Specific real-estate taxation issues

Types of income from real estate

Income derived from properties located in Spain is subject to Income Tax for Non-Residents.

If a property is owned by a marriage or several people, each of them is an independent taxpayer who must file separate tax returns.

The income that the tax payers who own real estate can obtain is:

In the case of taxpayer, non-resident natural person:

• Imputed rent of urban properties, if the property is for own use or is unoccupied
• Income from leased properties, if the property is rented
• Capital gain, in the event of sale of the property

In the case of taxpayer, legal person or non-resident entity:

• Income from leased properties, if the property is rented
• Capital gain, in the event of sale of the property.
• If the entity is a resident of a tax haven (with effect from 11 July 2021, references made to tax havens are understood to be made to the definition of non-cooperative jurisdiction), it may be subject to the Special Tax on Non-Resident Entities Property.