As part of Balms Group International, FERS S.L. is a Tax Representation company, with more than 20 years of experience in assisting foreign investors in Spain.
Our services include comprehensive and personalized advice to non-resident individuals in Spain, tax calculation, tax representation before the tax authorities of Spain, reports on changes and obligations affecting non-residents, processing of mandatory taxes for non-residents, sales advice and calculation and tax payment on the capital increase as well as request and refund of 3% retention.
Once a house is purchased in Spain, and after payment of all taxes inherent in the purchase of the property, the mere fact of owning a home in Spain implies the obligation to pay certain taxes that must be paid annually. In Spain, the taxes that accrue ownership of a property are payable to the City Council and the Tax Agency.
CITY COUNCIL: We recommend our clients to pay by direct debit in their account.
- LVT (Land/Location Value Tax): It is a direct tax calculated on the rateable value of the home.
- RUBBISH COLLECTION TAX: The city council can establish the payment of fees for the provision of services or the performance of activities of their competence, such as the collection of garbage
TAX AGENCY: These taxes are paid to the central government and have to be calculated annually.
- WEALTH TAX: This tax levies the possessions of natural persons that exceed certain limits, including goods and rights. If the estate of a natural person exceeds 700,000 euros, this will have to pay the tax, which is calculated on the purchase price and applicable rate ranging between 0.2% and 2.5%. This tax is cancelled.
- INCOME TAX FOR NON-RESIDENTS: It is a direct tax that levies the income obtained in Spanish territory by non-residents natural persons and entities. According to the Regulations, income obtained in Spanish territory is the income derived, directly or indirectly, from real estate located in Spanish territory or rights related to them. In the case of leased properties, the full amount received by the lessee (excluding VAT) must be computed as income, however, if the property is not leased, it must calculate as a taxable amount a value between 1.1% -2% of the cadastral value. The tax rate is currently 19%.
- CAPITAL GAINS TAX: When non-residents sell their property in Spain, they have to tax for the gain obtained. Being a non-resident the 3% of the price will be retained. This amount is retained as an initial payment of their tax return on capital gains and for any tax they may have in Spain. If no profit is obtained and / or there are no debts, you can request the return of the withholding, in full or in the corresponding amount after deducting benefits and debts.