Residents, Income tax on property in and outside Spain

John,

I know now where the confusion comes from:

If you  are a Spain tax resident with goods abroad that you have not declared to the Treasure, this, the Treasure will treat those assets as a non justified income which is taxed at the marginal rate of our Income Tax ( over 50%) and applied to the last non expired tax year UNLESS you prove that the now non declared Spain assets were duly declared in its time or were acquired when you were not a Spain  tax resident.

Does it make more sense now?

This did not apply as I had declared purchase of the property and land.

The ‘warning’ re property in Spain, other than one’s main home,  may have been ‘buried’ in this thread.  

Income tax is imposed on that,  at the rate of catastral value multiplied by 1.1%.  This is FOUR times higher than the tax paid by non-residents on ‘holiday homes’.

Thanks Lobin. It has helped a lot to clarify my confusion too.

And yes John, you are right, completely right.

Under the Income Tax Law, property abroad are imputed to produce " benefits" ( rentas inmobiliarias) as those located in Spain are.

I was focusing on Declaration rights under recent 2012 Law.

Just to clarify._

Reply from Mariadecastro       yes John, you are right, completely right.

---------------------------------------------------

 I am Tax resident in Spain.  I own the property we live in which has a parking space and trastero (store room) on the same escritura.   No income tax to pay on them.  

I also own a lock-up garage in Spain  and my wife owns a property and a plot of land in the Philippines  (or it could be anywhere outside Spain, the same would apply, so say in UK).  No income is produced from these properties  Nevertheless, we must pay (imputed) income tax on them.

On the lock up,  catastral value, multiplied by 1.1%    (18,000€  X  1.1%)    =  198 €  tax.

Property O/S Spain,  50% of the purchase price times 1.1%  (50,000 € x 50%  = 25,000 X 1.1%)  275€  tax.

A non-resident in Spain, on a property with a cadastral value of 25,000 €  (holiday home) would pay 24.75% of the 275€  so just 68 €

NB    This is not Patrimonio Tax but Income Tax, despite there being no income..  Chargeable only because we are tax resident in Spain.

  If we did not own the lock up garage,  or property outside Spain, but had kept the funds in a bank (where we would have had to pay tax only on the interest) we would not have any additional income tax to pay.

Johnz the amounts you quote for the properties in Spain, are the taxable amounts, not the tax payable. 

Kathyslad.  No, it's the amount I paid. 

Unlike non residents who pay 24.75% of the 1.1%, residents pày the full 1.1% for 'additional' properties ad land no matter where they are.

Thats not what it says in the tax law Johnz, it definitely says its income. However, it also cross references back into the law on Wealth Tax. When I ran it through the Padre (and I included it as an overseas property), it seemed to work the tax out at around 35%. When I have more time next week I'll research it further.