Taxes if you rent the property in Spain
Rental income from a property in Spain is taxed in Spain. This means that tax returns must be made in Spain.
For non-residents, the fixed rate of 19% applies if they are resident in another European Union country. For residents from countries outside the European Union the rate is 24%.
Costs incurred to make the rental possible are deductible. However, this concerns a limited list of direct costs (for example, travel expenses to ‘inspect’ the property are excluded).
Taxes if you use the property only yourself
If the house is not rented out, a flat-rate income of 1.1% is granted on the cadastral value (and 2% if the cadastral value has not been revised in the past 10 years).
If you do not live in Spain but in another EU country, this flat-rate income is taxed at the non-resident rate of 19%. If you live in a country outside the European Union, you pay 24% about this ‘flat-rate income’ of 1,1% or 2%.
There is also a municipal tax in Spain, the IBI. For more information about this, please refer to the relevant municipal taxes page.
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