Blog

<p style="text-align: justify;">The Inheritance and Gift Tax (Impuesto sobre Sucesiones y Donaciones, ISD) is a tax levied on the acquisition of assets and rights through inheritance, legacy, or donation in Spain. This tax is particularly relevant for non-residents who inherit or receive donations of property located in Spain, as it can have significant financial implications.</p> <p style="text-align: justify;">Spain has become an attractive destination for many foreigners who acquire properties, either as a second residence or as an investment. According to data from the Spanish Land Registry, foreign buyers accounted for approximately 12.6% of all property purchases in Spain in 2024. This has led to an increase in the transfer of real estate through inheritance or donation to non-residents, making it particularly relevant to understand the applicable tax treatment.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;">Key Characteristics of the Tax</h2> <p style="text-align: justify;">The Spanish Inheritance and Gift Tax has several distinctive characteristics:</p> <ul style="text-align: justify;"> <li style="text-align: justify;"><strong>Progressive tax:</strong> The tax rate increases as the taxable base increases, ranging from 7.65% to 34% under state regulations.</li> <li style="text-align: justify;"><strong>Personal tax:</strong> It takes into account the personal circumstances of the taxpayer, such as their kinship with the deceased or donor and their pre-existing wealth.</li> <li style="text-align: justify;"><strong>Transferred tax: </strong>The regulatory powers have been partially transferred to the Autonomous Communities, which can establish their own reductions, bonuses, deductions, and tax rates.</li> <li style="text-align: justify;"><strong>Direct tax: </strong>It taxes the increase in wealth of the heir, legatee, or donee.</li> </ul> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;">Taxable Events</h2> <p style="text-align: justify;">The ISD is levied on the following taxable events:</p> <ul style="text-align: justify;"> <li><strong>Acquisitions mortis causa:</strong> Acquisitions of assets and rights through inheritance or legacy, as well as life insurance benefits when the beneficiary is different from the policyholder.</li> <li><strong>Acquisitions inter vivos:</strong> Acquisitions of assets and rights through donation or any other gratuitous and inter vivos legal transaction.</li> </ul> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;">Legal Framework and Regulatory Evolution</h2> <p style="text-align: justify;">The Inheritance and Gift Tax in Spain is regulated by Law 29/1987, of December 18, and its Regulations (Royal Decree 1629/1991). However, this tax is partially transferred to the Autonomous Communities, which can establish their own reductions, bonuses, deductions, and tax rates.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Key Court Decisions</h2> <p>Several court decisions have been crucial in shaping the current legal framework:</p> <p style="text-align: justify;"><strong>CJEU Ruling of September 3, 2014 (Case C-127/12): </strong>This ruling declared that Spain was in breach of European regulations by discriminating against non-residents in the EU. The Court considered that this discrimination violated the principle of free movement of capital established in Article 63 of the Treaty on the Functioning of the European Union (TFEU). The Court argued that the situation of a resident and a non-resident heir could be comparable when both inherited property located in Spain, and therefore, the different tax treatment was not justified.</p> <p style="text-align: justify;"><strong>Spanish Supreme Court Ruling of February 19, 2018:</strong> This ruling extended the right to apply regional regulations to residents in third countries (non-EU/EEA). The Supreme Court based its decision on the fact that the free movement of capital, unlike other fundamental freedoms, also applies in relation to third countries. The Court argued that the discrimination against residents in third countries violated Article 63 of the TFEU and that the Spanish tax administration could not maintain this discrimination after the CJEU ruling.</p> <p style="text-align: justify;"><strong>Constitutional Court Ruling of February 18, 2016:</strong> This ruling addressed the constitutionality of the different tax treatment between Autonomous Communities. The Court considered that the territorial differences in taxation were constitutional, as they were the result of the legitimate exercise of the fiscal autonomy of the Autonomous Communities within the framework established by the Constitution and the laws.</p> <h2 style="text-align: justify; color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Tax Implications for Non-Residents</h2> <p style="text-align: justify;">Non-residents who receive assets located in Spain through inheritance or donation are subject to Spanish ISD. The tax implications depend on several factors, including the type of assets, their location, and the relationship between the parties involved.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Territorial Scope of the Tax</h3> <p>For non-residents, the ISD is only applicable to assets and rights located in Spanish territory. This includes:</p> <ul> <li>Real estate located in Spain</li> <li>Rights over real estate located in Spain</li> <li>Shares in Spanish companies</li> <li>Bank accounts in Spanish financial institutions</li> <li>Other assets and rights that can be exercised or must be fulfilled in Spanish territory</li> </ul> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;">Connection Point for Applicable Regulations</h2> <p style="text-align: justify;">To determine which regional regulations to apply, the following connection points are established:</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold'; text-align: justify;">For Inheritances (Successions)</h3> <ul style="text-align: justify;"> <li><strong>Primary rule: </strong>Autonomous Community of habitual residence of the deceased. The deceased is considered to have their habitual residence in the territory where they have remained for the highest number of days during the five years prior to death.</li> <li><strong>If the deceased was not a resident in Spain: </strong>The regulations of the Autonomous Community where the highest value of the assets and rights of the estate located in Spain is found will be applied.</li> <li><strong>Example: </strong>If a British citizen who was not a resident in Spain owned properties in Madrid (valued at &euro;300,000) and Valencia (valued at &euro;200,000), the regulations of the Community of Madrid would apply to the entire inheritance.</li> </ul> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold'; text-align: justify;">For Donations (Gifts)</h3> <ul style="text-align: justify;"> <li><strong>For real estate:</strong> Autonomous Community where the real estate is located. If the real estate is located in different Autonomous Communities, each property will be taxed according to the regulations of the Community where it is located.</li> <li><strong>For other assets and rights: </strong>Autonomous Community where the donee has their habitual residence. If the donee is not a resident in Spain, the regulations of the Autonomous Community where the donee had their last residence in Spain will be applied. If they have never been a resident in Spain, the regulations of the Autonomous Community where the donated assets or rights are located will be applied.</li> <li><strong>Example:</strong> If a French resident donates an apartment in Barcelona to his son (also resident in France), the regulations of Catalonia will apply.</li> </ul> <p style="text-align: justify;"><strong>Important Note:</strong> If there is no connection point with any Autonomous Community, state regulations will be applied. This can happen, for example, with donations of movable property to non-residents who have never been residents in Spain and where the assets are not clearly located in a specific Autonomous Community.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Taxation of Real Estate for Non-Residents</h2> <p>Real estate is one of the most common assets inherited or received as a donation by non-residents in Spain. The taxation of these properties has specific characteristics that are important to understand.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Valuation of Real Estate</h3> <p style="text-align: justify;">Since 2022, with the entry into force of Law 11/2021, the Administration uses the cadastral reference value as a reference for the valuation of real estate. This value is determined based on the prices communicated by public notaries in real estate transactions.</p> <p style="text-align: justify;">The cadastral reference value can be consulted on the electronic headquarters of the Cadastre (Sede Electr&oacute;nica del Catastro). This value is calculated based on the information available in the Cadastre and is updated annually.</p> <p style="text-align: justify;">It is important to note that the taxpayer can challenge this value if they consider it does not correspond to the real value of the property. In this case, they must provide evidence supporting a different valuation, such as an expert appraisal.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;">Deductible Items</h2> <p style="text-align: justify;">When calculating the tax base for real estate, certain items may be deductible, depending on whether it is an inheritance or a donation</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold'; text-align: justify;">Deductible Items in Donations</h3> <ul style="text-align: justify;"> <li style="text-align: justify;"><strong>Charges and encumbrances:</strong> Only charges that diminish the real value of the property are deductible. Charges that constitute a personal obligation of the acquirer are not deductible.</li> <li style="text-align: justify;"><strong>Debts:</strong> Debts contracted by the donor are not deductible. This means that if a property is donated with a mortgage, the donee will be taxed on the full value of the property, without deducting the outstanding mortgage.</li> <li style="text-align: justify;"><strong>Additional taxation: </strong>In donations, the donor may also be subject to Personal Income Tax (IRPF) for the capital gain generated (difference between the acquisition value and the transfer value). Additionally, the donee must pay the Municipal Capital Gains Tax (IIVTNU) for the increase in the value of the land.</li> </ul> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold'; text-align: justify;">Deductible Items in Inheritances</h3> <ul> <li style="text-align: justify;"><strong>Charges and encumbrances: </strong>Charges that diminish the real value of the property, such as easements, usufructs, or other real rights.</li> <li style="text-align: justify;"><strong>Debts:</strong> Debts secured by the property (e.g., mortgages) are deductible if they are duly documented. The deduction is limited to the proportion of the debt that corresponds to the heir, according to their participation in the inheritance.</li> <li style="text-align: justify;"><strong>Expenses: </strong>Expenses related to the last illness, burial, and funeral of the deceased are deductible if they are duly documented and have not been covered by insurance.</li> </ul> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Additional Taxes on Real Estate Transfers</h2> <p>In addition to the Inheritance and Gift Tax, the transfer of real estate may be subject to other taxes:</p> <ul> <li style="text-align: justify;"><strong>Municipal Capital Gains Tax (IIVTNU):</strong> This tax is levied on the increase in the value of urban land revealed on the occasion of its transfer. It is paid by the heir or donee and is calculated based on the cadastral value of the land and the number of years since the previous transfer.</li> <li style="text-align: justify;"><strong>Personal Income Tax (IRPF): </strong>In the case of donations, the donor may be subject to IRPF for the capital gain generated. This capital gain is calculated as the difference between the acquisition value and the transfer value of the property.</li> <li style="text-align: justify;"><strong>Non-Resident Income Tax (IRNR):</strong> Non-resident donors may be subject to IRNR instead of IRPF for the capital gain generated.</li> </ul> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Tax Rates and Regulations by Autonomous Communities</h2> <p>The tax rates and regulations vary significantly between the different Autonomous Communities. This section focuses on the four communities specifically requested: Valencia, Balearic Islands, Andalusia and Canary Islands</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">General Tax Calculation Method</h3> <p>The ISD is calculated by applying a progressive scale to the tax base, which is then multiplied by a coefficient based on the degree of kinship and the pre-existing wealth of the heir or donee.</p> <p>The kinship groups are defined as follows:</p> <ul> <li>Group I: Descendants and adoptees under 21 years of age.</li> <li>Group II: Descendants and adoptees 21 years of age or older, spouses, and ascendants.</li> <li>Group III: Collateral relatives of the second and third degree (siblings, nephews, nieces, uncles, aunts), and ascendants and descendants by affinity.</li> <li>Group IV: Collateral relatives of the fourth degree (cousins), more distant degrees, and strangers.</li> </ul> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold'; text-align: justify;">Inheritance and Gift Tax Differences in Key Spanish Regions</h3> <p style="text-align: justify;">In Spain, Inheritance and Gift Tax (Impuesto sobre Sucesiones y Donaciones &ndash; ISD) is regulated at both national and regional levels, leading to significant differences depending on where the assets or heirs are located. Below is a brief comparison of the main fiscal differences across four key regions:</p> <p style="text-align: justify;"><strong>Valencia:</strong> Offers generous reductions and bonuses for close relatives. Spouses, children, and parents (Group I and II) benefit from a 75% tax reduction. There are also substantial reductions in the taxable base, such as &euro;100,000 for children under 21 and &euro;156,000 for disabled heirs.</p> <p style="text-align: justify;"><strong>Balearic Islands:</strong> Applies progressive tax rates, but close relatives can enjoy bonuses of up to 100% for inheritances, depending on the value. Gift tax is also reduced for direct family members, but inheritances are significantly more favorable than gifts.</p> <p style="text-align: justify;"><strong>Andalusia:</strong> Known for its very favorable regime. Spouses, children, and parents receive a 99% tax rebate, both for inheritances and gifts. Additionally, there are high exemptions on the base, making many inheritances and donations effectively tax-free for close relatives.</p> <p style="text-align: justify;"><strong>Canary Islands:</strong> Offers a 99.9% rebate for spouses, children, and parents in both inheritances and donations. However, there are limits based on the value of the estate or gift, and distant relatives receive far fewer benefits.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Common Benefits Across Regions</h3> <p>Most regions offer significant reductions (typically 95-99%) for:</p> <ul> <li>The family home (habitual residence)</li> <li>Family businesses</li> <li>Agricultural holdings</li> <li>Additional reductions for people with disabilities</li> </ul> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Important Considerations</h3> <ul> <li>The legislation changes frequently, so it's essential to verify the current regulations at the time of inheritance or donation..</li> <li>The relationship between the donor/deceased and the recipient is crucial in determining the applicable benefits.</li> <li>While these benefits apply to non-residents as well as residents, non-residents may face additional procedural requirements.</li> </ul> <p>This regional variation creates opportunities for tax planning, but also makes the system more complex to navigate. The differences between regions can result in significantly different tax burdens depending on where the inherited or donated property is located.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">General Requirements for Tax Benefits</h2> <p>For non-residents to be able to apply these tax benefits, certain requirements must generally be met:</p> <ul> <li><strong>Kinship Requirements:</strong> Most bonuses are limited to close relatives (Groups I and II).</li> <li><strong>Maintenance of the Acquisition: </strong>In the case of family businesses or properties with reduction, a maintenance period is usually required (generally 5 years).</li> <li><strong>Pre-existence of the Asset:</strong> In some cases, it is required that the asset has belonged to the deceased or donor for a minimum period (usually 2 years).</li> <li><strong>Formalization in Public Document:</strong> In the case of donations, it is usually required that they are formalized in a public deed.</li> </ul> <h3 style="color: #1363b2; font-size: 16px; font-family: 'Montserrat Bold';">Differences Between Residents and Non-Residents</h3> <p style="text-align: justify;">Although legislation has evolved to eliminate discrimination, there are still some practical differences between residents and non-residents when it comes to inheritance and gift taxation in Spain:</p> <p><img title="Captura de pantalla 2025-05-22 112741.png" src="https://iberiantax-blog.s3.eu-west-1.amazonaws.com/f9a6fb2e-be50-44b3-bc61-0d92e434473e/images/en/Imagen Blog.jpg" alt="" width="893" height="271" /></p> <p>&nbsp;</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Declaration and Payment Procedure</h2> <p>Non-residents must follow a specific procedure for the declaration and payment of the ISD, which differs in some aspects from the procedure for residents:</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">1. Filing of the Declaration</h3> <p>The declaration is filed using forms 650 (inheritances) or 651 (donations) before the AEAT Delegation corresponding to the place where the real estate is located. These forms can be obtained from the AEAT website or at the AEAT offices. They must be completed with the identification data of the taxpayer, the deceased or donor, and the assets and rights acquired.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">2. Deadline</h3> <ul> <li><strong>Inheritances:</strong> 6 months from death, extendable for another 6 months upon prior request. The extension must be requested before the end of the initial 6-month period and is granted automatically.</li> <li><strong>Donations:</strong> 30 business days from the donation. This period is significantly shorter than for inheritances, which highlights the importance of proper planning.</li> </ul> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">3. Required Documentation</h3> <ul> <li>Death certificate (in inheritances).</li> <li>Certificate from the Registry of Acts of Last Will.</li> <li>Will or declaration of heirs.</li> <li>Public deed (in donations).</li> <li>Inventory of assets with valuation.</li> <li>Tax residence certificate of the heir/donee.</li> <li>Title of acquisition of the real estate by the deceased or donor.</li> <li>IBI receipt (Property Tax).</li> <li>Proof of deductible charges, debts, and expenses.</li> </ul> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">4. Appointment of Tax Representative</h3> <p>Mandatory for non-residents outside the EU/EEA. The appointment must be communicated to the tax administration through the corresponding form.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">5. Self-assessment and Payment</h3> <p>Calculation of the tax by applying the corresponding regulations and payment at a collaborating entity. The payment can be made in cash via a Spanish bank branch or via bank transfer.</p> <p>&nbsp;</p> <p>Navigating the Inheritance and Gift Tax (ISD) in Spain can be complex, particularly for non-residents, due to the interplay between national and regional regulations, evolving legal frameworks, and specific procedural requirements. However, recent legal reforms have leveled the playing field, allowing non-residents to benefit from the same regional tax advantages as residents. Proper planning, accurate valuation, and understanding the applicable rules in each Autonomous Community are essential to minimizing the tax burden and ensuring full compliance. When in doubt, seeking expert guidance is highly recommended to avoid costly mistakes and take full advantage of available tax benefits.</p>

<p>This tax applies to both residents and non-residents, and is collected by the local town hall (Ayuntamiento) where the property is located. Non-resident property owners must be particularly mindful of this obligation, as they are equally liable when transferring urban properties.</p> <p>In addition to the Plusval&iacute;a Municipal, non-resident sellers are also subject to a 3% withholding tax on the sale price of the property. This amount is retained by the buyer and paid directly to the Spanish Tax Agency (Agencia Tributaria) as an advance payment of the seller&rsquo;s potential capital gains tax.</p> <p>To recover part or all of this 3%&mdash;or to declare a capital gain if applicable&mdash;the seller must submit the Modelo 210 for capital gains within four months of the sale. Failing to do so may result in losing the right to a refund and potential penalties.</p> <p>Given that approximately 15% of property transactions in Spain involve non-resident individuals, understanding how the Plusval&iacute;a Municipal, the 3% withholding, and the Modelo 210 interact is essential for proper tax compliance and financial planning.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;">Legal Framework</h2> <p style="text-align: justify;">The IIVTNU is regulated by the Royal Legislative Decree 2/2004, of March 5, which approves the Consolidated Text of the Law Regulating Local Treasuries (Ley Reguladora de las Haciendas Locales). However, this tax has undergone significant changes following several Constitutional Court rulings.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;">Recent Legal Developments</h2> <p style="text-align: justify;">The most significant change came with the Constitutional Court Ruling 182/2021 of October 26, 2021, which declared unconstitutional the method of calculating the tax base. This led to an urgent reform through Royal Decree-Law 26/2021 of November 8, 2021, which established a new calculation system.</p> <p style="text-align: justify;">The key aspects of this reform include:</p> <ul style="text-align: justify;"> <li>The tax is only applicable when there is an actual increase in the value of the land</li> <li>Two methods for calculating the tax base:</li> </ul> <p style="padding-left: 40px;">Objective method: Based on cadastral values and coefficients</p> <p style="padding-left: 40px;">Real gain method: Based on the actual difference between acquisition and transfer values</p> <ul style="text-align: justify;"> <li>Taxpayers can choose the most beneficial method for their specific case.</li> </ul> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;">Who Pays the Tax?</h2> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold'; text-align: justify;">Taxable Person</h3> <p style="text-align: justify;">For non-residents, the taxable person (the one obliged to pay the tax) depends on the type of transfer:</p> <p style="text-align: justify;"><img title="Captura de pantalla 2025-05-22 112741.png" src="https://iberiantax-blog.s3.eu-west-1.amazonaws.com/37f4829e-f379-402e-b56c-564fcecc7f42/images/en/Captura%20de%20pantalla%202025-05-22%20112741.png.png" alt="" width="893" height="271" /></p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold'; text-align: justify;">Substitute of the Taxpayer</h3> <p style="text-align: justify;">An important consideration for non-residents selling property in Spain is the figure of the "substitute of the taxpayer." When the seller is a non-resident in Spain, the buyer is obliged to withhold and pay the tax on behalf of the seller, unless the seller proves they are subject to tax in Spain through a permanent establishment.</p> <p style="text-align: justify;">This mechanism ensures tax collection and places additional responsibility on buyers when purchasing from non-residents.</p> <p style="text-align: justify;"><strong>Important for Buyers:</strong> If you are purchasing property from a non-resident seller, you may be responsible for withholding and paying this tax. Failure to do so could make you liable for the tax amount. Always verify this obligation with your legal advisor before completing a property purchase.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;">Tax Calculation</h2> <p style="text-align: justify;">The tax is calculated based on the increase in the value of the land (not the buildings) during the ownership period, with a maximum period of 20 years. The calculation can be done through two methods:</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;">Objective Method</h2> <p style="text-align: justify;">This method applies coefficients approved by each municipality (within legal limits) to the cadastral value of the land at the time of transfer. The coefficients vary according to the number of years the property has been owned.</p> <p style="text-align: justify;">The calculation formula is:</p> <p style="text-align: justify;">Tax Base = Cadastral Value of Land &times; Annual Coefficient &times; Years of Ownership (max. 20)</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold'; text-align: justify;">Tax Rates</h3> <p style="text-align: justify;">The tax rates are set by each municipality, with a maximum of 30%. The rates typically range between 20% and 30% and may be progressive depending on the ownership period.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold'; text-align: justify;">Exemptions and Reductions</h3> <p style="text-align: justify;">There are several exemptions and reductions that may benefit non-residents:</p> <ul style="text-align: justify;"> <li><strong>No Increase in Value: </strong>If it can be proven that there has been no increase in the value of the land, the transfer is not subject to tax. This is a direct result of the Constitutional Court rulings and subsequent legal reform.</li> <li><strong>Family Transfers: </strong>Some municipalities offer reductions for transfers between spouses or in favour of descendants or ascendants. These reductions vary by municipality.</li> <li><strong>Main Residence: </strong>Some municipalities offer reductions for the transfer of the main residence due to death. However, this would not apply to non-residents, as they typically don't have their main residence in Spain.</li> </ul> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;">Real Gain Method</h2> <p style="text-align: justify;">This method calculates the actual increase in value by comparing:</p> <ul style="text-align: justify;"> <li>The land value at acquisition (proportional part of the total value)</li> <li>The land value at transfer (proportional part of the total value)</li> </ul> <p style="text-align: justify;">The calculation formula is:</p> <p style="text-align: justify;">Tax Base = Land Value at Transfer - Land Value at Acquisition</p> <p style="text-align: justify;">If there is no actual increase in value, no tax is due. This method is particularly beneficial for properties that have not appreciated significantly or have decreased in value.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold'; text-align: justify;">Tax Rates</h3> <p style="text-align: justify;">The tax rates are set by each municipality, with a maximum of 30%. The rates typically range between 20% and 30% and may be progressive depending on the ownership period.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;">Practical Implications for Non-Residents</h2> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold'; text-align: justify;">Filing and Payment</h3> <p style="text-align: justify;">Non-residents must file and pay the tax within the following deadlines:</p> <ul style="text-align: justify;"> <li><strong>Sales and donations:</strong> 30 business days from the transfer date</li> <li><strong>Inheritances:</strong> 6 months from the date of death, extendable for another 6 months</li> </ul> <p>The declaration must be filed with the municipality where the property is located.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold'; text-align: justify;">Documentation Required</h3> <p style="text-align: justify;">Non-residents typically need to provide:</p> <ul style="text-align: justify;"> <li>Tax form provided by the municipality</li> <li>Public deed of transfer</li> <li>Previous acquisition title</li> <li>Proof of payment</li> <li>NIE (Foreigner Identification Number)</li> <li>In case of exemption or non-subjection, supporting documentation</li> </ul> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;">Recommendations for Non-Residents</h2> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold'; text-align: justify;">Documentation</h3> <p style="text-align: justify;">Keep all documentation related to the acquisition and expenses of the property. This includes the purchase deed, receipts for improvements, and any other documents that may affect the property's value.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold'; text-align: justify;">Professional Advice</h3> <p style="text-align: justify;">Before any property transfer, consult with a tax advisor familiar with both Spanish tax law and the tax system of your country of residence. This can help you navigate the complex tax implications and avoid unexpected liabilities.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold'; text-align: justify;">Municipal Regulations</h3> <p style="text-align: justify;">Check the specific regulations of the municipality where the property is located, as tax rates and potential reductions vary. This information is usually available on the municipality's website or can be obtained from the local tax office.</p>

