Real Estate Taxation in Spain: Direct taxes

Non-resident income tax rates vs Company income tax rates

Non-resident income tax rates in Spain are following:

  • General rate: 24%. For residents in other EU member states or European Economic Area countries with which there is an effective exchange of tax information, the rate is 19%
  • Capital gains: 19%
  • Imputation: Yes
  • Taxable base: EUànet income non-EUàgross
  • Local Tax on the Increase in Value of the Land : Yes

Company income tax rates in Spain are following:

  • General rate: 25%
  • Capital gains: 25%
  • Imputation: No
  • Taxable bas: Net income
  • Local Tax on the Increase in Value of the Land: Not applicable to shares’ transfers


Trusts are not recognized by the Spanish authorities/legislation, furthermore the Hague Trust Convention is not signed by Spain. Therefore, for the purposes of Spanish tax system, relations between individuals made through a “trust” are considered made directly between the members as individual. Different taxes may apply depending on the situation such as inheritance tax, income tax or company tax.

Anti-avoidance measures in Spain

There is a special levy imposed on real estate properties of non-resident entities, for example a 3% of the cadastral value of the property.

Also it is required to obtain Ultimate Beneficiary disclosure from the person/persons who directly or indirectly, owns or controls more than 25% of the shares or the voting rights of a legal entity, or if they through agreements or statutory provisions or otherwise exercise the control, directly or indirectly management of a legal person. Without Ultimate Beneficiary disclosure, it will not be possible to proceed before the Spanish Notaries. 

If You intend to purchase Real estate in Spain or want consultancy in the applicable taxation, don’t hesitate to contact our English speaking experts at:

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