What taxes must I pay in Spain as a non resident individual property owner? (2017-09-08)

16 Dec What taxes must I pay in Spain as a non resident individual property owner? (2017-09-08)

Non-resident individuals owning real estate properties in Andalucía, Spain, have the obligation to declare and pay the following taxes every year:

1. Land Rate tax (or I.B.I. ) , yearly payable to the municipality. It is based on the valor catastral (officially rated value) of each property and can vary broadly from town to town. In many municipalities, and linked to IBI, there is also a Rubbish Collection Tax (Or Tasa de Basura). These taxes apply to both residents and non-residents and are local taxes levied by the town hall where your property is located. They are paid once a year. It is advisable that you set these taxes as a standing order payable from your bank account.
2. Property owners’ attributed income tax (or IRNR). Also a yearly tax. Non residents pay 1.1 percent of the “valor catastral”, an officially rated value of their property attributed to it  as a sort of made-up income. In case the property rated value has not been officially updated on or after January 1994 property owners pay 2.0 percent. The term to pay this tax finishes at the end of each year following the one your ownership, (i.e. the 31st of December of each year is the deadline for payment of the tax of the previous year and so forth).
3. Wealth Tax. Non residents are liable for Spain’s tax on assets and properties in Spain . It is known as Patrimonio tax and is based on the asset’s real sale value declared on the Purchase Deed or contract, normally higher than the cadastral value for real estate properties (valor catastral) .  It is important to note that as of the date of this writing there is a minimum exempt value of EUR 700,000 for non-residents as well as for residents, . This means that asset’s globally valued below such amount are exempt of any payment for this tax.