<p style="text-align: justify;">Imagine this: You&rsquo;re sipping coffee at home in the UK, scrolling through your emails, when you remember: you still haven&rsquo;t filed your Spanish non-resident tax return. In the past, this would&rsquo;ve meant panicked Googling, a last-minute call to your accountant (who may or may not respond), and a bill that somehow costs more than the tax owed!</p> <p style="text-align: justify;">Now, you log into IberianTax, answer a few simple questions, click submit&hellip; and you&rsquo;re done. No stress. No surprises. No paperwork. That&rsquo;s the difference IberianTax makes.</p> <p style="text-align: justify;">We didn&rsquo;t set out to be just another tax service. We created a smarter, clearer way for non-residents to stay compliant in Spain, without the hassle, high costs or confusion. In this blog post, we&rsquo;ll explain how we&rsquo;re different from traditional accountants and &lsquo;copy-paste&rsquo; platforms &ndash; and why more and more property owners are choosing us instead.</p> <h2 style="text-align: justify; color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">1. Built Specifically for Non-Residents</h2> <p style="text-align: justify;">Many tax companies and platforms in Spain are built for residents or large companies. At IberianTax, we do just one thing, and we do it exceptionally well.</p> <p style="text-align: justify;">Our service is <a class="color-primary link-secondary" href="https://www.iberiantax.com/how-it-works" target="_blank" rel="noopener"><strong>purpose-built for non-resident property owners in Spain</strong></a>. We understand the frustrations of navigating unfamiliar systems, tight filing deadlines, and foreign bureaucracy. That&rsquo;s why our platform is designed to simplify Spanish tax filing, no matter where in the world you live. Our services cover the filing of your <strong>Imputed Income</strong>, <strong>Rental Income</strong>,<strong> </strong>and<strong> Capital Gains Tax</strong> &ndash; some of the most prominent taxes you may face when owning property in Spain.<br />Whether you own a holiday flat in M&aacute;laga or a villa in Mallorca, our tools are tailored to your exact tax situation.</p> <h2 style="text-align: justify; color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">2. File from Anywhere, Anytime &ndash; 100% Online</h2> <p style="text-align: justify;">While traditional accountants and gestor&iacute;as still rely on in-person visits, phone calls and paperwork, IberianTax is completely online.</p> <p style="text-align: justify;">You can file your Modelo 210 in minutes, from your home country, with no need for travel or appointments. Our intuitive step-by-step form makes it easy, even if you&rsquo;ve never filed a Spanish tax return before. Whether you&rsquo;re in the UK, Germany, France, or elsewhere, we bring Spanish tax compliance to your fingertips.</p> <p style="text-align: justify;">Thought you could only file your Imputed Income return in December? Not with IberianTax! We even allow for early filing, so you don&rsquo;t have to panic when December arrives.</p> <h2 style="text-align: justify; color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">3. Track Your Rental Income and Expenses Throughout the Year</h2> <p style="text-align: justify;">No more spreadsheets or last-minute document hunts. IberianTax includes a built-in tool to <strong>record your rental income and deductible expenses month by month</strong>. This makes it easy to stay organised and ensures you claim all the deductions you&rsquo;re entitled to &ndash; especially important for EU and Norwegian taxpayers.</p> <p style="text-align: justify;">When it&rsquo;s time to file, everything is already stored in your account.</p> <h2 style="text-align: justify; color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">4. Reuse Data and Manage All Your Tax Obligations in One Place</h2> <p style="text-align: justify;">Once you&rsquo;ve filed with IberianTax, your data is securely saved and ready for next year. You can <strong>reuse property and owner information</strong>, <strong>track all past submissions, and manage multiple tax returns from a single dashboard</strong>.</p> <p style="text-align: justify;">Whether you own one property or several, you&rsquo;ll have a <strong>clear overview of all your filings</strong>, deadlines and status &ndash; without juggling documents or sending endless emails.</p> <h2 style="text-align: justify; color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">5. Transparent Pricing &ndash; No Hidden Fees</h2> <p style="text-align: justify;">Many traditional tax advisors charge between &euro;150 and &euro;300 per person to file a Modelo 210. IberianTax<strong> <a class="color-primary link-secondary" href="https://www.iberiantax.com/pricing">starts from just &euro;34.95</a>&nbsp; </strong>(including VAT).</p> <p style="text-align: justify;">There are no hidden extras, no surprise fees, and you&rsquo;ll always know exactly what you&rsquo;re paying for. We believe tax filing should be affordable. So we&rsquo;ve built a platform that saves you money, not only on fees, but also by helping you avoid late penalties and interest charges.</p> <h2 style="text-align: justify; color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">6. Multilingual Support You Can Count On &ndash; With Expert Help Year-Round</h2> <p style="text-align: justify;">Struggling with Spanish tax terms? You&rsquo;re not alone. That&rsquo;s why IberianTax is fully available in <strong>English, German, French, and Spanish</strong>.</p> <p style="text-align: justify;">Our customer support team is made up of tax experts who are not only experienced but also approachable, responsive, and fluent in your language. Whether you have a question about your tax calculation or need help uploading a document, we&rsquo;re here to help.</p> <p style="text-align: justify;">And we don&rsquo;t disappear after you submit your form. As specialists in <strong>non-resident taxation</strong>, we offer <strong>expert guidance throughout the year</strong>, not just during tax season.</p> <h2 style="text-align: justify; color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">7. Officially Approved by the Spanish Tax Office</h2> <p style="text-align: justify;">IberianTax is an officially registered collaborator with the <strong>Agencia Tributaria</strong>, Spain&rsquo;s national tax authority. That means we&rsquo;re fully authorised to file on your behalf, and your return is submitted securely and directly to the authorities.</p> <p style="text-align: justify;">Our platform is also<strong> GDPR compliant,</strong> with all data fully encrypted for your online safety.</p> <h2 style="text-align: justify; color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">8. Easy Filing for Joint Owners</h2> <p style="text-align: justify;">If you own your property with a partner, spouse or other family members, you don&rsquo;t need multiple accounts. IberianTax lets you manage up to four joint owners in one account. Each owner still files individually, as required by Spanish law, but our system keeps everything together in one place. No more coordinating across different emails or documents.</p> <h2 style="text-align: justify; color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">9. Deadline Reminders and Free Tax Tools</h2> <p style="text-align: justify;">One of the most common reasons for late filings is simply forgetting the deadline. That&rsquo;s why we offer <strong>free email reminders</strong> for upcoming deadlines, whether it&rsquo;s for imputed income tax or rental income tax.</p> <p style="text-align: justify;">Our platform also includes a free tax calculator for Imputed Income and Capital Gains Tax, so you can preview before committing to file.</p> <h2 style="text-align: justify; color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">10. Trusted by Thousands of Property Owners</h2> <p style="text-align: justify;">With more than <strong>600 five-star reviews</strong>, IberianTax is trusted by homeowners across the UK, Germany, France and beyond.</p> <p style="text-align: justify;">Our clients love us for our excellent support team, simplicity and reliability. Once they try IberianTax, they rarely go back to traditional gestor&iacute;as or accountants.</p> <h2 style="text-align: justify; color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Ready to File Your Modelo 210?</h2> <p style="text-align: justify;">Filing your non-resident taxes doesn&rsquo;t have to be expensive, confusing, or stressful. With IberianTax, you can stay compliant, save money, and file with confidence &ndash; all from the comfort of your home.</p> <p style="text-align: justify;">Join thousands of non-resident homeowners who have chosen IberianTax as their trusted tax partner in Spain and<a class="color-primary link-secondary" href="https://www.iberiantax.com" target="_blank" rel="noopener"><strong> sign up for your free account now</strong></a>.</p>

<p style="text-align: justify;">If you own property in Spain but live abroad, managing your Spanish tax affairs and staying on top of official requirements can sometimes feel impossible. Whether it&rsquo;s downloading documents from the Agencia Tributaria (Spanish Tax Office), checking tax payments, or submitting the right forms, having online access to these things is important.</p> <p style="text-align: justify;">That&rsquo;s where the digital certificate (certificado digital) comes in. And now, for the first time, you can obtain one fully online with IberianTax, with no travel, no appointments, and no waiting around required.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">What Is a Digital Certificate?</h2> <p style="text-align: justify;">A certificado digital is a secure, digital ID issued by the Spanish authorities that allows you to access and interact with official government systems online. Think of it as your online identity in Spain &ndash; it verifies who you are when logging into official websites or signing electronic documents.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">With a digital certificate, you can:</h3> <ul> <li>Log in to the Spanish Tax Agency (Agencia Tributaria)</li> <li>Access and read official notifications or communications</li> <li>Check your debts or verify your administrative status</li> <li>Download property-related certificates or information</li> <li>View your records with the Social Security system</li> <li>Carry out various procedures without needing to visit Spain</li> </ul> <p>For non-residents, it&rsquo;s an essential tool to stay in control of your affairs in Spain, even from abroad.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Why Do Non-Resident Property Owners Need One?</h2> <p style="text-align: justify;">As a property owner in Spain, there are several situations where having a digital certificate becomes incredibly useful, and in some cases, it&rsquo;s necessary:</p> <ul> <li style="text-align: justify;"><strong>Receiving and reading notifications </strong>from Spanish authorities, including the Agencia Tributaria</li> <li style="text-align: justify;">Accessing land registry records or<strong> cadastral information</strong></li> <li style="text-align: justify;">Accessing documents requested by lawyers, notaries, or tax agents</li> <li style="text-align: justify;">Selling a property &ndash; official certificates may be required for due diligence</li> <li style="text-align: justify;">Updating personal details or contact information in official systems</li> <li style="text-align: justify;">Avoiding third-party delays when urgent updates or responses are needed</li> </ul> <p style="text-align: justify;">Simply put, a digital certificate gives you the tools to manage your Spanish affairs with confidence and independence, no matter where you live.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Our Solution: Get Your Digital Certificate Online with IberianTax</h2> <p style="text-align: justify;">We&rsquo;re proud to launch a new, fully online service that allows non-resident property owners to get their certificado digital without setting foot in Spain.</p> <ul> <li>No travel or in-person appointments</li> <li>No paperwork or Spanish language skills required</li> <li>Fast, secure, and managed by experts</li> </ul> <p class="" style="text-align: justify;" data-start="1917" data-end="1987">We guide you through the whole process, from identity verification to certificate installation, with clear instructions and support in English, German, French, or Spanish.</p> <p class="" style="text-align: justify;" data-start="1917" data-end="1987">Once issued, your digital certificate is valid for accessing the Agencia Tributaria and other official platforms immediately.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';" data-start="2307" data-end="2434">Who Is This Service For?</h2> <p style="text-align: justify;">This service is ideal for:</p> <ul style="text-align: justify;"> <li>Property owners who live outside Spain</li> <li>Landlords managing short-term or long-term rentals</li> <li>Anyone needing to submit or download tax documents</li> <li>People preparing to sell their property</li> <li>Those who want direct access to their Spanish records</li> </ul> <p style="text-align: justify;">Whether you want to check your tax history, register in Spain&rsquo;s new rental platform, or simply stay on top of your obligations, this certificate gives you the access you need, on your terms.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">How to Get Started</h2> <p style="text-align: justify;">Getting your digital certificate through IberianTax is simple:</p> <p style="text-align: justify;">&nbsp; &nbsp; &nbsp; 1. Contact us via our website to start the process<br />&nbsp; &nbsp; &nbsp; 2. We&rsquo;ll explain the steps and guide you through identity verification<br />&nbsp; &nbsp; &nbsp; 3. You&rsquo;ll receive your digital certificate, ready to use with Spanish government websites</p> <p style="text-align: justify;">You don&rsquo;t need to speak Spanish, visit an office, or figure it out on your own, we handle it all for you!</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';" data-start="2978" data-end="3083">Simplify Your Spanish Admin From Anywhere</h2> <p class="" style="text-align: justify;" data-start="2978" data-end="3083">Managing property in Spain shouldn&rsquo;t be difficult, even if you live abroad. With IberianTax&rsquo;s new digital certificate service, you can stay in control, wherever you are in the world.</p> <p class="" style="text-align: justify;" data-start="2978" data-end="3083">Whether you want to download a tax return, register your rental property, or submit official forms, your certificado digital gives you secure and direct access to Spanish government systems.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';" data-start="3085" data-end="3131">Ready to get started?</h2> <p style="text-align: justify;"><a class="color-primary link-secondary" title="Contact our team today" href="https://www.iberiantax.com/contact">Contact our team today</a> and let us help you get your Spanish digital certificate 100% online, quickly, and stress-free!</p>

<p style="text-align: justify;">Owning a rental property in Spain as a non-resident comes with financial benefits, but it also means meeting your tax obligations.<br />If you rent out your property, you must file a Modelo 210 form for rental income tax every year.<br />Keeping well-organised records of your rental income and expenses throughout the year will make this process easier, ensure compliance, and help you avoid unnecessary stress when January rolls around.<br />In this guide, we&rsquo;ll walk you through why record-keeping is essential, what documents you need to hold on to, and best practices for managing your income and expenses.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Why Good Record-Keeping is Essential for Non-Resident Landlords</h2> <p style="text-align: justify;">As a non-resident property owner, you are required to declare rental income in Spain each year using the Modelo 210 form. Until February 2024, the <a class="color-primary link-secondary" title="Rental Income Tax" href="https://www.iberiantax.com/modelo-210/rental-income">Rental Income Tax</a> was filed each quarter, but this has since changed to an annual requirement, making things much easier for owners.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Without keeping proper records throughout the year, you may:</h3> <ul> <li style="text-align: justify;">Overpay or underpay taxes due to miscalculations</li> <li style="text-align: justify;">&nbsp;Miss out on deductible expenses (if eligible)</li> <li style="text-align: justify;">Struggle to file on time and risk late penalties</li> <li style="text-align: justify;">Face issues if the Spanish tax authorities request proof of your tax filings</li> </ul> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Good record-keeping ensures:</h3> <ul> <li style="text-align: justify;">Accurate tax declarations, avoiding errors that could trigger tax investigations</li> <li style="text-align: justify;">Easier tracking of deductible expenses for eligible non-residents</li> <li style="text-align: justify;">Less stress during tax season by organising records throughout the year</li> </ul> <h2 style="text-align: justify; color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">What Rental Income &amp; Expense Records Should Non-Residents Track?</h2> <h3 style="text-align: justify; color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Rental Income:</h3> <ul> <li style="text-align: justify;"><span style="color: #000000;">Rental agreements</span></li> <li style="text-align: justify;"><span style="color: #000000;">Bank statements showing rent received</span></li> <li style="text-align: justify;"><span style="color: #000000;">Platform reports (Airbnb, Vrbo, etc.)</span></li> <li style="text-align: justify;"><span style="color: #000000;">Receipts or email confirmations of payments</span></li> </ul> <h3 style="text-align: justify; color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Deductible Expenses (for EU, Norway, or Iceland residents only):</h3> <ul> <li style="text-align: justify;">Mortgage interest (interest only)</li> <li style="text-align: justify;">Property tax (IBI) receipts</li> <li style="text-align: justify;">Community fees</li> <li style="text-align: justify;">Utility bills (if paid by the landlord)</li> <li style="text-align: justify;">Property management fees</li> <li style="text-align: justify;">Repairs and maintenance (not upgrades)</li> <li style="text-align: justify;">Insurance costs</li> </ul> <h2 style="text-align: justify; color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Tax-Deductible Expense Records (For EU, Norway &amp; Iceland Residents Only)</h2> <p style="text-align: justify;">If you are a non-resident property owner in Spain and a tax resident of the EU, Norway, or Iceland, you may be eligible to deduct certain expenses from your rental income tax liability.<br />Keeping proper records of these expenses can help you reduce the amount of tax you owe.<br />Below are the key deductible expenses you should track throughout the year.</p> <ul> <li style="text-align: justify;">Mortgage interest payments (only the interest portion is deductible)</li> <li style="text-align: justify;">IBI (property tax) receipt from the local town hall</li> <li style="text-align: justify;">Community fees for buildings or complexes with shared expenses</li> <li style="text-align: justify;">Utility bills, if the landlord covers electricity, water, or gas</li> <li style="text-align: justify;">Property management fees if using an agency</li> <li style="text-align: justify;">Repairs and maintenance receipts for necessary work (not upgrades or improvements)</li> <li style="text-align: justify;">Insurance costs for home or landlord policies</li> </ul> <p style="text-align: justify;">Unfortunately, Non-EU residents, such as UK nationals post-Brexit, cannot deduct rental expenses and must declare their rental income in full.</p> <h2 style="text-align: justify; color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Best Practices for Managing Rental Income &amp; Expenses Throughout the Year</h2> <h3 style="text-align: justify; color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Use a Digital Record-Keeping System</h3> <p style="text-align: justify;">Manually tracking income and expenses can be overwhelming. Instead, why not consider setting up a simple spreadsheet in Google Sheets or Excel? Setting this up will only take a few moments of your time, but it will help you keep things in order throughout the year.</p> <p style="text-align: justify;"><strong>Even better:</strong> If you&rsquo;re using IberianTax, you now have access to an integrated tracking tool built directly into the platform.<br />This feature allows you to record and view your rental income and expenses for each property in one central place&mdash;making tax season even more straightforward.</p> <h3 style="text-align: justify; color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Download Financial Statements Regularly</h3> <p style="text-align: justify;">To avoid last-minute stress when it comes to filing your rental income tax return in January, we recommend downloading the following documents on a regular basis:</p> <ul> <li style="text-align: justify;">Rental platform earnings reports &ndash; we recommend doing this monthly</li> <li style="text-align: justify;">Bank statements on a quarterly basis</li> <li style="text-align: justify;">Tax receipts (IBI, community fees, etc.) as soon as payments are made</li> </ul> <h2 style="text-align: justify; color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Scan and Store Receipts Online</h2> <p style="text-align: justify;">The Spanish tax office may ask for proof of deductible expenses, so it&rsquo;s important that you store these properly throughout the year. To stay organised, we recommend:</p> <ul> <li style="text-align: justify;">Taking a photo of every receipt and invoice</li> <li style="text-align: justify;">Store them in a cloud folder like Google Drive or Dropbox</li> <li style="text-align: justify;">Name files clearly, such as &lsquo;IBI Tax Receipt 2025&rsquo;</li> </ul> <h2 style="text-align: justify; color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Set Tax Reminders and File On Time</h2> <p style="text-align: justify;">Previously, non-resident property owners had to declare rental income every quarter by submitting the Modelo 210 form. However, this has now changed to an annual basis. Your rental income tax return now has to be filed between 1st and 20th January for the previous year.</p> <p style="text-align: justify;">By using an online tax filing service like IberianTax, they will send you timely reminders of when your rental income tax is due to be paid each year, so you don&rsquo;t need to go through any last- minute panic.</p> <h2 style="text-align: justify; color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">How IberianTax Makes Rental Tax Filing Simple for Non-Residents</h2> <p style="text-align: justify;">Filing the Modelo 210 form can be time-consuming and confusing, especially for non-residents unfamiliar with Spanish tax regulations. IberianTax takes the hassle out of tax filing by offering a fast, simple, and affordable online solution.</p> <p style="text-align: justify;">Here&rsquo;s why non-resident landlords trust IberianTax:</p> <ul style="text-align: justify;"> <li>Prices start from just <strong>&euro;79,95 </strong>&ndash; much more affordable than an accountant!</li> <li><strong>Track your rental income and expenses</strong> directly in the platform</li> <li><strong>Easy online filing </strong>with no paperwork or complicated forms</li> <li><strong>Instant tax calculation</strong> to see your tax liability before filing</li> <li><strong>Save progress</strong> and file at your own pace</li> <li><strong>Expert support </strong>with free guidance from tax specialists</li> <li><strong>Secure payment and tax submission</strong> without visiting a Spanish bank</li> <li><strong>Fully approved by Agencia Tributaria</strong> as an official tax collaborator</li> </ul> <h2 style="text-align: justify; color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Stress-Free Filing with IberianTax</h2> <p style="text-align: justify;">Being a non-resident landlord in Spain doesn&rsquo;t have to be complicated. With good record- keeping and the right tax filing service, it&rsquo;s never been easier to stay compliant without the hassle.</p> <p style="text-align: justify;">To sign up for your free account with IberianTax and receive reminders of when your rental income tax is due, simply click <strong><a class="color-primary link-secondary" href="http://www.iberiantax.com/register">here </a></strong>to get started.</p>

<p style="text-align: justify;">Every year, the Spanish tax authorities publish their Annual Tax Control Plan (Plan Anual de Control Tributario), outlining key areas of focus for audits and compliance checks. Among other guidelines, we have extracted those that affect non-resident property owners. Below is a summary of the key measures introduced in the 2025 plan.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;">Increased Scrutiny on Rental Income and Property Sales</h2> <p style="text-align: justify;">The Spanish tax office (Agencia Tributaria) has announced that it will intensify audits on non-residents who own property in Spain but fail to declare rental income or capital gains from property sales. This means:</p> <ul style="text-align: justify;"> <li>Greater enforcement against non-resident landlords who do not declare rental income from properties they own in Spain.</li> <li>Stricter controls on capital gains tax declarations for non-residents who sell their Spanish properties.</li> </ul> <p style="text-align: justify;">For non-residents renting out property in Spain, it is mandatory to file Modelo 210 for rental income on an annual basis (since 2024). Similarly, capital gains tax from property sales must be declared through Modelo 210. If undeclared income is detected, property owners could face fines, interest charges, and retroactive tax assessments.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;">Wealth Tax Compliance Checks</h2> <p style="text-align: justify;">Additionally, the tax office has signaled an increase in audits related to the Wealth Tax (Impuesto sobre el Patrimonio) for non-residents. Spain applies a wealth tax on real estate and other assets held in Spain by non-residents, depending on the region and asset value. However, in certain regions such as the Balearic Islands, Comunidad Valenciana, and Andaluc&iacute;a, the current exempt threshold is high, meaning most property owners will not be affected. Those who declare Wealth Tax under "obligaci&oacute;n real" (for assets held in Spain) should ensure compliance to avoid potential penalties.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;">New Procedures for Dividend Tax Refunds</h2> <p style="text-align: justify;">For non-residents receiving dividends from Spanish companies, the tax office will implement new procedures in line with the EU Directive 2025/50 (FASTER Directive). This directive aims to standardize and accelerate the process of refunding overpaid withholding tax on dividends received by non-residents.</p> <p style="text-align: justify;">While the directive is expected to be fully implemented by 2030, Spain will begin adapting its IRNR (Non-Resident Income Tax) refund procedures in 2025, meaning that changes could affect how tax refunds on dividends are processed.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;">What This Means for Non-Resident Property Owners</h2> <p style="text-align: justify;">With these new enforcement measures, non-residents who own property in Spain should:</p> <ul style="text-align: justify;"> <li>Ensure that all rental income is properly declared using Modelo 210.</li> <li>Comply with capital gains tax obligations when selling property.</li> <li>Review Wealth Tax obligations if applicable.</li> <li>Stay informed about changes to dividend taxation if they receive Spanish-source dividends.</li> </ul> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;">How IberianTax Can Help</h2> <p style="text-align: justify;">At IberianTax, we specialize in making non-resident tax compliance simple and hassle-free. Our platform guides you step by step through Modelo 210 for rental income and capital gains, ensuring full compliance with Spanish tax laws.</p> <p style="text-align: justify;">If you have any questions about your tax obligations or need assistance with filing, visit www.iberiantax.com to get started today.</p>

<p>If you own a holiday rental property in Spain and rent it out on platforms such as Airbnb, Booking.com, Rentalia or Vrbo, you&rsquo;re going to need to know about these important regulatory changes that are coming. The Single Tourist Rental Registry, which came into effect on January 2, 2025, will become mandatory from July 1, 2025.</p> <p>This new system aims to regulate short-term and seasonal rentals across Spain, ensuring all tourist accommodation meets the legal requirements. For those non-resident property owners, you&rsquo;ll need to get to grips with the registration process and comply with the new rules to ensure that your property remains legal.</p> <p>In this guide, we&rsquo;ll be explaining who needs to register, how to complete the process, and what happens if you don&rsquo;t comply.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">What Is the Single Tourist Rental Registry?</h2> <p>The Single Tourist Rental Registry is a government initiative designed to regulate Spain&rsquo;s growing short-term rental market &ndash; something that has been a major talking point both in Spain and across Europe.</p> <p>The goal of the new measures is to:</p> <ul> <li>Ensure all holiday rental properties comply with legal and safety standards</li> <li>Reduce illegal rentals and tax evasion</li> <li>Improve transparency and monitoring of the sector</li> <li>Protect tourists from unregulated and potentially unsafe properties</li> </ul> <p>By centralising rental data, the Spanish government aims to create a safer, more transparent holiday rental market while ensuring property owners meet tax and regulatory obligations.</p> <p>If you rent out your property short-term, you will need to register and obtain a unique registration number before advertising your listing online.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Why Is Spain Introducing This Regulation?</h2> <p>The holiday rental market in Spain has grown significantly over the last decade, but this growth has also led to some challenges, including tax avoidance, unfair competition, and unregulated accommodation.</p> <p>With this new registry, the government seeks to:</p> <ul> <li>Eliminate illegal rentals that bypass tax and safety regulations</li> <li>Ensure a level playing field for all property owners</li> <li>Improve rental market oversight to better track supply and demand</li> <li>Increase tourist confidence in Spanish holiday rentals</li> </ul> <p>For non-resident landlords, this means stricter oversight but also a more stable and professionalised rental market. &nbsp;</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Who Needs to Register?</h2> <p>If you rent out your Spanish property for short-term stays, you must now register for a Rental Registration Number (<strong>N&uacute;mero de Registro de Alquiler,</strong> NRA).</p> <p>This applies to:</p> <ul> <li>Entire properties rented to tourists</li> <li>Individual rooms within a property rented out separately</li> <li>Properties listed on platforms like Airbnb, Booking.com, and Rentalia</li> </ul> <p>Failure to register means you cannot legally advertise your property, and you may face financial penalties if you&rsquo;re discovered by the authorities.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">What is the Rental Registration Number (NRA)?</h2> <p>The NRA is a unique identifier assigned to rental properties, allowing them to be legally advertised for short-term stays. Without this number, property owners may face fines or restrictions on their rental activities.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">How to Apply for an NRA</h2> <p>The process of obtaining an NRA is straightforward and can be completed online through the College of Registrars&rsquo; platform. Here&rsquo;s a step-by-step guide:</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">1. Identify Yourself on the Online Portal</h3> <p>Visit the College of Registrars&rsquo; Electronic Headquarters.<br />Log in using an electronic certificate for authentication.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">2. Access the Online Submission System</h3> <p>Navigate to the Rental Registration Number section.<br />Select Online Submission to start the application.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">3. Complete the NRA Request Form</h3> <p>Enter key details, including property location, cadastral reference, and the number of rental units.<br />Attach supporting documents, such as proof of registration or authorisation.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">4. Submit the Application</h3> <p>Upload all required documents and digitally sign the request.<br />Submit the form and accept the terms and conditions.<br />Receive a provisional NRA confirmation via email.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">What Happens If You Don&rsquo;t Register?</h2> <p>Failing to register your property could result in:</p> <ul> <li>Financial penalties for operating an unregistered rental</li> <li>Suspension of rental activity until compliance is met</li> <li>Listings removed from platforms like Airbnb and Booking.com</li> </ul> <p>To continue legally renting out your property, you must complete the registration process before July 2025.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">How Will This Affect Non-Resident Property Owners?</h2> <p>For non-resident landlords, the new registry means:</p> <ul> <li>More regulation, but also greater market transparency and credibility</li> <li>Higher trust from tourists, leading to increased demand for legally registered rentals</li> <li>Increased tax enforcement, ensuring all rental income is declared correctly</li> </ul> <p>If you own a rental property in Spain but live abroad, it&rsquo;s essential to comply with tax regulations, alongside this new registration.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Staying Compliant with Non-Resident Taxes</h2> <p>Even after you register your property with the authorities, you are still responsible for paying the correct taxes as a non-resident property owner. You will be liable to pay these taxes for the duration of your ownership, so it&rsquo;s important to be in the know!&nbsp;</p> <p>Key taxes during your ownership include:</p> <ul> <li><strong>IBI Tax</strong>: This is a property tax charged by your local town hall and funds your local public services.</li> <li><strong>Rental Income Tax</strong>: This is the tax you&rsquo;ll need to pay on the income generated from your property and is declared annually by the 20th of January each year for the previous year.</li> <li><strong>Imputed Income Tax:</strong> If your property is not rented out all year, you must still pay tax. This is due by the 31st of December each year for the previous year.</li> <li><strong>Capital Gains Tax:</strong> If you sell your property, you must declare any profit made from the sale within 4 months of the sale date.&nbsp;</li> </ul> <p>At IberianTax, we specialise in helping non-resident property owners navigate the complexities of Spanish tax obligations. Our simple online platform makes it easy to file your Modelo 210 for the purposes of paying your Rental Income Tax, Imputed Income Tax and Capital Gains Tax. By using IberianTax, you&rsquo;ll be ensuring full compliance with Spanish tax laws, even when you live abroad.&nbsp;</p> <p>With prices starting as low as 34,95&euro;, and even without previous Spanish tax knowledge, non-residents can intuitively file their Modelo 210 with us within a few minutes. Our tax team also provide free support if needed, to help guide you along the way. It&rsquo;s simple, accurate, secure and there&rsquo;s no need to be in Spain!</p> <p>To register for your free account and receive tax reminders, click <a class="color-primary link-secondary" href="iberiantax.com/register"><strong>here</strong></a>!&nbsp;</p> <p>&nbsp;</p>

