I am a non-resident. What do I do with my house in Spain?

How is this imputed rent calculated?

Based on the IRPF (“Impuesto sobre la renta de las personas fí sicas”, personal Income Tax) regulations, the imputed rent will be the result of applying a percentage to the cadastral value of the property, which can be found in the Property Tax (IBI) receipt. These calculations are as follows: 1.1% if the cadastral value has been revised in the last ten tax periods; 2% otherwise.

This tax is due each year on 31 December, and the deadline for filing is the last day of the following year. The applicable tax rate is the rate in force in the year of accrual, depending on your place of residence. From 2016, this tax rate will be 19% for residents of the European Union, Iceland, or Norway, and will be 24% for the rest of taxpayers.

What happens if I rent out my property?

If you rent out your property, you will be taxed separately for each income you earn at the end of the relevant quarter.

If you are resident in another member state of the European Union and, for accruals since 01 January 2015, in a state of the European Economic Area with which there is an effective exchange of information, from the total income received you may deduct the expenses provided for in the Personal Income Tax Law (interest on the loan, repair and maintenance expenses, taxes, community expenses, insurance, supplies, and depreciation of the property), provided that you can prove that these expenses are directly related to the income obtained from the rental of the property.

The applicable tax rate will be the rate in force in the year of accrual, depending on your place of residence, as mentioned above in the case of imputed rent.

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Photo: Uwe Rieder