Abogados Alicante

Non Resident Tax in Spain: Income Tax Form

What is the 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.

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.

Who does the Spanish Non Resident Tax apply to?

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 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 tax return Renta in Spain

What do I need to do to lodge my Spanish Non Resident Tax?

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.

What happens if I don't do a Non Resident Tax return?

If you miss the deadline for payment (31st December) you will be penalised with a fine of progressive interest, which can reach 15% of the value of the remaining tax if it is not paid during the following year.

If you fail to file any income or wealth tax return and they discover this, you might be charged with an active tax evasion offence. This will lead to an investigation which, in the worst case scenario, can result in the freezing of your bank accounts and the bank reclaiming ownership of the property.

What will be the value of the income tax if I sell a property as a non-resident?

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 Modelo 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 much am I likely to pay? How is this tax calculated?

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.

Frequently Asked Questions

If you are a resident in Spain, you will be taxed for your worldwide income for the previous year. As a non-resident you are taxed only on your assets in Spain.

Your non-resident tax can be paid quarterly or annually, depending on whether you rent your property or not.

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.
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