Spanish Tax Residency

• B.I (Impuesto Sobre Bienes Inmuebles) Tax – similar to the UK council tax, this annual payment to the local town hall or SUMA office is based on the rateable value of the property, also known as the Valor Cadastral. The tax rate depends on the region but ranges between 0.4 and 1.1% of the Cadastral rateable value.
• NRIIT – Non-Resident Imputed Income Tax, a form of ‘benefit in kind’ annual tax collected at the end of each year, even if you do not rent out your property. If you sell your property, the Spanish authorities will review your record to ensure that NRIIT payments are up to date. If not, the tax office will take the outstanding amount from the 3% that is withheld by the buyer and paid into the tax office on completion of the sale of the property.
• NRIT – Non-Resident Income Tax is applicable if your property is rented out on either a long or short-term let. It is due quarterly even if the property is not being rented out during that period.
• Non-Resident Wealth Tax is chargeable on your assets and investments located in Spain even if you are non-resident.
• Capital Gains Tax – you must pay capital gains tax for any properties, investments or other assets in Spain. The current rate of capital gains tax is 19% for non-residents from EU/EEA countries or 24% for non-residents from other countries, including the UK.
• Inheritance Tax – this must be considered if you own property in Spain.

The figures above are indicative of the tax payable during a Spanish property purchase. The actual costs will depend on your particular circumstances and the region in which you want to purchase, so please contact us for an accurate estimate.