It should hardly come as a surprise that a foreigner who earns income in Spain must also pay tax on this income in Spain.

However, the fact that every owner of a Spanish property has to pay income tax on it is often met with astonishment.

After all, we are not talking about paying tax on rental income, which is of course necessary if you earn the corresponding income. No, it is more a question of the Spanish legislator taxing the mere fact of owning a property.

There is a widespread misconception that this is the property tax, or “Impuesto sobre Bienes Inmuebles” in Spanish, or IBI for short.

Unfortunately, this is incorrect. Property tax is completely independent of the obligation to pay income tax solely on the basis of owning a property.

However, there is no cause for concern. Depending on the cadastral value or purchase price, the actual taxes incurred often amount to less than 100 euros per year. Only villas or high-priced properties in prime locations can add up to several hundred euros per tax year.

We will be happy to calculate the tax for you, as well as submit the tax return and pay it.

We also offer to act as your tax representative vis-à-vis the Spanish tax authorities, as you are legally obliged to appoint a representative as a taxpayer living abroad and owning real estate in Spain.