Are you a property owner in Spain? We can help you with your tax management

Taxes for residents in Spain

If you are a resident in Spain you will have to pay taxes in Spain, just like the Spanish citizens do.

Do you have assets in Spain and in another country?

If this is the case you should take into account the tax policy of the country in which your property is located. This does not mean that you will have to pay taxes in Spain for the assets that you own outside the Spanish territory. However, you must declare that you own such assets, irrespectively of whether you pay taxes on them in another country. If you sell your property in Spain, whether you are a resident or not, you will have to pay a form of Capital Gains tax called the plusvalía municipal. This means that you must pay the Spanish state for the increase in value of your property, that is, the difference between the price you bought it for and the price you are now selling it for, minus expenses. In addition, all property owners must pay the Property Tax, equivalent to Council Tax,  (IBI) to the Town Hall of the place where the property is located, as well as the Solid Waste Collection Tax or Basura tax. You will also need to pay a tax for vehicles registered in Spain in your name. If you are a resident and your assets have a high value, you may also have to pay a  Wealth Tax.

Taxes for non-residents in Spain

If you are a non-resident in Spain, but have assets in your name in this country you will need to pay tax on the assets located here. You will also need to pay tax on any income you may earn from such property, for example, through renting out the property. When you sell your home in Spain, 3% of the sale value will be withheld as an advance payment for a Personal Income Tax called IRPF. After due consideration by the tax authorities, a final calculation is made and you may receive a partial refund of this money, or possibly be asked to make an additional contribution. This means that you must pay the Spanish state for the increase in value of your property, that is, the difference between the price you bought it for and the price you are now selling it for, minus expenses. As a non-resident owner you will have to pay a form of Capital Gains tax called the plusvalía municipal in case of sale of the property. This means that you must pay the Spanish state for the increase in value of your property, that is, the difference between the price you bought it for and the price you are now selling it for, minus expenses. All property owners must pay the Property Tax, equivalent to Council Tax,  (IBI) to the Town Hall of the place where the property is located, as well as the Solid Waste Collection Tax or Basura tax.

Audit and international tax strategy

It is recommended that a tax audit is completed for companies and international investors who have assets in Spain and either in their home country or in third countries. The audit will mean that you will not be subject to any unpleasant surprises at a fiscal and taxation level. If you are inspected and do not declare your taxes correctly or do not have your tax situation in order, you could be subject to receive a high fine as well as pay the taxes of previous years. Therefore, in order to avoid such tax errors, we offer you our international tax strategy and audit service.

Tax appeals to the government

Most people, at some point, have difficulties in their dealings with the tax authorities. This may have been due to an error on your part, or one made by the Administration. Alternatively, it may have been due to a difference in interpretation of a law associated with the payment of taxes. Whichever is the case, we can prevent these problems arising, and save you time and money in your dealings with the administrative procedures necessary for living in Spain.

International Companies

We provide detailed and thorough fiscal and legal advice for:

Spanish companies formed by foreign individuals with foreign capital. Foreign companies operating in Spain through branchesof their company. Our clients are often wealthy companies dedicated to real estate or the purchase of businesses. Such companies require the constant support of tax and legal specialists in order to oversee tax management and accounting, and to ensure the profitability of any such business.