Teneriffa, Spain

I am a non-resident. What do I do with my house in Spain?

By Jesús Ruíz Ballesteros, Ruiz Ballesteros Lawyers and Tax Advisors

What do I have to do if I have a property for my own use? If the property is not rented out, but is for the use or enjoyment of the owner, it will be subject to IRNR (Spanish Non-Resident Tax (Impuesto sobre la Renta de No Residentes)) for the corresponding imputed income.

How is this imputed rent calculated?

Based on the IRPF (“Impuesto sobre la renta de las personas fí sicas”, personal Income Tax) regulations, the imputed rent will be the result of applying a percentage to the cadastral value of the property, which can be found in the Property Tax (IBI) receipt. These calculations are as follows: 1.1% if the cadastral value has been revised in the last ten tax periods; 2% otherwise.

This tax is due each year on 31 December, and the deadline for filing is the last day of the following year. The applicable tax rate is the rate in force in the year of accrual, depending on your place of residence. From 2016, this tax rate will be 19% for residents of the European Union, Iceland, or Norway, and will be 24% for the rest of taxpayers.

What happens if I rent out my property?

If you rent out your property, you will be taxed separately for each income you earn at the end of the relevant quarter.

If you are resident in another member state of the European Union and, for accruals since 01 January 2015, in a state of the European Economic Area with which there is an effective exchange of information, from the total income received you may deduct the expenses provided for in the Personal Income Tax Law (interest on the loan, repair and maintenance expenses, taxes, community expenses, insurance, supplies, and depreciation of the property), provided that you can prove that these expenses are directly related to the income obtained from the rental of the property.

The applicable tax rate will be the rate in force in the year of accrual, depending on your place of residence, as mentioned above in the case of imputed rent.

Jesús Ruíz Ballesteros

Jesús Ruíz Ballesteros 

GGI member firm
Ruiz Ballesteros Lawyers and Tax Advisors
Law Firm Services, Tax
Marbella, Spain
T: +34 952 77 98 74
E:  This email address is being protected from spambots. You need JavaScript enabled to view it.
W: ruizballesteros.es

Ruiz Ballesteros Lawyers and Tax Advisors is a firm of lawyers, economists and tax advisors established more than 15 years ago. Highly qualified professionals cover all areas of legal, tax, accounting and commercial requirements for clients. Continuous training, excellence, taking care of every detail, and upholding high ethical standards are the guiding principles of the firm.

Jesús Ruíz Ballesteros  is the Founder and Director of Ruiz Ballesteros. Holding an undergraduate degree in business and finance, a master’s in taxation, as well as a degree in law, Jesús is an innovative entrepreneur and an expert in the Spanish taxation system, international taxation, and corporate commercial law. He is also the developer of Paxtum, the first legal app in Spain. In 2018, Jesús Ruíz Ballesteros was awarded the Cruz Blanca for Civilian Merit by the Ministry of the Interior of Spain.

Published: Real Estate Newsletter, No. 14, Summer 2022 l Photo: Uwe Rieder

Ggi Logo 150x109px

GGI Global Alliance AG

Sihlbruggstrasse 140
6340 Baar


T: +41 41 7252500
F: +41 41 7252501
This email address is being protected from spambots. You need JavaScript enabled to view it.