I.R.P.F. (Property Owners Income Tax)
If you are a non-resident in Spain for tax purposes, you will be taxed on any income arising from a Spanish source. If you let your property in Spain, any declared income arising will normally be charged at 25% as Income tax.

Even if you do not let your property, you are still committed to declare and pay tax at 25% of the amount resulting from calculating 2% of the rateable value of the property (see an example below). All non-resident property owners are liable to annual taxes on their property. Using either the “valor catastral” or the value of the “escritura pública”, whichever is higher.

For example, a non-resident with a property with a Valor Catastral of 42.000 € the bill would be 210 € per annum.( 42.000 @ 2%= 840 € @ 25%= 210 €).

Note. The Rateable value (Valor Catastral) is normally much lower that the real value of the property. The owner of the property is liable to the payment of this tax to the Spanish Treasury, on or before the 31st December.

You will also have to pay Wealth Tax (Patrimonio) which is paid annually. This tax will be equal to 0.002% of the declared (deed) value of the property on base of up to 150.253,03 € . On 90.151,82 € you pay a yearly rate of 180,30 €, however a resident has exemption on the first 102.172,06 € .

The I.B.I. will show the Rateable value for the property (valor catastral). This is the official ASSESSED VALUE OF THE PROPERTY. The local authority will levy this tax on your property annually. The present rate being around 0,7% of the rateable value of the property but it can vary slightly depending on the municipality.