Avoid Hefty Taxes on Your Spanish Second Home: Expert Advice

Second Home in Spain? Tax Implications and Smart Solutions Owning a second home can be a dream, but in Spain, it comes with a significant tax burden if left vacant. A recent video by financial advisor Ramgaldavis highlights the issue, explaining that unoccupied second homes face an annual tax of 1.5% to 3% of the property's cadastral value. This is known as 'imputación de renta inmobiliaria' and is included in the annual tax return. Ramgaldavis, along with his fiscal advisor @kaplam, offers a solution: renting the property as a habitual residence. This opens the door to IRPF reductions of up to 60%, dramatically cutting down the tax liability. "Opting for a long-term rental not only saves on taxes," explains Ramgaldavis, "but also generates stable income and contributes to housing access." The video uses a hypothetical example of a 150,000 euro property, illustrating how renting could avoid a 3,000 euro tax bill and potentially generate 6,000 euros in rental income. The video's practical advice and clear explanation of complex tax rules make it a valuable resource for Spanish homeowners and potential investors. It underscores the importance of understanding the financial implications before investing in a second property.

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