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In general, for people with Spanish nationality, the NIF is the number of their National Identity Card (DNI) and, in the case of foreign nationals, the NIF is the Foreign Nationals’ Identification Number (NIE). This identification is processed by the Police General Directorate. However, those foreign citizens who do not have a NIE, either temporarily or permanently, since they are not required to have one, should request a NIF be assigned to them by the tax authorities in order to complete tax operations.

Depending on the use of the property, the taxes to which it is liable are:

• In general, 2%.
• In the case of properties where the assessed value has been revised or modified since 1 January 1994, the percentage will be 1.1%.

This yield is calculated once per year, on 31 December.

If you have not been the owner of the property during the whole year, or if it has been rented for any period, only the proportional part of this amount is declared.

• Tax Return Form: 210, using the general section 210-A and entering 02 as income type.
• When to file the tax return: During the whole natural year after the date of accrual.
• Where to file the return: With the Branch of the Tax Agency or Administration belonging to the Tax Agency responsible for the area where the property is located.
• Tax rate: 24%.

This amount is understood to have become liable for taxation at the moment that it is demandable by the lessor or on the date that it is collected, if this is earlier. Tax is charged separately on each amount accumulated and, therefore, a tax return must be made for each amount accumulated.

Nevertheless, joint tax returns may be made, including the amounts of one or more taxpayers for a quarter. In the event that the joint tax return contains amounts from different taxpayers, the declaration must be made by a common representative, someone jointly responsible for the tax liability (payer, trustee or manager) of all the taxpayers, or by a withholder (in the case of rental of premises to professionals or companies).

• Tax Return Form: In accordance with the above, there are two possibilities:
  • Form 210, Ordinary Return, using the general section 210A and entering 01 as income type.
  • Form 215. Joint return. The income type to be entered here is also 01.
• When to file the tax return: If it is an ordinary tax return (form 210) the period is one month from the date of accrual of the income. If it is a joint return (form 215) for a quarter, within the first 20 days of the months April, July, October and January, for the quarter immediately prior to this month.
• Where to file the return: With the Branch of the Tax Agency or Administration belonging to the Tax Agency responsible for the area where the property is located.
• Tax rate: 24%.

In general, net gains shall be calculated based on the difference between the cost price and transfer value of the property.

The cost price consists of the real cost price of the property involved, plus all costs and taxes arising, excluding interest, paid by the transferor. Depending on the year of acquisition, this value shall be corrected by applying updating coefficients, which are established annually in accordance with the General National Budget Act.

For assets transferred in 2009, said coefficients are as follows:

(1) If the investment had been made on 31 December 1994, the coefficient to be applied is 1.3368.
The application of a coefficient other than one requires the investment to have been made, at least, one year prior to the date of transfer of the building.

If the building being transferred had been rented, the value determined should be reduced by the amount of the depreciation corresponding to the rental period. This depreciation will also be updated in accordance with the year to which it corresponds.The transfer value is the real amount for which the disposal was made, reduced by the amount of any costs or taxes related to the transfer paid by the seller.

As a result, the net gains on which taxation shall be paid consists of the difference between the transfer value and the cost price, determined as described above.
Nevertheless, if the property is transferred by an individual who purchased it prior to 31 December 1994, net gains will be subject to a transitory scheme and the previously calculated figure will be reduced.

If the transferor acquired the property on two separate dates or the property has been renovated, calculations must be made as if there were two net gains.

If the withholding is not paid, the real estate will be liable for payment of the lowest amount between the withholding and the corresponding tax.

• Form: 212
  When the building being transferred is jointly owned by a married couple where both partners are non-resident, exceptionally it will be possible to file a single tax return.
• Time period: three months from the end of the period that the person acquiring the building has to deposit the withholding (this time period, in turn, is one month from the date of the sale).
• Place: At the Branch of the Tax Agency corresponding to the location of the property.

Tax rate: 18%.

The Administration may make a provisional settlement within a period of six months from the end of the period established for filing the tax return. When the tax return is filed outside the period, the six months will be calculated from the filing date. If the provisional settlement is not made in said time period, the Tax Administration will proceed to refund the excess on the amount self-assessed, without prejudice to any later settlements that may be relevant. If the refund has not been ordered once six months have elapsed and for reasons not attributable to the taxpayer, the amount pending refund shall accrue late payment interest.

All properties within each municipality are included on a census are assigned a value (Assessed Value ). The amount of tax to be paid is calculated by applying the tax rate set by the Council to this Assessed Value.

A bill is sent out for payment of this tax every year for every property on the census. Usually, Councils permit the possibility of payment of the tax by direct debit from a bank account, which facilitates payment within the time period set and thus avoids any possible surcharges.

The payment deadline depends on the Council, although it is normally around the months of September, October or November each year.