TAX FOR NON RESIDENTS: PROPERTIES LOCATED AT SPAIN

Taxation will depend on whether the property is let or not.

In the case of leased property, the tax base consists of the earnings obtained and taxable separately for each accrual.

In general, gross income will be the taxable base. Nevertheless, as we are dealing with taxpayers resident in another European Union member state, with regard to income earned from 1-1-2010, the expenses described in the law on personal income tax (IRPF) can be deducted when calculating the taxable base, as long as proof is provided that these expenses are directly related to the income.

 If the property is not leased (it is used by the owner or is unoccupied), 2% of the cadastral value of each property is estimated as earnings and the general tax rate applied to that base. In the case of properties the cadastral values of which have been revised or modified pursuant to cadastral legislation and have been enforced after 1-1-94, the estimated earnings are 1.1%. The accrual is produced on the last day of the calendar year natural.