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IBI Tax in Spain and Imputed Income Tax – Everything You Need to Know

If you own property in Spain, you’re probably familiar with the IBI (Impuesto sobre Bienes Inmuebles) local property tax. This is the standard tax paid to local authorities, but many non-resident property owners mistakenly believe that once this is settled, their tax obligations are complete. However, if you’re a non-resident and own an urban property in Spain, there’s another crucial tax you must file: the imputed tax, also known as deemed annual tax. This tax applies to non-residents who own property in Spain, even if the property is unoccupied. While it might seem like a hassle, staying on top of your imputed income tax is crucial to avoid penalties and interest charges. The Deadline for 2023 is looming! In this guide, we will cover all the essential information you need to know about both taxes.

What is the IBI tax in Spain?

The Spanish IBI tax (Impuesto sobre Bienes Inmuebles) is a local property tax charged by your town hall, similar to council tax in the UK, but usually less expensive. In some regions of Spain, it’s also called the SUMA tax. Like council tax in the UK, the IBI tax helps fund local services such as road maintenance, street lighting, and schools. Paying the IBI tax is essential because it’s used to calculate other property-related taxes in Spain. The tax is due every year by the person who owns the property as of January 1st. So, if you buy a home on January 2nd, the previous owner will pay that year’s IBI tax, and you’ll begin paying it the following year. All property owners, whether residents or non-residents, are required to pay this tax. In some areas, the IBI tax may also cover garbage collection, but this isn’t always the case, so it’s something to check when purchasing property. For more details on waste disposal, check out our guide to utilities in Spain.

How is IBI Tax Calculated in Spain?

IBI tax in Spain is based on your property’s cadastral value, which is the value assigned by local tax authorities. You can find this value on your IBI tax documents, and it’s usually much lower than the property’s market value. The IBI tax typically ranges from 0.4% to 1.1% of the cadastral value. A visual representation of the concept of homeownership and financial planning, with a puzzle piece house symbolizing homeownership and a calculator symbolizing financial calculations.

When is IBI Tax Due?

The due date for IBI tax is set by your local town hall, so it can vary depending on where your property is located. When buying a new property, make sure to ask the town hall about the specific due date.

What Happens If I Don’t Pay My IBI Tax?

Not paying your IBI tax can lead to serious issues. In extreme cases, your property could even be seized.  Town halls are becoming stricter about collecting unpaid taxes, so it’s more important than ever to pay on time. If you don’t pay your IBI tax, you won’t be able to file your non-resident tax since you need proof of IBI payment to do so. Also, properties with unpaid IBI tax can’t be bought or sold until the debt is cleared. Keep in mind that you won’t receive a reminder to pay your IBI tax, so it’s up to you to know when and how much to pay. It’s a good idea to hire a lawyer or tax expert to help ensure everything is handled correctly and on time.

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What is the Non-Resident Imputed Income Tax in Spain?

If you’re a non-resident who owns property in Spain but doesn’t rent it out, you’ll need to pay the Non-Resident Imputed Income Tax (IRNR). It is also known as deemed income tax. This tax applies even if the property is just for personal use or stays vacant all year.

For Multiple Owners

If you own the property with others, each co-owner must file a separate tax return. The tax is divided based on each person’s share of the property, so you’ll need to report your specific ownership percentage.

How is it Calculated?

To calculate the imputed income tax, use this formula: Cadastral Value x Imputed Percentage x Tax Rate You’ll need the cadastral value of your property, which you can find on your local tax receipt (IBI or SUMA), by contacting the local town hall, or visiting www.sedecatastro.gob.es. The imputed percentage ranges between 1.1% and 2%, depending on your property’s location. If there was a revision in the last 10 years our property tax advisors can use 1.1%, but this depends on the region. Will have to check with CIty Hall the information, if it is not listed in the IBI document. The tax rate is 19% for residents of the EU, Iceland, Norway, and Liechtenstein, while non-EU residents pay 24%. If multiple people own the property, each must file their own Modelo 210, with the tax split according to ownership.

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When is the Deadline?

Have you paid your IBI local tax and assumed all your tax obligations are complete? Think again! If you own an urban property in Spain, there’s an additional tax you must declare each year: Modelo 210, also known as the imputed or non-resident tax. In addition to your IBI tax, this annual declaration is required to stay compliant with Spanish tax laws. The deadline for the 2023 tax year is fast approaching—December 23, 2024. Don’t miss it!

Who can help me?

We understand that Spain’s imputed income tax can feel overwhelming, especially for non-residents. But don’t worry—we’re here to help! At Property Tax International (PTI Returns), we handle the entire process of preparing your tax forms for Spain’s imputed income tax. With years of experience in Spanish property tax services, we ensure our clients stay fully compliant with all necessary tax laws. Property Tax International will keep you informed every step of the way and handle all communication with the Spanish tax office on your behalf. If you have rental income, we can also help you file your rental income tax return. Got questions? Don’t hesitate to contact us for a no-obligation consultation.

Spanish Property Tax

Selling property in Spain as a UK resident

If you are a UK resident selling property in Spain, the allure of the market is often balanced by the need to navigate a complex web of tax rules and legal obligations.

Spain’s vibrant culture, stunning landscapes, and favorable climate make it an attractive destination for foreigners looking to buy or sell property.

