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Non-Resident Taxation Manual (February 2024)

Imputed income from urban real estate

Internal regulations

Regulations: article 13.1.h) Law IRNR

In accordance with internal regulations, non-resident taxpayers who are natural persons , owners of urban properties located in Spanish territory, used for their own use not affected by economic activities, or empty, are subject to the Income Tax of non-Residents for the imputed income corresponding to those properties.

Agreement

In accordance with the Conventions to avoid double taxation, income obtained from real estate may be subject to taxation in the State in which the real estate is located, whether it derives from the direct use or enjoyment or from leasing or any other form of exploitation of the property. themselves.

Taxation

Regulations: articles 24, 25 and 26 IRNR Law

The tax base corresponding to the imputed income of urban real estate located in Spanish territory will be determined in accordance with the Personal Income Tax regulations. For these purposes, the amount resulting from applying the percentage that corresponds to the cadastral value of the property, which appears on the Real Estate Tax (IBI) receipt, must be computed as income:

  • Properties located in municipalities in which the cadastral values have been reviewed, modified or determined through a general collective valuation procedure, in accordance with the cadastral regulations, and have come into force in the tax period or within the period of ten Previous tax periods: 1.1% (the year of general collective valuation of a Municipality can be consulted in the Values Reports section of the Portal of the General Directorate of the Cadastre, https://www.catastro.meh.es )

  • Remaining properties: 2%

It is taxed on the aforementioned tax base, without deducting any type of expense.

The resulting amount is understood to refer to the entire calendar year. It will be reduced proportionally to the number of days, when it has not had ownership throughout the year, or when it has been rented during part of it.

If on the date of tax accrual (December 31) the properties lacked a cadastral value or this had not been notified to the owner, 50% of the highest of the following values will be taken as the basis for imputation: the price, consideration or acquisition value of the property, or the value of the property verified by the Administration for the purposes of other taxes. In these cases, the percentage will be 1.1%.

In the case of properties under construction and in cases where, for urban reasons, the property is not suitable for use, no income will be estimated.

In the case of rights of use of real estate by shift, the imputation will be made to the owner of the real right, prorating the cadastral value based on the annual duration of the use period. If on the date of tax accrual the properties lacked a cadastral value, or this had not been notified to the owner, the acquisition price of the right of use will be taken as the basis for imputation. The imputation of real estate income will not be applicable to the holders of rights to use real estate in turn when their duration does not exceed two weeks per year.

In cases where the ownership corresponds to several people, the income corresponding to the real property or real right of enjoyment in question will be considered obtained by each of them in proportion to their participation in said ownership.

The tax rate is the general current one:

  • Residents EU , Iceland, Norway and, since 07-11-2021, Liechtenstein: 19%
  • Rest of taxpayers: 24%

Deductions: Only the following may be deducted from the tax rate:

Deductions for donations, in the terms provided in the Personal Income Tax Law and in the Law on the tax regime of non-profit entities and tax incentives for patronage.