<p style="text-align: justify;">The European real estate market is set for a strong comeback in 2025, with investment expected to grow by 23%. According to a recent report, Spain remains one of the most attractive destinations for investors, ranking among the top five countries in Europe for property investment.</p> <p style="text-align: justify;">For non-resident property buyers, this forecast signals both opportunity and competition. Whether you're considering purchasing a holiday home, a rental property, or an investment in Spain&rsquo;s booming real estate market, these findings can help you make informed decisions.&nbsp;</p> <p style="text-align: justify;">In this blog, we&rsquo;ll be looking at what you need to know about Spain&rsquo;s role in Europe&rsquo;s property market resurgence and what it means for non-resident investors going forward.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;">Why Is Real Estate Investment in Europe Growing?</h2> <p style="text-align: justify;">After a period of economic uncertainty, confidence in the property market is returning across Europe, with investors seeking stable and profitable assets. Some key factors driving this growth include:</p> <ul> <li style="text-align: justify;">Economic recovery and increased investor confidence</li> <li style="text-align: justify;">Stabilisation of interest rates and improved lending conditions</li> <li style="text-align: justify;">Demand for property as a hedge against inflation</li> <li style="text-align: justify;">Rising demand for rental properties</li> </ul> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Spain is a Leading Investment Destination</h2> <p>Among the countries set to benefit from this investment surge, Spain ranks as one of the top five most attractive real estate markets in Europe. The UK and France follow in second and third place.&nbsp;</p> <p>More than half of investors are planning to increase their investments in Europe and the Middle East. Investors prefer properties priced between &euro;20 million and &euro;60 million, and transactions are expected to rise as financial conditions improve.&nbsp;</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Key reasons Spain remains a top choice for investors</h2> <ul> <li>High demand for rental properties, driven by tourism and digital nomad trends</li> <li>Competitive property prices compared to other European markets</li> <li>A favourable climate, strong infrastructure, and high quality of life</li> <li>A resilient real estate market with stable long-term investment potential</li> </ul> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Where Are Investors Looking in Spain?</h2> <p>With investment levels rising, certain areas in Spain are attracting more attention than others. These are:</p> <ul> <li><strong>The Costa del Sol</strong>: A long-time favourite for foreign buyers, with strong rental demand and property appreciation</li> <li><strong>Madrid and Barcelona</strong>: Urban centres offering lucrative rental yields and business opportunities</li> <li><strong>Alicante and Valencia</strong>: Affordable coastal cities with growing investment potential</li> <li><strong>Balearic and Canary Islands</strong>: Popular for both tourism and long-term expat living</li> </ul> <p>These regions continue to see strong interest from European, American, and Middle Eastern investors, as well as UK buyers who remain active despite post-Brexit changes.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">What This Means for Non-Resident Property Buyers</h2> <p>With real estate investment expected to grow, non-resident buyers should be aware of both opportunities and challenges, particularly when it comes to investing in property.&nbsp;</p> <ul> <li>Increased competition for property in high-demand areas</li> <li>Potential property price growth due to higher investment levels</li> <li>Rental market opportunities for those looking to generate income from their Spanish property</li> </ul> <p>Understanding tax obligations is just as important as choosing the right location when investing in Spanish property, as they can add up and present significant unexpected costs on top of your purchase.&nbsp;</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Key Considerations for Non-Resident Investors</h2> <p>Before purchasing property in Spain, non-resident investors should be aware of the following ongoing taxes.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Property Taxes for Non-Residents</h3> <ul> <li>Property Transfer Tax (ITP) applies when buying resale properties</li> <li>Rental Income Tax must be declared if renting out a property</li> <li>Wealth Tax may apply depending on the region and value of assets</li> <li>Capital Gains Tax, when selling the property</li> </ul> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Tax Compliance</h3> <ul> <li>As a minimum, non-resident property owners must file a Modelo 210 tax return, even if the property remains empty all year</li> <li>If a property is rented out, non-residents must file a Modelo 210 tax return to declare the rental income gained</li> <li>Missing tax deadlines can lead to penalties, making compliance essential</li> </ul> <p>Whilst the idea of organising the payment of these taxes abroad can be off-putting, <strong><a class="color-primary link-secondary" href="https://www.iberiantax.com/about">IberianTax</a></strong> offers a simple, affordable solution, providing an easy-to-use online service designed specifically for those who own property in Spain but live abroad.</p> <p>From <strong><a class="color-primary link-secondary" href="https://www.iberiantax.com/modelo-210/imputed-income">imputed income tax</a> </strong>to <strong><a class="color-primary link-secondary" href="https://www.iberiantax.com/modelo-210/rental-income">rental income tax </a></strong>and <strong><a class="color-primary link-secondary" href="https://www.iberiantax.com/modelo-210/capital-gains-tax">capital gains tax</a></strong>, knowing what to file and when can be overwhelming. IberianTax simplifies this process, offering a straightforward platform that allows property owners to complete their tax filings quickly and without unnecessary stress &ndash; from <strong><a class="color-primary link-secondary" href="https://www.iberiantax.com/pricing">as little as &euro;34,95</a></strong>.</p> <p>&nbsp;</p> <p>With real estate investment in Europe set to grow by 23% in 2025, Spain is once again a key destination for foreign property buyers. Whether you're looking for a holiday home, a rental property, or a long-term investment, now could be a great time to enter the market.</p> <p>However, with increased demand comes the need for careful planning and financial awareness. Understanding property taxes, legal requirements, and compliance as a non-resident is crucial to making an investment as smooth and profitable as possible.</p> <p>Need expert tax guidance for your Spanish property investment? Contact IberianTax today to ensure your non-resident tax affairs are handled correctly and hassle-free.</p> <p>&nbsp;</p>

<p style="text-align: justify;"><span style="font-weight: 400;">Owning a holiday home in Spain is a fantastic investment, offering a place to escape to and, in some cases, a potential rental income. However, for non-resident property owners, maintaining a home from another country comes with some challenges. Without regular upkeep, small issues can quickly escalate, leading to costly repairs and unnecessary stress.</span></p> <p style="text-align: justify;"><span style="font-weight: 400;">Whether you visit your property seasonally or rent it out, having a structured maintenance plan ensures that your home stays in top condition all year round. We&rsquo;ve put together a comprehensive checklist to help you manage your Spanish property efficiently and keep it in good shape when you live abroad.</span></p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;">1. Hire Local Support to Oversee Your Property</h2> <p style="text-align: justify;"><span style="font-weight: 400;">When you&rsquo;re living in another country, having a trusted local contact is one of the best ways to help keep your property in order. However, if you don&rsquo;t have someone nearby, there are a range of other services that may be useful for you: </span></p> <h3 style="text-align: justify; color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Property Manager or Keyholder</h3> <ul> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">A local property manager can conduct regular inspections, coordinate maintenance, and handle emergencies.</span></li> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">A keyholder service ensures that someone can access your property when needed, even in cases of emergencies, for example, if there&rsquo;s a sudden water leak or damage to the property, someone can be there in a timely manner.</span></li> </ul> <p><strong style="color: #51c8b8; font-family: 'Montserrat Bold'; font-size: 16px;">Professional Cleaning Services</strong></p> <ul> <li style="font-weight: 400; text-align: justify;" aria-level="1"><span style="font-weight: 400;">Regular cleaning prevents dust, mould, and pest issues, especially in humid areas.&nbsp;</span></li> <li style="font-weight: 400; text-align: justify;" aria-level="1"><span style="font-weight: 400;">If you rent out your home, a cleaning service is a must to ensure that it&rsquo;s always guest-ready.</span></li> </ul> <p><strong style="color: #51c8b8; font-family: 'Montserrat Bold'; font-size: 16px;">Gardening &amp; Pool Maintenance</strong></p> <ul> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Many communities require outdoor areas to be well-maintained, including in your own garden.&nbsp;</span></li> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Regular servicing prevents water stagnation in pools and overgrowth in gardens.</span></li> </ul> <p><strong style="color: #51c8b8; font-family: 'Montserrat Bold'; font-size: 16px;">Reliable Handyman or Contractor</strong></p> <ul> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Having someone available for small repairs can prevent expensive long-term damage.</span></li> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">If you rent your property, providing quick response times when there are issues will help to keep guests happy.</span></li> </ul> <p style="text-align: justify;"><span style="color: #1363b2; font-family: 'Montserrat Bold'; font-size: 18px;">2. Secure Your Property from Afar</span></p> <p style="text-align: justify;"><span style="font-weight: 400;">As we all know, keeping your holiday home safe and secure is one of the main concerns, especially when you can&rsquo;t always be there regularly.&nbsp;</span></p> <h3 style="text-align: justify; color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Install an Alarm System &amp; Surveillance Cameras</h3> <ul> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">A good security system can deter break-ins and allow remote monitoring.</span></li> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Smart locks enable you to grant and revoke access digitally.</span></li> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">If you opt for a monitored system, police can be sent out to the property in case of a break-in.</span></li> </ul> <p><strong style="color: #51c8b8; font-family: 'Montserrat Bold'; font-size: 16px;">Use Smart Home Technology</strong></p> <ul> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Timed lights create the impression of occupancy.</span></li> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Remote-controlled heating and air conditioning prevent damp and extreme temperatures from damaging interiors.</span></li> </ul> <p><strong style="color: #51c8b8; font-family: 'Montserrat Bold'; font-size: 16px;">Check Your Insurance Policy</strong></p> <ul> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Ensure your home insurance covers theft, damage, and third-party liability (especially if you rent your property).</span></li> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">If your property is vacant for long periods, confirm that your policy remains valid under those conditions.</span></li> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Some insurance companies are now offering squatter protection, so it may be worthwhile to check these options out.</span></li> </ul> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';"><strong style="color: #1363b2; font-family: 'Montserrat Bold'; font-size: 18px;">3. Stay on Top of Utility Bills &amp; Payments</strong></h2> <p style="text-align: justify;"><span style="font-weight: 400;">Avoid disruptions and unexpected penalties by automating essential payments.</span></p> <h3 style="text-align: justify; color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Set Up Direct Debits</h3> <ul style="text-align: justify;"> <li style="font-weight: 400; text-align: justify;" aria-level="1"><span style="font-weight: 400;">Arrange automatic payments for:</span> <ul> <li style="font-weight: 400; text-align: justify;" aria-level="2"><span style="font-weight: 400;">Electricity &amp; water bills</span></li> <li style="font-weight: 400; text-align: justify;" aria-level="2"><span style="font-weight: 400;">Internet &amp; home security services</span></li> <li style="font-weight: 400; text-align: justify;" aria-level="2"><span style="font-weight: 400;">Community fees &amp; property taxes (IBI tax)</span></li> <li style="font-weight: 400; text-align: justify;" aria-level="2"><span style="font-weight: 400;">Car tax (if you keep a car in Spain)</span></li> </ul> </li> </ul> <p><strong style="color: #51c8b8; font-family: 'Montserrat Bold'; font-size: 16px;">Monitor Utility Usage</strong></p> <ul style="text-align: justify;"> <li style="font-weight: 400; text-align: justify;" aria-level="1"><span style="font-weight: 400;">In long-term vacancies, keep water and electricity at minimal use but ensure pipes and appliances are occasionally checked to prevent issues.</span></li> </ul> <p><strong style="color: #51c8b8; font-family: 'Montserrat Bold'; font-size: 16px;">Adjust Utilities Seasonally</strong></p> <ul style="text-align: justify;"> <li style="font-weight: 400; text-align: justify;" aria-level="1"><span style="font-weight: 400;">Reduce unnecessary energy consumption but maintain ventilation and minimal heating to prevent dampness and mould.</span></li> </ul> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;">4. Prevent Property Deterioration</h2> <p style="text-align: justify;"><span style="font-weight: 400;">A vacant property can develop unexpected issues if left unchecked, but you can prevent these common problems:</span></p> <h3 style="text-align: justify; color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Control Moisture &amp; Ventilation</h3> <ul> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Keep wardrobes and drawers open when vacant to avoid musty smells.</span></li> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Use dehumidifiers or moisture absorbers, especially in humid areas.</span></li> </ul> <p><strong style="color: #51c8b8; font-family: 'Montserrat Bold'; font-size: 16px;">Pest Control Measures</strong></p> <ul> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Schedule preventative treatments for common Spanish pests (e.g. ants and cockroaches)</span></li> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Remove any standing water that could attract insects.</span></li> </ul> <p><strong style="color: #51c8b8; font-family: 'Montserrat Bold'; font-size: 16px;">Check for Leaks &amp; Structural Issues</strong></p> <ul> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Water damage can escalate quickly &ndash; regular inspections can catch problems before they worsen.</span></li> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Instruct your property manager to look for signs of leaks, cracks, or mould.</span></li> </ul> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';"><strong style="color: #1363b2; font-family: 'Montserrat Bold'; font-size: 18px;">5. Keep Up with Legal &amp; Tax Responsibilities</strong></h2> <p style="text-align: justify;"><span style="font-weight: 400;">Property ownership in Spain comes with ongoing tax and legal obligations, which can change over time.</span></p> <h3 style="text-align: justify; color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Stay Informed on Local Regulations</h3> <ul> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">If you rent your property, check the latest requirements for rental licenses and tax rules.</span></li> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">If your property is located within a community, do be sure that you&rsquo;re kept up to date if there are any Annual Meetings that occur whilst you&rsquo;re away.</span></li> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Ensure compliance with any tourist rental regulations specific to your region.</span></li> </ul> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';"><strong style="color: #51c8b8; font-family: 'Montserrat Bold'; font-size: 16px;">Understand Your Non-Resident Tax Obligations</strong></h3> <ul> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">You&rsquo;ll need to declare your </span><a href="https://www.iberiantax.com/modelo-210/rental-income"><span style="font-weight: 400;">rental income</span></a><span style="font-weight: 400;">, regardless of whether you rent out all year round, or just partially. This is done on an annual basis every January, but we recommend preparing ahead of time to ensure that it&rsquo;s filed in a timely manner. This is done via the Modelo 210 tax form.</span></li> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">If your property remains empty all year, you must file </span><a href="https://www.iberiantax.com/modelo-210/imputed-income"><span style="font-weight: 400;">Non-Resident Income Tax</span></a><span style="font-weight: 400;"> (via the Modelo 210 form) annually by 31</span><span style="font-weight: 400;">st</span><span style="font-weight: 400;"> December.</span></li> </ul> <p style="text-align: justify;"><span style="font-weight: 400;">Need help with non-resident taxes? IberianTax specialises in helping non-resident property owners stay compliant and avoid fines. </span></p> <h2 style="text-align: justify; color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">6. Prepare for Your Next Visit or Guest Stays</h2> <p style="text-align: justify;"><span style="font-weight: 400;">Before you or your guests arrive, make sure everything is set up for a hassle-free stay.</span></p> <h3 style="text-align: justify; color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Pre-Arrival Inspections</h3> <ul> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Check the functionality of appliances, water heaters, and air conditioning before arrival.</span></li> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Ensure keys, security codes, and remote access tools are ready to use.</span></li> </ul> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';"><strong style="color: #51c8b8; font-family: 'Montserrat Bold'; font-size: 16px;">Stock Up on Essentials</strong></h3> <ul style="text-align: justify;"> <li style="font-weight: 400; text-align: justify;" aria-level="1"><span style="font-weight: 400;">Keep basics like toiletries, cleaning products, and kitchen essentials available for yourself or guests. </span></li> </ul> <p><strong style="color: #51c8b8; font-family: 'Montserrat Bold'; font-size: 16px;">Schedule Maintenance in Advance</strong></p> <ul style="text-align: justify;"> <li style="font-weight: 400; text-align: justify;" aria-level="1"><span style="font-weight: 400;">If possible, plan inspections just before your arrival to ensure everything is in order.</span></li> </ul> <p>&nbsp;</p> <p style="text-align: justify;"><span style="font-weight: 400;">Maintaining a vacation home in Spain while living abroad doesn&rsquo;t have to be stressful. With the right local support, smart security measures, and a structured approach, you can ensure your property stays in optimum condition year-round.</span></p> <p style="text-align: justify;"><span style="font-weight: 400;">At IberianTax, </span><a href="https://www.iberiantax.com/how-it-works"><span style="font-weight: 400;">we help non-resident homeowners</span></a><span style="font-weight: 400;"> stay compliant with Spanish tax laws, ensuring you avoid penalties and unnecessary costs. You can even schedule your payments via Direct Debit, to ensure that you&rsquo;ve got one more thing ticked off your list.</span></p> <p style="text-align: justify;"><span style="font-weight: 400;">Need help with your non-resident tax obligations? </span><a href="https://www.iberiantax.com/contact"><span style="font-weight: 400;">Contact us today</span></a><span style="font-weight: 400;"> for expert guidance!</span></p>

<p style="text-align: justify;">For non-resident property owners in Spain, filing the<strong> Modelo 210 </strong>tax return is an annual requirement. This guide provides a <strong>comprehensive overview of the 2024 tax year </strong>(to be declared in 2025), detailing essential deadlines, capital gains tax obligations, updates on direct debit payments, and key rules for imputed and rental income tax.</p> <p style="text-align: justify;">At <strong>IberianTax</strong>, we simplify the process, ensuring a hassle-free tax filing experience without requiring a Spanish digital certificate or prior tax knowledge.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;">Who Must File a Non-Resident Tax Return?</h2> <p style="text-align: justify;"><strong>All non-resident property owners</strong> in Spain must file at least one Modelo 210 tax return per year for<strong> imputed (deemed) income</strong>, even if the property is not rented and is used solely for personal purposes.</p> <p style="text-align: justify;">If the property is <strong>rented</strong>, the owner must declare rental income and pay the corresponding taxes.</p> <p style="text-align: justify;">Additionally, if a <strong>property was sold in 2024</strong>, the seller must declare and pay capital gains tax within four months from the date of sale.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;">Key Deadlines for the 2024 Tax Year (to be filed in 2025)</h2> <table style="border-collapse: collapse; width: 100.044%; height: 119.5px;" border="1"> <tbody> <tr style="height: 18.5px;"> <td style="width: 27.0459%; height: 18.5px;"><strong>Tax Type</strong></td> <td style="width: 22.9545%; height: 18.5px;"><strong>Period Covered</strong></td> <td style="width: 25.0002%; height: 18.5px;"><strong>Deadline</strong></td> <td style="width: 25.0002%; height: 18.5px;"><strong>Direct Debit Deadline</strong></td> </tr> <tr style="height: 37px;"> <td style="width: 27.0459%; height: 37px;">Imputed Income (Non-Rented Properties)</td> <td style="width: 22.9545%; height: 37px;">January - December 2024</td> <td style="width: 25.0002%; height: 37px;">December 31st, 2025</td> <td style="width: 25.0002%; height: 37px;">20th December, 2025</td> </tr> <tr style="height: 31.5px;"> <td style="width: 27.0459%; height: 31.5px;">Rental Income (New Annual System)&nbsp; &nbsp;</td> <td style="width: 22.9545%; height: 31.5px;">January - December 2024</td> <td style="width: 25.0002%; height: 31.5px;">January 15th, 2025</td> <td style="width: 25.0002%; height: 31.5px;">20th January, 2025</td> </tr> <tr style="height: 32.5px;"> <td style="width: 27.0459%; height: 32.5px;">Capital Gains Tax (Property Sale) &nbsp; &nbsp;</td> <td style="width: 22.9545%; height: 32.5px;">Sale Date in 2024</td> <td style="width: 25.0002%; height: 32.5px;">4 months from the sale date</td> <td style="width: 25.0002%; height: 32.5px;">Not available.</td> </tr> </tbody> </table> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;">Change in Rental Income Reporting (Annual Filing Instead of Quarterly)</h2> <p style="text-align: justify;">Since 2024, non-residents who rent out their Spanish property must file an annual rental income tax return instead of quarterly declarations.</p> <ul style="text-align: justify;"> <li>The deadline for rental income earned in 2024 is between January 1st - January 20th, 2025.</li> <li>This replaces the previous system, which required quarterly declarations.</li> </ul> <p style="text-align: justify;">Example: Property Rental in 2024</p> <ul style="text-align: justify;"> <li>If you rented your property from January to June 2024:You must file one Modelo 210 tax return in January 2025, covering all rental income earned in 2024.</li> <li>If the property was vacant for part of the year (e.g., July to December 2024):You must also file a separate Modelo 210 return for imputed income, due by December 31st, 2025.</li> </ul> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;">Capital Gains Tax for Non-Residents&nbsp;</h2> <p style="text-align: justify;">If a non-resident sells a property in Spain, a capital gains tax return (Modelo 210) must be filed within four months from the date of sale.</p> <ul style="text-align: justify;"> <li><strong>Capital Gains Tax Rate</strong>: 19% for all non-residents (EU and non-EU).</li> <li><strong>Retention of 3% by the Buyer</strong>: The buyer must retain 3% of the sale price and pay it directly to the tax office as an advance on the seller's capital gains tax.</li> <li>If the seller owes<strong> less than the retained amount,</strong> they can request a <strong>refund of the difference </strong>when filing their capital gains tax return.</li> </ul> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;">Direct Debit from SEPA accounts (Second Year in Use)</h2> <p style="text-align: justify;">In <strong>2024, non-residents were able to pay their taxes via direct debit from SEPA (EU) bank accounts for the first time</strong>. This offers an alternative to using a Spanish bank account.</p> <p style="text-align: justify;">However, the<strong> first year of implementation (2024) revealed a delay in payment processing</strong>. Non-residents using a SEPA account saw <strong>tax payments debited approximately 20 days later</strong> than those using a Spanish account.</p> <p style="text-align: justify;"><strong>Key Takeaways:</strong></p> <ul style="text-align: justify;"> <li>Direct debit from SEPA accounts works as a payment method, making it a convenient option for those without a Spanish bank account.</li> <li>Taxpayers using this method should anticipate potential delays in payment processing.&nbsp;</li> </ul> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;">Imputed Income Tax: 2% vs. 1.1%</h2> <p style="text-align: justify;">Non-residents must pay imputed income tax on their property if it was not rented at any point during 2024.</p> <p style="text-align: justify;"><strong>General Rule:</strong></p> <p style="text-align: justify;">The taxable base is 2% of the cadastral value (as shown on the IBI receipt).</p> <p style="text-align: justify;"><strong>Exception:</strong></p> <p style="text-align: justify;">If the municipality has undergone a General Collective Revision within the last 10 years (2014 onwards), the rate is reduced to 1.1%.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold'; text-align: justify;">Want to quickly estimate how much tax you owe for your non-rented property?</h3> <p style="text-align: justify;">Use our <a class="color-primary link-secondary" href="https://www.iberiantax.com/calculator/non-resident-tax-spain"><strong>Non-Resident Tax Calculator</strong></a> for an instant assessment.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;">Late Submission: Penalties &amp; Interest Charges</h2> <p style="text-align: justify;">Failing to meet the 2025 filing deadlines can result in:</p> <ul style="text-align: justify;"> <li>A penalty of at least 50% of the tax due if the tax office requests submission.</li> <li>Additional interest charges on unpaid amounts.</li> <li>Reduced penalties of up to 15% if the return is filed voluntarily before receiving a tax office notice.</li> </ul> <p style="text-align: justify;">Filing early through IberianTax helps avoid these penalties.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;">Additional Topics for Non-Resident Property Owners in Spain</h2> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold'; text-align: justify;">1. Paying Local Taxes (IBI &amp; Garbage Collection Fees)</h3> <p style="text-align: justify;">Many non-residents struggle to pay IBI (Impuesto sobre Bienes Inmuebles) and garbage collection fees. We are currently assessing the feasibility of managing these local tax payments for our clients.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold'; text-align: justify;">2. Digital Certificate</h3> <p style="text-align: justify;">We are evaluating a service for digital certificate registration to assist non-resident taxpayers.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold'; text-align: justify;">3. Rental Income Tracking &amp; Expense Deduction Tool</h3> <p style="text-align: justify;">We are working on a dedicated section in IberianTax that will allow non-residents to log throughout the year rental income and deductible expenses such as utilities, insurance, and property management fees.</p> <p style="text-align: justify;">This will make rental income tax filing simpler and more efficient.</p> <p style="text-align: justify;"><span style="color: #1363b2; font-family: 'Montserrat Bold'; font-size: 18px;">Why Choose IberianTax?</span></p> <ul style="text-align: justify;"> <li>100% Online Filing &ndash; No Spanish digital certificate required.</li> <li>Automatic Calculations &ndash; We ensure accuracy in all declarations.</li> <li>Secure Payment Options &ndash; Pay using SEPA direct debit or other convenient methods.</li> <li>Expert Support &ndash; Our team helps ensure compliance with Spanish tax laws.</li> </ul> <p style="text-align: justify;">Filing your<strong> 2024 non-resident tax return </strong>in Spain has never been easier.</p> <p style="text-align: justify;">Start your tax filing now at IberianTax and ensure compliance with Spanish tax regulations.</p> <p style="text-align: justify;">&nbsp;</p>

