PROPERTY SEARCH
Stop overpaying: How non-residents can save on Spanish property taxes
There are significant savings to be made when paying tax as a non-resident property owner in Spain, according to IberianTax
For many non-residents, buying a home in Spain is a lifelong goal, whether it’s a sunny escape or an investment. But owning property here also comes with its share of responsibilities, including staying on top of your tax obligations, even if you don’t live in Spain full-time.
The good news? With the right approach, you can reduce your tax burden legally and avoid overpaying. Here’s how to save money, stay compliant and get the most out of your Spanish property.
Know your tax obligations
If you’re a non-resident property owner (living in Spain fewer than 183 days per year), there are three key taxes you may need to file:
1. Imputed Income Tax
Even if your property isn’t rented, you must still pay tax based on the property’s ‘theoretical rental value’. This is known as imputed income tax.
- Rate: 19% (EU/EEA residents) or 24% (non-EU residents)
- Deadline: Before the 31st of December each year (for the previous year)
2. Rental Income Tax
If you rent out your property, whether it’s short or long term, you must declare the income generated on an annual basis.
- Rate: 19% for EU/EEA residents and 24% for non-EU residents
- Deadline: Annually between 1st and 20th January (for the previous tax year)
3. Capital Gains Tax
If you sell your property, you’ll need to pay tax on any profit made from the sale. The buyer is obligated to withhold 3% of the sale price as a pre-payment of this tax.
- Rate: 19%
- Deadline: Must be submitted within 4 months of the sale date
How to reduce your tax bill
- Use allowable deductions: If you’re an EU/EEA resident, you can deduct certain costs from your rental income, like mortgage interest, insurance, repairs and property management fees. Keep receipts and provide a tax residency certificate to qualify.
- Don’t miss deadlines: Penalties for late filing can quickly add up! Registering with IberianTax means you’ll receive free deadline reminders, giving you plenty of time to prepare.
- File early with IberianTax: IberianTax lets you file your Imputed Income Tax return months ahead of the deadline. Filing early means less stress, better cash flow and no risk of fines for missing the deadline.
Why choose IberianTax?
IberianTax is a fully digital, affordable service designed exclusively for non-residents. Prices start from just €34.95 per return, and everything – from calculation to submission – is included.
Benefits include:
- Easy online filing – no paperwork, no hassle
- Instant tax calculator – know what you owe before you pay
- Support in your language – English, German or French
- Fully approved by the Spanish Tax Authorities
- File for up to 4 owners – all under one login
Real savings
Many non-residents still pay up to €300 a year to file a simple Modelo 210 form. With IberianTax, a couple can file together for just €59.95 – saving more than €1,700 over five years!
Get 10% off – Exclusive for Spain Today Online readers!
Beat the year-end scramble and keep your Spanish tax affairs in perfect order – use the code SPAINTODAY and get 10% off your first tax filing!
Sign up for free at www.iberiantax.com and join thousands of non-resident homeowners already filing their taxes the smart, secure and affordable way.
