Non resident Tax

Hello,  am a non-resident and I have bought a 
property in Xativa. Could you please tell me whether I will have to pay taxes?

 

Since you are non-resident and own a property in Spain you are liable to the following four taxes:


 1. Annual Real Estate Tax (IBI)
 
This is a local tax, i.e. levied by Municipal Governments, which is payable by real state-owners.
 
All real estate in each municipality is included in a census and has an assigned value (its cadastral value). The amount payable is calculated by applying the tax rate set by the Municipal Government to the cadastral value.
 
Each year, a Real State Tax payment slip is issued for each property in the census. Municipal Governments normally allow the payment to be made by direct debit to a bank account, which makes it easy for the taxpayer to pay the tax before the deadline and thus avoid surcharges.
 
The period for payment varies depending on the municipality, but it is normally around the months of September, October and November each year.
 
2. Rubbish Collection/Mains
    Drainage Tax
 
3 & 4 Wealth and income tax
 
Non-residents must file a Property Tax return if they own property in Spain before 31 December of each year, regardless of the value of the property.
 
Urban property must be declared at the highest of the following three values:
 
a.. the cadastral value, as reflected in the Property Tax receipt for the year to which the return refers,
 
b.. the value assessed by the Administration for purposes of other taxes,
 
c.. the acquisition price, consideration or value.
 
The net wealth (which is the taxable amount) is determined by the difference between that value and the charges or liens on the property and the debt principal invested in the property. There is no tax-free allowance and, consequently, the base of assessment coincides with the taxable amount. The tax payable is calculated by applying the tax rate approved for the year in question to the aforementioned taxable amount.
Each individual must file a separate return. Accordingly, if a property is owned by a married couple or by various persons, each one of them must file a single return for the corresponding part.
 
Form, period and place for filing the return.
 
  a.. Form: 714, the same as for
       resident taxpayers.
 
  b.. Filing period: 1 May to 20 June.
 
  c.. Place: the Branch of the State Tax Administration Agency corresponding to the tax domicile of the representative or, where there is no representative, of the party which is jointly and severally liable or, where there is more than one such party, the Branch of the Tax Agency in whose territory the administration of the principal part of the assets or activities is located, deposited or exercised.
 
Property and personal tax
(simplified return)
A non-resident whose only taxable property in Spain is a dwelling fundamentally for own use may elect to use a single form for declaring Property Tax on the dwelling owned in Spanish territory and Personal Income Tax on the estimated income from the use of that dwelling.
 
Form, period and place for
filing the return:
  a.. Form: 214. Simplified return for non-residents (dwelling for own use).
 
  b.. Filing period: the entire calendar year immediately following the one to which the return refers.
  c.. Place: the Branch or Office of the State Tax Administration Agency corresponding to the place where the
property is located.
 

Additional information