<p>If you&rsquo;re planning to buy a property in Spain as a non-resident, it&rsquo;s essential to factor in all associated costs&mdash;including the Property Transfer Tax (Impuesto de Transmisiones Patrimoniales, or ITP).</p> <p>This tax applies to resale properties and is one of the most significant expenses you&rsquo;ll encounter during the buying process. In this guide, we&rsquo;ll break down what ITP is, how it&rsquo;s calculated, and what non-resident buyers need to keep in mind.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">What is the Property Transfer Tax (ITP)?</h2> <p>The ITP is a tax levied on the purchase of second-hand (resale) properties in Spain. Unlike new properties, which are subject to VAT (IVA) and stamp duty (AJD), resale properties fall under the scope of the ITP.</p> <p>This tax is the responsibility of the buyer and must be paid within a specific timeframe after completing the purchase. Since ITP is a regional tax, each autonomous community in Spain sets its own rates and rules, which typically range between 6% and 10%.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">How is ITP Calculated?</h2> <p>The amount of ITP owed is calculated based on the higher of either:</p> <ul> <li>The property&rsquo;s declared purchase price, or</li> <li>The Valor de Referencia (Reference Value) assigned by the regional tax authority.</li> </ul> <p>The Valor de Referencia is different from the cadastral value, as it is set by the government based on market data and is intended to reflect a fair market value for tax purposes.</p> <p>The applicable tax rate varies by autonomous community, so it&rsquo;s important to check the latest rates in the region where you&rsquo;re buying.</p> <p><strong>Example Calculation:</strong></p> <ul> <li>Property purchase price: &euro;250,000</li> <li>Valor de Referencia: &euro;260,000</li> <li>Regional ITP rate: 8%</li> <li>ITP due: &euro;260,000 &times; 8% = &euro;20,800</li> </ul> <p>To ensure you&rsquo;re using the correct rate, check the latest ITP rates applicable in the autonomous community where the property is located.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">When and How to Pay ITP</h2> <p>The ITP must be paid within 30 working days from the date of signing the public deed of sale (escritura p&uacute;blica) before a notary. Late payment may result in penalties and interest charges.</p> <p>Steps to Pay ITP:</p> <ul> <li>Complete the Modelo 600 tax form.</li> <li>Submit the form and pay the tax at the regional tax office or through an authorized bank.</li> <li>Provide proof of payment when registering the property with the Land Registry (Registro de la Propiedad).</li> </ul> <p>Some regions allow online payments, while others require in-person submission. It&rsquo;s always advisable to check with local authorities before proceeding.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Are There Any Exemptions or Reductions?</h2> <p>There are no full exemptions from ITP, but some buyers may qualify for reduced rates.</p> <p><strong>Potential Reductions (Region-Dependent):</strong></p> <ul> <li>First-time homebuyers (under 35 years old) may be eligible for reduced rates, usually around 4%&ndash;5%.</li> <li>Buyers with disabilities or large families may also benefit from lower tax rates.</li> <li>Properties designated for affordable housing or specific social purposes could have tax advantages.</li> </ul> <p>Important: These reductions typically apply only to tax residents in Spain. As a non-resident, you should plan for the full standard ITP rate in your region.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">What Happens if I Don&rsquo;t Pay ITP?</h2> <p>Failure to pay ITP on time can lead to legal and financial consequences. The Spanish tax authorities can impose:</p> <ul> <li>Late payment penalties and interest on the outstanding amount.</li> <li>Restrictions on registering, selling or transferring ownership of the property until the tax is settled.</li> </ul> <p>Although non-payment does not invalidate the purchase itself, it may cause complications in the future, especially if you plan to sell or rent out the property.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Factor ITP Into Your Budget</h2> <p>When purchasing property in Spain, it&rsquo;s crucial to consider all acquisition costs, including ITP, legal fees, notary costs, and land registry fees. Budgeting for these expenses from the outset will help you avoid unexpected financial burdens later.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Simplifying Non-Resident Tax Compliance</h2> <p>At IberianTax, we make tax compliance easy for non-resident property owners in Spain. Our platform helps you stay on top of essential tax obligations such as:</p> <ul> <li>Modelo 210 (imputed income tax for personal-use properties and rental income tax).</li> <li>Capital gains tax when selling property.</li> </ul> <p>By automating filings and providing clear guidance, we ensure your taxes are handled correctly and on time&mdash;so you can focus on enjoying your property stress-free.</p> <p><br /><a class="color-primary link-secondary" href="iberiantax.com/register"><strong>Sign up for free</strong></a> tax deadline reminders and never miss an important filing date. Create a free IberianTax account today!</p> <p>&nbsp;</p>

<p>Spain has announced a bold new measure that could significantly impact future non-resident property buyers, particularly those from outside the European Union, including the UK. Prime Minister Pedro S&aacute;nchez revealed plans this January to impose a 100% tax on the value of properties purchased by non-residents from non-EU countries. This proposal aims to address the country&rsquo;s housing problems, but it has raised questions and concerns for prospective homeowners.</p> <p>Here&rsquo;s everything you need to know about the proposed tax and what it could mean for non-resident buyers.&nbsp;</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">What is the Proposed 100% Property Tax?</h2> <p>When you buy a property in Spain, you&rsquo;ll need to pay &lsquo;transfer tax&rsquo;, similar to stamp duty in the UK. This rate varies depending on the region in which you&rsquo;re buying, but it typically ranges from 6-10% of the property&rsquo;s value. It can also vary as to whether the property is a resale or a new build.&nbsp;</p> <p>Under the new proposal announced this week, non-residents from outside the EU who purchase property in Spain could face a tax equivalent to 100% of the property&rsquo;s value. The proposal is designed to discourage speculative property investments, where homes are bought and remain empty for long periods or used to generate rental income.&nbsp;</p> <p>It is important to mention that it is only in its announcement stage at present, and a formal proposal has not been developed.&nbsp;</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Why is Spain Introducing This Tax?</h2> <p>Spain is seeing rising property prices and a limited supply of affordable homes for residents. According to the Spanish government, in 2023 alone, non-EU residents purchased 27,000 properties in the country.&nbsp;</p> <p>Prime Minister S&aacute;nchez emphasised the need to address this imbalance, stating, &ldquo;The West faces a decisive challenge: To not become a society divided into two classes, the rich landlords and poor tenants.&rdquo; The proposal is part of a broader strategy to prioritise housing for residents.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Who Could Be Affected?</h2> <p>The proposed tax targets non-residents from outside the EU, including British citizens who became non-EU nationals following Brexit. Individuals who spend less than 183 days per year in Spain are classified as non-residents and could be subject to this tax if they purchase property. These measures will not affect house purchases made by EU citizens.&nbsp;</p> <p>This measure could impact:</p> <ul> <li>Prospective buyers looking for holiday homes or rental investments.</li> <li>Current homeowners who may face challenges reselling properties to non-residents.</li> </ul> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Broader Housing Reforms in Spain</h2> <p>The proposed tax is just one part of a comprehensive plan to address Spain&rsquo;s housing crisis. Other measures announced by the government include:</p> <ul> <li>Tax incentives for landlords who provide affordable housing.</li> <li>Increased regulation and taxes on short-term tourist rentals, ensuring they do not undercut hotels or contribute to housing shortages.</li> <li>Public housing initiatives, such as transferring over 3,000 homes to a new public housing body.</li> </ul> <p>These reforms aim to create a more balanced housing market and address the growing divide between landlords and tenants.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">What Should Non-Resident Homeowners Do?</h2> <p>It&rsquo;s important to remember that this tax is simply only an announcement from Pedro S&aacute;nchez and has not been passed into law. Until it has been written into Spanish law, it is expected that current procedures will remain the same.</p> <p>Staying informed and prepared is key to navigating these evolving regulations, so we will bring you any updates as and when they are announced.&nbsp;</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">What Other Taxes Do Non-Resident Homeowners Pay in Spain?</h2> <p>In addition to the taxes associated with buying a home in Spain, there are a number of other taxes that non-resident homeowners in Spain must pay, these include:&nbsp;</p> <ul> <li>Non-Resident Imputed Income Tax: This is paid annually for those who use their property personally, even if it remains empty all year. &nbsp;</li> <li>Non-Resident Rental Income Tax: If you rent out your property, this tax will need to be paid annually based on the income generated.</li> <li>IBI: This is the annual municipal tax paid by all property owners in Spain, regardless of residency status. This is used by your local town hall to fund local services and infrastructure.</li> <li>Capital Gains Tax: If you sell your property in Spain, you&rsquo;ll need to pay tax on any profit generated from the sale within four months of the sale date.</li> <li>Plusval&iacute;a Tax: This is a municipal tax applied to the increase in value on which your property is built if you sell your property.&nbsp;</li> </ul> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">IberianTax: Helping Non-Resident Homeowners in Spain</h2> <p>At IberianTax, we specialise in assisting non-resident homeowners navigate the complexities of Spanish taxes. Here&rsquo;s why we&rsquo;re the perfect choice:</p> <ul> <li>Specialists in Non-Resident Taxes: Exclusive focus on non-resident homeowners in Spain and expertise in imputed income tax, rental income tax, capital gains tax, and more.</li> <li>Hassle-Free Process: Our streamlined system makes it easy for accurate tax filing. There&rsquo;s no stress &ndash; just quick and efficient service.&nbsp;</li> <li>Transparent and Affordable Pricing: Clear, competitive pricing with no hidden fees. Say goodbye to those expensive accountants!</li> <li>Fast and Clear Communication: Our team provide prompt responses to all your questions, as well as detailed, easy-to-understand guidance every step of the way.</li> <li>Save Time and Eliminate Worry: We handle all the administrative tasks for you, so there&rsquo;s no need to deal with Spanish tax authorities directly. We&rsquo;ll even send you reminders when your tax is due.</li> <li>Trusted by Hundreds of Homeowners: Reliable, accurate, and professional service. We have hundreds of positive reviews from satisfied clients!</li> </ul> <p>Got questions about non-resident taxes in Spain? Contact us today and let us help you stay ahead of the changes.</p>

<p>Owning property in Spain as a non-resident is a dream for many, but it comes with important responsibilities - especially when it comes to taxes. Staying on top of your taxes, even as a non-<br />resident, isn&rsquo;t just about avoiding penalties; it&rsquo;s also crucial if or when you plan to sell your property in the future.</p> <p>In this blog post, we&rsquo;ll be explaining why paying your Spanish property taxes is essential and how it could impact your future sale. Plus, we&rsquo;ll show you how IberianTax can make the non-resident tax<br />process hassle-free and affordable.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Understanding Non-Resident Property Taxes in Spain</h2> <p>As a non-resident property owner in Spain, there are a few key taxes you need to pay:</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">1. IBI (Impuesto sobre Bienes Inmuebles):</h3> <p>This is the annual property tax paid to your local municipality. It&rsquo;s based on the cadastral value of your property.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">2. Non-Resident Taxes:</h3> <p>If you rent out your Spanish property, you&rsquo;ll need to <a class="color-primary link-secondary" title="declare any income" href="https://www.iberiantax.com/modelo-210/rental-income" target="_blank" rel="noopener">declare any income</a>, but even if you don&rsquo;t rent out your property, Spain considers it as <a class="color-primary link-secondary" title="generating notional income" href="https://www.iberiantax.com/modelo-210/imputed-income" target="_blank" rel="noopener">generating imputed income</a>. You must file and pay this tax annually.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">3. Capital Gains Tax (CGT):</h3> <p>When selling your property, you may need to pay <a class="color-primary link-secondary" title="CGT" href="https://www.iberiantax.com/modelo-210/capital-gains-tax" target="_blank" rel="noopener">CGT</a> on the profit. Non-compliance with your annual taxes can complicate this calculation.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">4. Local Plusvalia Tax:</h3> <p>In addition to Capital Gains Tax, you&rsquo;ll also need to pay Plusvalia Tax. This is the tax applied to the increase of the value of urban land once the property has been transferred, sold or inherited. This tax should be retained by the buyer at the time of the sale and deposited to the tax authorities (by the buyer).</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">How Unpaid Taxes Can Impact Your Sale</h2> <p>If you&rsquo;re thinking of selling your Spanish property, unpaid taxes can lead to significant complications for both you and the buyer:</p> <ul> <li><strong>Delays in the Sales Process:</strong></li> </ul> <p>Before completing the sale, buyers or their lawyers will carry out due diligence. If unpaid taxes are discovered, the sale may be delayed until these debts are cleared, or even worse, the seller may decide to pull out of the sale entirely.</p> <ul> <li><strong>Liens on the Property:</strong></li> </ul> <p>Spanish authorities can place a lien on properties with unpaid taxes, making it difficult -or even impossible - for you to sell.</p> <ul> <li><strong>Buyer Risks:</strong></li> </ul> <p>If outstanding taxes aren&rsquo;t resolved, the buyer might inherit these liabilities. This could make your property less appealing and result in lower offers or a loss of potential buyers.</p> <ul> <li><strong>Increased Costs for You:</strong></li> </ul> <p>Penalties, interest, and legal fees for unpaid taxes can significantly reduce your profit from the sale.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Benefits of Staying Tax-Compliant</h2> <p>Paying your taxes on time as a non-resident brings multiple benefits, especially when you&rsquo;re planning to sell it later down the line:</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">1. Streamlined Sales Process:</h3> <p>Resolving your tax obligations in advance ensures smooth transactions without last- minute surprises.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">2. Enhanced Buyer Confidence:</h3> <p>Buyers are more likely to move forward with a clean, well-maintained property that&rsquo;s free of legal complications.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">3. Maximised Profit:</h3> <p>By avoiding fines and interest, you&rsquo;ll keep more of the proceeds from the sale in your pocket.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Simplify Tax Compliance with IberianTax</h2> <p>Managing taxes as a non-resident property owner in Spain can feel overwhelming, but it doesn&rsquo;t have to be. With IberianTax, you can enjoy peace of mind knowing that your tax obligations are handled by experts. Here&rsquo;s how we can make your life easier:</p> <ul> <li><strong>Stress-Free Tax Compliance:</strong> We&rsquo;ll take care of everything - from calculating your annual taxes to filing your returns and making payments. No confusing forms or unnecessary complications.</li> <li><strong>Affordable Service: </strong>Avoid expensive solicitor fees while still receiving excellent service. We offer a cost-effective solution from just 34.95&euro;, that&rsquo;s tailored specifically for non-resident property owners like you.</li> <li><strong>Guaranteed Accuracy:</strong> Our team of tax professionals ensures every detail is correct, so you never have to worry about fines, interest, or other penalties.</li> <li><strong>Customer-Focused Support</strong>: Have questions? Need advice? Our friendly team is here to help you every step of the way, whether it&rsquo;s your first time filing or you need assistance.</li> </ul> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Protect Your Future Property Sale by Paying Your Taxes</h2> <p>Paying your taxes as a non-resident property owner in Spain is more than just a legal obligation - it&rsquo;s a smart move to protect your big investments. Ensuring compliance now will save you time, money, and stress when it comes to selling your property in the future.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Ready to Simplify Your Tax Obligations?</h2> <p>Don&rsquo;t let tax compliance hold you back. Contact IberianTax today and let us take the hassle out of <a class="color-primary link-secondary" title="managing your non-resident property taxes" href="https://www.iberiantax.com/how-it-works" target="_blank" rel="noopener">managing your non-resident property taxes</a>. Our experienced team is here to help you every step of the way.</p>

<p>If you&rsquo;re planning to live, invest, or own property in Spain, you&rsquo;ve probably heard about the NIE number (N&uacute;mero de Identificaci&oacute;n de Extranjero). This tax identification number is a necessity for<br />foreigners who wish to engage in financial, legal, or official activities in Spain.</p> <p>But what exactly is an NIE, and why do you need it? In this blog post, we&rsquo;ll be explaining everything there is to know, including the types of NIEs and how to apply for one. Whether you&rsquo;re a non-resident property owner or planning to make Spain your home, understanding the NIE is a crucial first step.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">What is an NIE?</h2> <p>An NIE is a Spanish tax identification number assigned to non-Spanish residents. Having a NIE is a legal requirement for any foreigner conducting certain activities in Spain, including:</p> <ul> <li>Buying or selling property.</li> <li>Filing taxes (as a resident or non-resident).</li> <li>Opening a bank account.</li> <li>Setting up utilities (electricity, water, internet).</li> <li>Signing legal contracts (e.g., mortgages, rental agreements).</li> <li>Starting a business or working in Spain.</li> </ul> <p>Think of it as your unique ID number for financial and legal purposes in Spain. Without it, many processes, especially property transactions, become impossible.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">The Two Types of NIE in Spain</h2> <p>There are two main types of NIE numbers, and the one you need depends on your circumstances:</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">1. NIE Number (White NIE Paper)</h3> <p>This is a basic identification number/document given to EU passport holders. It is typically a number written on a white piece of A4 paper that has unlimited validity, but it is not for residency.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">2. NIE Card (Green Paper)</h3> <p>The NIE card is a more in-depth residency document. Around the size of a credit card, this document serves as a residency document for those staying in Spain for longer than 3 months.<br />The NIE card is only awarded to those who either; have a job with a Spanish employer, are self- employed, are a student with health insurance, have enough funds and health insurance, or are<br />joining a family member who is already living in Spain.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">How to Apply for an NIE</h2> <p>How you apply for your particular NIE number depends on where you are located or where you are currently resident.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Applying from Spain</h3> <p>1. Make an appointment to visit a Spanish police station or immigration office (Extranjer&iacute;a).<br />2. Submit the completed EX-15 form at your appointment.<br />3. Provide your passport, proof of address, and documentation explaining why you need an NIE.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Applying from outside of Spain</h3> <p>If you&rsquo;re not able to apply from within Spain, you can appoint a person with legalised power of attorney to do so on your behalf, or you can apply from your local Spanish embassy or consulate.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Using a Legal Representative</h2> <p>Many applicants choose to employ the assistance of a lawyer or a power of attorney to handle the process on their behalf. This is often the easiest option and helps the process go much more<br />smoothly.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Why is an NIE Important for Non-Resident Property Owners?</h2> <p>If you own or plan to purchase property in Spain as a non-resident, having an NIE is necessary. Here&rsquo;s why:</p> <ul> <li><strong>Legal Requirement</strong>: You cannot complete property transactions or pay taxes without an NIE.</li> <li><strong>Tax Compliance</strong>: It&rsquo;s essential for filing annual <a class="color-primary link-secondary" title="non-resident taxes" href="Create%20your%20free%20account" target="_blank" rel="noopener">non-resident taxes</a> and ensuring your property taxes are up to date.</li> <li><strong>Utility Services</strong>: Setting up electricity, water, and internet services requires an NIE.</li> <li><strong>Smooth Transactions</strong>: Whether you&rsquo;re buying, selling, or managing property, an NIE ensures everything runs smoothly with no delays.</li> </ul> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">IberianTax: Your Partner for Non-Resident Tax Compliance</h2> <p>Figuring out Spanish tax laws as a non-resident can seem daunting, but it doesn&rsquo;t have to be. At IberianTax, we specialise in helping non-residents manage their taxes with ease. Here&rsquo;s how we<br />can assist you:</p> <ul> <li><strong>Affordable and Professional Service</strong>: Our expert team handles everything from calculating your taxes to filing returns, saving you time and money.</li> <li><strong>Hassle-Free Compliance</strong>: No more confusion or stress - we ensure your taxes are filed correctly and on time.</li> <li><strong>Personalised Guidance</strong>: Have questions about your NIE or taxes? We&rsquo;re here toprovide clear, straightforward answers.</li> <li><strong>We Speak Your Language</strong>: Our services are available in English, French and German, so you won&rsquo;t need to deal with a complicated language barrier.</li> </ul> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Get Started with IberianTax Today</h2> <p>Getting help with your non-resident taxes in Spain has never been easier. Our online software has been specifically designed to cater to non-resident homeowners in Spain, and we&rsquo;ve now helped thousands of people submit their Modelo 210 forms with complete and total ease. Stop stressing about your non-resident taxes and start enjoying your Spanish property to the fullest. <a class="color-primary link-secondary" title=" Create your free account " href="https://www.iberiantax.com/how-it-works" target="_blank" rel="noopener">Create your free account </a>with IberianTax today.</p>

<p>In certain situations, taxpayers may unintentionally overpay their non-resident property taxes in Spain. This can occur for various reasons, such as errors in reporting ownership periods, applying the wrong tax rate, or misunderstanding how imputed income is calculated. Fortunately, there is a formal process to reclaim these overpayments and recover the excess tax paid.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Common Reasons for Overpaid Taxes</h2> <p>Overpayments usually result from simple mistakes or misunderstandings. Here are some typical scenarios:</p> <ol> <li>Ownership Period Errors: If a property was acquired during the tax year but the taxpayer declares ownership for the entire year, they may overpay. Taxes should be prorated according to the actual ownership period within the year.</li> <li>Incorrect Tax Rate: Non-residents from the EU or EEA are taxed at a reduced rate of 19%, compared to the standard rate of 24% for other non-residents. Applying the higher rate by mistake leads to overpayment.</li> <li>Incorrect Income Basis: For imputed income tax, a 2% or 1.1% rate is applied to the cadastral value of the property depending on the last revision date. Misapplying these rates can result in higher tax liability.</li> </ol> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">The Process to Recover Overpaid Taxes</h2> <p>The Spanish tax office provides a procedure called &ldquo;<strong>Solicitud de rectificaci&oacute;n de autoliquidaci&oacute;n y devoluci&oacute;n de ingresos indebidos</strong>&rdquo; (Request for Rectification of Self-Assessment and Refund of Undue Payments). Here is how you can initiate the process:</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Step 1: Prepare a Formal Request</h3> <p>You must draft a formal request to the tax office explaining the error. This request should include:</p> <ul> <li>The taxpayer's details (name, NIE/NIF, address).</li> <li>Details of the tax form (Modelo 210) and the period for which the correction is being requested.</li> <li>A clear explanation of the overpayment, including calculations showing the correct amount.</li> </ul> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Step 2: Provide Supporting Evidence</h3> <p>Attach the necessary documentation to support your claim, such as:</p> <ul> <li>The original tax form (Modelo 210).</li> <li>Proof of ownership dates (e.g., deeds of sale or property registry documents).</li> <li>Evidence of your tax residency in the EU or EEA, if applicable, to justify the 19% tax rate.</li> <li>A recalculation of the correct tax amount based on the property's cadastral value or ownership period.</li> </ul> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Step 3: Include Bank Account Information</h3> <p>To process the refund, you must provide a <strong>bank holder's certificate</strong> showing your name and the account details where the refund should be deposited.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Step 4: Submit the Request</h3> <p>Submitting this type of request typically requires an electronic certificate, as it is mandatory for interacting with the Spanish tax office online. Obtaining this certificate can be a complex and time-consuming process for non-residents.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Step 5: Await Resolution</h3> <p>The tax office will review your application and, if approved, process the refund. This may take several months, depending on the complexity of your case and the workload at the tax office.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Simplify the Process with IberianTax</h2> <p>At IberianTax, we specialize in assisting non-resident property owners with all aspects of Spanish tax obligations, including recovering overpaid taxes. We understand that navigating the refund process can be daunting, especially when dealing with formal requirements and electronic certificates.</p> <p><strong>Here's how IberianTax can help you:</strong></p> <ul> <li><strong>No Need for an Electronic Certificate</strong>: When you work with us, you won't need to obtain an electronic certificate. We will handle the entire submission process on your behalf, ensuring compliance with all electronic filing requirements.</li> <li><strong>Ensuring All Formal Requirements Are Met</strong>: Our experienced team will prepare all necessary documentation, making sure that every formal requirement is properly addressed. This minimizes the risk of delays or rejections due to incomplete or incorrect submissions.</li> <li>Professional Representation: We will communicate with the tax office throughout the process, monitoring the progress of your claim and keeping you informed every step of the way.</li> <li><strong>Peace of Mind:</strong> With IberianTax managing your reclaim, you can rest assured that the process is in expert hands, saving you time and avoiding the complexities of the tax system.</li> </ul> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Future Changes to Simplify Refunds</h2> <p>The Spanish tax legislator is actively working on reforms to streamline the process for reclaiming overpaid taxes. Proposed changes aim to introduce a simpler and more automated system for taxpayers to recover excess payments without requiring formal rectification requests.</p> <p>These changes, once implemented, will significantly reduce the administrative burden on taxpayers and improve the efficiency of the refund process.</p> <p>&nbsp;<br />Don't let the complexities of the Spanish tax system deter you from recovering money that is rightfully yours. IberianTax will ensure that all formal requirements are met and the reclaim is made properly. You won't need any electronic certificate or have to navigate bureaucratic procedures on your own.</p> <p><a class="color-primary link-secondary" title="Contact" href="https://www.iberiantax.com/contact" target="_blank" rel="noopener">Reach out to us</a> today to get started on your tax reclaim. Let us handle the complexities so you can focus on what matters most to you.</p>

