Savills - Flipbook - Page 61
movement of capital, enforceable also against third countries— raises serious doctrinal
concerns in light of the CJEU judgment of 3 September 2014 (Case C-127/12).
HOLDING THE PROPERTY
A non-resident who does not lease the property is taxed on an imputed real estate
income of 1.1 % or 2 % of the cadastral value; if leased, on the rental yield. Tax rates are
19 % for EU/EEA residents —with deduction of expenses— and 24 % for non-EU
residents, without deduction (Articles 24 and 25 of the Non-Resident Income Tax Act).
The Spanish National High Court (Audiencia Nacional), however, in its judgment of 28
July 2025, has opened the door for residents of third countries to deduct expenses on
leased real estate. Local taxes such as the IBI (annual property tax) and municipal levies
must also be borne in mind.
WEALTH AND THE LARGEST FORTUNES
Andalusia grants a 100 % rebate on the Wealth Tax quota (Article 25 bis of Act 5/2021,
introduced by Decree-Law 7/2022). Those exceeding €3 million in net Spanish-located
wealth, however, remain subject to the Temporary Solidarity Tax on Large Fortunes
(Act 38/2022, indefinitely extended and upheld by Constitutional Court Judgment
149/2023). Transitional Provision 5 of the Andalusian Act allows taxpayers to choose
between absorbing this burden through the regional Wealth Tax or through the Statelevel Solidarity Tax.
SUCCESSION
In Andalusia, inheritances and gifts between parents, children and spouses (Groups I
and II) benefit from a 99 % rebate on the tax quota (Act 5/2021), making estate planning
a decisive tool.
TWO FINAL WARNINGS
First: the Golden Visa was abolished on 3 April 2025 by Organic Act 1/2025; real estate
investment no longer opens the door to residence, although it does not affect title to the
property. Second: Spain maintains a dense network of double taxation conventions —99
in force according to the Ministry of Finance, including the 2013 Convention with the
United Kingdom— that shields the investor from double taxation.
M A D R I D
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M A R B E L L A
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S O T O G R A N D E
