For international property owners, navigating the property laws in Spain can be daunting. With ever-changing regulations, taxes, and rental rules, ensuring you remain compliant is essential to protecting your investment. Here’s what you need to know:
1. Non-Resident Property Taxes
If you own property in Spain but do not reside there, you are required to pay non-resident property taxes. This includes income tax if you rent out your property, and even if it remains unoccupied, a tax based on the property’s value applies.
2. Rental Income and Licensing
Spain has strict regulations regarding short-term rentals, and you must obtain a tourist rental license to legally rent your property. Each region in Spain has different requirements, so working with a property manager familiar with the local rules is critical.
3. Eviction Laws
For long-term rentals, eviction laws in Spain can favor tenants. Understanding the legal process and having a property manager handle tenant screenings and contracts can help mitigate potential issues.
4. Capital Gains Tax
If you decide to sell your property, be aware of capital gains tax. International owners are subject to a withholding tax, and understanding how much you’ll be taxed is key when making financial decisions.
5. Ongoing Maintenance Requirements
Spanish law requires landlords to maintain their properties in habitable condition, which can be difficult to manage remotely. Professional property managers ensure that your property meets all legal maintenance standards.
Navigating Spanish property laws can be complex, but with a trusted property manager by your side, you can rest assured that your investment will remain compliant with all local regulations.