Legal Information for Real Estate Investors
- Foreign Ownership: There are no restrictions on foreign property ownership in Spain.
- Property Taxes: Property owners must pay the Impuesto sobre Bienes Inmuebles (IBI) annually, which is a local tax based on the cadastral value of the property.
- Capital Gains Tax: Non-residents are subject to a 19% tax on capital gains derived from the sale of property in Spain.
- Rental Income Tax: Non-residents must pay a 24% tax on rental income, though EU residents can benefit from deductions on expenses.
- Inheritance Tax: Rates vary depending on the relationship between the deceased and the heir, and the region where the property is located.
- Legal Process: It is advisable to hire a lawyer to navigate the legal process of purchasing property, which includes verifying property ownership, checking for debts, and ensuring the property complies with all regulations.
Sources: Global Property Guide, Idealista Legal Advice