What is the Impuesto sobre la Renta?

The Impuesto sobre la Renta (Property Owners’ Imputed Income Tax) is a tax that must be paid by non-resident property owners every year. Resident owners who can prove that their property in Spain is also their principal residence are exempt.

Non-residents are taxed on income received in Spain at a flat rate of 25%. Where no actual income exists the Inland Revenue will impute an income usually based on 2% of the value of the property (valor catastral) which is registered at the Land Registry (Catastro). On new properties which have recently had their value revised, this is usually reduced to 1.1%.