Rates of Income Tax for Non-Residents of Spain

This tax is payable quarterly during the first 20 days of April, July, October and January, for the rentals on property, or once per year when properties are not rented, by the end of the following year. The rates to be applied are 19% of the profits when properties are rented (24% of gross income for non-residents living outside the E.U.) and 0,21% or 0,39% of the rateable value for unlet properties, depending on the Town Hall where the property is situated (0.26% or 0.48% when living out of the E.U.).

These are the rates of tax for non-residents without a business in Spain (without a permanent establishment):

Rates of tax for non-residents/year2016
For residents of the EU19%
Non-residents in the EU24%
Capital gains tax for all19%

Renting a property out is never considered as a permanent establishment, but only when the non-resident has an economic activity (business or profession) in Spain with a fixed settlement.

Note: Non-Residents of Spain who live in the EU and rent properties out in Spain pay 19% of the profit made (after deducting all the expenses connected with the rental), the Non-Residents of Spain who live outside the EU pay a 24% of their gross income from the rentals (no expenses are allowed). BREXIT forces the residents of the UK to be in this last worse scenario if renting properties out in Spain. Non-Residents of Spain renting properties out in this country will always be able to deduct the taxes paid in Spain when preparing their Income Tax return in the country where they live.

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