General Overview

Nonresident entities which are the owners of or in any way possess in Spain real estate or real property rights of possession or enjoyment therefor will be subject to Corporate Tax through a Special tax which will accrue on December 31 each year and must be paid during January of the following year.

The tax due under the Special Tax on Real Estate of Entities which are not resident in Spain will be considered a deductible expense under the Corporate Tax.


Taxable income for the special tax will be based on the cadastral value of the real estate. When there is no cadastral value, a value determined in accordance with the rules applicable for Wealth Tax purposes will be used.

The tax will be payable on the part of the value of the assets or rights which corresponds proportionally to the participation owned and if any exemption applies will be reduced by the corresponding proportion.


The tax rate will be 3 per cent.


Foreign states and public institutions and international bodies.

Entities with the right to apply an international treaty for avoidance of double taxation, when the applicable treaty contains an exchange of information clause, provided that the natural persons who are the ultimate owners, directly or indirectly, of the capital or equity of the entity are resident in Spanish territory or have the right to apply a tax treaty which contains an exchange of information clause.

In order to apply the exemption to which this article refers, nonresident entities will be obliged to file a statement listing the real estate located in Spanish territory which they hold, together with the natural persons who are the ultimate holders of their capital or equity, stating the tax residence, nationality and domicile of the entity itself and of the aforementioned natural persons. A certification of the tax residence of the entity and of the natural persons who are the ultimate owners, issued by the competent tax authority of the State in question, must be attached to the statement. This must be filed with the Tax Administration for the region in which the real estate is located. This statement will have to be filed within the same time period established for the payment of this tax.

Entities which continuously or habitually carry out business activities in Spain which may be distinguished from the simple holding or rental of real estate.

Companies which are listed on officially recognised secondary stock markets.

Non profit-making entities of a charitable or cultural nature, recognised in accordance with the legislation of a State which has a treaty for avoidance of double taxation with Spain with an exchange of information clause, provided that the real estate is used to carry on the activities which constitute its purpose.


The absence of self-assessment and payment of the special tax by the taxpayers will lead to its being required by legal proceedings for collection over real estate.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

For further information contact Florentino Carreno on +341 524 7100

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