Tax advantages when buying a property in Spain by foreigners?

Buying a property in Spain can offer several tax advantages for foreigners. Below are some of the most relevant:

1. Non-habitual residence: Foreigners who buy a property in Spain can benefit from the Impatriates Law, which allows certain foreign workers who move to Spain to enjoy tax reductions on their salary for a certain period.
2. Non-Resident Income Tax (IRNR): If the buyer does not reside in Spain, he or she must pay the IRNR on the income generated by the property (such as rent). However, this tax is usually lower than the IRPF applicable to residents.
3. VAT exemption on the purchase of new housing: The purchase of new-build homes is subject to VAT, but in some cases, the tax rate may be reduced. However, in the purchase of second-hand homes, the Property Transfer Tax is applied, which varies according to the autonomous community.
4. Deductions for investment in habitual residence: If the buyer becomes a resident and uses the property as a habitual residence, they could benefit from tax deductions on personal income tax, although this depends on the current regulations.
5. Local incentives: Some autonomous communities and municipalities offer additional tax incentives to encourage investment in housing, which may include reductions in property tax (IBI) or aid for rehabilitation.
6. Double taxation agreement: Spain has agreements with many countries to avoid double taxation, meaning that foreigners can avoid paying taxes on the same income in both countries.
7. Golden Visa: Purchasing a property worth €500,000 or more can grant foreign buyers a residence permit in Spain, which can facilitate their tax status.

It is important to note that the tax situation can vary depending on the nationality of the buyer, the location of the property and other factors. Therefore, it is recommended to consult a tax advisor or a lawyer specializing in real estate law to obtain specific and updated information for each case.