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Comes from: Costs of being a houseowner in Spain – Part 1

Also once you are a happy house owner in Spain you start paying taxes. The amount you have to pay depends on whether or not you are a resident and whether or not you have any income from your house, renting it out.

Being a resident normally you will not pay tax on your main residence, unless you rent it out as well, in that case the rental income will be added to your normal income, you can deduct the costs you have made and the costs (for instance light and water consumption) you have paid for the period the house was rented out.

Costs of being a houseowner in spain part 2 taxes dianiumlex lawyhers in denia 1

As a non-resident you have to pay for the rental forfait of the property, and/or for the real rental income. The rental forfait tax is based on the kadaster value, which has to be multiplied by 1,1% or 2% (depending on when the kadaster value was established), and you pay (for the last year) 24% on this amount. If you have had rental income this same percentage will be applied on your benefit. For this tax you will not receive any notification, you have to present it yourself (or ask someone else to do this for you).

Apart from that you have to count with a couple of other taxes, the IBI tax, or “Impuestos Bienes Inmuebles”, also based on the kadaster value, and paid usually in august/september. This receipt will be send to your house, and the easiest way to deal with it is to ask the bank to deal with this automatically. Same for the “basura” tax, a municipal tax, also issued (at least in the Comunidad Valenciana) by SUMA, and also for this one the easiest way is to domicile this one.

Continued in Part 3

Costs of being a houseowner in spain part 2 taxes dianiumlex lawyhers in denia 2