The taxes payable by a non-resident in Spain will depend on several factors. If you have income deriving from businesses located in Spanish territory, real estate or any type of assets, or you have carried out capital transactions. Depending on the case, you must face a tax rate for non-residents in Spain.
What taxes must a non-resident pay in Spain?
There are different taxes that affect non-residents in Spain, which must be taken into account.
Tax on the Income of Non-Residents in Spain (IRNR)
This is a direct tax established in Spain, which is levied on the income obtained by individuals and legal entities not resident in Spanish territory.
Although we have already talked about this tax in a previous article.
But to summarize, we can say. That it taxes the income, that is to say your yields, capital gains and losses, as well as the imputations of income established by the Spanish Law.
Generally the IRNR is 24%, but if the income exceeds 600.000€, the tax rises up to 45%.
Real Estate Tax (IBI) and Wealth Tax (IP)
The Real Estate Tax (Impuesto de Bienes Inmuebles), will be applied in any case as long as you have a real estate property in Spain. The value of this tax is very variable, since it depends on the characteristics of the property in question, as well as its geographical location.
On the other hand, non-residents in Spain must also pay Wealth Tax on the assets they own in Spain. As long as their value exceeds 700.000€.
This tax can vary between 0.5% and 2.5% of the assets in general terms.
Transfer Taxes and Stamp Duty for Non-Residents in Spain
This tax includes three different types of taxes that a non-resident in Spain must also face.
Transfer Tax
This tax must be paid when there are inter vivos acts of goods and rights that make up the patrimony of individuals or legal entities. For example, if you buy a house in Spain, you have to pay to the Treasury the tax on onerous transfers, although at the moment of the purchase you reside outside the country.
This is a tax that you will have to pay as long as the goods or rights acquired are located, can be exercised or have to be fulfilled in Spain. And its value depends on the type of patrimonial transfer that is carried out:
- Transfer of real estate: 6%.
- Transfer of movable property: 4%.
- Constitution of a real right of guarantee: 1%.
Tax on corporate transactions
This type of tax is levied on the acts of financing a company. Such as the capital increase of a commercial company. The percentage to be paid is always 1%.
In the case of a non-resident in Spain, it is obligatory as long as one of the following conditions is met:
- Firstly, that the address of its headquarters is in Spain.
- That its registered office is in Spain, provided that the registered office is within the European Union.
- Finally, it must carry out operations in Spain, provided that the head office or registered office is within the European Union.
Tax on documented legal acts
This tax is levied on the formalization of legal acts. That is to say, those that require notarial, mercantile and administrative documents to become effective. This payment must be made whenever the legal acts are formalized in Spain or abroad if they have economic or legal consequences within our borders.
The value of this tax varies between 0.5% and 2% depending on the Autonomous Community where it is applied.
In the first place, those with the highest rate of 2% are Cantabria, Catalonia, Extremadura and Valencia.
Those applying the lowest rate, 0.5%, are Ceuta, Melilla and the Basque Country, where 0.5% is applied.
The rest apply an intermediate rate of between 0.75% and 1.5%.
Inheritance and Gift Tax for Non-Residents
If you reside in another country and you inherit a property in Spain, you will have to pay Inheritance Tax. And, in the same way, the donations you receive from someone living in Spanish territory are also subject to a tax.
In this case, Inheritance Tax varies considerably from one Autonomous Community to another. As the criterion of applying the tax according to the one where the greater part of the inheritance is located will be taken into account. However, in the case of residing in the European Union, the regulations of the Autonomous Community where the deceased resides will be applied.
If what you receive is not an inheritance, but a donation that takes place between living persons, the tax is always the same and is taxed at 27%.
