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Are you familiar with the tax laws for owning a home in Spain?

If you own a property in Spain, while living in Norway, you are considered as a non-resident in Spain. Here we give you an overview over the taxes and fees you are obligated to pay as a non-resident.

  • Income tax must be paid for all of your incomes in Spain. If you rent out your home, this tax includes your rental income, calculated based on the actual income or a percentage of the rental value. This is similar to the percentage equation system for holiday homes in Norway. Unless you are renting out the home, the same type of percentage equation system as for properties in Norway will be implemented.
  • Wealth tax is only relevant after deduction of €700.000 per person
  • Property tax varies depending on the property value and is paid annually
  • Municipal waste tax is around €70-200 annually and is paid twice a year
  • Common rental property expenses are expenses related to things such as gardeners, security etc. that every owner in a commonhold property must pay. These varies depending on the size of your entire property, and is calculated based on the budget that is decided at the annual General Assembly.

How are you planning to finance your home?

Negotiating favourable mortgage terms before the loan is processed is crucial, as you will have to pay a fee for changing the terms or cancel the mortgage afterwards. Are you considering taking up a mortage in Norway or Spain? If so, there are several considerations to take.

Due to the financial crisis in Spain, many banks are more careful these days. Still, non-residents usually get loans for up to 70 percent of the property value. The repayment period varies between banks, but the longest repayment period is 30 years.

Our lawyers know exactly what taxes and expenses you – as a non-resident – are obligated to pay in Spain. We can guide you safely through the legal system, so you do not have to worry

Christine Sollie Jensen, CEO and partner in Vogt Law

Remember to fill in the property in your Norwegian tax declaration

Just as Spain demands tax on your Spanish property, Norway may do the same. In order to avoid paying double taxes, you can apply for a credit deduction when you send off your Norwegian tax declaration. This might reduce your Norwegian tax amount with the same amount you have paid in tax in Spain.

Remember to attach your Spanish tax declaration when you send off your Norwegian declaration.

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