Author: Vivagestoria

What yearly taxes must I pay? Why should I pay income tax?

Vivagestoria

What yearly taxes must I pay?

First of all you need to pay your local property taxes: Impuestos sobre Bienes Inmeubles (IBI), rubbish collection and sewage rights. These taxes are to be paid by all property owners, residents and non-residents alike. It is set and collected by SUMA in name of the town hall, similar to council tax in the UK. Once you have registered at SUMA all these local property taxes are generally paid by direct debit.

Why must I pay income tax in Spain?

Spanish tax law requires that non-resident owners of property in Spain have to pay Spanish income tax even if they have no Spanish earnings such as rental income. This non-resident tax issue can be confusing. Why should owning a holiday home entail paying income tax?

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Spanish property market shows recovery

Vivagestoria

Spanish property market shows recovery

The crisis of the Spanish property market seems to have finally come to an end. Year after year, from 2007 until 2015, the Spanish property market suffered from devaluation. Finally, it turned in 2016, when there was a slight price rise (1,6%), that became stronger in 2017 (4,4%) and seems to increase even more in 2018 (6%).

Spanish property market shows increased demand

The demand for Spanish property shows a strong increase. In 2017 the number of sales rose to 464.423 properties, which represents a growth of 14,6%. This growth is mainly due to the demand of foreign buyers. Approximately 60.000 houses in Spain were purchases by foreigners. Especially the “Costa´s” and the large cities, like Barcelona and Valencia, are popular amongst the foreign buyers/investors. Most foreign buyers come from Engeland, Germany, France, Belgium, Italy, Sweden and The Netherlands.

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