If you’ve bought property in Spain as an investment, or spotted a promising selling opportunity in the market, there are several factors to weigh before selling as a non-resident.

We’ve compiled the following guide to provide you with all the essential information needed to make informed decisions if you are a UK resident selling property in Spain, ensuring you save on costs and minimize potential risks.

UK resident selling property in Spain

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Spanish Property Tax

Managing Spanish tax on rental income? Here’s everything you need to know about Spanish property tax for non-residents

Did you know that if you are a foreigner and you own property in Spain but don’t live there, you might be on the hook for something called “non-resident tax in Spain”?

Do you rent out your property? Then, you must pay rental income tax in Spain.

Surprisingly, many property owners are unaware of their tax obligations and go years without paying them.

However, things have changed recently, and understanding the nuances of international property tax is crucial for global real estate investors.

The tax authorities have become more active in pursuing unpaid non-resident taxes in Spain. They’re now sending out tax demands to those who haven’t paid their dues for the past four years.

If you receive one of these demands, you’ll have just 10 days to make the payment.

And be prepared for some additional fines too, like interest on the unpaid amount and potential penalties down the line.

It’s better to stay on top of your non-resident tax responsibilities to avoid any surprises!

In this guide, you will find everything a non-resident landlord needs to know about property tax, rental income tax in Spain, and the tax filing deadlines.

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Spanish Property Tax

Everything you need to know about mortgages in Spain for non-residents

Ready to own a piece of paradise in Spain?

More and more foreigners are purchasing properties in Spain. According to information from Spain’s General Council of Notaries, over 67,983 houses were bought by foreigners in 2023, making up around 13% of all transactions. Additionally, foreign citizens signed 7% of the mortgages issued in Spain for property purchases.

Luckily, getting a Spanish mortgage for non-residents is possible, and there are various options available. This could be the golden ticket you need to unlock the doors to the country’s coveted housing market.

Buying property in Spain, such as a holiday home, and getting a Spanish mortgage for non-residents might be difficult but not impossible.

While some Spanish banks may turn a blind eye to those living and paying taxes abroad, don’t fret! There are plenty of other banks that are more than happy to give mortgages to foreigners so that they can make their Spanish dream a reality.

Here is everything you need to know about mortgages in Spain for non-residents.

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Spanish Property Tax

What’s the Spanish NIE number? And what is it needed for?

Are you a non-resident planning to live, work, or own property in Spain? Are you wondering if you need to pay rental income tax in Spain? Then you’ll need to get familiar with the Spanish NIE number – a crucial identification document that all foreign residents in Spain must have.

But what exactly is the Spanish NIE number, and why is it so important?

In this article, we’ll take a deep dive into the world of the NIE number and explore everything you need to know, from what it is and how to get it, to why it’s essential for opening a bank account, buying property, getting a job, and much more.

So, buckle up, and let’s get started on this essential guide on the Spanish NIE number.

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Spanish Property Tax

Key dates and deadlines for the 2023 Spanish tax year

Do you want to know more about the Spanish tax deadlines? You are reading the right article.

Whether you’re a resident, a non-resident, or an investor, navigating the Spanish tax system requires careful planning and compliance.

The tax year follows the calendar year from 1 January to 31 December, unlike some other countries like the UK.

Remember, Spanish tax rules can be complex, and errors can lead to fines.

If you are a non-resident with property in Spain, our tax professionals can help you with your annual tax return responsibility in Spain.

This article highlights important Spanish tax deadlines and dates to help you stay compliant with the Spanish tax authorities and avoid any unpleasant late-filing penalties.

Spanish tax year deadlines

Below, you’ll find a convenient chart detailing the key Spanish tax deadlines you need to remember:

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Spanish Property Tax

What are deemed tax returns for a property in Spain?

Ever wondered what is deemed tax?

This is a tax paid by non-residents in Spain who own properties located in the country that were not rented. They are subject to non-resident deemed income tax.

Landlords with a house or apartment in an urban area that is not let, are still obliged to pay tax on “deemed rental income“. In case the property is partially let, Spanish Deemed tax is applicable only for the period in which it was vacant or occupied by the owner for personal use.

These landlords must file a non-resident income tax return (Form 210) to report the “deemed income”.

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Spanish Property Tax

A complete guide to managing your Spanish rental property

It’s thrilling to find an overseas investment opportunity. However, dealing with the day-to-day responsibilities of managing your Spanish property can be complex.

When there is a language barrier and you are thousands of kilometers away, tasks like sorting bills and maintenance of your Spanish property might be challenging.

Add to that complicated rental laws and rental income tax in Spain, and it’s easy to see why so many investors enlist the services of a dependable property management company in Spain.

In this blog, we’ve broken down everything a landlord needs to know about property management in Spain, and who can help you deal with your Spanish tax return / Form 210 obligation.

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French Property Tax / German Property Tax / Hungarian Property Tax / Irish Property Tax / Polish Property Tax / Property Tax Tips / Spanish Property Tax / UK Property Tax / USA Property Tax

What is the history behind PTI Returns? Q&A from our tax team.

When was “Property Tax International” created?


The idea was born in 2006.

We noticed that more and more people were purchasing property abroad and there was a gap in the market for a company that could organise and manage the tax requirements of international property owners.

We wanted to help people who have a property and rental income in France, Germany, Spain, Ireland, the UK, Poland, Hungary and the USA to meet their tax obligations.

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