Yes, it is necessary to declare a property purchased in Spain to the French tax authorities if you are a French resident. Owning property in Spain is considered an asset and must be declared to the French tax authorities. If you are a French resident, you must declare to the French tax administration any real estate you own worldwide. Failure to declare the property and pay the appropriate taxes may result in fines and penalties. France has concluded a tax treaty with Spain that governs the taxation of income and assets between the two countries. There is no double taxation between France and Spain. ⦁ Under this treaty, the income and assets of French residents in Spain are subject to French tax law. ⦁ You must also declare on your French tax return the income you derive from renting the property in Spain. ⦁ The declaration must be made on your annual income tax return in France, which must be filed before May 31 each year. ⦁ The value of the property and any rental income received must be declared on the French income tax return. ⦁ Even if you do not rent out the property, you must declare it and pay the corresponding taxes in Spain (IRNR tax). ⦁ It is important to seek the advice of a tax expert who is well-versed in both French and Spanish tax laws to ensure compliance.
What do French and Spanish laws say?
Acquiring property in Spain as a non-tax resident may raise several questions, particularly regarding declaration and tax obligations. This article aims to clarify the procedures to follow for foreign buyers, focusing on the regulations in force in France and Spain.
The Law in Spain:
In Spain, property owners, whether they are tax residents or non-residents, are subject to certain tax obligations:
⦁ Impôt sur le Revenu des Non-Résidents (IRNR) :
⦁ Les non-résidents qui possèdent un bien immobilier en Espagne doivent payer l’IRNR. Cet impôt est calculé sur la base d’une valeur cadastrale et un taux forfaitaire s’applique.
⦁ Impôt sur la Fortune :
⦁ Les non-résidents peuvent également être soumis à l’impôt sur la fortune en Espagne si la valeur nette de leurs actifs dépasse un certain seuil.
⦁ Déclaration de la Propriété :
⦁ Les propriétaires doivent déclarer leurs biens immobiliers dans leurs déclarations fiscales annuelles. Les revenus générés par la location du bien doivent également être déclarés et sont soumis à l’impôt.
La Loi en France
Pour les résidents fiscaux français qui possèdent un bien immobilier en Espagne, voici les obligations fiscales à respecter :
⦁ Déclaration de Revenus Fonciers :
⦁ Les revenus locatifs perçus en Espagne doivent être déclarés en France. Toutefois, grâce à la convention fiscale entre la France et l’Espagne, ces revenus ne sont pas imposés deux fois.
⦁ Impôt sur la Fortune Immobilière (IFI) :
⦁ Les biens immobiliers détenus à l’étranger, y compris en Espagne, doivent être inclus dans la déclaration de l’IFI si la valeur nette du patrimoine immobilier dépasse le seuil imposable.
⦁ Déclaration à l’Étranger :
⦁ Les résidents français doivent également déclarer les comptes bancaires détenus à l’étranger, y compris ceux liés à la gestion de leur bien immobilier en Espagne
Property Registration:
⦁ Where: Land Registry (Registro de la Propiedad). ⦁ Necessary Documents: ⦁ Signed escritura de compraventa. ⦁ Proof of payment of taxes and fees. ⦁ Taxes and Fees: ⦁ Property transfer tax (ITP) or VAT for new constructions. ⦁ Notary fees. ⦁ Registration fees. Tax Declaration: ⦁ Where: Offices of the Tax Agency (Hacienda). ⦁ Taxes to Declare: ⦁ Wealth tax (Impuesto sobre el Patrimonio) for properties exceeding a certain threshold. ⦁ Non-resident income tax (IRNR) whether the property is rented or not. Practical Advice: To avoid any surprises, it is highly recommended to: ⦁ Consult a Tax Expert: ⦁ Hire a tax advisor specializing in international taxation to help understand and comply with tax obligations in both countries. OPENNESS works with law firms specializing in this field. ⦁ Keep Accurate Records: ⦁ Maintain all proof of tax payments, rental income, and expenses related to the property to facilitate annual declarations. ⦁ Use Management Services: ⦁ Consider hiring a property management company to ensure tax and administrative compliance for your property in Spain.
Case Studies:
Example 1: If you are a French resident and have purchased a villa in Marbella, Spain, as a second home, you must declare its value and any rental income received in your French tax return. If you do not rent out the property, you must still declare its value and pay the corresponding IRNR taxes. Failure to comply may result in penalties and fines. To ensure compliance, seek advice from a tax expert familiar with French and Spanish tax laws. Example 2: If a French resident buys a vacation home in Spain, they must declare it to the French tax authorities. For instance, if the property is rented out during the summer months, the rental income must be declared on the French tax return. Example 3: If you are a French resident and have recently purchased a villa in Spain, you must declare the property to the French tax authorities. The villa is considered an asset and must be included in your income tax return. Failure to do so may result in penalties and fines. However, if the property is your primary residence, you may be eligible for tax benefits in France. It is recommended to seek advice from a tax advisor to ensure compliance with all regulations.
Conclusion
Owning property in Spain as a non-tax resident involves complying with tax obligations in both Spain and France. It is crucial to be well-informed and seek professional assistance to ensure the smooth and compliant management of your real estate assets
OPENNESS BY CARLOTA is at your disposal to help navigate these obligations and provide personalized support to ensure your investment in Spain is secure and hassle-free.
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