<p>Are you a non-resident property owner in Spain seeking clarity on key tax dates and obligations for 2024/2025? You&rsquo;re in the right place. Here&rsquo;s a comprehensive breakdown of important deadlines and tax responsibilities for non-residents who own property in Spain.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';"><br />Tax Obligations as a Non-Resident in Spain</h2> <p>As a non-resident in Spain, you&rsquo;re subject to tax on income derived from Spanish sources. This includes income linked to property ownership, even if you don't rent the property out. There are two main types of income that non-resident property owners should be aware of:</p> <ol> <li><strong>Imputed Income for Non-Rented Properties</strong>: If you own a property in Spain but don&rsquo;t rent it out, Spanish tax law still attributes an "imputed income" to your property. This hypothetical income is based on the property&rsquo;s cadastral value, even if it remains vacant all year and generates no rental income. Non-residents must declare this imputed income annually through the Modelo 210 tax form.</li> <li><strong>Rental Income</strong>: If you rent out your property in Spain, the rental income you earn is also taxable, and you are required to file a Modelo 210 tax return for it. EU/EEA residents can deduct specific rental expenses, while non-EU residents are taxed on the gross rental income. Starting in 2024, rental income declarations are now annual, simplifying the reporting process to once per year.</li> </ol> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Key Tax Deadlines for Non-Residents in Spain 2024/2025</h2> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">1. Annual Non-Resident Tax Return for Imputed Income</h3> <p>For non-rented properties, here&rsquo;s when you need to file your annual Modelo 210 return:</p> <p><strong>2023 Tax Year:</strong></p> <ul> <li><strong>Deadline:</strong> Non-residents must file a non-resident tax return for imputed income (Modelo 210) by 31st December 2024</li> <li><strong>Direct Debit Option</strong>: If you prefer the Agencia Tributaria to collect your tax directly from a Spanish bank account, you must submit the online return by <strong>23rd December 2024.</strong></li> </ul> <p><strong>2024 Tax Year:</strong></p> <ul> <li><strong>Deadline:</strong> Non-residents must file an annual tax return for imputed income (Modelo 210) by <strong>31st December 2025.</strong></li> <li><strong>Direct Debit Option</strong>: If you prefer the Agencia Tributaria to collect your tax directly from a Spanish bank account, you must submit the online return by <strong>23rd December 2025.</strong></li> </ul> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">2. Annual Non-Resident Tax Return for Rental Income</h3> <p>Starting in 2024, non-residents report rental income annually rather than quarterly, covering income for the entire calendar year (1st January to 31st December). Here&rsquo;s what to keep in mind:</p> <p><strong>For Rental Income Earned in 2024:</strong></p> <ul> <li><strong>Filing Period</strong>: Submit your rental income tax return between 1st January and <strong>20th January 2025</strong>.</li> <li><strong>Direct Debit Option</strong>: If you prefer to pay by direct debit, ensure your submission is completed by <strong>15th January 2025.</strong></li> </ul> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Simplify Your Tax Filing with IberianTax</h2> <p>Navigating tax deadlines can be challenging, but IberianTax is here to help. Our online platform streamlines the entire filing process, guiding you step-by-step, whether for imputed income or rental income declarations. With multilingual support and clear guidance, we make tax compliance straightforward for non-resident property owners.</p>

<p>Are you a non-resident renting out your property in Spain? Navigating the complexities of rental income tax might seem daunting, especially with varying rules for EU and non-EU residents. But understanding your tax obligations can help you reduce taxable income and avoid unexpected penalties. This comprehensive guide explains everything you need to know about non-resident rental income tax in Spain&mdash;from general obligations and deductible expenses to recent regulatory changes. We&rsquo;ll walk you through practical examples and show how IberianTax makes compliance easy, positioning your property for a hassle-free tax season.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">General Obligations for Non-Resident Landlords in Spain</h2> <p>As a non-resident landlord, the <strong>Modelo 210</strong> is the key form for declaring rental income from Spanish properties. Here&rsquo;s a breakdown to ensure compliance with Spain&rsquo;s rental income tax obligations:</p> <ul> <li><strong>Who Needs to File?</strong> Any non-resident property owner generating rental income in Spain is required to declare this income via Modelo 210. This applies whether your property is rented occasionally as a vacation rental or consistently throughout the year.</li> <li><strong>Regional Variations &ndash; Canary Islands Requirement</strong>: If you own property in the Canary Islands and operate it as a holiday rental, you must register and file returns for <strong>IGIC (Impuesto General Indirecto Canario)</strong>, the region&rsquo;s local tax. This form is essential for properties used as vacation rentals, as it ensures compliance with the Canary Islands&rsquo; specific tax regulations.</li> <li><strong>Recent Changes to Deadlines</strong>: Starting in 2024, non-resident landlords with rental income must file an annual tax return by <strong>January 20th</strong> of the following year. This update replaces the quarterly filing system for rental income earned in 2024 and onwards, simplifying the process to a single annual deadline.</li> <li><strong>Joint Ownership Rules</strong>: For properties with multiple owners, each co-owner must file an individual Modelo 210 for their portion. For instance, if a property is co-owned on a 50/50 basis, each owner declares half of the rental income and deductions. This ensures accurate reporting and compliance.</li> </ul> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">What Expenses Can You Deduct? (EU vs. Non-EU Residents)</h2> <p>Deductions are allowed only for EU/EEA residents, significantly reducing their taxable income. These deductible expenses are prorated based on the percentage of days the property is rented out. Below are some examples:</p> <ul> <li><strong>Depreciation</strong>: Spain allows a 3% deduction on the acquisition cost of the property (excluding land value). This deduction must be prorated for the rental period. For instance, with a &euro;150,000 property acquisition cost and &euro;50,000 allocated to land, the 3% depreciation would be based on &euro;100,000, equating to &euro;3,000 annually. For 90 rented days, only 25% is deductible, or approximately &euro;739.73.</li> <li><strong>Insurance and IBI (Property Tax)</strong>: Property insurance and the annual IBI tax are deductible for the days the property is rented. So, with a &euro;300 insurance premium and a &euro;500 IBI tax, if the property is rented for 90 days, only 25% of these costs are deductible, amounting to &euro;73.97 and &euro;123.29 respectively.</li> <li><strong>Loan Interest:</strong> Interest on a loan used to purchase the property is also deductible, based on the rented days. If annual interest is &euro;1,200, only &euro;295.89 would be deductible for 90 days of rental.</li> <li><strong>Repairs and Maintenance</strong>: Unlike capital improvements, repair costs for maintaining the property (e.g., &euro;300 for painting) are fully deductible in the rental year.</li> </ul> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Tax Rates for Non-Residents on Rental Income</h2> <p>Spain&rsquo;s tax rates vary by residency status:</p> <ul> <li><strong>EU/EEA Tax Residents</strong>: Taxed at 19% on net rental income (after deductions).</li> <li><strong>Non-EU Tax Residents</strong>: Taxed at 24% on gross rental income, with no deductions permitted.</li> </ul> <p>This difference significantly impacts the tax burden, making deductions valuable for EU/EEA residents.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Examples: EU vs. Non-EU Resident Rental Income Tax</h2> <p>Here are two examples illustrating how deductible expenses and tax rates affect EU and non-EU residents.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Example 1: Marie from France (EU Resident)</h3> <p>Marie owns a property in Barcelona that she rents out for 90 days at &euro;1,200 per month, totaling &euro;3,600 in rental income. Marie incurs various expenses, all prorated for 90 rental days:</p> <ul> <li><strong>Rental Income:</strong> &euro;3,600</li> <li><strong>Prorated Deductible Expenses:</strong> <ul> <li><strong>Depreciation</strong>: &euro;739.73</li> <li><strong>Insurance</strong>: &euro;73.97</li> <li><strong>IBI</strong>: &euro;123.29</li> <li><strong>Loan Interest</strong>: &euro;295.89</li> <li><strong>Repairs</strong>: &euro;300 (fully deductible)</li> </ul> </li> </ul> <p><strong>Total Deductible Expenses</strong>: &euro;1,532.88</p> <p><strong>Net Taxable Income</strong>: &euro;3,600 - &euro;1,532.88 = &euro;2,067.12</p> <p><strong>Tax Due</strong>: &euro;2,067.12 x 19% = &euro;392.75</p> <p>By taking advantage of deductions, Marie reduces her taxable income significantly.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Example 2: John from the UK (Non-EU Resident)</h3> <p>John, a UK resident, rents his property in Madrid for 90 days, earning &euro;3,000. As a non-EU resident, John is taxed on his gross income without deductions.</p> <p><strong>Rental Income</strong>: &euro;3,000<br /><strong>Tax Due</strong>: &euro;3,000 x 24% = <strong>&euro;720</strong></p> <p>Without the benefit of deductions, John&rsquo;s tax burden is higher than Marie&rsquo;s, demonstrating the impact of EU residency on tax obligations.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">How IberianTax Makes the Rental Income Tax Process Easy for Non-Residents</h2> <p>IberianTax offers an efficient, easy-to-use platform for non-residents who need to file rental income tax in Spain. Here&rsquo;s how we make compliance simple:</p> <ul> <li><strong>Automated Calculations</strong>: IberianTax calculates prorated deductions automatically for EU residents, saving time and ensuring compliance with Spanish tax rules. This feature minimizes the risk of errors and maximizes your eligible deductions.</li> <li><strong>Deadline Reminders and Filing Support</strong>: Our platform provides reminders before the January 20th filing deadline, ensuring you stay on schedule. Plus, our support team is available to answer questions, making tax filing as seamless as possible.</li> </ul> <p>With IberianTax, you have a trusted partner guiding you through Spain&rsquo;s non-resident tax requirements, so you can focus on what matters&mdash;enjoying your investment in Spain.</p>

<p>Owning a property in Spain as a non-resident comes with certain tax obligations, and understanding how the value of your house is determined is an important part of this process. Whether you&rsquo;re filing Imputed Income Tax or Rental Income Tax, the taxable value of your property directly impacts how much you&rsquo;ll need to pay. This blog will explain the different ways your property&rsquo;s value is assessed for tax purposes and how this affects non-resident homeowners.&nbsp;</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Understanding Property Value Assessment for Non-Resident Taxes</h2> <p>When it comes to determining the taxable value of your property in Spain, you&rsquo;ll need to understand the different types of values that are used by the Spanish tax authorities. These include the cadastral value, market value, and reference value. Each of these values plays a different role in your overall tax calculation.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Cadastral Value (&lsquo;Valor Catastral&rsquo;)</h3> <p>The cadastral value is an administrative value assigned by the Spanish government based on factors such as the property&rsquo;s location, size, age, and the quality of the building. It&rsquo;s not directly linked to the market value, but it serves as the primary value used to calculate several taxes, including Property Tax (IBI) and Imputed Income Tax for non-residents. Generally, the cadastral value is lower than the market value and doesn&rsquo;t fluctuate as frequently.</p> <ul> <li><strong>How It&rsquo;s Used:</strong> For non-resident taxes, the cadastral value forms the basis for calculating Imputed Income Tax. This tax is essentially a notional rental income applied to properties that are not rented out and are used for personal enjoyment or left empty.</li> </ul> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Market Value</h3> <p>The market value represents the estimated price at which the property would sell under current market conditions. While this value is not used for annual tax calculations like the Imputed Income Tax, it comes into play when calculating capital gains tax during the sale of the property or assessing inheritance tax.</p> <ul> <li><strong>How It&rsquo;s Used</strong>: The market value is more reflective of what your property would actually be worth if you were to sell it. It&rsquo;s often used in property transactions and for capital gains tax purposes, but, generally, it&rsquo;s not relevant when it comes to non-resident taxes.&nbsp;</li> </ul> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Reference Value (&lsquo;Valor de Referencia&rsquo;)</h3> <p>The reference value is a newer measure introduced by Spanish tax authorities to bridge the gap between the cadastral value and the real market conditions. This value is based on recent market data and provides a more accurate assessment of the property&rsquo;s value compared to the traditional cadastral value.</p> <ul> <li><strong>How It&rsquo;s Used</strong>: The reference value is mainly used for calculating the taxable base of certain taxes, such as the Property Transfer Tax (ITP) and the Inheritance and Donations Tax (ISD).</li> </ul> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">How the Value of Your House Affects Non-Resident Taxes</h2> <p>As a non-resident property owner in Spain, you&rsquo;re subject to different taxes depending on whether you&rsquo;re using your property for personal use or renting it out, both fully and partially.</p> <h2 style="color: #51c8b8; font-size: 18px; font-family: 'Montserrat Bold';">Imputed Income Tax</h2> <p>If you&rsquo;re not renting out your property and it&rsquo;s used solely for personal purposes, the Spanish government considers that you could have potentially rented it out, and therefore, it levies an <a class="color-primary link-secondary" title="Imputed Income Tax" href="https://www.iberiantax.com/modelo-210/imputed-income" target="_blank" rel="noopener">Imputed Income Tax</a>. This tax is calculated as a percentage of the cadastral value of your property. The deadline for filing this tax is December 31st each year, covering the previous year&rsquo;s tax obligations.&nbsp;</p> <p>Let&rsquo;s look at an example to understand how the tax is calculated:</p> <ul> <li><strong>Cadastral value of the property</strong>: 65956.23&euro;</li> <li><strong>Applicable imputed percentage</strong>: 2% (used when the cadastral value has not been updated in the past 10 years under a general collective valuation)</li> <li><strong>Taxpayer&rsquo;s country of residence</strong>: United Kingdom (non-residents from EU/EEA countries are taxed at 24%)</li> </ul> <h3 style="color: #1363b2; font-size: 16px; font-family: 'Montserrat Bold';">Step-by-step calculation:</h3> <ol> <li><strong>Imputed income:</strong><br />Imputed income = 2% of 65956.23&euro; = 1319.12&euro;</li> <li><strong>Tax due:</strong><br />As a UK resident (subject to the 24% tax rate), the tax due is:<br />Tax due = 1319.12&euro; &times; 24% = 316.59&euro;</li> </ol> <p>Thus, the taxpayer would need to pay <strong>316.59&euro;</strong> in Imputed Income Tax for the year.</p> <h2 style="color: #51c8b8; font-size: 18px; font-family: 'Montserrat Bold';">Rental Income Tax</h2> <p>For non-residents who rent out their property, either partially or fully, a <a class="color-primary link-secondary" title="Rental Income Tax" href="https://www.iberiantax.com/modelo-210/rental-income" target="_blank" rel="noopener">Rental Income Tax</a> Return must be filed. This applies to both short-term holiday rentals and long-term lets. The income generated from renting your property is taxable, and you&rsquo;re responsible for declaring this income, regardless of the duration of the rental. Previously, this tax had to be filed quarterly, but recent changes earlier this year mean that it&rsquo;s now an annual obligation. The filing window for Rental Income Tax is between January 1st and January 20th, covering the income earned in the previous year.</p> <p>When calculating your taxable rental income, you can deduct certain allowable expenses, and one of the most significant deductions is depreciation costs. Depreciation is calculated as 3% of the highest value between the cadastral value and the acquisition value (typically the market value at the time of purchase). However, according to accountancy rules, depreciation only applies to the building&rsquo;s value, not the land.</p> <p>The depreciation amount is adjusted based on the proportion of the cadastral value attributed to the building, as shown in the property&rsquo;s cadastral report. For example, if 70% of the cadastral value corresponds to the building and 30% to the land, the 3% depreciation would only apply to that 70%.</p> <p><strong>Important</strong>: Depreciation costs, along with other allowable deductions, can only be claimed if the taxpayer is a resident of an EU or European Economic Area (EEA) country. Non-EU residents are not eligible for these deductions and must report their gross rental income without applying for depreciation or other expense-related deductions.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Why Register Now?</h2> <p>Although the filing period for Rental Income Tax doesn&rsquo;t officially open for submissions until January, you can still get ahead. With our newly updated platform, you can already access the Rental Income form for 2024 submissions and start preparing your tax return right now!&nbsp;</p> <p>Pre-filling your Rental Income tax return early with IberianTax ensures that you have all the necessary documentation and information ready, making the filing process smoother when the time comes. We&rsquo;ll also send you handy reminders, so you&rsquo;ll know exactly when to file. It couldn&rsquo;t be easier!&nbsp;</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Using IberianTax</h2> <p>Navigating Spanish tax laws can be complex, especially when you&rsquo;re managing your property from abroad, but this is where IberianTax comes in. Providing a fast, secure, and cost-effective solution for non-resident property owners, here&rsquo;s why IberianTax is your preferred choice:</p> <ul> <li><strong>Fast and Simple Process: </strong>IberianTax&rsquo;s online platform allows you to file your taxes from anywhere in the world, eliminating the need for in-person meetings or complicated paperwork.</li> <li><strong>Multi-Language Support</strong>: Available in English, German, and French, so you can complete your taxes in your preferred language.</li> <li><strong>Certified and Compliant</strong>: IberianTax is fully certified by the Spanish tax authorities (Agencia Tributaria), ensuring your tax filings are accurate and compliant.</li> <li><strong>Affordable Pricing</strong>: With prices starting as low as &euro;34.95, IberianTax offers a highly competitive alternative to traditional tax advisors and accountants.</li> <li><strong>Secure Data Handling</strong>: All personal and financial data is securely encrypted, ensuring your information is safe and confidential.</li> <li><strong>Free Tax Calculation</strong>: Use our <a class="color-primary link-secondary" title="FREE tax calculator" href="https://www.iberiantax.com/calculator" target="_blank" rel="noopener">FREE tax calculator</a> to see how much you owe ahead of submitting your taxes.</li> <li><strong>Referral Program</strong>: Earn when you<a class="color-primary link-secondary" title=" refer your friends" href="https://www.iberiantax.com/referral-program" target="_blank" rel="noopener"> refer your friends</a>! They&rsquo;ll receive a 10% discount, and you&rsquo;ll receive &euro;10 credit on your account!</li> </ul> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Ready to File Your Taxes? Start with IberianTax Today!</h2> <p>If you&rsquo;re a non-resident property owner in Spain, now is the time to start getting your tax filings in order. Visit <a class="color-primary link-secondary" title="IberianTax&rsquo;s website" href="https://www.iberiantax.com" target="_blank" rel="noopener">IberianTax&rsquo;s website</a> to get started, and let our user-friendly platform guide you through the process of filing your Modelo 210. From calculating your taxes to submitting your forms, IberianTax ensures a seamless and stress-free experience&mdash;helping you meet your tax obligations with confidence and ease.&nbsp;</p> <p>&nbsp;</p>

<p>Inheriting property in Spain can bring exciting opportunities, but it also comes with specific tax obligations. First and foremost, before you can legally receive the property, <strong>Inheritance Tax (Impuesto sobre Sucesiones y Donaciones)</strong> must be paid. This tax is due within six months from the date of death, and the rate varies depending on the region where the property is located. The amount owed also depends on the value of the property and your relationship to the deceased. Once this tax is paid and the property is registered in your name, you will then be responsible for ongoing tax obligations, such as <strong>Modelo 210</strong>.</p> <p><strong>Modelo 210</strong> is required for declaring <strong>Non-Resident Income Tax (Impuesto sobre la Renta de No Residentes, IRNR)</strong> in Spain. As a non-resident who inherits property, you must file this form to declare any income derived from the property, even if it is not rented out. Additionally, if the property has multiple owners &mdash; for example, if three or four siblings inherit the property &mdash; <strong>each co-owner must submit a separate Modelo 210 tax return</strong> for their share of the property.</p> <p>For the year in which the deceased passed away, the heirs must submit a Modelo 210 tax return covering the period from <strong>1st January until the date of death</strong>. Additionally, heirs must report <strong>imputed income</strong> from the date of death until the end of the year, reflecting their period of ownership.</p> <p>In this article, we&rsquo;ll break down the key aspects of filing Modelo 210 after inheriting property in Spain, including an example of how to calculate the tax due.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">What Is Modelo 210?</h2> <p><strong>Modelo 210</strong> is the form non-residents must use to declare and pay taxes on income generated from property in Spain. For non-residents inheriting real estate, this typically involves reporting either rental income or, if the property is not rented, <strong>deemed</strong> or <strong>imputed income</strong>. Spanish tax authorities assume that property ownership, even without rental income, generates a theoretical rental income that is subject to taxation.</p> <p>If you rent out the inherited property, you must declare the actual rental income received. If the property is not rented out, you will need to declare imputed income, which is based on a percentage of the <strong>cadastral value </strong>(the official property value set by the local municipality). The deemed rental income is usually calculated at 1.1% or 2% of the cadastral value, depending on the location of the property.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">When Must You File Modelo 210?</h2> <p>There are three primary scenarios in which non-resident property owners must file Modelo 210:</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">1. If You Rent Out the Property:</h3> <p>If the inherited property is rented, you are required to declare the rental income. This income is taxed at a flat rate for non-residents.</p> <ul> <li><strong>Filing period</strong>: Starting in 2024, you should file Modelo 210 annually, within the first 20 days of January for the previous year&rsquo;s income.</li> </ul> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">2. If You Do Not Rent the Property:</h3> <p>Even if the property is not rented, Spanish tax authorities expect non-resident property owners to declare a <strong>deemed</strong> or<strong> imputed income</strong>. This fictional income is usually 1.1% or 2% of the cadastral value of the property, depending on the municipality in which it is located.</p> <ul> <li><strong>Filing period</strong>: The form must be filed annually, covering the period from 1st January to 31st December of the preceding year</li> </ul> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">3. If You Sell the Property:</h3> <p>If you sell the inherited property, you are required to declare capital gains tax on the sale. If no profit is made, you may be able to claim a refund of the withholding tax using Modelo 211. It&rsquo;s important to note that the acquisition value and date recorded in the deed of inheritance will be used to calculate the capital gains tax.</p> <ul> <li><strong>Filing period</strong>: You must file the Modelo 210 within four months of the sale.</li> </ul> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Special Considerations for Inherited Property in the Year of Death</h2> <p>When inheriting property in Spain, heirs have specific filing responsibilities for the year in which the deceased passed away:</p> <ul> <li><strong>Reporting Income Until the Date of Death:</strong></li> </ul> <p>The heirs must file a Modelo 210 for the period from 1st January to the date of death for the deceased's share of the property. This ensures that the income attributable to the deceased is properly declared.</p> <ul> <li><strong>Reporting Imputed Income After the Date of Death:</strong></li> </ul> <p>From the date of death until the end of the calendar year, the heirs must report the imputed income for their share of the inherited property. The imputed income is based on the cadastral value and is divided proportionately among the heirs.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Example of Imputed Income Calculation for 2023</h3> <p>Let&rsquo;s say a property with a cadastral value of &euro;60,000 is inherited by two heirs from the UK (non-residents). The imputed income percentage for the property is 2%, and the tax rate for non-residents from the UK is 24%. The deceased passed away on 24th May 2023. Here&rsquo;s how the tax is calculated for each heir in 2023:</p> <p><strong>Imputed Income Calculation:</strong></p> <ul> <li><strong>Cadastral Value:</strong> 60,000&euro;</li> <li><strong>Imputed Income Rate</strong>: 2%</li> <li><strong>Annual Imputed Income</strong>: 60,000&euro; &times; 2% = 1,200&euro;<br />Since there are two heirs, each will declare half of this income:<br />1,200&euro; &divide; 2 = 600&euro; per heir (for the full year).</li> </ul> <p style="padding-left: 40px;"><strong>Deceased&rsquo;s Tax Liability (January 1st to May 24th):</strong><br />The deceased owned the property from January 1st to May 24th, which is 143 days of the year.</p> <ul> <li>Portion of the year the deceased owned the property: 143 &divide; 365 = 0.392 (39.2% of the year).</li> <li>Imputed income for the deceased&rsquo;s ownership period:<br />1,200&euro; &times; 0.392 = 470.40&euro;</li> <li>Tax due for the deceased:<br />470.40&euro; &times; 24% = 112.90&euro;</li> </ul> <p style="padding-left: 40px;"><strong>Imputed Income for the Period After Death (May 24th &ndash; December 31st):</strong><br />From the date of death (May 24th) to the end of 2023, there are 222 days of ownership. We calculate the proportion of the year they owned the property:<br />222 &divide; 365 &asymp; 0.608 of the year.</p> <ul> <li>Each heir&rsquo;s share of the imputed income for the rest of the year:<br />600&euro; &times; 0.608 = 364.80&euro;.</li> <li><strong>Tax due for each heir</strong>:<br />364.80&euro; &times; 24% = 87.55&euro;.</li> </ul> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Conclusion</h2> <p>Filing Modelo 210 after inheriting property in Spain may seem complex, but it is an essential part of managing your tax obligations as a non-resident property owner. By understanding when and how to file, and ensuring you have all the necessary documentation, you can avoid penalties and manage your new responsibilities effectively. If in doubt, it&rsquo;s always advisable to seek guidance from a tax professional familiar with Spanish non-resident taxation. At <strong>IberianTax</strong>, we are here to help guide you through the process and ensure compliance with your tax obligations.</p>

