1. GENERAL TAX CONSIDERATIONS FOR NON-RESIDENTS IN SPAIN

Non-residents in Spain owning real estate properties in Spain shall be subjected to the Non-Residents Income Tax and to the Real Estate Tax (local tax).

Furthermore, the Wealth Tax shall be temporarily restored for the fiscal years 2011 to 2014 (included). The Wealth Tax shall be applicable to individual wealth over 600,000 euros.

1.1 REPRESENTATIVES

Residents of countries not having a Tax Information Exchange Agreement with Spain shall appoint a Tax Representative in Spain. The corresponding Spanish Tax Office (depending on the real estate's location) shall be duly informed of the mentioned appointment.

Residents of countries with a Tax Information Exchange Agreement with Spain may voluntarily appoint a Tax Representative in Spain and communicate this appointment to the corresponding Spanish Tax Office.

1.2. TAX ID NUMBER (NIF)

Every Spanish citizen has his/her own tax ID number which shall be reported in any tax return or other notices/communications made to the Spanish Tax Authority.

In general, Spanish nationals have a single ID number for both Tax and Personal ID. Foreigners usually also have the same number for both Tax and Foreigner's ID. The mentioned IDs are issued by the Police General Directorate. Nevertheless, foreigners without a Tax ID number (those who are not bound to have it or those who don't have it temporarily) shall apply for a Tax ID number to the Tax Authorities to make any transaction or activity with any taxation effects.

 

2. - NON-RESIDENTS INCOME TAX

Any individuals or married couple sharing the ownership of a real estate shall be deemed as separate tax payers. Accordingly, each one of them shall submit his/her tax return individually.

Depending on the use of the real estate, the tax charged amounts are:

2.1 IMPUTED RENTS OF URBAN PROPERTIES FOR PERSONAL USE.

The taxable rent shall be the resulting amount of applying the following percentages to the property's assessed value (as per the Real Estate Tax receipt):

• Generally, 2 per cent of the assessed value.
• If the assessed value has been updated from January 1^st, 1994, the percentage shall be 1.1 per cent.

This rent shall be deemed accrued once a year, on December 31st. If the owner has held the ownership of the property for less than a year, or the property has been leased during the current fiscal year, the taxable amount shall be the proportional part of the aforementioned amounts.  

Form: Form 210, rent class 02.

Submission deadline: One calendar year after the tax accrual date.

2.2. RENTS OF LEASED PROPERTIES

The taxable amount shall be the full amount payed by the leaseholder. No expenses shall be deducted from the taxable amount.

Nevertheless, tax payers who are other EU countries-residents shall deduct the Spanish resident's deductable expenses according to the Personal Income Tax Law, to calculate the corresponding taxable base. The tax payer shall prove both that the mentioned expenses arise directly from the rents earned in Spain, and that these expenses have an indissoluble and direct link with the activity that has taken place in Spain.

The mentioned rents shall be deemed accrued in the first of the following dates: whenever the amount is liable by the leaser or the due date.

Tax rate:

Accrued year	2011	2012-2013
Tax rate	24%	24,75%

Form: Form 210, rent class 01.

This form shall be used to submit each accrued rent separately or the total amount of all the accrued rents obtained in a determined period of time.

Several rents accrued by the same tax payer may be added and submitted jointly if they belong to the same type of rent, come from the same payer, have the same tax rate, and originate from the same property or right (if they originate from a property or right).

The mentioned time period to group and add accrued rents shall be quarterly-based for self-assessment tax returns with payable amount and yearly-based for refundable amounts or amounts equal to zero.

Submission deadline: depends on the self-assessment tax return:

Tax return with payable amounts: the first 20 calendar days of April, June, October and January, for rents accrued within the calendar term previous to any of these periods. 

2.3. GAINS DERIVING FROM SELLING PROPERTIES.

Capital gains deriving from selling properties shall be deemed as taxable amounts. The mentioned amount shall be deemed accrued when the transaction takes place.

On a general basis, the gain shall be calculated as the difference between the selling and purchasing prices.

The purchasing price shall include the price payed when the property was acquired and the corresponding transaction expenses and taxes. It shall not include the interest amounts payed by the current selling party. Depending on the year of acquisition, the purchasing price shall be adjusted by the update ratios yearly stated in the National Budget Law.

To apply a ratio different to 1 it shall be necessary that the property acquisition has taken place at least one year before the current purchase date.

For properties sold in 2014, the ratios shall be the following:

Year of acquisition	Ratio
1994	1,3299
2013	1,0100

The purchase price shall be the price payed by the buyer, reduced by the corresponding expenses and taxes payed by the seller.

Partial tax exemption:

The 50% of the capital gains deriving from selling urban properties in Spanish territory, which were acquired from May 12 to December, 31^st 2012 shall be exempt.

Tax rate:

Accrued year	2011	2012-2013
Tax rate	19%	21%

The buying party, wether resident or non-resident, shall withhold and deposit the 3% of the agreed purchase price amount in the Public Treasury Office. This withholding shall be deemed as a payment on account of the seller, corresponding to the taxation of the capital gain derived from the transaction. In this regard, the buyer shall hand over to the non-resident seller the Form 211 (receipt of the payment of the withholding), so that the seller may deduct this amount from his/her tax return. If the withheld amount is higher than the tax payable amount, the surplus shall be paid back to the seller.

If the mentioned withholding would not be duly payed, the property shall be subject to the payment of the lower of the following amounts: the amount of the corresponding withholding or the corresponding tax payable amount.

Tax return form: Form 210, approved by the Order EHA/3316/2010, of December 17^th, rent class 28.

Exceptionally, a single tax return shall be submitted in the case that the ownership of the property is shared by a married couple in which both members are non-residents.

 

3. - WEALTH TAX

Wealth tax shall be temporarily applied for the fiscal years 2011 to 2014, included. This tax shall be accrued on December 31^st of each fiscal year.

Net tax base. Taxable base shall be the assessed value of the tax payer individual wealth and shall be reduced in 500,000 euro, as per the legal tax exempt amount.

 

4. - REAL ESTATE TAX

This is a local tax, i.e., payable by the owner of a real estate to the corresponding Township. The due amount is calculated according to the assessed value of the property and the applicable rate determined by each Township.