All residents must make annual income tax declarations including Costa del Sol property owners who do not reside in Spain.

Income tax (Residents):
All residents (defined as living more than 183 days in Spain) are liable for personal income tax (IRPF) if they earn over €21,035.42. The tax starts at 24% and is progressive.
Income tax returns must be submitted between April and June.

Need assistance? Let us help you with your annual income tax declarations, Costa del Sol. Contact

Income tax (Non-Residents):
If you receive any income in Spain (rent, interest on bank accounts) or you own a property or a share on a property you must pay Non Residents Income Tax (IRNR).

For property owners, your tax bill will be based on a calculation as per the Cadastral Value (value of your Spanish Local Rates receipt) of the property and an annual tax declaration must be done for each person named on the title deeds.

The Spanish Tax Authority (Agencia Tributaria) are catching up with people who have not paid this tax previously and ignorance of the law or the system is not accepted as a reason for late or non-payment.
Property and bank accounts can now be embargoed until back taxes and fines are settled in full.

Non-resident income tax must be submitted before December 31st.
Need assistance? Let us help you with your annual income tax declarations, Costa del Sol. Contact

Inheritance tax
Everyone is liable for inheritance tax, even spouses are not exempt from Spanish Inheritance Tax as they will be liable on 50% of their ownership of the assets.

Inheritance tax must be paid within 6 months after the partner’s death and registration of the deeds in the inheritor’s name cannot be completed until the tax is paid.

This means that any property involved will not be allowed to be rented out or sold until the tax is paid.

The lack of a Spanish will can cause the situation to be further complicated and create delays and complications that could result in the assets being frozen for years.

Need assistance? Let us help with your inheritance Let us help you with your inheritance tax declarations, Costa del Sol. Contact