<p>Whether you're living abroad or own property in Spain, filing taxes on time is a crucial responsibility. But what happens if you miss the Spanish tax deadline? Missing the deadline can lead to penalties and interest charges, but there are ways to minimize the consequences. This step-by-step guide walks you through the actions to take if you&rsquo;ve missed the Spanish tax filing deadline as a non-resident.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">1. Know your Tax Obligations for Non-Residents</h2> <p>First, it&rsquo;s essential to know what kind of taxes you&rsquo;re expected to file as a non-resident. The main taxes non-residents have to deal with in Spain include:</p> <ul> <li><strong>Imputed Income tax:</strong> If you own property in Spain you are required to pay this tax even if you do not rent it out. The tax due is calculated taking into account the <a class="color-primary link-secondary" title="cadastral value" href="https://www.iberiantax.com/blog/what-is-the-cadastral-value-and-how-to-find-it" target="_blank" rel="noopener">cadastral value</a>&nbsp;of the property, the Municipality in which it is located and the days it has been empty or available for personal use (to sum up: the days it has not been rented during the tax year).&nbsp;</li> </ul> <p style="padding-left: 40px;">The filing period for submitting the imputed income tax runs from 1st January to 31st December of the following year. For example, the 2023 tax year can be filed from 1st January 2024 to 31st December 2024, being the deadline 31st December 2024.</p> <ul> <li><strong>Rental Income tax</strong>: In case you own a property in Spain and you rent it out, please note that you need to declare the rental income tax for the days it has been occupied. In this regard, from 2024 onwards the filing period has changed. Currently, the income earned in 2024 has to be submitted on an annual basis. The filing period runs from 1st January to 20th January of the following year. For the 2024 tax year, the deadline will be 20th January 2025.</li> </ul> <p style="padding-left: 40px;">Regarding the 2023 tax year and previous years, in case you did not submit on time your rental income tax, please note that the rental income had to be submitted on a quarterly basis on the first 20 days of April, July, October and January of the following year.&nbsp;</p> <p style="padding-left: 40px;">For example, if the property was rented in July, August and October the rental income should be submitted the first 20 days of October (for the months of July and August) and the first 20 days of January of the following year (for the month of October).</p> <ul> <li><strong>Capital Gains Tax</strong>: This applies if you sold your property located in Spain. The capital gains tax should be submitted within 4 months after the sale of the property.&nbsp;</li> </ul> <p style="padding-left: 40px;">For example, if you sold your property located in Alicante on 5th July 2024, you will have until 5th October to declare the capital gains tax.&nbsp;</p> <p>Each tax has its specific filing dates, which you need to be aware of to avoid missing future deadlines.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">2. File Your Late Return As Soon As Possible</h2> <p>When you realize that you have missed the deadline, it&rsquo;s crucial to act quickly. Filing your tax return as soon as possible demonstrates your willingness to comply with Spanish tax regulations. Here are a few reasons why timely action is vital:</p> <ul> <li><strong>Mitigating Penalties</strong>: The Spanish tax system imposes varying penalties based on how late you file. The sooner you file, the lower these penalties will be. For example, if you file within three months of the deadline, you may face only a 3% surcharge. However, this increases to 15% if you file after 12 months have elapsed.</li> <li><strong>Avoiding Interest Charges</strong>: Interest accrued on unpaid taxes starts to accrue after 1 year from the original due date. The longer you delay filing, the more you will owe in interest. By filing your return promptly, you can limit the amount of interest you will have to pay.</li> <li><strong>Preventing Complications:</strong> Filing late can complicate your tax situation, potentially leading to audits or increased scrutiny from the tax authorities. By filing your return without unnecessary delay, you can avoid these complications.</li> </ul> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">3. What Are the Penalties for Filing Late?</h2> <p>Once you file late, be prepared for penalties. Here&rsquo;s what you can expect:</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">If you file within the first 12 months:</h3> <p>A 1% surcharge is applied for each month of delay after the voluntary filing deadline.</p> <p><strong>Example:</strong> If the voluntary deadline to file the imputed income tax for the 2022 tax year was 31st December 2023, and the return is filed in July 2024 (7 months late), a 7% surcharge will apply to the amount due.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">If you file more than 12 months late:</h3> <p>A fixed 15% surcharge is applied, regardless of how many months have passed. Additionally, late-payment interest is charged.</p> <p><strong>Example</strong>: If the return is filed in July 2025 (more than 12 months after the deadline, which is 31st December 2023), a 15% surcharge will be imposed, along with the applicable late-payment interest.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Surcharge reduction:</h3> <p>If the surcharge is paid within the deadline set by the Spanish Tax Office (after the total amount is notified), a 25% reduction can be applied to the surcharge, provided that the remaining amount is paid in full.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">4. How Does the Tax Office Notify You About Surcharges?&nbsp;</h2> <p>In case you submit your tax returns late, you will initially only pay the outstanding amount due.</p> <p>Within 1 to 2 months, the TaxOffice will send a notification to your registered Spanish home address regarding the imposed surcharges for the late filing.&nbsp;</p> <p>Initially, you will receive a letter known as the &ldquo;propuesta de liquidaci&oacute;n.&rdquo; This is an informative letter that outlines the total surcharge amount you need to pay.</p> <p>A few weeks later, you will receive a second letter, referred to as &ldquo;liquidaci&oacute;n,&rdquo; along with the payment instructions.</p> <p>Please be aware that you can only settle the payment after receiving the second letter. In this regard, it is possible to <a class="color-primary link-secondary" title="pay the surcharge from abroad" href="https://www.iberiantax.com/blog/how-to-pay-spanish-tax-agency-surcharges-and-penalties-from-abroad" target="_blank" rel="noopener">pay the surcharge from abroad</a>.&nbsp;</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">5. Need Help? Here's How We Can Assist You</h2> <p>Navigating the Spanish tax system can be complex, especially for non-residents unfamiliar with the procedures and legal requirements. If you&rsquo;re unsure about how to proceed, at IberianTax we can help you.&nbsp;</p> <p>Furthermore, it is important to keep in mind, after resolving your overdue tax situation, to avoid missing deadlines in the future. Here are some tips:</p> <ul> <li><strong>Reminders:</strong> IberianTax will send you reminders every time the filing period approaches.</li> <li><strong>Clarify your doubts</strong>: Our support time will help you to clarify all your doubts, making it easier for you to understand the Spanish tax system.</li> <li><strong>Register for notifications</strong>: <a class="color-primary link-secondary" title="Sign up" href="https://www.iberiantax.com/blog/how-can-non-residents-register-for-electronic-notifications-from-the-spanish-tax-office" target="_blank" rel="noopener">Sign up</a> for updates from the Agencia Tributaria to receive timely information about filing deadlines and any changes to the tax laws.&nbsp;</li> </ul> <p>Missing the Spanish tax filing deadline is not the end of the world, but it&rsquo;s important to act quickly to minimize the financial impact. By filing as soon as possible, understanding the penalties, and working with the tax authorities, you can resolve the situation effectively. And with the right strategies in place, you&rsquo;ll avoid repeating the same mistake in the future.</p> <p>If you&rsquo;re feeling overwhelmed, don&rsquo;t hesitate to <a class="color-primary link-secondary" title="reach out to us" href="https://www.iberiantax.com/contact" target="_blank" rel="noopener">reach out to us</a>. IberianTax can provide personalized advice and help you navigate the complexities of Spanish tax laws with confidence.&nbsp;</p> <p>&nbsp;</p>

<p>As the end of 2024 draws near, non-resident property owners in Spain must prepare for one of the most important obligations that comes with owning property: filing tax returns. Whether it's imputed income tax or rental income tax, meeting these deadlines is crucial to avoid penalties and ensure compliance with Spanish tax laws. In this guide, we'll break down the types of taxes non-residents must file, the upcoming deadlines, and how IberianTax can make the filing process faster, easier, and more affordable.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Understanding Non-Resident Taxes in Spain</h2> <p>If you're a non-resident property owner in Spain, you're likely aware that taxes apply even if you don't live in the property year-round. Spain requires non-residents who own property to pay taxes on imputed income (a tax levied on the property for personal use or if it remains vacant at any time) and rental income (a tax levied on money earned from renting the property out, long-term or short-term).</p> <p>Here's a quick breakdown of the key non-resident taxes:</p> <p>1.<strong> </strong><a class="color-primary link-secondary" title="Imputed Income Tax" href="https://www.iberiantax.com/modelo-210/imputed-income" target="_blank" rel="noopener">Imputed Income Tax</a><strong>:</strong> This applies to non-residents who own property in Spain but don't rent it out and use it purely for personal use, or it lays vacant. The Spanish government views this as potential income and levies a tax on the value of the property.</p> <p>2. <a class="color-primary link-secondary" title="Rental Income Tax" href="https://www.iberiantax.com/modelo-210/rental-income" target="_blank" rel="noopener">Rental Income Tax</a>: For non-residents who rent out their property, the rental income tax applies. You'll be taxed on the income generated from renting the property, and it's crucial to keep up with your rental records to ensure accurate filing.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Imputed Income Tax Deadline for 2023 is 31st December 2024</h2> <p>For non-residents who do not rent out their Spanish property, the imputed income tax must be filed annually by <strong>31st December</strong>. This tax is based on the cadastral value of your property (a government-assigned value used for tax purposes) and is calculated using a percentage that differs depending on whether the property has been revalued or not.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Why File Now?</h2> <p>While the 31st of December may seem far off, filing early can save you from a last-minute rush. Avoiding the Christmas chaos ensures that your taxes are filed accurately and on time. Additionally, the longer you wait, the higher the risk of facing penalties for late filing. By filing ahead of time, you'll avoid the stress of missing deadlines and possible fines that come with it.</p> <p>Missing the deadline can result in surcharges and penalties, which vary depending on whether the filing is made voluntarily or requested by the tax office:</p> <ul> <li><strong>Voluntary Late Submission:</strong> If you file late without a formal request from the Spanish tax authorities, a surcharge of 1% per month of delay is applied for the first 12 months. After 12 months, the surcharge increases to 15% of the unpaid tax, along with accrued interest​.</li> <li><strong>Requested Submission by Tax Authorities</strong>: If the tax office issues a formal request for the submission, the penalty starts at 50% of the unpaid tax and can rise to 150%, depending on the severity of the delay and the economic impact on the tax authorities​.</li> </ul> <p>So, why wait until the last minute? Take the stress out of the process by using IberianTax to file early.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Rental Income Tax Deadline for 2024: 1st - 20th January 2025</h2> <p>If you fully or partially rented out your Spanish property in 2024, the rental income tax must be filed between the 1st and 20th of January 2025. You&rsquo;re responsible for declaring the income you&rsquo;ve earned from your property throughout the year and paying the necessary tax on that income.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Why Register Now?</h2> <p>Even though the filing window for Rental Income Tax isn&rsquo;t open until January, it&rsquo;s wise to start preparing your documents and income records now. Registering with IberianTax ensures that you&rsquo;ll have everything in place to submit your taxes as soon as the window opens. By preparing early, you can:</p> <ul> <li><strong>Avoid Mistakes:</strong> Early preparation gives you time to review your records and ensure that everything is in order.</li> <li><strong>File on Time:</strong> The rental income tax deadline is shorter than the imputed income tax, so ensuring that you&rsquo;re ready to file early reduces the risk of missing the deadline.</li> <li><strong>Stay Compliant</strong>: Non-compliance with Spanish tax laws can lead to significant fines and penalties.</li> </ul> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Common Tax Return FAQs&nbsp;</h2> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">I only bought my property this year, do I need to file?&nbsp;</h3> <p>No, there&rsquo;s no need for you to file this year. Your first non-resident tax return will be due at the end of 2025 unless you rented your property out during 2024. In this case, you will need to file a <strong>Rental Income tax </strong>return in the <strong>first 20 days of January 2025 </strong>for the days it was rented out.&nbsp;</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">I only used my property privately in 2023 and didn&rsquo;t rent it out. Do I need to file a tax return?</h3> <p>Even if you don&rsquo;t rent out your property or generate any income from it, you are required to file an <strong>annual non-resident tax return</strong> to declare an &lsquo;<strong>imputed income</strong>&rsquo; on the property. &nbsp;The deadline for filing &lsquo;imputed income&rsquo; tax for 2023 is <strong>31st December 2024</strong>, but this can be filed now, so you can forget about it for another year!</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">I bought my property in 2023, what do I need to do?</h3> <p>You are required to file the &lsquo;imputed income&rsquo; tax return from the purchase date to the 31st of December 2023. If you rented out your property in 2023, then you should have already submitted a rental income tax return. If you have not done so, <strong>penalties</strong> will be accruing against you, so you&rsquo;d be advised to contact IberianTax to help you file this return, so you are up to date with the Spanish Tax Authorities.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">I partially rented out my property and used it personally in 2023, what do I need to do now?</h3> <p>If you <strong>partially rented out </strong>your property in 2023, you should have filed a <strong>rental income tax</strong> return before January 2024. If you have not done so, penalties will be accruing against you, so you&rsquo;d be advised to contact IberianTax to help you file this return, so you are up to date with the Spanish Tax Authorities. You will be required to file the annual imputed income tax for the days that you used the property for personal use in 2023, which must be filed by 31st December 2024. Any rental income earned in 2024 has to be filed within the first 20 days of 2025.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Why Use IberianTax?&nbsp;</h3> <p>Filing taxes can seem daunting, especially when you're unfamiliar with Spanish tax laws. However, using IberianTax makes the process hassle-free, fast, and cost-effective. Here&rsquo;s why:</p> <ul> <li><strong>Fast and Simple Process</strong>: IberianTax&rsquo;s online platform allows you to file your non-resident taxes quickly from the comfort of your home, no matter where you are in the world. With easy-to-follow instructions, you don&rsquo;t need an accountant or legal advisor.</li> <li><strong>Cost-Effective</strong>: Traditional tax advisors or lawyers can charge high fees for filing non-resident tax returns. IberianTax offers a significantly more affordable option, with prices starting as low as 34.95&euro;.&nbsp;</li> <li><strong>We Speak Your Language</strong>: Our online tax software is available in English, German and French, so there&rsquo;s no language barrier to contend with.<br />Secure and Reliable: The platform is designed to keep your personal information and financial data secure. IberianTax is certified by the Spanish tax authorities (Agencia Tributaria), ensuring that your tax filings are accurate and compliant.</li> <li><strong>No Need for an Accountant:</strong> With IberianTax&rsquo;s intuitive platform, there&rsquo;s no need to hire a local accountant, saving you both time and money. The step-by-step guide ensures that you can file your taxes without needing additional professional help.</li> <li><strong>Personalised Support</strong>: Got a question? IberianTax&rsquo;s customer support team is available to assist you through the process. Whether you need help calculating your taxes or ensuring your documents are correct, they&rsquo;re just a click away.</li> </ul> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Key Deadlines to Remember:</h2> <ul> <li><strong>Imputed Income Tax for 2023</strong>: December 31, 2024</li> <li><strong>Rental Income Tax for 2024</strong>: January 1-20, 2025</li> </ul> <p>Mark your calendars and make sure you don&rsquo;t miss these critical deadlines. Filing on time with IberianTax ensures that you avoid penalties and stay compliant with Spanish tax laws. However, if you register with IberianTax, they will send you reminders of when your taxes are due, so you won&rsquo;t miss those important dates and find yourself facing penalty fees.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">File with IberianTax for a Stress-Free Experience</h2> <p>There&rsquo;s no need to stress over tax deadlines when IberianTax is here to <a class="color-primary link-secondary" title="make the process simple" href="https://www.iberiantax.com/how-it-works" target="_blank" rel="noopener">make the process simple</a> and secure. Whether you&rsquo;re filing imputed income tax or rental income tax, IberianTax has everything you need to file on time, avoid penalties, and ensure your taxes are compliant with Spanish law.</p> <p>Don't just take our word for it&mdash;you can view our<a class="color-primary link-secondary" title=" 5-star reviews" href="https://www.google.com/search?q=IberianTax+-+File+your+Spanish+Tax+Form+210+online&amp;stick=H4sIAAAAAAAA_-NgU1I1qDA0sjS3NDYySjZJtkgxMTW0MqgwTTU2MzYxNzNITEw0TTM1W8Rq5JmUWpSZmBeSWKGgq-CWmZOqUJlfWqQQXJCYl1mcoQASd8svylUwMjRQyM_LycxLBQArqtPIXgAAAA&amp;hl=en-GB&amp;mat=CdFai-Y-BCU_ElYBEKoLaTnIqUFFN6rVJNws2n39VJWcEiA9KGpJF5f9o4dSlMV_SjeI8oMgPibxOKOXpqOg493-PP95UNo9WVKrfK2rkQJeksDdGqwGUJfpgYBrHYffEA&amp;authuser=0#mpd=~4550047666730130129/customers/reviews" target="_blank" rel="noopener"> 5-star reviews</a> on Google to see how IberianTax has helped countless property owners meet their tax deadlines quickly, easily and completely stress-free.</p> <p>Start preparing today and use our <a class="color-primary link-secondary" title="free tax calculator" href="https://www.iberiantax.com/calculator/non-resident-tax-spain" target="_blank" rel="noopener">free tax calculator</a> to see how much you owe, then sit back and relax while IberianTax takes care of the rest!</p> <p>&nbsp;</p> <p>&nbsp;</p>

<p><br />Investing in golf properties in Spain is a great opportunity to combine luxury living with a potential profit. Golf resorts in areas like the Costa Blanca, Costa C&aacute;lida, and the Costa del Sol offer stunning scenery, incredible facilities, and year-round golfing, making them a hotspot for <strong>international buyers</strong>. With vibrant expat communities and increasing demand, these regions are perfect for property owners seeking either personal enjoyment or a <strong>rental income</strong>. When considering a purchase, it&rsquo;s essential to understand local property laws, community fees, and tax obligations, where IberianTax can assist with managing non-resident taxes.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Top Golf Regions in Spain</h2> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Costa Blanca</h3> <p>The Costa Blanca region offers a variety of golf resorts with options to suit different budgets and lifestyles. Known for its expat-friendly communities and beautiful landscapes, resorts like <a class="color-primary link-secondary" title="La Marquesa Golf" href="https://www.lamarquesagolf.es/" target="_blank" rel="noopener">La Marquesa Golf</a> in Rojales and <a class="color-primary link-secondary" title="Las Colinas Golf &amp; Country Club" href="https://lascolinasgolf.com/" target="_blank" rel="noopener">Las Colinas Golf &amp; Country Club</a> in Orihuela offer the perfect mix of leisure and investment potential. Whether you're looking for luxury villas or more modest properties, Costa Blanca is known for its relaxed atmosphere and vibrant social scene for both residents and visitors alike.&nbsp;</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Costa C&aacute;lida, Murcia</h3> <p>The Costa C&aacute;lida is a favourite destination for those seeking great golf courses and affordability. Resorts like <a class="color-primary link-secondary" title="Mar Menor Golf Resort" href="https://ugolfiberia.com/mar-menor/" target="_blank" rel="noopener">Mar Menor Golf Resort</a> in Torre-Pacheco and <a class="color-primary link-secondary" title="Hacienda del &Aacute;lamo in Fuente &Aacute;lamo" href="https://haciendagolfresort.com/" target="_blank" rel="noopener">Hacienda del &Aacute;lamo in Fuente &Aacute;lamo</a> offer fantastic facilities, making the region ideal for both vacation and investment. For something more high-end, the prestigious <a class="color-primary link-secondary" title="La Manga Club" href="https://lamangaclub.com/en" target="_blank" rel="noopener">La Manga Club</a> in Cartagena is perfect for those seeking a luxury destination, with a Grand Hyatt hotel onsite. In San Javier, the <a class="color-primary link-secondary" title="Roda Golf and Beach Resort" href="https://www.rodagolf.com/" target="_blank" rel="noopener">Roda Golf and Beach Resort</a> is another fantastic option for those wanting luxury within a short distance from the Mediterranean Sea. Its warm microclimate ensures comfortable living year-round, with property prices often lower than other popular regions. This makes Costa C&aacute;lida an attractive option for those looking to enter Spain's golf property market.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Costa del Sol</h3> <p>Often called the &lsquo;Costa del Golf,&rsquo; the Costa del Sol is the ultimate destination for luxury golf resorts. Along the coast, you will find an incredible range of golf courses suited to all types of players, with plenty of opportunities for frontline golf living.</p> <p>In the Mijas area, you will find the prestigious <a class="color-primary link-secondary" title="La Cala Resort" href="https://www.lacala.com/" target="_blank" rel="noopener">La Cala Resort</a> in La Cala de Mijas, offering a wealth of facilities including a spa and three golf courses onsite. Travelling further down the coast to Marbella and Benahav&iacute;s, you will be spoilt for choice with elite options such as the <a class="color-primary link-secondary" title="Marbella Club Golf Resort" href="https://www.marbellaclub.com/golf" target="_blank" rel="noopener">Marbella Club Golf Resort</a> and the <a class="color-primary link-secondary" title="Villa Padierna Golf Resort" href="https://www.villapadierna.es/en/" target="_blank" rel="noopener">Villa Padierna Golf Resort</a> &ndash; both esteemed courses for those looking for privacy and luxury.</p> <p>The areas of Casares and Sotogrande, on the Western end of the Costa del Sol, are where you will find some of the most prestigious golfing properties. <a class="color-primary link-secondary" title="Finca Cortesin" href="https://www.fincacortesin.com/golf" target="_blank" rel="noopener">Finca Cortesin</a> in Casares, host of the 2023 Solheim Cup, is renowned for providing one of Europe&rsquo;s most unforgettable golfing experiences, and the courses of <a class="color-primary link-secondary" title="La Reserva" href="https://www.lareservaclubsotogrande.com/" target="_blank" rel="noopener">La Reserva</a> and <a class="color-primary link-secondary" title="Valderrama" href="https://www.valderrama.com/" target="_blank" rel="noopener">Valderrama</a> in Sotogrande are perfect for those who want access to premium facilities.</p> <p>In addition to golfing, the Costa del Sol also offers a rich cultural experience with its proximity to historical sites, beaches, and various outdoor activities. Although it&rsquo;s the priciest of the three regions we&rsquo;ve covered here, the potential for long-term investment and rental returns remains high.&nbsp;</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Advantages of Owning Property in Spanish Golf Resorts</h2> <p>Owning property within or overlooking a golf resort offers a great blend of convenience and luxury. These communities come with incredibly well-maintained grounds, fantastic amenities like spas and clubhouses, as well as added security for peace of mind. As a homeowner, you also benefit from a high standard of living and ease of maintenance, allowing you to enjoy your investment without the hassle of upkeep.</p> <p>The location of these resorts in beautiful, tourist-attractive areas increases the value of your property over time. Given Spain's global reputation as a premier golfing destination, properties in these regions have long-term appreciation potential, making them solid investment opportunities.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Key Considerations When Buying Golf Resort Property</h2> <p>Before making a purchase, it's essential to consider factors such as proximity to transportation, availability of amenities, and community preferences. Properties in golf resorts can range from spacious villas to low-maintenance townhouses or apartments. It&rsquo;s important to align your choice with your personal preferences&mdash;whether that&rsquo;s a private villa for added seclusion or a community-based apartment with access to shared facilities.</p> <p>Also, consider the long-term costs of owning such a property, including community fees, taxes, and maintenance.&nbsp;</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Legal Aspects and Taxes</h2> <p>Purchasing a golf property in Spain comes with several legal considerations, including taxes, paperwork, and registration. Seeking advice from a solicitor familiar with Spanish property law is critical to ensuring a smooth transaction. Additionally, owners must consider the tax implications, particularly those who don&rsquo;t intend to live on the property permanently.</p> <p>This is where IberianTax can assist you by <a class="color-primary link-secondary" title="simplifying the non-resident tax process" href="https://www.iberiantax.com/how-it-works" target="_blank" rel="noopener">simplifying the non-resident tax process</a>. We help non-resident homeowners across Spain to file their Modelo 210 with ease, wherever they are in the world. Our affordable service not only allows homeowners to say goodbye to the days of expensive accountants, but it also allows them to relax and enjoy their property to the fullest.&nbsp;</p> <p>Our online tax service is available in English, German and French, and is designed to help completely simplify the process, with dedicated tax experts on hand to help along the way. We&rsquo;ll even send free reminders when your taxes are due!</p> <p><a class="color-primary link-secondary" title="Sign up for free" href="https://www.iberiantax.com/register" target="_blank" rel="noopener">Sign up for free</a> today to find out how IberianTax can revolutionise your non-resident taxes in Spain.</p>

