Real estate's tax valuation in Spain

Abstract

ciones-ISD-), where the receiver is liable to tax on gifts, legacies, and like assets received from another individual, real estate being included among these assets. Real estate is subject to four taxes at state level: Personal Income Tax (Impuesto sobre la renta de las personas físicas-IRPF-), which taxes income derived from renting, presumed income obtained by the taxpayer who is the owner of a property which is not their habitual residence, and the income received as capital gains by the vendor in a transfer; Corporate Tax (Impuesto sobre sociedades-IS-), which applies to taxable income, generated by the transfer of real estate by companies and like organisations, as well as taxable income arising from acquisitions gained from gifts, legacies, etc. to the company's benefit; the Special Charge on the Real Assets of Non-Resident Entities (Gravamen especial sobre bienes inmuebles de entidades no residentes-GESBIENR-), designed to prevent fraud, is levied on non-residents who own property in Spanish territory, but who need not fill out information returns set by the Treasury; and Value Added Tax or VAT (Impuesto sobre el valor añadido-IVA-), which taxes the use of these assets, which affects not only the first transfer of these assets by their promotors, but also certain leasing services (premises, car park lots, etc). This analysis of the "Property Taxation system" should be rounded off with the Autonomous Governments' rates, together with the fees and special contributions, which take real estate as a more or less direct reference point for their application.