Jos Deuling,  Tuesday, 8 August 2017

 

I've spent a couple of days finding the most informative links on the tax system in Spain. I have grouped the links by topic. The links were last checked on August 8th, 2017. I have included links with a brief explanation of a topic and links with detailed information.

General tax considerations

Resident or non-resident?

A quick guide to understanding if you will need to pay income tax in Spain: .

The Tax system

A general overview of Spanish taxes on Wikipedia: .

Nice overview of .

Income Tax

Allowances and reductions

Personal Allowances for Spanish income tax : .

Tax returns

10 common situations clarified:

Double taxation agreements

What is the double tax treaty and when does it apply to me? .

Property Taxes

All Spanish property taxes at a glance: .

Payment of property taxes

Make sure which fees are paid by the buyer and which fees are paid by the seller

Most taxes are paid by the buyer, with the exception of land tax ( plus valía) and the selling agent’s fees. The law stipulates simply that expenses will be divided when they aren’t set out in the contract and who pays what fees is often a matter of negotiation. Always ensure that you know exactly what the total fees will be before signing a contract. Source: .

Valuation of the property

Property taxes are based on the valuation on the “Catastro” list which is much higher than the actual market value: .

Property transfer tax - Impuesto sobre transmisiones patrimoniales (ITP)

For this tax to be applied, the property must be second hand, meaning a resale. The percentage varies in each region of Spain. See the map in this article: .

VAT - Impuesto sobre le valor anadido (IVA)

Stamp Duty - Impuesto sobre actos juridicos documentados (AJD)

In the case of real estate transactions, it applies to the execution of notarised, administrative or mercantile documentation for transactions that are subject to VAT or theProperty Transfer Tax (TPO). Source: .

Plus valia tax

The Plusvalia, literally 'more value', is a municipal tax levied on the sale of a home: .

Local mains drainage and refuse collection tax - basura y alcantarillado

This local tax payable by property owner and a related to rubbish collection and drainage.The amount to pay varies from area to area, and should be paid to the local Town Hall every 3 or 6 months. This tax should be between €200 and €250 per year. Also, if your spanish property has a garage entry you are obliged to pay €18 per year. Source: .

Local property tax - Impuesto sobre Bienes Inmeubles (IBI).

This is the main local property tax affecting owners of properties in Spain payable yearly to the Town Hall. The amount of the tax is calculated by reference to the valor catastral (official value of the property) registered in respect of all properties in Spain. The percentage charged varies from area to area, and is roughly 0.5% to 1%. Source: .

Detailed description: .

Capital Gains Tax

For this tax, it is important whether you are a resident or non-resident. In some cases, you are exempt from this tax : .

VAT

IVA is charged at 21% (from 1st September 2012) on most goods and services in Spain, but not everything gets hit with the full 21% and the situation is different for property : .

Nice overview of the development of the VAT between 2000 and 2015: .

Inheritance/succession tax

Inheritance Tax is a huge concern for anybody who owns property in Spain (.pdf format) : .

Valuation of assets

Warning. If you inherit a property make sure you value it correctly . If you value it too high you will pay unnecessary tax, but if you value it too low you will get into trouble: .

Tax relief

See stage two of the calculation in: .

Wealth tax

Wealth Tax (Impuesto sobre el Patrimonio) was abolished in Spain on 1st January 2009, then re-introduced on a "temporary" basis for the years 2012 and 2013. This turned out to be not-so-temporary, as it was then extended to the years 2014 and 2015!! Source: .

Detailed description: .