Taxes - impuesto // Taxable or not (Photo: Pixabay )
You have the right to be present 183 days per year, without becoming liable for tax as a non-resident in Spain. Non-resident means that you are not a permanent resident in Spain but have your domicile in another country. Regardless of whether you do not live in Spain permanently, you are obliged to pay tax if you own something - for example a home or a car.
What taxes do you pay in Spain and what are they called?
IBI/SUM A (Impuesto sobre Bienes Inmuebles) is the annual property tax. In the Torrevieja and Alicante region, it is SUMA that handles the payments of taxes. In the Murcia region, you pay to the Agencia Tributaria. The property tax is calculated on the value of the property and the land it stands on. The amount to be paid is determined by the local authorities. Payment dates vary by region and location.
In the Murcia region, garbage collection is also paid to the Agencia Tributaria. Depending on the location and municipality, it is paid quarterly or semi-annually.
IRNR – (Impuesto sobre la renta de no residentes)
This is the tax you pay as a non-resident. It is based on the assessed value of the home and how long you have owned the home. It can therefore vary from the first year you owned the home to the second year. This is based on the previous year and if you have several owners of the home, all owners declare for the home. This must be presented before 31/12 each year.
If you rent out your home, a declaration must be presented every three months for the rentals. So you pay tax on the profit you make. The advantage is that you can deduct costs for electricity, water and the housing association for the rental periods.
As a resident, you pay IRPF (Impuesto sobre la Renta de las Personas Fisicas) . It is the annual income tax return. This is then based on what you had as income during the year and how much you earned. You must also state all your assets, such as accounts, insurances, etc.
Tax on sale
When you sell your home in Spain, two taxes are paid. A tax is 3% non-resident tax and is paid by the buyer (provided the buyer is non-resident) and is based on the sales amount. Is the holding a so-called sale loss, these 3% are deductible - just like all other costs related to the holding. Lawyer, renovation and so on. It can then take up to a year before you get this money back.
The second tax you pay when selling is Plusvalia . This is a value added tax that is based from the day you bought the home to the day you sell, on how much the home increased in value - like our capital gains tax.
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Nyberg Legal Law Group…
...helps with the annual tax for non-residents and keeps in touch with you throughout the year regarding all your tax issues.
The most important thing for us is that you feel safe and receive the right information in your own language. Do not hesitate to contact us if you have further questions or concerns regarding the taxes.
Veronica Nyberg - NYBERG LEGAL LAW GROUP.