Owning real estate in Spain has tax implications on both sides of the border. For a Belgian resident, understanding this dual taxation is essential.

In Belgium, you must declare the rental value of your Spanish property. Since 2022, the Belgian tax authority assigns cadastral income to foreign properties — gone are the days when declarations were based on real rental value.

In Spain, even if you don’t reside there, you are subject to IRNR (Impuesto sobre la Renta de No Residentes). If the property isn’t rented, a fictitious income of 1.1% to 2% of cadastral value is taxed at 19% for EU residents.

The double taxation treaty between Belgium and Spain prevents double taxation, but not double declaration. Spanish income is exempt in Belgium with progressivity reserve — it influences the rate applied to your other income.

For inheritance, beware: Spain applies its own rules, with allowances varying by autonomous community. Andalusia now offers very favourable allowances for direct heirs.