Country Information > Spain
Taxes
We at Cavendish Brooke International are not tax experts, however, we will be happy to introduce you to a panel of tax experts who will be delighted to assist you and answer any questions you may have on this subject. The information below is offered merely as helpful notes and we strongly recommend you employ the services of professional tax advisors.
As a non-resident you will be liable to Spanish Wealth Tax on all property in Spain without any deductions given. Non-residents will be liable each year. Rates range from 0.2% to 2.5% of property value. You are also liable to 35% Spanish Capital Gains Tax on the sale of your property. There are local taxes equivalent to UK Council Tax. Overall, including Wealth Tax, the taxes are reasonable, so do not be put off.
Any rental income arising from your Spanish property is liable to Spanish Income Tax at a rate of 25% (of gross rates) without any deductions. Purchase through a Limited Company can sometimes be beneficial, but we recommend you seek specialist advice prior to arranging.
Legal
The Spanish legal system is very different to the English system. However, provided that you make the necessary enquiries and checks, you should have no concerns about buying in Spain. To avoid complications and pitfalls, we strongly recommend that you employ Independent legal advice. We will be very happy to put you in contact with a panel of lawyers who are totally independent of any developers.
There are many thousands of legal firms in Spain, some are excellent and some not so good. How do you know which companies offer a good service at a fair price?
We at Cavendish Brooke International have, through several years experience, developed a panel of Independent Law firms who will be happy to act as your legal representative and offer top quality legal advice and service. You can then contact these firms and make an informed decision regarding which best suits your requirements.
The usual cost for legal fees is approximately 1% of the total purchase price.
Most experts agree that a purchaser should allow an extra 10% over and above the purchase price of the property. These costs will usually cover the additional costs that arise with the purchase of property. They very approximately equate to 7% IVA tax on new build properties, 2% public notary, land registry etc and 1% legal costs. These figures are not exact and are for information only. We recommend you investigate and discuss these with your lawyer.