Don't Pay Twice! Your Guide to Avoiding Double Taxation When Buying a House in Spain with ROSAMH

A Dream with a Legal Solution

Buying a property on the beautiful Costa Blanca through ROSAMH is a dream come true. However, as a foreign buyer, a key fiscal concern can arise: Double Taxation.

If you reside abroad and acquire a home in Spain, both Spanish legislation and that of your home country might seek to tax the same income, assets, or capital gain. No one wants to pay taxes twice!

The good news is that there is a legal solution and a way to buy with peace of mind: the Double Taxation Treaties (DTTs) that Spain has signed with over 90 countries (including Norway, Germany, France, the Netherlands, among others).

 

What is Double Taxation and How Does it Affect You?

Double taxation occurs when the same tax base is taxed by two different fiscal jurisdictions. For a Non-Resident for Tax Purposes in Spain, this usually occurs in two main scenarios:

 

1. Property Income (Rental or Imputed Income)

If you rent out your property, you must pay the Non-Resident Income Tax (IRNR, Modelo 210) in Spain.

  • Risk: Your home country also wants to tax this income because you are a resident there.

  • The DTT Solution: The Treaty establishes that, generally, income must be taxed in the country where the property is located (Spain). Your home country will then apply an exemption or deduction mechanism to prevent you from being taxed doubly.

 

2. Capital Gains (When Selling the Property)

If you sell the property that ROSAMH helped you find and obtain a capital gain, you must pay tax on that gain in Spain.

  • Risk: Your usual country of residence may also tax that capital gain.

  • The DTT Solution: The treaty usually grants the taxing power for gains from the sale of real estate to the country where the property is located (Spain).

 

The Fundamental Step: Knowing Your Specific Treaty

Not all Double Taxation Treaties are identical. It is essential to review the text of the specific DTT between Spain and your country of residence.

A specialized tax advisor will review the Treaty to determine:

  • The Taxing Power: Which country has the right to tax the income.

  • The Elimination Method: Whether your country will apply the Exemption Method (income already taxed in Spain is not taxed) or the Deduction Method (you are allowed to subtract the tax paid in Spain).

 

Conclusion: Buy with Peace of Mind and Transparency

At ROSAMH, we care about your entire buying experience. International taxation is complex, and we do not want these "headaches" to overshadow your dream.

That is why we provide you with the contact of professionals specialized in international taxation and Double Taxation Treaties. They will help you manage these issues with total transparency and precision, ensuring you comply with the law without paying an extra euro.

 

Contact us for the professional management of your taxation

We provide you with the contact of our trusted professionals to guide you in managing your taxation as a non-resident, ensuring your peace of mind from day one.

Contact of the Professionals: legalhelpservices.es

Publicado por Miguel Aragon_