INCOME TAX FOR NON RESIDENTS NEW TAX RATES FROM 12-7-2015

In line with the changes introduced at the beginning of the year 2015 lowering the tax rates for Spanish Non Residents from the 12th of July 2015 some of these have changed again.

The general tax rate remains unchanged as established at the beginning of the year. This rate is applicable for the income received on rental of Properties and also on the presumed income in case of own use of property. The rate was 24,75% in 2014 and was reduced to 24% for 2015 and 2016. However, if this income is received by persons residents in the UE or EEE  they will have to pay tax at the rate of 20% up to the 12th of July 2015 and from that day until the end of the year  tax  at the rate of 19,5%. In 2016 the tax rate will be reduced to 19%.

Due to the said changes and as the income tax for own use of the property becomes due at the end of the year (31-12-2015) the rate of tax to be applied to residents in the UE and EEE owning property in Spain which is not rented out will be 19,5% on the presumed income which is either 1,1% or 2% of the ratable value of the property depending on when the revision of the ratable value of the property has taken place and this differs in the different municipalities.

Also the tax rate applicable to non residents for the receipt of interest, dividends and capital gains (i.e. sale of property) which in 2014 was 21% and reduced to 20% at the beginning of the year 2015  is now  from the 12th of July up to the end of the year 19,5%. In 2016 this will be 19%.

Summarising we have the following rates;

 

Rates 2014 2015 2015 2016
(up to 12,7,2015) (from 12,7,2015)
General Tax Rate ( rental and own use ) 24,75% 24,00% 24,00% 24,00%
Tax rate applicable to EU and EEE residents (rental & own use) 24,75% 20,00% 19,50% 19,00%
Tax on dividends interest and capital gains 21,00% 20,00% 19,50% 19,00%

Rafael Berdaguer
Lawyer within the firm
Rafael Berdaguer Abogados based in Marbella, Spain.

www.berdaguerabogados.com
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