Real estate tax

  Web sites are an invaluable source of information. However, in my experience it is always better to also try and locate the original site of information and look at the original document, as opposed to solo realy on one site, especially if it deals with legal aspects.
This site I have just recently come across, it the official Spanish site and some of the information is in  English. Here are a couple of interesting documents, but for those of you lucky enough to have internet please have a look for yourself. If you know of any good information sites please let us know so we can publish the details
General obligations
A person who is not a fiscal resident in Spain and who owns urban property in this country is, by law, liable to file Individual Income Tax and Property Tax as well as a local tax called Real Estate Tax.
It is not necessary to appoint a representative to carry out tax duties, but if wished a representative may be designated as long as the corresponding district or administrative tax office has been correctly informed. This depends on the whereabouts of the property.
Fiscal Identification Number
Every person in Spain is assigned a Fiscal Identification Number which is used for all tax returns and correspondence with the Tax Administration. In the case of Spanish nationals, this number is the same as the National Identity Number, "DNI", while in the case of foreign individuals, the number is the Foreign Individual Identity Number, "NIE", which is obtained at the General Directorate of Police. However, nationals belonging to member states of the European Union and other states subscribing to the Agreement for European Economic Space, are not obliged to request an identity number as a foreigner and may ask to be assigned a Fiscal Identification Number from the Spanish Tax Authorities.
Tax Payer
When a property is owned by a married couple or by various people, each one is defined as an independent tax payer, which means that an individual tax return must be separately filed by each of the co-owners.
Individual Income Tax
Regarding property used by the owner(s) as their own housing, the tax is based on an estimated income calculated as follows: On a general basis it is 2% of the cadastral value of the property which appears on the Real Estate Tax receipt (Real Estate Tax = "IBI"). In the case of property whose cadastral value has been modified from January 1, 1994 onwards, the percentage has been set at 1,1%.
The liability takes effect once a year on December 31.
Tax rate: 25%.
The taxable amount is therefore 25% of the estimated income.
Property Tax
Non-residents nationals are required to file a return for this tax on estate owned in Spain on December 31 of each year, whatever the value of the estate.
Value: Urban property is to be included in the return by declaring the value of one of the following, whichever is the highest: The cadastral value which appears on the Real Estate Tax receipt (Real Estate Tax = "IBI")
The price or purchase value
The value given by the Administration in an evaluation carried out for other tax reasons.
This then is the amount for tax assesment, as long as debts or arrears are not outstanding on the property.
The tax due is calculated by applying the tax scale (approved for the corresponding year) to the base amount.
Taxes on Individual Income Tax and Property tax: Simplified tax return for non-residents in case of a dwelling used as taxpayer's own housing.
The owner who ocupies a dwelling which constitutes sole property may use a simplified tax return form in order to submit the tax return for:
Property Tax of the value of the dwelling
Individual Income Tax for the estimated revenue of the dwelling
Tax form to be used is form number 214: Simplified return for non-residents in case of a dwelling.
Filing period: The calendar year immediately after the one which the tax refers to.
Place of filing: To the regional Tax Authority (Delegación Provincial de la Agencia Estatal de la Administración Tributaria), which the estate belongs to.
Real Estate Tax
This is local tax which the local municipality requires for all property owners.
All the property of each municipality is included in a census and a value is assigned (Cadastral value). Based on the cadastral value and on a tax scale established by the municipality, an amount to be paid is obtained.
Assesment period: Anually, for each property included in the census, the municipality sends a receipt for the amount due.
Payment period: The period for payment varies according to the municipality, but is usually around the months of September, October and November of every year.
Real Estate Tax: Local tax which is charged on real estates such as lands, buildings.. (Sp: Impuesto sobre Bienes Inmuebles, "IBI")
Property Tax: Tax charged on all kinds of property of a individual person (Sp: Impuesto sobre Patrimonio)
Real duty: Tax charged only on properties located in Spain (in case of the property tax) or on incomes generated in Spain (in case of the income tax)
Personal duty: Tax charged on any property, even if located in a foreign country (in case of the property tax) or generated in a foreign country (in case of the income tax)
Cadastral value: Value assigned on the Cadastre (detailed official register of the ownership of estate) for a real estate.

Additional information