Taxes regulation for foreigners and non-residents
If you own property or business in the Canary Islands you should be aware that you are subject to non-resident tax. There are taxes to be filed annually or quarterly depending on whether or not the property is subject to economic activity.
If the property is for own use only, an annual tax will be due based on the payment of a percentage calculated from the cadastral value of the property. In case the property is rented out, a tax is due every quarter based on the payment of a percentage of the difference between the rental income and the operating expenses of the property. Local taxes and services also have to be taken into account and are usually paid annually. Another annual tax is the wealth tax (Patrimonio Tax in Spanish). In this case only those persons are obliged to file it in the case they meet the requirements established by law and it would be better to study each case individually as it is subject to different tax rules and allowances depending on the Spanish Region where the property is located and other fiscal issues. This is a general overview and summary of the taxes for non-residents in the Canary Islands, please do not hesitate to contact us for more information. We will be pleased to advise you.
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