pay taxes in Spain for all the income, assets and rights of which they are holders worldwide. It should be taken into account that the controls that the Tax Agency has today to investigate this type of situation are increasing.
Regarding the above, we could summarize which are the tax obligations that foreigners who have a property in Spain must meet:
- Reside in Spain less than 183 days. There is some exception that the Spanish regulations themselves include, for example posted workers.
- Present annually the non-resident income tax declaration declaring the ownership of the aforementioned property or the amount of the rent collected (tax agency)
- File the Wealth Tax in Spain if the value of the home exceeds € 700,000 (tax agency)
- Settle real estate tax (IBI town hall)
- Pay garbage receipt (town hall)
“Netlex” is an advisory firm for companies and individuals, resident and non-resident in Spain, who is expert to advise you on the fulfillment of your tax liabilities in Spain.
