General Spanish Taxes

Taxes for Foreign Residents

Generally, a foreigner must pay two basic taxes when owning a property or living in Spain.
You will pay every year the following only if you have a property in Spain.
1. The IBI-Urbana Rates to the Town Hall. This is paid from July to August.
2. The Wealth Tax Declaration (Declaración del Patrimonio). Paid at the Public Treasury (Hacienda) at any time of the year.
You must pay every year:
1. The IBI-Urbana Rates to the Town Hall only if you have a property.
This is paid from July to August.
2. Income Tax Declaration (Declaración de la Renta).
This is a tax on your income and you have to make a declaration only if your income is more than:
Non-pensioners = 21,035 € Pensioners = 7,813 €
It is paid at the Public Treasury (Hacienda) from May to June.
The IBI-Urbana Rates tax is explained in the following section and the taxes for Public Treasury (Hacienda) are detailed at the end of this book.
Apart from these taxes, which are those normally paid by all foreigners, are other Town Hall taxes that are paid only in specific cases and are explained in the following.
Town Hall Taxes
The general taxes of the Town Hall are:
Date Of Payment
Land Value Tax (Plusvalía) when purchasing a house
Property Rates (IBI- Urbana) from July to August
Water every three months
Road Tax from March to April
Car Entrance from March to April
Building Licence prior to carrying out works
Cemetery from July to August
Land value Tax (Plusvalía)
The Land Value Tax (Plusvalía) is paid every time a property changes owner by means of a sale-purchase, inheritance or donation. The Land Value Tax is paid only once. The new owner must obtain a title deed to register the property in his / her name.
You will also pay Plusvalía when, in a marriage, one of the spouses passes away. If the property is in joint names, the remaining spouse will have to make a new title deed to transfer the half of the property that belonged to the deceased spouse to the remaining spouse and pay the Plusvalía for this inherited half
After signing the title deed, a copy of the deeds should be presented within 30 days in the Rentas Department of the Town Hall. In the case of inheritances, the time allowed to present is six months. Following this, you will receive an invoice requiring you to pay the Plusvalía in a time period of 20 days.
The payment of the Plusvalía will be according to the terms of the title deed. The custom is that [he purchaser pays the Plusvalía. According to law, the payment is the responsibility of the vender unless this is a Foreign Non-resident, in which case the responsibility is with the purchaser.
The amount of the Plusvalía depends on the rateable value of the property and the number of years elapsed since the last sale. The more years which have passed then the greater the amount to be paid. The maximum that can, be paid is 20 years. If the time passed since the last sale is less than one year, there will be no Plusvalía to be paid.
Property taxes (IBI-Urbana)
If you have a home or another property (garage, business premises, land) you must pay the IBI -Urbana Rates. This tax is paid every year from July to August and the amount is approximately 0.6% of the rateable value of property. Normally the rateable value is lower than the purchase price.
IBI-Urbana of a new construction:
In a new construction, the builder has the obligation, before selling the property, to register the property in the Cadastral Office.
After signing the title deed, the new owner must present a copy of the deed in the Tax Office to change the IBI- Urbana Rates in the name of the new owner.
In the case of a new property, you will receive the bill for the IBI-Urbana Rates after a few years. The initial bill, however, will include the charges for the previous years without any surcharge.
Road Tax
Anyone who has a car or other class of vehicle must pay this tax every year between March and April.
This tax is based on the cylinder capacity of the vehicle and will be approximately the following:
less than 8 hp..................………….16 € per year
from 8 hp to 11 hp...........…………..44 € “ “
from 12 hp to 15 hp..........………….94 € “ “
from 16hp to 19 hp......………….....116 € “ “
over 2o hp........................………….146 € “ “