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Discussion Starter · #1 ·
We, my wife and I, are permanent residents in Spain and are considering purchasing a holiday flat by the seaside.

If we were to include some non residents, IE. our Daughter and son in law, what would be the tax implications for both imputed, assumed letting, and inheritance tax for all of us.

This would not stop us going ahead with this project but we feel it is best being aware of the implications.

What are your thoughts?
 

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Non-resident tax is very, very little. It's a small percentage of the cadastral value of the property.

Personally, I would put the property entirely in my daughters name (solely).
Maybe it is different by CA, but when I was non-resident and renting out my property in Madrid the tax was 24.75% of the actual rent. This dropped during my time as a non-res to 24%, which I believe is still the case. No deductions are allowed either.

The calculation based on Catastral value only applies if the property is not rented.
 

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Maybe it is different by CA, but when I was non-resident and renting out my property in Madrid the tax was 24.75% of the actual rent. This dropped during my time as a non-res to 24%, which I believe is still the case. No deductions are allowed either.

The calculation based on Catastral value only applies if the property is not rented.
Sorry, this needs correcting. I was non-res and had my tax residency outside of the EU, so the rules were different.

It seems that if your tax residency is within the EU, deductions are admitted, and the rate is now only 19%.
 
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