Rental Income
Non-fiscal residents who own an income producing property in Spain are required by Spanish law to report this income on either an annual or quarterly basis. Property owners residing within the EU/EEA may be eligible for certain deductions. The applicable tax rate for EU/EEA residents is 19%, aligning with the rate applied to residents of Spain. For non-residents outside the EU/EEA, the tax rate increases to 24%
Imputed Rents
Individuals who own urban or rustic properties in Spain, not essential for agricultural, cattle-farming, or forestry activities, whether fiscal or non-fiscal residents, must still pay taxes on imputed income.This tax applies to properties used for personal purposes rather than economic activities, regardless of whether they are vacant for the entire year or part of it. The imputed income is filed annually, and it is calculated based on the fair market value of the rental income that could have been realized from these properties.
Capital Gains
The tax base for the capital gain when selling a property is calculated as the difference between the transfer value and the acquisition value, taking into account expenses incurred in the purchase and sale of the property as well as the costs of improvements. In the case of rental properties, the acquisition value is also reduced by the amount of legal depreciation. The Capital Gains tax return must be filed within three months after one month from the date of property transfer.
