Do I need to pay tax if you own a property in Spain?
We are often asked by our customers if they have to pay tax in Spain, even if they don’t live here permanently. If you own a property in Spain, as in, your name is on the escritura (deeds) but you don’t live here permanently then you are fiscally qualified as non-resident.
The answer is very clear. All non-resident property owners have to pay a standard non-resident tax based on the value of their property. The deadline for non-resident tax is the 31st December each year and must be paid
Many people are unaware of this tax or choose not to pay it. So what happens if you don’t??
Once again, the answer from the tax office is clear. The accumulated tax which hasn’t been paid is attached to your property. Therefore you cannot sell or change ownership of the property without paying the due tax. Because the tax is late, there is always interest and a financial sanction added to the figure.
So, the quick answer is YES , Everybody with property in Spain has to pay tax. We always recommend that it is paid sooner rather than later to avoid fines.
We always calculate your non-resident tax based on the lower cadastral value of your property so you always pay the lowest amount posible
If you wish to present a non-resident tax return quickly and easily CLICK HERE. We normally present the tax return in November to avoid the rush in December.
*this article will be updated regularly as changes to the legislation occur and when new information comes to light. Be sure to check back to see new updates.