Spain to reduce the Non-resident Income Tax Rate with effect from 2015
Tuesday, November 25, 2014 @ 7:15 PM
The Bill which amongst other things, amends the Law of Income Tax for non-residents, should come into force on the 1st of January 2015, and contains an advantageous reduction of the income tax rate for non-residents.
Non-residents’ Income Tax is calculated based on the ‘’income’’(imputed rent) that the Spanish tax office deems could be made from renting out the property, multiplied by a factor of 1.1% or 2% depending on whether the property ‘s rateable value (Valor Catastral) has been revised by the local Council or not, and this is then multiplied by a rate of 24.75%.
From 2015 the general rate will be 24% instead of the current rate of 24.75%, but what is most important to residents of EU or EEA member states with exchange of information agreements in place, the rate will be reduced to 20% in 2015 and 19% from 2016.