Do tenants pay council tax in Spain?

The constitution of a property leasing contract is subject to this tax, since the law that regulates it was approved in 1993. The tenant must pay although it is true that this tax has not been claimed so far in regions such as Madrid or Castilla La Mancha and many more.

Do you pay council tax when renting in Spain?

IBI council tax still applies throughout the year for both residents and non-resident owners of Spanish property. For each period where income tax is declared you must submit the names of the tenants, dates of occupancy, the amount paid and the costs incurred.

Do tenants pay IBI in Spain?

Our solicitor explained that in Spain, the owner of a house is the only one obliged to pay taxes and charges pertaining to the house like property tax or IBI or SUMA, and community charges. The tenant has no obligation to do so.

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Who pays IBI in Spain?

The Impuesto sobre Bienes Inmuebles (IBI, for short) is a tax that applies to both residents and non-residents. In some parts of Spain, it is known as SUMA. All property owners must pay this tax every year. This is a local tax levied by the town hall where your property is located.

What tax do you pay on rental income in Spain?

The tax on rental income in Spain for Spanish residents is 19%. Furthermore, they can deduct expenses related to maintaining the property.

How much council tax do you pay in Spain?

The tax payable will usually be very low, based on a taxable amount of 1.1 per cent of the rateable value, taxed at the rate of 19 per cent. If you do rent out the property then you will be required to submit quarterly returns declaring the income received and the expenses you have incurred in each quarter.

What are the pitfalls of buying property in Spain?

Some of the common pitfalls of buying a property in Spain include deposit, purchase tax, issues with off-plan properties and properties being built illegally. During your research into buying a property in Spain you will have come across many stories of purchases in Spain gone wrong.

What is Suma tax in Spain?

This tax applies to both non-residents and residents and it is a yearly direct tax based on the cadastral value (rateable value) of the property. It is also known as local rates or property tax (and commonly SUMA bill in the Alicante Area).

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What is non resident tax in Spain?

The general flat income tax rate for non-residents is 24%, or 19% if you are a citizen of a country in the European Union or the European Economic Area. Other income is subject to Spanish non-resident taxes at the following rates: Capital gains resulting from transferred assets are taxed at a rate of 19%.

What is IBI property tax in Spain?

IBI stands for Impuesto Sobre Bienes Inmuebles (literally “tax on immovable goods” or real estate tax, also known as SUMA in some areas of Spain) and all property owners are liable to pay this tax every year.

Is Suma the same as IBI?

What is the I.B.I? The Impuesto sobre Bienes Inmuebles (named IBI tax in Spain, and also commonly known as SUMA tax in Alicante province) is a yearly council property tax in Spain which is paid to the local Town Hall where the property is situated.

How do I pay Suma in Spain?

To do so address your request to SUMA, Plaza San Cristobal, 1, 03002 Alicante, or by email to

Other payment methods:

  1. Pay in instalments or through our flexible payment plan.
  2. Pay at our taxpayer´s helpline, collaborating banks or at our offices.
  3. Postal money orders at Correos Post Office.
  4. Self-assessment.

What is IAE in Spain?

The Spanish tax on economic activities (Impuesto de Actividades Económicas – IAE) is a direct tax levied annually on the exercise of a business, professional, or artistic activity, regardless this activity is performed in business premises or not.

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How do I declare rental income in Spain?

Owners who rent their houses in Spain are required to declare rental income through Form 100 (Spanish Tax Return – IRPF) or Form 210 (Non-Residents tax) depending on if the owner is a tax resident or not in Spain. Form 100 is submitted once a year between April 1st to June 30th, whether you are a Spanish tax resident.

Can I live in Spain and pay tax in UK?

Tax. The UK has a double taxation agreement with Spain so that you do not pay tax on the same income in both countries. Ask the relevant tax authority your questions about double taxation relief.

How much is Spanish property tax?

Purchasing a property in Spain involves the payment of different taxes, ranging between 8% and 11.5%, whether the property is newly built, generally sold by banks or construction companies, or the property has already been owned by another person, a resale.