Non Resident Tax in Spain: 210 Form

Q: What is the maximum threshold for paying the wealth tax as a non-resident? Am I required to pay wealth tax?

The rules on wealth tax vary depending on if you are resident or non-resident and on where you live in Spain. Many Spanish autonomous regions including the Comunidad Valenciana have their own tax laws for Wealth Tax. As a non-resident Wealth Tax applies to: Only on Spanish assets. Subject to national law, not the law of the region their assets are located. Entitled to a 700,000 euros deduction per person.

As a non-resident in Spain, navigating the tax landscape can be a daunting task. One of the most important forms you’ll need to familiarize yourself with is the Form 210, the Income Tax for Non Resident. A mandatory declaration for non residents who have earned income in Spain, such as rental revenue, capital gains, or income from self-employment.

The complexities of form 210 are numerous. From determining your taxable income to applying the correct tax rates and deductions, the process can be fraught with challenges, especially for those unfamiliar with the Spanish tax system. Misreporting or missing key details on the form can trigger audits, fines, and even legal troubles.

At Pellicer&Heredia, we can guide you through the entire process, ensuring your tax obligations are met with precision and accuracy. Our services can help you understand your tax liabilities, identify potential deductions and credits, and develop a long-term tax planning strategy tailored to your unique financial situation.

What is non resident tax in Spain

Every year, before December 31st, all Non Residents and owners of properties in Spain, must complete a Non Resident Income Tax Form which is called modelo 210 form.

It consist of reporting to the tax office that you own a property in Spain for the previous year’s ownership; for example in 2023, you report and pay tax for 2022.

This tax can be processed and paid at any moment throughout the year but must be paid by the 31st December.

What happens if form 210 is not presented in Spain?

This tax applies to anybody who is not legally a resident in Spain, but who has assets in Spain, such as property, income from the rental of property, income from bank deposits when applicable, royalties from intellectual property, etc. These non-residents, thus, have to lodge this Spanish Tax Return because of this income, and probably pay because of the tax. Owning a property in Spain means that the person in question has already been assigned an NIE (Número de Identificación Extranjero). The NIF number is identical to the NIE number, but a different process is required to obtain it. Normally, people who own real estate in Spain will already be registered with the tax authorities, although, if you are unsure, it is always a good idea to check with the tax office or your lawyer.

Who does the Spanish Non Resident Tax apply to?

This 210 form tax applies to anybody who is not legally a resident in Spain, but who has assets in Spain, such as property, income from the rental of property, income from bank deposits when applicable, royalties from intellectual property, etc. These non-residents, thus, have to lodge this Spanish Tax Return because of this income, and probably pay because of the tax.

Owning a property in Spain means that the person in question has already been assigned a NIE number in Spain. The NIF number is identical to the NIE number, but a different process is required to obtain it. Normally, people who own real estate in Spain will already be registered with the tax authorities, although, if you are unsure, it is always a good idea to check with the tax office or your lawyer.

Who exactly are considered Non Resident in Spain?

There are three main criteria to consider a person Non resident in Spain:

That they reside in the country for a period of less than 6 months.
The person’s main professional activities are not located in Spain.
The main members of the family unit (spouse and children) do not reside in Spain for the whole year.

Save money in your income and wealth tax for non resident in Spain

How to file non resident tax return?

If you are one of these non-residents, you will need to fill out a 210 form with all of your personal details, bank account number, and the details of any assets you have in Spain (depending on your nationality and Doble Taxation Treaty). If there is more than one owner of your property, each owner must complete their own Spanish Non Resident Tax form every year.

You will need to provide the following information in order to lodge your Non Resident Tax return in Spain:

Address of your Spanish property, and your address in your country of residence.
The date of purchase of the Spanish property.
The valour catastral of your property; this can be found on your IBI (local property tax) bill.
Name, date, place of birth and tax number (NIE) of each owner of the property.
Any other information regarding the above-mentioned items of income.

How much is non resident tax in spain if you sell a property?

When you sell your Spanish property, 3% of the sale value will be automatically withheld by the tax office as a tax retainer.

When selling a property, the applicable percentage for non-residents is a fixed rate of 19%.

In some cases (if you made a loss), the 3% sales value will be more than the capital gains tax due, so you may be able to claim back a substantial amount. This process is slow and if you have not summited your annual tax returns from earlier years, the process will become much slower.

The buyer must pay this amount into the Spanish Tax Office within a month of the sale, presenting the Modelo 211. Then, if you are liable to pay CGT, in the next three months you must present your Non-Resident Income Tax declaration via the form 210.

Even if you are not liable to pay this because there was no capital gain, it is still recommended to present this form so you can get refunded the percentage that was withheld.

What’s more, the tax office may subject you to pay fines for not presenting your annual income tax returns or for late submission in the current year.

How to calculate non resident tax in Spain?

If you have had tenants in your Spanish property and you are tax resident in any other Member State of the European Union, in Iceland or in Norway, then you will have to pay 19% of your rental income. Please bear in mind that all of your rental expenditure, including your mortgage interest, is tax deductible every year. If you are tax resident in other country not mentioned above, it will be taxed 24% and the expenses incurred can´t be deducted.

The taxpayer is obliged to file a quarterly tax return (form 210) in respect of the income received.

If you have had no tenants, then the income tax is calculated on on a ficticious income (normally between 1% and 2% of the cadastral value). EU citizens currently pay 19% and non-EU citizens 24%. In this case, the declaration is made annually. You will have to pay these taxes every year, before December 31st. Please note that this Spanish tax does not coincide with resident’s tax return dates.

For more information on this particular tax issue or any other legal matter, do not hesitate to contact us. This way, we can help you do your Non Resident Tax Return, quickly and easily. If you’re not in Spain at the moment, maybe because you are in your home country, you can represent you and do all the paperwork on your behalf. We will lodge your Tax Return and pay the pertinent taxes on your behalf.

Your Spanish company advisor for non resident tax

Pellicer&Heredia lawyers offer specialized advisory services for non residents dealing with Spanish tax obligations.

Our experienced team provides comprehensive guidance on tax planning, compliance, and optimization, ensuring that your investments and property dealings in Spain are managed efficiently and in accordance with local laws. Trust our expertise to navigate the complexities of non resident tax regulations and safeguard your financial interests in Spain.