Real Estate Taxation in Spain: Other applicable taxes

Inheritance and Gift Tax

Inheritance and gift tax on Spanish property is progressive and it can range up to 36,5% in some regions. Generally, it is quite complicated to calculate your tax and different percentages are charged according to a sliding scale, based on different circumstances. In addition to that, the tax rates may differ from one Spanish region to another; some Spanish communities like Catalonia, Aragon and Navarra for example provide different regimes. These Autonomous Region exemptions are extended to EU persons as well.

Wealth Tax

Not many people are aware of the fact that in Spain one has to pay extra tax known as wealth tax in addition to other payable taxes. Spanish wealth tax is payable by both residents and non-residents. Spanish residents pay wealth tax on their worldwide assets whereas non-residents only pay on assets located in Spain.

Tax rates currently range from 0.2% for assets up to €167,129, to 2.5% on assets over €10,695,996. Some variations between the autonomous regions tend to appear and the top rate can be even higher in certain regions.

In general, each resident individual has a tax free allowance of €700,000 plus a €300,000 allowance on the value of his main home. Non-residents receive the individual allowance of €700,000, but no allowance against their Spanish property, although it can vary from region to region.

Local Property Tax

Local property tax affects owners of properties in Spain and it is payable yearly to the Town Hall. The amount of the tax is calculated by the official value of the registered property in respect of all properties in Spain (cadastral value multiplied by a percentage). The percentage charged varies from area to area, but it usually ranges between 0.5%-1%.

Tax on the Increase in Value of the Land

This tax is based on the number of years held and cadastral value of the property.

If You are interested to know more about Real Estate Taxation in Spain and how it works or are looking to invest in Real Estate, do not hesitate to contact our English-speaking legal experts at:

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