Property Barcelona – Information on Annual Property Costs

Local Taxes – IBI - Payable annually. Calculated on the rateable value (catastral) of the land assigned by the Spanish Tax Office. It is advisable to ascertain annual local rates for a property before purchase as this differs from town hall to town hall.

Non resident income tax (IRNR) You pay this version of income tax in Spain if the following conditions apply: 1) You do not reside in Spain, 2) You own property in Spain, 3) The property is exclusively for personal use and you do not rent it out, 4) You have no other source of taxable income in Spain. Although you do not earn an income from the property, in the eyes of the Spanish tax authorities you still derive a benefit from owning a property in Spain and therefore have to pay an imputed income tax. The tax base for IRNR is 2% of the cadastral value of the property, or 1.1% if the cadastral value has been revised since 1st January 1994. Tax rate: 24% (25% for 2006 and before). Tax payable annually. The cadastral value of the property is much lower than the actual value. This tax normally equates to approximately 0.2% of the property value.

Wealth tax for non-residents (Patrimonio) THIS TAX IS NO LONGER IN EXISTENCE FROM 1^ST JANUARY 2008.