Tax advantages for property owners

If you spend more than six months a year in Spain, you are obliged by law to apply for a residents permit.* This law is currently being abolished , spanish conveyancing , spanish-legal-advice-solicitors

There are however, several tax advantages for residents of Spain that do not apply to non-residents , spanish conveyancing , spanish-legal-advice-solicitors

Inputted income tax is an annual tax on an imaginary income resulting by virtue of ownership of a property and is charged as 0.5% of the catastral value , spanish conveyancing , spanish-legal-advice-solicitorsIf you are a resident you will not be charged this on your principal home , spanish conveyancing , spanish-legal-advice-solicitors

Wealth tax is a tax on all assets in Spain and is charged at 0.2% of the catastral value of any house owned , spanish conveyancing , spanish-legal-advice-solicitorsFor residents the first 108,000€ is exempt and for a joint ownership this would apply to each partner , spanish conveyancing , spanish-legal-advice-solicitorsThese two taxes are paid annually as long as you own the property , spanish conveyancing , spanish-legal-advice-solicitorsNon-residents do not receive any relief so therefore have to pay 0.7% of the catastral value every year , spanish conveyancing , spanish-legal-advice-solicitors

When you come to sell the property, capital gains tax will be charged on any profit you have made , spanish conveyancing , spanish-legal-advice-solicitorsThis is 35% for non-residents but only 20% for residents , spanish conveyancing , spanish-legal-advice-solicitorsA further concession for residents is that if you are over the age of 65 and have lived in your property for at least three years, you are totally exempt from capital gains tax , spanish conveyancing , spanish-legal-advice-solicitorsFinally, if you are 60 years of age or more and have lived in your property for at least three years, you can bequeath your property to your spouse or children and avoid paying inheritance tax on 95% of the valuation , spanish conveyancing , spanish-legal-advice-solicitorsThe inheritor must also be a resident of Spain and agree not to sell the property for at least ten years , spanish conveyancing , spanish-legal-advice-solicitors