A Guide for Costa del Sol Buyers
Starting on the journey of buying a property on the sunny Costa del Sol is an exciting prospect for many. However, understanding the intricacies of non-resident property taxes in Spain is crucial for prospective buyers. This guide provides a comprehensive overview of what you need to know about non-resident taxes and how our partnership with IberianTax can simplify the process for you.
Understanding Non-Resident Taxes in Spain
If you’re buying a property in Spain and you’re resident elsewhere, regardless of whether you are resident in the EU or outside of the EU, you will need to pay non-resident taxes in Spain. These taxes are primarily based on how you use your property in Spain – be it for personal use, rental, or eventual sale.
Imputed Income Tax
Even if your property is not rented out and remains empty when you’re not using it, as a non-resident, you must pay Imputed Income Tax. This is calculated based on the cadastral value of the property and is intended to reflect a potential income from the property.
Rental Income Tax
If you rent out your Spanish property, regardless of whether it is rented all year round or just for certain periods of time, the income generated from this is subject to Rental Income Tax. The rates vary, and deductions are applicable for certain allowable expenses, which can mitigate the tax liability.
Capital Gains Tax
Upon selling your Spanish property as a non-resident, you will be liable for Capital Gains Tax on any profit derived from the sale. This tax is based on the profit made, which is the difference between the sale price and the purchase price along with costs associated with the purchase and sale.
Why Is This Important?
The Costa del Sol remains an attractive region for property investment, renowned not only for its beautiful landscapes and climate but also for its robust real estate market. Understanding and managing these tax obligations are crucial in ensuring a profitable and compliant investment!
Streamlining Your Tax Filing with IberianTax
Recognising the complexities involved in tax filing for non-residents, we have partnered with IberianTax, a leading online tax filing service in Spain. This collaboration is designed to simplify your tax management process through several key features:
Ease of Use: IberianTax provides a user-friendly platform that allows you to manage your tax obligations from anywhere in the world – and it’s available in English, French and German languages.
Cost-Effective: With rates starting from just €34.95, IberianTax offers a more affordable solution compared to traditional accountancy services.
Compliance and Security: Fully approved by the Spanish tax authorities, IberianTax ensures that your filings are compliant and your data is secure.
Exclusive Offer for Winkworth Clients
Winkworth clients can enjoy an exclusive 10% discount on their first tax return filed through IberianTax! This offer is part of our commitment to providing added value to our clients and ensuring that your investment journey on the Costa del Sol is as smooth and beneficial as possible.
Investing on the Costa del Sol
With its vibrant expat community and a plethora of activities and amenities, the Costa del Sol is more than just a holiday destination. It offers a quality of life that is hard to match, with cultural richness and access to world-class facilities, whether you’re looking for property in Sotogrande, Estepona, Marbella and beyond.
Your Investment Partner
At Winkworth Spain, we are more than just real estate agents; we are your partners in ensuring that every aspect of your property investment is successful. From finding the perfect property to managing logistical aspects like tax filings, we are here to assist you at every stage.
If you’re looking for a real estate agency in Marbella that is committed to doing the very best for you, get in touch with us now to start your property journey.
