Taxes House Residents

 

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Income tax

Main residence

If you have one house in Spain which is your own main residence and that you do not rent out, then no income tax is due.

Other houses

If you have one or more houses that you rent out, you must declare the earnings in your income tax return. For more information, see page Taxes on Rent.

For the period that you do not rent a house, not being your own main house, a ‘rental value’ applies. This means that the Spanish tax authorities allocate a fictitious rental value and then tax.

For the tax rates, see the Income Tax page, Table 1 ‘General rates’.

Wealth tax

If the value of your home (s) is higher than the exemption that applies in your region, capital tax is payable. The exemptions differ per region. For the house where you live, an extra exemption of 300,000 euros applies. For more information and rates, see the ‘Wealth tax’ page.

If the tax value of your home exceeds 2 million euros, a capital tax declaration must be made. Even if the value of the home minus the mortgage falls below the exempt amount. In that case, no tax has to be paid, but a declaration must be submitted.

If in doubt, ask us at the bottom of this page if the wealth tax applies to you. We will answer this for you without any obligation.

Municipal tax

There is a municipal tax in Spain, the IBI, which is comparable to the Dutch OZB. For more information about this, please refer to the relevant municipal taxes page.

Real estate in other countries

If you are a tax resident in Spain and you have real estate abroad (residences, business premises, parking places, etc.) then you have to state this in the foreign assets declaration. The declaration limit amounts to 50,000 euros.

This is an informative declaration, so no tax has to be paid. For the non-submission or incomplete submission of this declaration, large fines apply. More information can be found on the ‘Foreign assets declaration‘ page.

Residents must also declare income from housing located in other countries and the value of housing in other countries in the income tax and wealth tax returns if the amounts in question exceed the exemption.

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