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Spain: Taxation of Real Property in Spain
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13 September 2004
Article by Pablo Baschwitz

1. Introduction.

Over the last few years, the Spanish real estate market has been very dynamic. Among other reasons, foreign investors have made important investments in the acquisition of real estate in Spain, both in housing and commercial premises. Analysts believe that this level of investment will continue over the next few years. Detailed below are the main issues from a Spanish tax point of view that non-residents, both private individuals and companies, should bear in mind when investing in Spanish real estate.

2. Spanish Taxation.

Real estate in Spain is subject to both direct taxation, in the form of tax on profits earned, and indirect taxation, levied on the operations carried out thereon.

From the Spanish tax point of view, there are two kinds of taxpayers:

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