Real estate TAXATION for NON RESIDENTS

[illeslex]

Good afternoon,

The purpose of the current thread is to inform you briefly about the taxation of the properties located in the Spanish territory owned by a Non Resident Person.

Specifically, as we explained you last week the Income Tax, today we would like to inform you of what is called here in Spain IBI (Property Tax) and Capital Gains Tax.

First of all, PROPERTY TAX (IBI):

All homeowners in Spain (residents and non-residents) are required to pay this yearly tax to the Townhall of the corresponding location of the property.

The amount of this tax is calculated for each municipality based on the assessed value of the property and applying a tax rate that provides the same Townhall.

The term of payment varies depending on each municipality, although it is usually around the months of September, October and November.

Secondly, CAPITAL GAINS TAX:

It has been temporarily restored for 2011, 2012, 2013 and 2014, interest will accrue on December, 31st of each of these financial years.

For your information, a reduction in the tax base of the minimum exempt amount of 700,000.-€ has been regulated for both residents and non-residents. This is a very important point to take into account.

Therefore, the persons who are required to file are:

- Those whose amount requires payment
- Those whose properties and rights are valued over 2.000.000.-€, even if the amounts shows negative.

The tax rate ranges from 0.2% to 2.5% depending on the tax scale.

If you have any question, do not hesitate to contact us.

Have a nice weekend,

[rioja]

Originally Posted by illeslex

Good afternoon,

The purpose of the current thread is to inform you briefly about the taxation of the properties located in the Spanish territory owned by a Non Resident Person.

Specifically, as we explained you last week the Income Tax, today we would like to inform you of what is called here in Spain IBI (Property Tax) and Capital Gains Tax.

First of all, PROPERTY TAX (IBI):

All homeowners in Spain (residents and non-residents) are required to pay this yearly tax to the Townhall of the corresponding location of the property.

The amount of this tax is calculated for each municipality based on the assessed value of the property and applying a tax rate that provides the same Townhall.

The term of payment varies depending on each municipality, although it is usually around the months of September, October and November.

Secondly, CAPITAL GAINS TAX:

It has been temporarily restored for 2011, 2012, 2013 and 2014, interest will accrue on December, 31st of each of these financial years.

For your information, a reduction in the tax base of the minimum exempt amount of 700,000.-€ has been regulated for both residents and non-residents. This is a very important point to take into account.

Therefore, the persons who are required to file are:

- Those whose amount requires payment
- Those whose properties and rights are valued over 2.000.000.-€, even if the amounts shows negative.

The tax rate ranges from 0.2% to 2.5% depending on the tax scale.

If you have any question, do not hesitate to contact us.

Have a nice weekend,

Yes, I thought that was the case lol