<p>For German nationals who own real estate in Spain, understanding and complying with Spanish tax laws is essential. The Spanish tax system differs significantly from the German system, and non-compliance can result in financial penalties or legal issues. This guide offers an overview of the taxes that affect German nationals owning property in Spain, ensuring they meet their tax obligations and avoid potential complications.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">1. Spanish Property Taxes</h2> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">IBI (Impuesto sobre Bienes Inmuebles)</h3> <ul> <li style="text-align: justify;"><strong>What is IBI?</strong></li> </ul> <p>The Impuesto sobre Bienes Inmuebles (IBI) is an annual tax levied by local municipalities in Spain. Similar to property tax in Germany, the IBI is calculated based on the cadastral value of the property, which is an official valuation determined by the government and is typically lower than the market value.</p> <ul> <li><strong>Calculation and Payment:</strong></li> </ul> <p>The IBI is calculated by applying a percentage to the cadastral value, with the rate varying by municipality. Property owners must pay this tax annually within a specific period set by local authorities. German nationals can pay the IBI directly at the municipal office, via bank transfer or direct debit, or using online payment methods provided by the municipality.&nbsp;</p> <p>The tax varies by municipality, typically ranging from 0.4% to 1.1% of the cadastral value. For example, if your property&rsquo;s cadastral value is 200,000&euro; and the local rate is 0.5%, your IBI would be 200,000&euro; x 0.5% = 1,000&euro;.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Non-Resident Income Tax&nbsp;</h3> <ul> <li><strong>Rental and Imputed Income:</strong></li> </ul> <p>German nationals who own property in Spain are subject to the Non-Resident Income Tax. This tax applies to both income earned from renting out the property and to imputed income for properties that remain unoccupied or for personal use.&nbsp;</p> <p>To calculate the non-resident tax on <strong>rental income </strong>in Spain, allowable expenses such as maintenance, insurance, and management fees are deducted from the total rental income. A tax rate of 19% applies to residents of the EU, Iceland, and Norway, while non-residents from outside these regions are taxed at 24%.</p> <p><strong>Example:</strong> If you are an EU resident earning 12,000&euro; in rental income with 2,000&euro; in allowable expenses, your taxable income is 10,000&euro;. Your Non-Resident Income Tax would be calculated as: 10,000&euro; x 19% = &euro;1,900.</p> <p>For properties that are not rented out, an <strong>imputed income</strong> is calculated, representing a theoretical income from the property for tax purposes. This imputed income is calculated as either 1.1% or 2% of the cadastral value of the property, depending on the date of the last cadastral review took place in the municipality where the property belongs. If the cadastral review was conducted within the last ten years, the rate of 1.1% is applied; otherwise, the rate is 2%. This imputed income is also taxed at the applicable rate of 19% for EU, Icelandic, and Norwegian residents, and 24% for residents from other countries.</p> <p><strong>Example</strong>: If the cadastral value of your property is 200,000&euro; and the last review was less than 10 years ago, the imputed income would be: 200,000&euro; x 1.1% x 19% (UE) = 418.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Capital Gains Tax (CGT)</h3> <p>This tax applies when a German national <strong>sells property in Spain</strong>. This tax is calculated on the difference between the sale price and the original purchase price, adjusted for inflation and certain allowable costs. The rate is always 19% regardless of whether the taxpayer is an EU resident or not.&nbsp;</p> <p>At the time of sale, a 3% withholding tax is applied to the sale price, which the buyer must withhold and pay to the Spanish Tax Agency. This amount is credited against the final CGT liability. If the <strong>3% withholding </strong>exceeds the actual tax due, the seller can <strong>request a refund</strong> through the Modelo 210.</p> <p>For example, if you sell your property for 300,000&euro; that you purchased for 200,000&euro;, with 10,000&euro; in allowable costs, your capital gain is (300,000&euro; - 200,000&euro; - 10,000&euro;) = 90,000&euro;. As an EU resident, your CGT would be 90,000&euro; x 19% = 17,100&euro;</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Wealth Tax (Impuesto sobre el Patrimonio)</h3> <p>The Wealth Tax applies to individuals whose total assets, including real estate in Spain, exceed a certain threshold. For non-residents, the general threshold is 700,000&euro;, although regional variations may exist. For example, in the Balearic Islands, tax rates range from 0.2% to 3.5%, depending on the total value of the assets.</p> <p>To calculate Wealth Tax, all assets owned in Spain are summed, and applicable debts are deducted. The relevant tax rates are then applied to the net value. Wealth Tax is declared annually, usually along with income tax returns, using <strong>Modelo 714.</strong></p> <p>For example, if your total assets in Spain amount to 1,000,000&euro;, the tax on the amount exceeding 700,000&euro; would be calculated. Assuming a progressive rate of 0.5% for the amount between 700,000&euro; and 1,000,000&euro;, your Wealth Tax would be (1,000,000&euro; - 700,000&euro;) x 0.5% = 1,500&euro;.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">2. Step-by-Step Guide to Compliance</h2> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Step 1: Determine Your Tax Obligations</h3> <p>German nationals must pay always IBI, Non-Resident Income Tax (whether for rental or imputed income for the not rented properties), Capital Gains Tax if selling a property, and in certain occasions Wealth Tax if their assets in Spain exceed 700,000&euro;.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Step 2: Calculate Your Tax Liabilities</h3> <p>Collect the necessary information, including the cadastral value of your property, rental income received, and property sale details. This information is often found in property deeds, rental contracts, and notifications from the tax office, such as IBI receipts. Us the figures to calculate the corresponding tax.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Step 3: File Your Taxes</h3> <p>Each type of tax&mdash;IBI, Non-Resident Income Tax (NRIT), Capital Gains Tax (CGT), and Wealth Tax&mdash;has specific deadlines that must be met. Adhering to these deadlines not only helps you avoid late fees and interest but also ensures smooth management of your tax obligations. Meeting these deadlines is essential for avoiding unnecessary financial burdens and legal complications.</p> <p><strong>Filing period:</strong></p> <ul> <li><strong>The IBI</strong> (Property Tax) is an annual tax with payment deadlines that vary by municipality, typically falling between April and November. Payments are usually made directly to the municipality where the property is located. No form submission is required as the tax is assessed by the local taxing authority. Many municipalities offer online payment options through their official websites.</li> <li><strong>Non-Resident Income Tax:</strong> for imputed income, the annual declaration must be filed between January 1st and December 31st of the year following the income year. For rental income, starting from the 2024 tax year onwards, the filing period will run from January 1st to January 20th of the following year.</li> <li><strong>Capital Gains Tax</strong> must be reported and paid within four months of the property sale. For instance, if the property is sold in June, the tax should be paid by October.</li> <li><strong>Wealth Tax:</strong> The filing period for the Wealth Tax runs from April to June of the year following the tax year.</li> </ul> <p>The Non-Resident Income Tax, as well as the Capital gains tax, are filed through the Modelo 210. The Wealth Tax is filed using Modelo 714. These forms are available on the Spanish Tax Agency's website.&nbsp;</p> <p>When submitting Non-Resident Income Tax, Capital Gains Tax, and Wealth Tax, the filing procedure can be completed online. However, you will need a valid <strong>digital certificate</strong> or be registered in the <strong>Cl@ve system</strong> to authenticate your identity. If you do not have these, you will need to use a collaborating entity such as <a class="color-primary link-secondary" title="IberianTax" href="https://www.iberiantax.com/login" target="_blank" rel="noopener">IberianTax</a> to file the tax on your behalf.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Conclusion</h2> <p>Understanding and complying with property taxes in Spain is essential for German nationals to avoid fines and legal issues. We advise you to regularly review your tax obligations and stay informed about changes in tax laws.&nbsp;</p> <p>If you have questions or need personalized advice, do not hesitate to contact IberianTax for expert guidance on Spanish property taxes.&nbsp;</p> <p>&nbsp;</p>

<p>As property prices continue to soar across Spain, seven cities are breaking records, setting new all-time highs in both residential sales and rentals. According to the latest Idealista price index, the average price of second-hand housing in Spain has risen by 7.5% year-on-year during the second quarter of 2024, hitting 2,138&euro; per square metre. This upward trend reflects not only the <strong>increasing demand for Spanish real estate</strong> but also the ongoing challenges within the housing market. So, which cities are seeing the biggest impacts, and how does this affect non-resident property owners?</p> <p>Let&rsquo;s take a closer look at the <strong>seven Spanish cities</strong> reaching all-time <strong>high property prices</strong>: Barcelona, Madrid, Valencia, M&aacute;laga, Palma, Las Palmas de Gran Canaria, and C&aacute;diz.&nbsp;</p> <h2 style="color: #51c8b8; font-size: 18px; font-family: 'Montserrat Bold';">1. Barcelona&nbsp;</h2> <p>Barcelona remains the <strong>most expensive</strong> city in Spain to rent a property, with rental prices reaching 22.10&euro; per square metre per month. Property prices have also reached an impressive 4,430&euro;/m&sup2;. Areas such as Ciutat Vella, Sant Marti and Eixample are the most expensive districts in Barcelona to rent a property, but Gr&agrave;cia, Sants-Montju&iuml;c and Sant Andreu are the most expensive to buy.</p> <h2 style="color: #51c8b8; font-size: 18px; font-family: 'Montserrat Bold';">2. Madrid</h2> <p>The capital of Madrid is not far behind Barcelona, with property prices averaging 4,514&euro;/m&sup2; and rents at 19.80&euro;/m&sup2; per month, making it the <strong>second most expensive</strong> place to buy a property in Spain. 16 of Madrid&rsquo;s 21 districts have registered record highs for rents in August 2024, although they haven&rsquo;t yet reached record levels.</p> <h2 style="color: #51c8b8; font-size: 18px; font-family: 'Montserrat Bold';">3. Valencia&nbsp;</h2> <p>Valencia has seen the <strong>highest rent increase</strong> among the seven cities, with prices up 19% year-on-year. The property market has also risen significantly, with prices now at 2,554&euro;/m&sup2;. Whilst these prices aren&rsquo;t quite at the same level as Madrid and Barcelona, Valencia has the maximum property (2,554&euro;/m&sup2;) and rental (14.10&euro;/m&sup2;) prices.&nbsp;</p> <h2 style="color: #51c8b8; font-size: 18px; font-family: 'Montserrat Bold';">4. M&aacute;laga&nbsp;</h2> <p>The Costa del Sol's capital, M&aacute;laga, continues to experience significant growth. Property prices have risen nearly 20% to reach 3,016&euro;/m&sup2;, with rents averaging 14.50&euro;/m&sup2; per month. The city is currently seeing record rent and property prices across all areas, with properties averaging 145&euro;/m&sup2; to rent and 3,016&euro;/m&sup2; to buy. The city has seen a spike of <strong>19.9% in sales prices</strong>, the most out of all the capitals analysed in the report.&nbsp;</p> <h2 style="color: #51c8b8; font-size: 18px; font-family: 'Montserrat Bold';">5. Palma (Mallorca)&nbsp;</h2> <p>Palma, a <strong>popular destination</strong> for both tourists and expats, and the Balearic capital, now sees property prices at 4,144&euro;/m&sup2; and rents at 17&euro;/m&sup2; per month, a figure that has never been reached before. With regard to property prices, 11 of the 15 areas featured on Idealista reached the maximum prices, marking an annual increase of 9.4%.&nbsp;</p> <h2 style="color: #51c8b8; font-size: 18px; font-family: 'Montserrat Bold';">6. Las Palmas de Gran Canaria&nbsp;</h2> <p>On the island of Gran Canaria, property prices have exceeded 2,300&euro;/m&sup2; for the first time, with rents going above 13&euro;/m&sup2;. The growth in these prices reflects the increasing demand for island properties, particularly from <strong>international buyers.&nbsp;</strong></p> <h2 style="color: #51c8b8; font-size: 18px; font-family: 'Montserrat Bold';"><strong>7. C&aacute;diz&nbsp;</strong></h2> <p>C&aacute;diz rounds off the list, with property prices now at 2,885&euro;/m&sup2; and rents at 11.40&euro;/m&sup2; per month. The Playa Santa Maria del Mar-Playa Victoria area in particular has the most expensive rental prices in the city, reaching 12.10&euro;/m&sup2;. This reflects the growing demand for <strong>coastal properties</strong> in C&aacute;diz, a popular destination for both local and international buyers.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">How IberianTax Can Help Non-Resident Property Owners</h2> <p>With property prices in Spain reaching new highs, non-resident property owners face increasingly complex tax obligations. At IberianTax, we specialise in making non-resident taxes simple and stress-free. Whether you&rsquo;re renting out your property, planning to sell, or simply holding it as an investment, we ensure that your taxes are filed correctly and on time.</p> <p><a class="color-primary link-secondary" title="Our platform" href="https://www.iberiantax.com/how-it-works" target="_blank" rel="noopener">Our platform</a> allows you to file your non-resident taxes online from anywhere in the world. With prices starting as low as 34.95&euro;, our service is not only affordable but also fully recognised by the Spanish tax authorities (Agencia Tributaria). We&rsquo;ll guide you through the process, from calculating your taxes to ensuring compliance with Spanish tax laws.</p> <p>Ready to make your non-resident taxes hassle-free? <a class="color-primary link-secondary" title=" Sign up " href="https://www.iberiantax.com/register" target="_blank" rel="noopener">Sign up </a>today at IberianTax and let us handle the paperwork, so you can focus on enjoying your Spanish property.&nbsp;</p> <p>&nbsp;</p>

<p>Staying informed about your tax obligations is essential, particularly if you're a non-resident with property or business interests in Spain. As non-residents often spend significant time outside of Spain, receiving physical mail from the Spanish Tax Office can be challenging. The Spanish Tax Office (Agencia Tributaria) offers a convenient and efficient solution through electronic notifications, ensuring you receive important tax communications promptly, no matter where you are. This guide will walk you through the straightforward process of registering for electronic notifications, ensuring you remain up-to-date and compliant with Spanish tax regulations.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Why Register for Electronic Notifications?</h2> <p>For non-residents, receiving electronic notifications from the Spanish Tax Office offers several advantages:</p> <ul> <li><strong>Timely Updates</strong>: Receive instant notifications about important tax matters, deadlines, and changes in regulations.</li> <li><strong>Convenience:</strong> Access your notifications anytime and anywhere through your digital devices.</li> <li><strong>Avoid Missed Communications</strong>: Without electronic notifications, you risk missing important communications from the Tax Office if they are sent by regular mail to your Spanish address while you're away, potentially leading to penalties or compliance issues.</li> <li><strong>Efficiency</strong>: Reduce the risk of missing deadlines or important information, which can lead to penalties or issues with tax compliance.</li> </ul> <p><strong>Note</strong>: The Spanish Tax Office does not send reminders for upcoming deadlines, obligations or changes in the Spanish tax law. Therefore, it is crucial to stay vigilant. However, if you are registered on the IberianTax platform, we will send you timely reminders to help you stay on track with your tax obligations.</p> <h2 style="color: #51c8b8; font-size: 18px; font-family: 'Montserrat Bold';">Steps to Register for Electronic Notifications</h2> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">1. Obtain a Digital Certificate or Cl@ve PIN</h2> <p>To register for electronic notifications, you'll need to authenticate your identity. The Spanish Tax Agency requires a digital certificate or a Cl@ve PIN for this purpose:</p> <ul> <li style="list-style-type: none;"> <ul> <li><strong>Digital Certificate</strong>: This is a secure electronic document issued by accredited entities that verifies your identity online. It is widely used in Spain for various administrative procedures.</li> <li><strong>Cl@ve PIN</strong>: This is a system for identifying and authenticating users through a username and a PIN. It&rsquo;s a simpler alternative to the digital certificate, suitable for many administrative tasks.</li> </ul> </li> </ul> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">How to Obtain a Digital Certificate:</h3> <p>In Spain, electronic certificates are managed by the F&aacute;brica Nacional de Moneda y Timbre (FNMT). These certificates serve as a secure means of <strong>identifying individuals and companies online</strong>, allowing them to perform various digital transactions safely, such as signing documents electronically, accessing government services, and ensuring the authenticity of communications. The FNMT issues different types of certificates, including those for individuals, legal entities, and representatives, depending on the specific needs and requirements. Therefore, to obtain an electronic certificate, you must carry out the necessary procedures through this institution, which typically involves a verification process to ensure the identity of the applicant, either in person or via other secure methods.</p> <p><strong>1.</strong> Visit an accredited certification authority (such as the <a class="color-primary link-secondary" title="F&aacute;brica Nacional de Moneda y Timbre" href="https://www.sede.fnmt.gob.es/en/certificados/persona-fisica" target="_blank" rel="noopener">F&aacute;brica Nacional de la Moneda y Timbre</a> or specific banks).&nbsp;<br /><strong>2.</strong> Submit the necessary documentation and proof of identity.<br /><strong>3.</strong> Follow the instructions to receive and install your digital certificate.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">How to Obtain a Cl@ve PIN:</h3> <p>The PIN Code is an authentication system developed by the Spanish Tax Agency that enables citizens to perform <strong>online transactions</strong> and manage their affairs securely and efficiently. This code is primarily used to access services provided by the tax authorities, eliminating the need for in-person visits to their offices. The process of obtaining the PIN Code is handled through the Tax Agency itself and is designed to be straightforward, making it easier for users to manage their tax-related activities.</p> <p><strong>1</strong>. Go to the official<a class="color-primary link-secondary" title=" Cl@ve website " href="https://clave.gob.es/clave_Home/en/registro/Como-puedo-registrarme.html" target="_blank" rel="noopener"> Cl@ve website </a>or to the <a class="color-primary link-secondary" title="Tax Agency webiste" href="https://sede.agenciatributaria.gob.es/Sede/en_gb/clave.html" target="_blank" rel="noopener">Tax Agency webiste</a><br /><strong>2</strong>. Register using your personal details and identification documents.<br /><strong>3</strong>. Choose the <a class="color-primary link-secondary" title="Cl@ve PIN" href="https://clave.gob.es/clave_Home/en/PIN24H/Obtencion-clave-pin.html" target="_blank" rel="noopener">Cl@ve PIN</a> method and follow the setup instructions.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">2. Access the Spanish Tax Office&rsquo;s Website</h2> <p>Once you have your digital certificate or Cl@ve PIN, visit the Spanish Tax Office&rsquo;s official website: Agencia Tributaria and click on "<strong>Area Personal</strong>" and select "<strong>Mis notificaciones</strong>".</p> <p><span style="color: #1363b2; font-family: 'Montserrat Bold'; font-size: 18px;">3. Log In to Your Tax Account</span></p> <ul> <li><strong>With Digital Certificate</strong>: Click on the &ldquo;Certificado o DNI electr&oacute;nico&rdquo; (Access with Certificate) and select your digital certificate to log in.</li> <li><strong>With Cl@ve PIN</strong>: Click on &ldquo;Cl@ve M&oacute;vil&rdquo; (Access with Cl@ve) and enter your Cl@ve PIN credential to log in.</li> </ul> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">4. Navigate to the Electronic Notifications Section</h2> <p>After logging in, look for the section dedicated to electronic notifications. This is often found under the &ldquo;Notificaciones Electr&oacute;nicas&rdquo; or &ldquo;Sede Electr&oacute;nica&rdquo; (Electronic Headquarters) menu.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">5. Register for Electronic Notifications</h2> <p>In the electronic notifications section, you will find options to manage your notification preferences.</p> <ul> <li>Select the option to register or subscribe to electronic notifications.</li> <li>Follow the on-screen instructions to complete your registration, which may involve verifying your email address and confirming your consent to receive notifications electronically.</li> </ul> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">6. Confirm Your Registration</h2> <p>After completing the registration process, you will receive a confirmation email or notification. Ensure that you check your email and follow any additional steps required to finalize your registration.</p> <h2 style="color: #51c8b8; font-size: 18px; font-family: 'Montserrat Bold';">Managing Your Electronic Notifications</h2> <p>Once registered, you can manage your electronic notifications through the Spanish Tax Office&rsquo;s online portal. This includes:</p> <ul> <li><strong>Viewing Notifications</strong>: Access and review your notifications, tax assessments, and other relevant documents.</li> <li><strong>Updating Preferences:</strong> Adjust your notification preferences or contact details as needed.</li> <li><strong>Receiving Alerts</strong>: Stay updated on deadlines, tax obligations, and other important information.</li> </ul> <h2 style="color: #51c8b8; font-size: 18px; font-family: 'Montserrat Bold';">Support</h2> <p>If you encounter any issues during the registration process or have questions about managing your electronic notifications, the Spanish Tax Office provides support through:</p> <ul> <li><strong>Customer Service</strong>: Contact their customer service for assistance.<br /> <ul> <li><a class="color-primary link-secondary" title="Virtual Chat" href="https://www2.agenciatributaria.gob.es/wlpl/FWEB-JDIT/FChat" target="_blank" rel="noopener">Virtual Chat</a></li> <li><a class="color-primary link-secondary" title="Telephone assistance" href="https://sede.agenciatributaria.gob.es/Sede/en_gb/contacta-nosotros/telefonos-interes/dudas-sobre-cuestiones-tecnicas-informaticas_.html" target="_blank" rel="noopener">Telephone assistance</a><br />Telephone: 91 757 57 77 (also accessible through 901 200 347)<br />Schedule: Monday to Friday, 9am to 7pm (until 3pm in August).</li> <li><a class="color-primary link-secondary" title="Arrange a call" href="https://www2.agenciatributaria.gob.es/soporteaeat/Callback.nsf/CallBack?OpenForm&amp;ida=20140912125712195235106210" target="_blank" rel="noopener">Arrange a call</a></li> </ul> </li> </ul> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Conclusion</h2> <p>Registering for electronic notifications from the Spanish Tax Office is key for ensuring you do not miss communications, especially if you are frequently outside of Spain. By registering, you can receive timely notifications regardless of your location, helping you manage your tax obligations more effectively. While the Tax Office does not send reminders, IberianTax provides an added layer of security by sending you timely reminders about upcoming deadlines, ensuring you remain compliant and avoid potential penalties.</p> <p>&nbsp;</p> <p>&nbsp;</p>

<p style="text-align: justify;">The reference value (in Spanish "Valor de referencia") is an estimated value of a real estate property used by the Spanish tax authorities to calculate the taxable base for certain real estate-related taxes. This value takes into account the market price of similar properties in the same area, bringing it more in line with current real estate market conditions.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;">Application of the Reference Value in Taxes</h2> <p style="text-align: justify;">The reference value is primarily used in:</p> <ul style="text-align: justify;"> <li><strong>Property Transfer Tax (ITP)</strong>: This tax applies to the purchase of second-hand properties. The reference value serves as the basis for calculating the amount of tax owed, ensuring that the declared value in the transaction aligns with market prices.</li> <li><strong>Inheritance and Donations Tax (ISD)</strong>: In cases of inheritances and donations of real estate, the reference value is used to determine the taxable base of the tax. This ensures that the tax is based on the real value of the property rather than an arbitrary estimate.</li> </ul> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;">Differences between Cadastral Value and Reference Value</h2> <p style="text-align: justify;">The cadastral value is another key concept in property valuation but differs from the reference value in several ways:</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold'; text-align: justify;">Use of Cadastral Value:</h3> <ul style="text-align: justify;"> <li><strong>Property Tax (IBI):</strong> The cadastral value is used to calculate the IBI, which is an annual tax that property owners must pay.</li> <li><strong>Non-Resident Tax: </strong>For non-residents owning property in Spain, the cadastral value serves as the basis for calculating the non-resident imputed income tax.</li> </ul> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold'; text-align: justify;">Calculation of Cadastral Value:</h3> <p style="text-align: justify;">The cadastral value is an administrative estimate of a property&rsquo;s value, based on technical criteria rather than current market prices. Its calculation considers factors such as location, property features, and age but does not directly reflect market fluctuations.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold'; text-align: justify;">Calculation of Reference Value:</h3> <p style="text-align: justify;">Unlike the cadastral value, the reference value is directly tied to market prices. The Tax Administration calculates this value by considering recent sale prices of similar properties in the same geographical area. This provides a more up-to-date and accurate basis for taxes applied to real estate transactions and inheritances.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;">Making Non-Resident Taxes Easier</h2> <p style="text-align: justify;">For non-residents, understanding these values and how they affect your tax obligations is essential. At IberianTax, we make navigating these complexities easier. Our services help you manage your non-resident taxes efficiently, ensuring compliance and peace of mind. Whether it's understanding your tax base or filing your returns, we are here to assist. Visit our website to learn more and simplify your tax obligations today.</p> <p style="text-align: justify;">&nbsp;</p> <p>&nbsp;</p>

