Belastingen / Taxes / Steuern / Impuestos No Residentes
In the past, the income tax for non-residents was a separate article in the general income tax law. In the new tax system, a new law has now entered into force, which only covers income tax for non-residents. For non-residents, an addition of 2% or 1.1% of the tax rental value of the house applies, regardless of whether the house is rented out or not.
The main difference in income tax between residents and non-residents is that for residents it is assumed that “la renta disponibie” (= disposable income after deductions), while for non-residents it is assumed that “la interest obtenida” (income obtained) . Non-residents are not entitled to deductible items.
The only exemption that non-residents have is the interest received on their bank balances / deposits (cuentas de no residenies). However, this interest income is taxed in the Netherlands or Belgium.
A non-resident who owns a second home in Spain and does not rent it out is still expected to enjoy rental income (valor and renta). You can compare this with the Dutch rental value fixed. 2% of the fiscal rental value is considered income. The fiscal rental value of the property can be found in the assessment for the Spanish property tax (IBI). If a revision of the fiscal rental value has taken place after 1994, a percentage of 1.1% applies. You will also find this new tax rental value on the assessment for the IBI.
When you actually rent out your second home, you are obliged to pay tax on the actual rental income. You are liable to tax at the moment you receive the rental income. If you rent out your second home through a rental agency, the rental agency must withhold the tax and pay it to the tax authorities. As the owner, you must ensure that the rental agency actually pays the tax (therefore regularly ask for proofs of payment from the tax authorities).
If You are only liable for tax on the fictitious rental income (the 2% of the tax value), you must declare and pay this tax before December 31 of the relevant year.
Rate for non-residents
The rate for the non-resident who owns real estate in Spain is 25% over 2 or 1.1% of the fiscal rental value.
Other rates apply to other income that non-residents enjoy in Spain.
Your second home is considered by the Spanish tax authorities as your tax correspondence address. If you do not stay here regularly, the mail from the tax authorities can remain unopened for a long time.
A tax representative offers a solution.
For some time now, the tax rate on capital gains earned by non-residents in Spain has been the same as that of residents.
With the introduction of the new income tax system (lower rates and wider exemptions) it will become more attractive for many non-residents to become a resident in Spain.