Tax obligations for non-residents
What are the repercussions if I do not declare ?
How is the annual tax calculated ?
How does the situation change if I rent out my property ?
In the case of joint ownership, do we need to submit more than one return ?
Do I need to be registered for Spanish tax in order to submit returns ?
What are your charges to submit my annual tax returns ?
What information do I need to supply for you to calculate my tax ?
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 2011, your first tax return will be due
by
31st December 2012.
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 them refusing to issue the refund.
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. In general this tax works out to be 0.272% (24.75% x 1.1%) of the rateable value (valor catastral) of the property.
Tax on actual rental income
If the property is rented out, then tax is payable at 24.75%
of the rental income received, with no deduction for expenditure. In
this situation, tax returns are normally submitted on a quarterly basis.
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 likely 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.
Please note that in many cases, property owners may already be registered for tax. We will carry out an initial online check on the Tax Office database.
If you would like us to register you, all you need to do is fax the following documents to us on 00-34-933-969-075.
Our charge for this service is 150 Euros plus VAT per person.
What are your charges to submit my annual tax returns ?
Our current charges are as follows:
This includes:
What information do I need to supply for you to submit my tax returns ?