Impuesto sobre la renta de las personas físicas/IRPF is a direct tax levied on the income of individuals.
The individual’s income may come either from work as an employee or by means of self-employment — development of a business or professional activities.
Taxable income is determined as the difference between the income earned and the expenses that are deductible according with the Spanish law.
At the moment, only those individuals earning more than EUR 21,035.42 a year in Spain are obliged to make the income tax declaration. Declarations above this amount carry a progressive tax structure.
The tax period coincides with the calendar year.
This tax is assessed differently for residents and non-residents in Spain
Non resident income Tax
For property for own use, the estimated yield for this tax is established as follows:
- In general, 2% of the building’s assessed value (Valor Catastral), which appears on Property Tax (Impuesto sobre Bienes Inmuebles, IBI) receipt.
- In the case of properties for which the assessed value has been revised or modified after 1 January 1994, the percentage will be 1.1%.
This yield is calculated once per year, on 31 December.
- Tax rate: 24%.
- The tax sum, therefore, will be the result of applying the corresponding rate to the estimated income
The amount to declare is the entire amount received from the tenant, without deducting any costs.
This amount is understood to have become liable for taxation at the moment that it is demandable by the lessor or on the date that it is collected, if this is earlier. Tax is charged separately on each amount accumulated and, therefore, a tax return must be made for each amount accumulated.
When to file the tax return: If it is an ordinary tax return (form 210) the period is one month from the date of accrual of the income. If it is a joint return (form 215) for a quarter, within the first 20 days of the months April, July, October and January, for the quarter immediately prior to this month.
Where to file the return: With the Branch of the Tax Agency or Administration belonging to the Tax Agency responsible for the area where the property is located.
Tax rate: 24%.