While you are an owner of property in Spain annual taxes apply whether or not you are a resident.


A person who is not a fiscal resident in Spain and who owns a property in Spain is, by law, liable to file Individual Income Tax and another tax known as Real Estate Tax.

Please find below a brief explanation.



Income tax


The fiscal year in Spain runs from 1 January to 31 December.


The tax authorities estimate an income from your property based on its rateable value (valor catastral) which you would find on the copy of the rates bill.


-          If a property´s rateable value has changed after 31 December 1993 then the percentage of calculation is 1.1%.

-          If a property had its rateable value set on 31 December 1993 or before, then the percentage of calculation is 2%.

-          If a property is new and does not yet have a rateable value a figure of 50% of the declared value of the property is taken and the 1.1% rate applied.


For example if a property was bought in 2005 and the rateable value is 200,000 Euros then the income assessed on the property would be 2,200 Euros. For residents this amount would be added to their annual income and taxed accordingly. For non-residents a flat rate of 25% would mean that they would pay 550 Euros in tax.


Unlike Wealth Tax, Income Tax is calculated on a pro rata basis if the property was not owned for the whole year.


Real Estate Tax

Don´t be alarmed by this tax! This is simply what in the UK is known as Rates. It is raised by the local municipality on all properties and is normally paid between the months of September and November of the corresponding year in question. So rates for 1 January -31 December are paid in September, October or November of that year.