If the person who carried out the purchase of the property does not meet any of the requirements of the Personal Income Tax Law, art. 9, it will be understood that this person is considered by default to be a non-resident for tax purposes in Spain.

The Personal Income Tax Law, art. 9, which will understand as Resident, the person who complies with any of the following cases:

  • Stay more than 183 days (continuous or not) per year in Spain
  • Have the core of their economic activities in Spanish territory, either directly or indirectly
  • Is the non-legally separated spouse with minor children who habitually reside in Spain and depend on that person.

Based on the above, if the person who owns the property does not fulfill with any of the above, it will be understood that this person is considered by default to be a non-resident for tax purposes in Spain. All taxable persons, including non-residents, must pay an imputed income for the property they own in Spain, even if the property is not empty or for exclusive private use.

Allocated real estate income is considered in the cases when the taxpayer must include his tax base since is the owner or holder of a right in rem of enjoyment of certain urban real estate, including those derivations from a right in rem of benefit of real estate.

The allocation of real estate income is conditioned by the fact that the properties meet a series of requirements:

  1. That they are urban real estate and are not used for economic activities
  2. That they are rustic properties with constructions that are not indispensable for the development of agricultural, forestry or livestock operations
  3. That the property does not generate capital income as a result of the lease of real estate, business or mines or the constitution or assignment of rights or powers of use or enjoyment of real estate
  4. The property do not constitute the taxpayer’s habitual residence. For these purposes, it is understood that the garage places acquired jointly with the property are part of the habitual residence of the taxpayer up to a maximum of two
  5. That the property is not an unconstructed land, properties in construction for urbanistic reasons are not susceptible to use.

The income attributable to each property is calculated by applying the following percentages:

  1. In general a 2% of the cadastral value of the property will be applied
  2. 1,1% for those properties whose cadastral value has been verified
  3. For those properties that do, not have a cadastral value on the date of accrual, the amount to be settled established according to criteria of previous verifications related to the property.

Each case must be analyzed for the correct liquidation and payment of the tax. In Arintass our team of highly qualified professionals in various branches of legal and tax advice is at your disposal for any consultation or clarification in order to optimize the payment of your tax obligations.

Do not hesitate to contact us in case of doubts concerning the obligations of non-residents in Spain.

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