A lot of non-residents are surprised to learn that they do have tax obligations if they own a property here on the island, as it’s often not made clear when they purchase.
Just as a side note, if you reside on the island for more than 182 days you’re considered a tax resident here, otherwise you’ll need to be aware of the taxes below.
Whether you rent or not, as a property owner in Lanzarote or the Canary Islands, you’ll need to pay an annual property tax, which is a percentage of the cadastral value.
If you’re a part owner of the property with your spouse or partner, you’ll both have to make a declaration and will be charged a percentage each. For example, if you own a property with your husband, you each own 50% of the property, and will each pay 50% of the property tax.
If you rent out a property you must submit quarterly returns, based on the days occupied and the income received. We have an online system that makes this very easy to do from the comfort of your own home. Tell me more.
If you decide to sell your property here, you’ll pay a capital gains tax on the profit made from the sale.