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Overview of Spanish Property Tax

If you are considering investing in Spain, as a non-resident property owner, you could be liable for the following taxes:

Tax On Rental:

Income from property rental is subject to 25% of gross rents without any deductions.

Wealth Tax:

Spanish wealth tax is levied on Spanish assets of non-residents without any exempt amount.

Spanish residents enjoy a nil band of more than €100,000 (Euro)
Any value of Spanish property will be subject to at least .2% and up to 2.5% wealth tax (although this latter rate applies to properties valued at over 10 million Euro). This is added to the rental income tax and is paid at the same time. 

Capital Gains Tax (CGT):

This usually comes as a surprise for most non-residents, as the rate for Spanish residents is only 15%. For non-residents the rate is 35% and under the Spanish tax law, the purchaser must withhold 5% of the purchase price and pay it to the tax authorities on account of this tax.

You then have to make a repayment claim, if this is higher than the actual gain.

Inheritance Tax (IHT):

This tax is levied based on the relationship of the beneficiary to the deceased.

For a spouse, there is an exempt amount of just €16,000 (Euro) and then tax at progressive rates from 7.65% - 34%. For unmarried beneficiaries such as girlfriends and friends, there is NO EXEMPT amount and rates up to 81.6%! 


Spanish high capital gains and exorbitant inheritance tax rates for surviving spouses and unmarried partners, mean forward planning is essential. This may involve using a UK or Spanish Company, holding the property as joint owners, or taking out life insurance. The failure to plan for Spanish taxes often leads to taxes so high that the property has to be sold to pay them.

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UK Office: Buy Spain, Pum-erw-Road, Cardiff, South Wales
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10 secrets every spanish property buyer should know
10 Secrets Every Spanish Property Buyer Should Know
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