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Hello all,

Have a query I was hoping someone might be able to help me with.

I have a property in Spain but am non resident. I am aware of municipal property tax but was told recently that I am also liable for income tax despite the fact that I do not have any income as I have never rented the property.

Is this the case or am I only liable if I am receiving rental income?

Thanks in advance!
 

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Hello all,

Have a query I was hoping someone might be able to help me with.

I have a property in Spain but am non resident. I am aware of municipal property tax but was told recently that I am also liable for income tax despite the fact that I do not have any income as I have never rented the property.

Is this the case or am I only liable if I am receiving rental income?

Thanks in advance!
You have to pay whats called "deemed income tax" if you own a property, but are non resident. Its payable on all houses in Spain which are not your main residence, which yours isn't if you are non resident. If you rent out your property you only pay the deemed income for the days when its not rented out. Its quite easy to calculate. Its 1.1% of the catastral value of your property (find it on your IBI - rates- bill ), and then 24.75% of the amount is the tax to pay. If you catastral has not been revised since 1st January 1994 (check your bill) then its 2% of the catastral value.

You pay it by submitting a Form 210. Details can be found here in english
 

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If you are a non-resident property owner the only tax you are liable for is the Impuestos sobre la Renta de no residentes or commonly known as the non-resident property tax.

This is a tax on the imputed earnings of your property. In other words the tax office works out the tax you might have to pay if you rented it out.

You are not liable for Spanish Income Tax if you are a Spanish non-resident.
 
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