Spanish property and rental tax returns for non-residents
Individuals who own a Spanish property and have no rental income
are required to submit annual return, Form 210, and pay income tax
based on the rateable value (Valor Catastral) of the property.
When the property is rented out, a quarterly return and tax payment must be submitted, also using Form 210.
Frequently asked questions
Single return: € 65 + VAT
Two joint-ownership returns: € 85 + VAT
Our charges include:
- Preparation of the tax calculation and submission to the client for approval;
- Preparation and online submission of the tax return;
- Submission of the online order for the tax due to be be debited directly to the client's Spanish bank account.
Tax payable for non-rented properties of non-residents.
When your Spanish property is not rented out, a deemed income tax
(Renta Imputada de Inmeubles Urbanos) is due annually. The deemed
income is calculated in reference to the official rateable value
(valor catastral) of the property.
The most up-to-date valor catastral can be found on your annual property tax (Impuesto sobre Bienes Inmuebles- IBI) bill. The most usual calculation of the taxable income is 1.1% of the valor catastral. The current tax rate for non residents is 19% for residents of the EU/ EEA and 24% for others.
Tax payable for rented properties of non-residents.
As a non-resident with property in Spain that you rent out, you
are obliged to submit tax returns on a quarterly basis. If you are a
citizen of an EU country, Norway or Iceland all expenditure relating the the rental of
the property (including mortgage interest) are deductible for tax
If you are a citizen of a non-EU country, then the full amount of income that you receive is taxable with no allowances. The current tax rate for Spanish rental income earned by non-residents is 19% for residents of the EU, Norway or Iceland and 24% for others.
Frequently asked questions
Obligation to declare
All non-residents with Spanish property are obliged to submit
annual returns. The deadline is 31st December following the end of
each tax year.
For example, if you purchased a property in August 2017, your first tax return will be due by 31st December 2018.
What are the repercussions if I do not declare?
When you eventually sell your property as a non-resident, 3% of the sales value is automatically withheld from you. Because in many cases this will be more than the actual capital gains tax due, you could be due a substantial refund. The refund process is slow and the authorities may make a detailed review of the tax history of your property. If you have not submitted annual tax returns, this could lead to delays in issuing the refund. In addition, you may be subject to Tax Office fines for late- or non-submission of the annual tax returns.
What tax declarations must I make and how is the tax calculated?
It is necessary to submit Form 210,
as follows. Deemed income tax If the property has not been rented
out during the year, then income tax on an "imaginary" rental
income is due. The deemed income is calculated as a percentage of
the rateable value (valor catastral) of the property.
For the tax years 2015 onwards, this percentage is 1.1% if the valor catastral has been updated in the previous 10 years, and 2% if otherwise.
The tax rate is currently 24.75% tax on actual rental income If the property is rented out, then tax is payable at 24.75% of the rental income received. In this situation, tax returns are normally submitted on a quarterly basis. For EU Citizens, all rental expenditure (including mortgage interest) is tax deductible.
In the case of joint ownership, do we need to submit more than one return?
Yes, each joint owner of the property is required to submit a separate return.
Do I need to be registered for Spanish tax in order to submit returns?
Yes, property owners do need to obtain a Spanish tax code (NIF). When you purchased your property, you will have been assigned a foreigners' ID number (NIE). The NIF will be the same number, but it is necessary to physically go into the Tax Office to register you. In the majority of cases, property owners will already be registered for tax. We will carry out an initial online check on the Tax Office database to verify this.
What are your charges to submit my annual tax returns?
Our current charges, before 21% Spanish VAT, are as follows:
- Per property owner: 65 Euros
- Reduced rate for joint ownership: 85 Euros
- Drawing up your draft tax calculation and submitting it to you for approval;
- Online submission of the return and order for the payment of the tax due, by direct debit to your Spanish bank account.
What information do I need to supply for you to submit my tax returns?
- The full address of your property in Spain, and your address in your country of residence.
- The date of purchase of the property.
- The rateable value (valor catastral). This is on your rates (IBI) bill. If in doubt, you can e-mail your rates bill to us and we will advise.
- The tax number (NIE/NIF) and name, date and place of birth of each owner of the property.
How is Spain Accountants non-residents tax return service different from that of other companies?
Our principal, Paul Greene, is a member of one of the main
Spanish accountants' professional organisations, the AECE. We
therefore have the Spanish Tax Office's accountants' electronic
certificate which allows us to submit your returns online and
order payment of the tax due direct to your Spanish bank account.
This may not the case with other companies offering a similar service, and it is worth you checking before choosing a service provider.