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Taxation for Tax non residents that OWN a property in Spain


Local Taxes • Impuesto Bienes Immuebles (I.B.I.). I.B.I. Taxes the ownership of a property of an urban or rustic asset.

It is calculated as a % of the Assessed Value (Valor Cadastral) It is paid yearly • Tasa d´escombreries (Garbage Tax)

• Impuesto Plusvalía de los Terrenos de Naturaleza Urbana (IPTNU) Taxes the plus value of the ground at the time of its ownership transaction


National Taxes • Income Tax (I.R.P.F) Taxes the income generated by urban property for personal use. The amount to declare will be that resulting from applying the following percentages to the assessed value of the property as shown on the Property Tax bill (IBI): General 2% In the case of properties where the assessed value has been revised or modified since 1 January 1994, the percentage will be 1.1%. Year income accrued 2011 2012-2013 Tax rate

24%

24,75%

It is paid during next year the income is generated


National Taxes NET GAINS DERIVED FROM THE SALE OF BUILDINGS. Capital gains obtained as the result of the sale of a building constitutes taxable income. This income shall be deemed accrued when the property is transferred In general, net gains shall be calculated based on the difference between the cost price and transfer value of the property. The cost price consists of the real cost price of the property involved, plus all costs and taxes arising, excluding interest, paid by the transferor. Depending on the year of purchase, this value is corrected by the application of an updating coefficient which is established annually, in accordance with the General State Budget Act. Tax of 21 %


National Taxes • Impost de Patrimoni (Property Tax) This tax has been temporarily re-established for the 2011 and 2012 financial years and is due on 31 December of each of these years. Net tax base: The net tax base will be reduced, in concept of exemption, in €700,000. Obligation to file: All taxpayers with a tax charge to pay are obliged to file a return. Also, those with assets and rights valued at over €2,000,000 are obliged to file a return, even if they have no tax charge to pay.


Examples: House in Costa Brava bought in January 2007 by 290.000 Eur and a Cadastral Value of 190.000 Eur • I.B.I. 0,7%+ 190.000 Eur: 1.330 Eur • Income Tax (I.R.P.F) Allocated Income: 1,1% 190.000: 2.090 Eur Income Tax: 24,75% 2.090 : 517.27 Eur


Taxation for Tax non residents that RENT a property in Spain


National Taxes • Income Tax (I.R.P.F) The amount to declare is the entire amount received from the tenant, without deducting any costs. Nevertheless, as we are dealing with taxpayers resident in another European Union member state, the expenses described in the Law on Personal Income Tax (IRPF) can be deducted when calculating the taxable base, as long as proof is provided that these expenses are directly related to income earned in Spain and have a direct economic connection that is inseparable from the activity carried out in Spain. Year income accrued 2011 2012-2013 Tax rate

24%

24,75%

It is paid 20 days after the quarter end


Girona

Calonge

C/ de la Creu 2 bis c/ Major 12 972-109613 girona@ceconsulting.es


Taxation for non residents that own a property in Spain