Rental Income
Non-fiscal residents who own an income producing property in Spain or Portugal are required by law to report the generated income. Property owners who reside in the EU/EEA may receive a similar, although not identical, treatment to that of those residing in Spain or Portugal. The tax treatment is less favorable when the taxpayer is a resident of a country outside the EEA
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 in Spain, the acquisition value is also reduced by the amount of legal depreciation.
