In the Canary Islands (Spain), there are two ways of being taxed when you own property. They depend on how you use your property.
1.- PROPERTIES FOR OWN USE OR UNOCCUPIED.
If you own a property in the Canary Islands (Spain) and you use it for your own purposes or simply leave it unoccupied, this property is subject to tax. In this case, the tax is annual, meaning that it is paid only once a year, and the tax is due between the months of September and December.
The tax is calculated by applying a percentage to the cadastral value of the property, which would give us the taxable base of the tax, and this taxable base would be applied 19%, which would give us the tax payable.
The percentages used to calculate the taxable base are as follows
A rate of 2% if the cadastral value of the property has not been revised or modified in the ten years prior to the tax period.
A rate of 1.1% if the cadastral value of the property has been revised or modified in the ten years preceding the tax period.
It should be clarified that this tax must be paid by each of the owners of the property, according to the percentage of the property they own.
2.- RENTED PROPERTIES
If the property is rented out on a long-term, short-term or holiday basis, a quarterly tax return must be submitted.
The taxable base is calculated by deducting from the income received during the quarter the expenses related to the use of the property during the same quarter. The resulting amount is subject to a 19% tax, which is the amount of tax payable.
As in the previous case, it must be presented by each of the owners of the property according to the percentage of the property they own.
In this case, the days during which the property has not been rented during the tax period (calendar year) will be subject to the tax of the first case, since they will be considered as personal use. It will be necessary to calculate the proportional part corresponding to these days and to pay the annual tax for them.