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Understanding the meaning of usufruct and bare ownership

Often clients seek for other types of buying structures, usually due to tax-saving purposes.

One of the main alternatives to acquire a property rather than doing so in the usual way (as an individual or group of people) is buying it using the usufruct/bare ownership structure.

Plusvalia tax: when selling does not mean gaining

The Plusvalia (Tax on the increase in value of urban land) is a local tax levied on the transfer of a property, whether it is a sale or an inheritance. This tax is calculated on the basis of the cadastral value (Valor Catastral) of the property and is also based on the number of years the property has been in your possession.

There has been an on-going debate regarding this tax since the property market in Spain dropped, meaning that most of the properties’ value have now either been devaluated or remained static.

How to claim your tax retention when selling a property?

There is an aspect of the sale/purchase process you should be aware of when either buying a property or selling it. Even though it is an obligation from the buyer, the seller should be familiar with it as well.

When you sell your property in Spain as a non-resident, the Spanish Tax Authorities compel the buyer to retain 3% of the purchase price on their behalf.

Paying rental income tax as a UK non-resident in Spain

If you rent your property in Spain as a UK non-resident where should you pay your rental income tax? Most will accept that some tax is due to be paid somewhere but should it be in the UK or Spain?

The good news is that you don’t have to pay it in both. You are required to pay tax on your rental income in Spain even if you’re not a resident here. However, the double tax agreement between the UK and Spain means that you do not have to pay twice.

Finance you purchase with a mortgage in Spain

If you want to purchase a property in Spain but you do not have sufficient funds or you prefer not to use up your savings, the solution may be to get financing from a credit institution. Here is some information about how it works.

Wealth tax for non-residents in Spain

In this article we handle on wealth tax for non residents in Spain, the majority of the foreign home owners in Spain. Tax on your wealth in Spain. This is thus the sum of your personal property (stocks, jewelry, cars, etc.) and real assets (land, houses, etc). If you are resident in Spain you will be taxed by the local government (Comunidad Autónoma) on your worldwide assets. As a non-resident on the other hand, you are taxed by the Spanish state. The tax was reinstated for the tax years 2011 and 2012. This means it is related to the tax return you submit in 2012 and 2013.