Guide to legal matters including Spanish property taxes and an overview of money matters when buying a property in Spain

Homes Abroad NI will guide you through legal, tax and financial requirements when buying your Spanish property. We will put you in contact with expert advice to ensure that your property investment is secure.

Before buying property in Spain, it is important that any property purchaser understands the requirements of the Spanish property market.

Buying property in Spain legal matters
Purchasing Spanish property - taxes and your tax liability

Annual taxes on Spanish real estate
A non-resident owner of Spanish property is liable for municipal and state taxes;

Spanish State taxes

The Spanish wealth tax
Paid annually on the 31st of December, the highest value between purchase price, Cadestral value or tax authority valuation is taken.

Residents Income tax
If the property is used by its owner this is calculated at 2% of the cadastral value of the property with the owner liable for 25% of this amount. If the property is rented to a third party the rate is 25% on the net rent as declared by the landlord.

Spanish Municipal Taxes

In Spain, municiple taxes are paid annually to the town hall. They between Spanish regions. Prompt payers are rewarded with discounts and each municipal area has its own period for voluntary payment.

Transferring money to pay for your Spanish property

Bank accounts
Every person buying property in Spain is required to establish a Spanish bank account.

Foreign Currency Transfer
Currency transactions can add or detract from your overall property investment. When planning to transfer amounts from one currency to another consider the following

• What is the current rate, how has it fluctuated over the last short-term
• Ask your bank about their FX services such as foreign currency accounts and forward buying
• Which party is picking up the currency conversion and transfer fees? In all most all cases this will be the person buying the property