<p>If you own property in Spain and are considering renting it out, it&rsquo;s important to be aware of the tax obligations on the income earned. As a non-resident property owner, you are required to pay taxes on the <strong>rental income earned</strong>, which must be declared to the Spanish Tax Office (Agencia Tributaria) using <strong>Form 210</strong>.</p> <p>Calculating rental income tax can be challenging especially since the rules differ for <strong>EU and non-EU resident</strong>s, and because <strong>deductible expenses</strong> often need to be prorated according to specific regulations.&nbsp;</p> <p>This article provides a comprehensive guide to help you understand how to calculate your rental income tax in Spain, covering everything from income declaration periods to <strong>allowable deductions</strong> and <strong>tax rates</strong>. Starting in 2024, the process has shifted from quarterly declarations to an <strong>annual filing</strong>, simplifying the reporting process but requiring careful attention to detail.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">When does rental income have to be declared?</h2> <p>As of <strong>2024</strong>, rental income earned from property in Spain by non-resident property owners must be declared annually. This change simplifies the reporting process compared to previous years when declarations were made quarterly. Here are the specifics:</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Annual Declaration Period</h3> <p>Starting in 2024, the declaration period for rental income is annual: January 1st to December 31st.</p> <p>For any rental income earned during a calendar year, you must <strong>file your declaration</strong> within the first 20 days of January of the following year. For example, for rental income earned in 2024, the declaration must be filed between January 1st and January 20th, 2025.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Previous Quarterly Declaration Periods</h3> <p><strong>Before 2024</strong>, rental income declarations were submitted <strong>quarterly</strong>:</p> <ul> <li>1st quarter: January 1 - March 31</li> <li>2nd quarter: April 1 - June 30</li> <li>3rd quarter: July 1 - September 30</li> <li>4th quarter: October 1 - December 31</li> </ul> <p>For example, if you rented your property from February to August in 2023, you would have had to declare the income for the first, second, and third quarters separately.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">How to calculate your Rental Income</h2> <p>To accurately calculate your tax liability, several key factors must be considered:</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Days the Property was Rented</h3> <p>The number of <strong>days your property was rented</strong> during the fiscal year affects how certain expenses are deductible. For example, local taxes (IBI, garbage collection fees, etc.) can only be deducted proportionally based on rented days, whereas maintenance and repair costs are fully deductible regardless of the rental period if they are directly related to the earned income.&nbsp;</p> <p>Additionally, you must declare <strong>imputed income</strong> for any days the property was not rented.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Tax Residency Inside or Outside the European Union&nbsp;</h3> <p>The applicable <strong>tax rate</strong> depends on the tax residency status:</p> <ul> <li>19% for residents of the EU, Norway, Iceland, or Liechtenstein.</li> <li>24% for non-EU residents.</li> </ul> <p>It is also important to note that Non-EU residents are not permitted to deduct expenses from rental income under Spanish tax legislation. As a result, the tax burden for non-EU residents is significantly higher.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Deductible Expenses for EU Residents</h3> <p>If you are an EU resident, you can deduct several types of <a class="color-primary link-secondary" title="rental expenses" href="https://www.iberiantax.com/blog/what-deductions-can-i-take-as-an-owner-of-rental-property-in-spain" target="_blank" rel="noopener">expenses related to your rental income</a>:</p> <ul> <li><strong>Mortgage Interest</strong>: Interest on loans used to acquire or improve the property.</li> <li><strong>Local Taxes and Fees</strong>: Such as IBI and garbage collection fees, if paid by the property owner.</li> <li><strong>Service Costs</strong>: Expenses for cleaning services, rental management, and advertising.</li> <li><strong>Maintenance and Repairs</strong>: Costs for upkeep such as painting and replacing a boiler.</li> <li><strong>Property Depreciation costs</strong>: A percentage of the property&rsquo;s construction value (excluding land) can be deducted annually from the gross rental income.</li> <li><strong>Insurance Costs</strong>: Home insurance premiums.</li> <li><strong>Community Fees and Utility Bills:</strong> Includes WiFi, water, and electricity.</li> <li><strong>Furniture Depreciation</strong>: 10% of the cost of furniture annually over 10 years.</li> </ul> <p>It is important to note that <strong>maintenance and repair cost</strong>s can be <strong>fully deducted</strong> regardless of the days the property was rented as long as they are directly connected with the rental income. The same applies to expenses related to rental management, advertising, cleaning services, etc.&nbsp;</p> <p>In contrast, expenses related to the payment of <strong>local taxes</strong>, such as IBI, or garbage collection fees, can only be deducted in proportion to the days the property was rented. The same applies to <strong>community fees</strong>,<strong> property depreciation</strong>, furniture, appliances, etc.&nbsp;</p> <p>If a <strong>major renovation</strong> increases the property's value, such as changing windows and doors to improve the property's energy efficiency, these expenses can be deducted when the property is sold, <strong>increasing the acquisition value</strong> to reduce the capital gain. However, they <strong>cannot be fully deducted </strong>from the rental income earned (only via depreciation).</p> <p>FInally, although it is not mandatory to send any receipts to the tax office, it is advisable to keep all receipts and documents that justify the deductible expenses. The Tax Office can formally request the receipts within the following 4 years following the deadline.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Property and furniture depreciation</h3> <p>Depreciation is an important aspect of calculating your rental income tax as it allows you to deduct a portion of the cost of the property and its furnishings over time. Here's how you can calculate depreciation for both the property and furniture.</p> <p>To calculate the <span style="text-decoration: underline;">depreciation of your property</span>, follow these steps:</p> <ol> <li><strong>Obtain necessary values</strong>: You'll need the acquisition value, <a class="color-primary link-secondary" title="Cadastral value" href="https://www.iberiantax.com/blog/what-is-the-cadastral-value-and-how-to-find-it" target="_blank" rel="noopener">cadastral value</a>, and construction cadastral value of the property. These values are typically found on the IBI receipt and purchase deed.These values, allow to determine what share of the property value can be depreciated.</li> <li><strong>Pro-rate Based on Rental Days</strong>: Since expenses must be prorated according to the number of days the property was rented, adjust the annual depreciation amount accordingly.</li> </ol> <p><br />To calculate the <span style="text-decoration: underline;">depreciation</span> of furniture and appliances the formula is the same but taking into account that those elements have to be depreciated at 10% annually over the next 10 years.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Case Study</h2> <p>To illustrate how these calculations come together, let's consider a case study: Peter, a tax resident in Belgium, rented his property in Mijas, Malaga for 300 days in the 2024 calendar year. He earned a total of 12.000&euro; in rental income.&nbsp;</p> <ul> <li>Acquisition Value: 120,000&euro;</li> <li>Cadastral Value: 100,000&euro;</li> <li>Construction Value: 80,000&euro;</li> <li>Construction Percentage: 80,000 / 100,000 = 80%</li> </ul> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">As an EU-resident</h3> <ul> <li><strong>Total Income</strong>: 12,000&euro;</li> </ul> <p>During the 2024 fiscal year, he had the following expenses:</p> <ul> <li>Purchase of a new refrigerator (700&euro;)<br /> <ul> <li>700 &times; 10% &times; 300/365= 57.53&euro;</li> </ul> </li> <li>Paid the IBI (300&euro;)<br /> <ul> <li>300 &times; 300/365= 246.57&euro;</li> </ul> </li> <li>Repaired the boiler (200&euro;)</li> <li>Rental management (450&euro;)</li> <li>Community fees (300&euro;)<br /> <ul> <li>300 &times; 300/365= 246.57&euro;</li> </ul> </li> <li>Water, electricity, WiFi bills (1,100&euro;)&nbsp;<br /> <ul> <li>1100 &times; 300/365= 904.11</li> </ul> </li> <li>Annual Depreciation: 120,000 x 80% x 32,367.12&euro; % = 2,880&euro;<br /> <ul> <li>2,880 x 300/365 = 2,367.12&euro;</li> </ul> </li> </ul> <p>Total deductible expenses: 4,471.90&euro; (57.53 + 246.57 + 200 + 450 + 246.57 + 904.11+ 2,367.12)</p> <ul> <li><strong>Taxable Rental Income</strong>: 12,000&euro; - 4,471.90&euro; = 7,528.10&euro;</li> <li><strong>Tax rate (EU/EEA)</strong>: 19%&nbsp;</li> <li><strong>Tax liability</strong>: 7,528.10 &times; 19%= 1,430.33&euro;.</li> </ul> <p>If Peter was a non-EU resident, for example tax resident in Switzerland, the tax liability would amount to 2,880&euro; since the applicable tax rate would be 24% on the income obtained, without the possibility of deducting any expenses.&nbsp;</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';"><br />Simplify the process with IberianTax</h2> <p>To simplify this process and ensure compliance with the latest regulations, using <strong>IberianTax's tax tool </strong>can be highly beneficial. Our tool is up-to-date with current regulations and helps ensure <strong>accurate calculation</strong>s, minimizing the risk of errors and potential <a class="color-primary link-secondary" title="Penalties" href="https://www.iberiantax.com/blog/late-tax-filing-in-spain-what-could-happen" target="_blank" rel="noopener">penalties</a>. For further assistance, feel free to <a class="color-primary link-secondary" title="Register" href="https://www.iberiantax.com/dashboard" target="_blank" rel="noopener">register today</a> or <a class="color-primary link-secondary" title="contact" href="https://www.iberiantax.com/contact" target="_blank" rel="noopener">contact our team</a> at IberianTax.</p> <p>&nbsp;</p> <p>&nbsp;</p>

<p>When selling property in Spain as a non-resident, you are subject to a 3% withholding tax on the sale price. This retention is meant to cover potential capital gains tax liabilities. If your actual tax liability is less than the amount withheld, or if you incurred a loss on the sale, you can claim a refund. Here&rsquo;s how to do it:</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">When to Claim the 3% Refund</h2> <p>You can claim a refund of the 3% retention in the following situations:&nbsp;</p> <ul> <li><strong>Capital Gains Tax is less than the 3% withheld</strong></li> </ul> <p>If the actual capital gains tax calculated on the sale of your property is less than the 3% retention that was initially withheld, you are entitled to a refund of the difference.&nbsp;</p> <ul> <li><strong>Capital Loss</strong></li> </ul> <p>If you sold the property at a loss (i.e., the sale price was less than the purchase price, resulting in no capital gain), you can claim a refund of the entire 3% that was withheld.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Steps to Claim the Refund</h2> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">1. Buyer Submits Form 211</h3> <p>After selling your property, the first step involves the buyer. The buyer needs to submit Form 211 to the Spanish tax authorities. This form is crucial as it officially declares the property transaction and confirms the 3% retention that was withheld from the sale price.</p> <p>The buyer has a strict deadline to meet: they must submit Form 211 within one month of the sale date. This quick turnaround ensures that the transaction is promptly reported to the tax authorities.&nbsp;</p> <p>Additionally, the buyer must send a copy of Form 211 to the seller to prove that the withheld tax has been duly deposited with the tax authorities. The seller will need to provide Form 211 for the refund application.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">2. Seller Submits Form 210</h3> <p>As the seller, your next step is to submit Form 210. This form is where you declare the actual capital gain or loss from the sale of your property. If you made a profit, you'll report the capital gains; if you sold at a loss, you'll document this loss.</p> <p>You have a bit more time to complete this step. Form 210 must be submitted within four months from the date of the sale. This means you have three months after the buyer's submission of Form 211 to get your paperwork in order.</p> <p>When preparing Form 210, gather all necessary documentation, which typically includes the purchase and sale agreements, proof of the initial purchase price, and the final sale price. Also, include evidence of the 3% retention and any other documents that support your calculation of the actual gain or loss.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Documentation Required for the Refund application</h2> <ul> <li><strong>Copy of Form 211</strong>: Proof that the buyer has declared the transaction and the 3% retention.</li> <li><strong>Bank Account Certificate</strong>: Certificate of account ownership of the bank account where the funds should be refunded.</li> </ul> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Additional Supporting Documents (to expedite the process):</h3> <ul> <li><strong>Proof of Purchase and Sale</strong>: Provide the deeds (Escritura de Compraventa) for both the purchase and sale of the property.</li> <li><strong>Deductible Expenses</strong>: Include invoices for any improvements or refurbishments and any costs related to the purchase and sale (e.g., legal fees, real estate commissions).</li> </ul> <p>These documents can be submitted online using the &ldquo;aportaci&oacute;n de documentaci&oacute;n complementaria&rdquo; option on the Agencia Tributaria website, which requires an electronic certificate.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Timing for Resolution</h2> <p>Typically, the Spanish tax authorities take about 6 to 12 months to process and issue a resolution regarding the refund claim. However, the timing can vary based on the completeness and accuracy of the submitted documents and the workload of the tax office handling your case​.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Steps to Ensure an Efficient Refund Claim</h2> <ol> <li><strong>Prepare Documentation:</strong> Gather all necessary documents in advance, including the purchase and sale agreements, proof of the initial purchase price, the final sale price, and evidence of the 3% retention. Having these documents ready will streamline the submission process.</li> <li><strong>Submit Forms Timely: </strong>Adhere to the deadlines for submitting both Form 211 (by the buyer within one month of the sale) and Form 210 (by you, within four months of the sale). Timely submission is key to avoiding delays.</li> <li><strong>Seek Professional Help</strong>: Given the complexities involved in the refund process, consider using professional services like IberianTax for filing your tax refund applications accurately and completely online. IberianTax specializes in handling non-resident tax returns in Spain and can ensure that all requirements are met promptly and accurately. Their expertise can save you time and help you avoid potential pitfalls, ensuring compliance with Spanish tax regulations.</li> </ol> <p>By following these steps and ensuring all necessary documentation is in order, you can efficiently claim a tax refund on the sale of your Spanish property if your capital gains tax liability is below the 3% withholding amount.</p>

<p>The deadlines established under Spanish tax law and the regulations governing the calculation of taxes can sometimes be confusing. This confusion often results in taxpayers either paying the same tax twice or paying more than they owe.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Procedure for Requesting a Refund</h2> <p>&nbsp;When a taxpayer pays more taxes than required, it is crucial to understand that Spanish law provides a mechanism to obtain a refund of these amounts. The procedure for refunding improper payments is regulated by the General Tax Law and is a special procedure that recognizes the right to a refund in the following cases:</p> <ul> <li><strong>Double Payment of Tax Debts or Penalties:</strong></li> </ul> <p>Example: Paying the imputed income tax for the 2022 tax year twice.</p> <ul> <li><strong>Payment Exceeding the Amount Due:</strong></li> </ul> <p>Example: Purchasing a property in June 2022 but paying imputed income tax for the entire 2022 tax year.</p> <ul> <li><strong>Payment of Debts or Penalties after the Prescription Period:</strong></li> </ul> <p>Example: Submit the 2018 tax year, which is already prescribed.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Real Cases</h2> <p>For instance, the imputed income tax often causes confusion regarding the period that must be declared. If a property in Spain was purchased on June 1st, 2022, the 2022 tax year should be declared only from the acquisition date, not for the entire year. Therefore, if the tax return was initially filed for 365 days instead of the correct 213 days, a refund can be requested for the excess payment. This reduces the tax amount significantly.</p> <p>Similarly, if two returns are filed for the same fiscal year due to an inadvertent error, a full refund of the second payment can be requested. If taxes were declared for a period that is already prescribed, such as the 2018 tax year, a refund can be claimed since the payment is no longer legally required.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">How do we solve this?</h2> <p>To request a refund for improperly paid taxes, the taxpayer must submit a written request to the Spanish Tax Office. The request should justify the reason for the refund and include supporting documents proving that the tax should not have been paid. For example, to prove that tax was incorrectly paid for the entire tax year, the following must be provided:</p> <ul> <li>Purchase deed of the property to show the acquisition date.</li> <li>Previously submitted Model 210 to show tax payment.</li> <li>Bank account ownership certificate to confirm the account holder.</li> </ul> <p>For duplicate returns, both Model 210 forms must be provided. For prescribed tax years, the Model 210 justifying the payment.&nbsp;In both cases, a certificate of ownership of the indicated bank account is required in order for the refund to be issued.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Procedure Steps</h2> <ol> <li><strong>Refund Request</strong>: The taxpayer submits a refund request to the Tax Office with documentation justifying the improper payment.</li> <li><strong>Request Review</strong>: The Tax Office reviews the request and verifies the improper payment.</li> <li><strong>Resolution</strong>: Upon confirming the improper payment, the Tax Office issues a resolution recognizing the right to a refund.</li> <li><strong>Refund Payment:</strong> They refund the appropriate amount to the taxpayer, typically via bank transfer.</li> </ol> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Important Considerations</h2> <ul> <li><strong>Deadlines:</strong> Refund requests must be made within the statutory period, generally four years from the date of improper payment.</li> <li><strong>Interest on Delays:</strong> In some cases, the Tax Office must pay interest on the refunded amounts to compensate the taxpayer for the time the money was held by the state.</li> </ul> <p>This procedure ensures taxpayers can recover overpayments and protects their rights against potential errors in fulfilling their tax obligations.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Process Duration</h2> <p>The Tax Office has six months to resolve the case and approve or deny the refund. Communications regarding the procedure will be sent by postal mail to the taxpayer's address in Spain.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Manage Your Requests with IberianTax</h2> <p>At <a class="color-primary link-secondary" href="https://www.iberiantax.com/dashboard" target="_blank" rel="noopener">IberianTax</a>, we ensure your refund requests are processed promptly. We provide detailed explanations of each step in the process and communications from the Tax Office.</p>

<p>Purchasing a property in Spain is an appealing investment, particularly for non-residents seeking a holiday home or a rental property. However, navigating the complex Spanish tax system can be daunting. Understanding the various taxes involved in buying, owning, and selling real estate in Spain is crucial to making informed decisions and avoiding unexpected costs.</p> <p>At IberianTax, we recognize the challenges non-resident property owners face. That&rsquo;s why we've created this comprehensive guide to simplify the process for you. This guide is designed to provide you with clear, concise, and thorough information on all aspects of Spanish property taxes. With our expert insights, you&rsquo;ll be well-equipped to manage your investment effectively and ensure compliance with Spanish tax laws.</p> <p>Whether you&rsquo;re purchasing your dream holiday home, investing in a rental property, or planning to sell your Spanish property, this guide will help you understand the tax implications at every stage. Let&rsquo;s dive in and explore the essential tax information you need to know.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">1. Taxes on property purchase</h2> <p>When acquiring a property in Spain, several taxes must be paid at the time of purchase. These taxes vary depending on whether the property is new or second-hand.</p> <p>Here&rsquo;s a detailed look at the taxes you&rsquo;ll encounter at the time of purchase:</p> <h2 style="color: #51c8b8; font-size: 18px; font-family: 'Montserrat Bold';">A. Taxes on the purchase of new properties</h2> <p><strong>Value Added Tax (VAT)</strong></p> <p>If you purchase a new property in Spain, VAT at a rate of 10% is applicable. This rate applies to the property itself and up to two parking spaces (Article 91.1.7&ordm; LIVA).&nbsp;</p> <p><strong>Stamp Duty</strong></p> <p>Stamp Duty, also known as AJD (Actos Jur&iacute;dicos Documentados), is another tax that is is applicable hen purchasing a new property. The rate varies between 0.5% and 1.5% depending on the region. For instance, in Andalusia, the rate is 1.5%, whereas in Madrid it is 0.75%.</p> <h2 style="color: #51c8b8; font-size: 18px; font-family: 'Montserrat Bold';">B. Taxes on the purchase of second-hand properties</h2> <p><strong>Property Transfer Tax (ITP)</strong></p> <p>For second-hand properties, the Property Transfer Tax (Impuesto de Transmisiones Patrimoniales, ITP) must be paid instead of VAT. The rate varies depending on the autonomous region where the property is located, generally ranging from 6% to 10%. For example:</p> <ul> <li>In Madrid, the rate is typically 6%.</li> <li>In Andalucia, the rate is typically 7%.</li> <li>In the Balearic Islands, the rate ranges between 8 to 13%.</li> <li>In Catalonia, the rate can be as high as 10%.</li> <li>In C.Valenciana, the rate ranges between 8 to 10%</li> </ul> <p><strong>Additional costs</strong></p> <p>In addition to the taxes, there are other costs associated with purchasing a property in Spain:</p> <ul> <li><strong>Notary Fees</strong>: These are fees for the notary who certifies the purchase deed. The cost depends on the property price and the complexity of the transaction but it usually represents a small percentage of the property price (0.2 to 0.5%)</li> <li><strong>Land Registry Fees</strong>: After the notary signs the deed, it must be registered in the Land Registry. The registration fee is based on a scale and usually represents a small percentage of the property price (0.1 to 0.25%).</li> <li><strong>Mortgage Arrangement Fees</strong>: If you are financing your purchase with a mortgage, there are additional costs such as the bank&rsquo;s arrangement fee, property valuation fee, and sometimes mortgage insurance.</li> </ul> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">2. Taxes during property ownership</h2> <p>Owning a property in Spain involves ongoing tax obligations. These include both non-resident taxes and local taxes.</p> <h2 style="color: #51c8b8; font-size: 18px; font-family: 'Montserrat Bold';">A. Non-Resident Income Tax&nbsp;</h2> <p>The Non-Resident Income Tax, known in Spanish as "Impuesto sobre la Renta de no Residentes" (IRNR), is a national tax applicable to non-resident taxpayers who own property in Spain.&nbsp;</p> <p>A non-resident is an individual who does not reside in Spain for more than 183 days in a calendar year and whose primary economic interests are not based in Spain. Non-residents include foreign citizens who own property in Spain but live abroad, either using the property for personal use or renting it out.</p> <p><strong>Imputed Income Tax</strong></p> <ul> <li><strong>What is Imputed Income Tax?</strong></li> </ul> <p>Imputed Income Tax applies to the potential rental income a property could generate while it is vacant. This tax is based on the notional income of the property, meaning it is a hypothetical income calculated even if the property is not actually rented out.</p> <ul> <li><strong>How is Imputed Income Tax calculated?</strong></li> </ul> <p>The tax is calculated based on the property's cadastral value, which is an official valuation used for tax purposes.The base rate is 1.1% or 2% depending on whether the cadastral value has been reviewed in the past 10 years under a General Collective Valuation procedure.</p> <ul> <li style="list-style-type: none;"> <ul> <li>1.1% if the cadastral value has been reviewed in the past 10 years.</li> <li>2% if the cadastral value has not been reviewed in the past 10 years.</li> </ul> </li> </ul> <p>The tax rate is 19% for EU residents and 24% for non-EU residents.</p> <ul> <li><strong>What form is used to declare Imputed Income Tax?</strong></li> </ul> <p>Non-residents must use the Modelo 210 tax form to declare Imputed Income Tax.</p> <ul> <li><strong>When is the filing period for Imputed Income Tax?</strong></li> </ul> <p>Non-residents must file the Modelo 210 tax form annually to declare this tax. The filing period is from January 1st to December 31st of the following year.</p> <p><strong>Rental Income Tax</strong></p> <ul> <li><strong>What is Rental Income Tax?</strong></li> </ul> <p>Rental Income Tax is applicable to non-resident property owners in Spain who rent out their property. It taxes the rental income earned from the property.</p> <ul> <li><strong>How is Rental Income Tax calculated?</strong></li> </ul> <p>EU residents can deduct expenses related to the rental from their income, and the tax rate is 19% on the net rental income. Non-EU residents cannot deduct expenses and are taxed at a rate of 24% on the gross rental income.</p> <ul> <li><strong>What form is used to declare Rental Income Tax?</strong></li> </ul> <p>Rental income must be declared using the Modelo 210 tax form.</p> <ul> <li><strong>When is the filing period for Rental Income Tax?</strong></li> </ul> <p>Starting from 2024, rental income must be declared annually between January 1st and January 20th for the previous year.</p> <h2 style="color: #51c8b8; font-size: 18px; font-family: 'Montserrat Bold';">B. Wealth Tax</h2> <p>The Wealth Tax is a national tax, but the tax rates and exemptions are regulated by each autonomous region, resulting in variations across Spain. This tax is applied to the net assets you hold as of December 31st each year, exceeding the minimum threshold exempt from taxation. For example:</p> <ul> <li>In Catalonia, the exemption threshold is &euro;500,000, with tax rates ranging from 0.21% to 2.75%.</li> <li>In Andalusia, the exemption threshold is &euro;700,000, and from 2022, this tax has been abolished.</li> <li>In the Balearic Islands, the exemption threshold is &euro;3,000,000 with tax rates ranging from 0.28% to 3.45%.</li> <li>In Comunidad Valenciana, the exemption threshold is &euro;500,000, with tax rates ranging from 0.25% to 3.5%</li> </ul> <p>If your property exceeds the exemption threshold, you must file Modelo 714.</p> <h2 style="color: #51c8b8; font-size: 18px; font-family: 'Montserrat Bold';">C. Great Fortunes Tax</h2> <p>Introduced in December 2022, the Great Fortunes Tax is a wealth tax targeting individuals with significant net wealth in Spain. This tax is designed to ensure that those with substantial assets contribute a fair share to public finances.</p> <ul> <li><strong>Who is subject to the Great Fortunes Tax?</strong></li> </ul> <p>Individuals with a net wealth in Spain exceeding &euro;3,000,000 are subject to this tax. It applies to both residents and non-residents with substantial assets in Spain.</p> <ul> <li><strong>How is the Great Fortunes Tax calculated?</strong></li> </ul> <p>The tax rate ranges from 1.7% to 3.5%, depending on the total net wealth.</p> <ul> <li style="list-style-type: none;"> <ul> <li>1.7% for net wealth between &euro;3,000,000 and &euro;5,347,998.</li> <li>2.1% for net wealth between &euro;5,347,999 and &euro;10,695,996.</li> <li>3.5% for net wealth exceeding &euro;10,695,996.</li> </ul> </li> </ul> <ul> <li><strong>What form is used to declare Great Fortunes Tax?</strong></li> </ul> <p>Great Fortunes Tax must be declared using the Modelo 718 tax form.</p> <ul> <li><strong>When is the filing period for Great Fortunes Tax?</strong></li> </ul> <p>Great Fortunes Tax must be declared annually between July 1st and July 31st for the previous year.</p> <h2 style="color: #51c8b8; font-size: 18px; font-family: 'Montserrat Bold';">D. Local Taxes</h2> <p>In addition to national taxes, non-resident property owners must also pay local taxes. These local taxes cover various municipal services and obligations, ensuring the upkeep and development of the local community.</p> <p>Typically, local taxes and service fees are paid via direct debit from your bank account. Setting up a direct debit ensures that these payments are made automatically, preventing missed payments and potential penalties. It's advisable to coordinate with your local municipality or your bank to establish these direct debit arrangements.</p> <p><strong>Impuesto sobre Bienes Inmuebles (IBI)</strong></p> <p>The Impuesto sobre Bienes Inmuebles (IBI) is an annual property tax based on the property's cadastral value. This tax is similar to a council tax and is used to fund local services and infrastructure.</p> <p>The IBI is collected by local authorities, known as Ayuntamientos, or by other institutions responsible for tax collection in specific regions, such as SUMA in the Alicante region or Patronato de Recaudaci&oacute;n in the Malaga region.</p> <p><strong>Other local services</strong></p> <p>In addition to the IBI, non-resident property owners will need to pay for various local services such as rubbish collection and waste management. These services are essential for maintaining the cleanliness and functionality of the community.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">3. Taxes on property sale</h2> <p>When selling a property in Spain, several taxes must be considered:</p> <h2 style="color: #51c8b8; font-size: 18px; font-family: 'Montserrat Bold';">A. Non-Resident Income Tax: Capital Gains Tax</h2> <p>When you sell a property in Spain, you are required to pay tax on the profit made from the sale, known as Capital Gains Tax.&nbsp;</p> <ul> <li><strong>How is Capital Gains Tax calculated?</strong></li> </ul> <p>The profit, or capital gain, is calculated as the difference between the purchase price (including any expenses related to the purchase) and the sale price (after deducting any costs related to the sale).</p> <p>The tax rate for both EU and non-EU residents is the same: 19% of the capital gain.</p> <ul> <li><strong>What form is used to declare Capital Gains Tax for non-residents?</strong></li> </ul> <p>Non-residents must file the Modelo 210 tax form to declare the capital gains tax.&nbsp;</p> <ul> <li><strong>What is the filing deadline for the Modelo 210 form for Capital Gains Tax?</strong></li> </ul> <p>The filing term for this form is within 4 months from the date of sale.</p> <ul> <li><strong>What is the 3% Withholding Tax?</strong></li> </ul> <p>When the seller is a non-resident taxpayer, the buyer is required to withhold 3% of the sale price to cover potential capital gains tax. This is done by submitting Modelo 211 tax form, which must be filed within 1 month from the sale date. The buyer must provide a copy of Form 211 to the seller, who will need it to complete their capital gains tax declaration.</p> <p>The 3% withholding tax will be deducted from the final tax liability.</p> <ul> <li><strong>What if the property is sold at a loss or the capital gains tax is less than 3%?</strong></li> </ul> <p>If the property is sold at a loss, the seller can claim back the 3% withholding tax. Additionally, if the actual capital gains tax liability is less than the 3% withheld, the seller can claim the difference.</p> <h2 style="color: #51c8b8; font-size: 18px; font-family: 'Montserrat Bold';">B. Local Tax on the Increase in the Urban Land Value (Plusval&iacute;a Municipal)</h2> <p>The Plusval&iacute;a Municipal, officially known as "Impuesto sobre el Incremento del Valor de los Terrenos de Naturaleza Urbana" (IIVTNU), is a local tax on the increase in the value of urban land since its purchase. This tax is in addition to the national Non-Resident Income Tax and is levied by the Ayuntamientos (municipal authorities).</p> <ul> <li><strong>When is the Plusval&iacute;a Municipal tax applicable?</strong></li> </ul> <p>You must pay this tax when you sell a property if the land's value has increased since the purchase. If the sale results in a loss, you are exempt from paying this tax but must inform the town hall (Ayuntamiento).</p> <ul> <li><strong>Who is responsible for paying the Plusval&iacute;a Municipal tax?</strong></li> </ul> <p>Typically, the seller is responsible for paying this tax. However, when the seller is a non-resident, the tax is withheld directly from the selling price, and the buyer is responsible for depositing this tax with the Ayuntamiento.</p> <ul> <li><strong>How is the Plusval&iacute;a Municipal tax calculated?</strong></li> </ul> <p>As of the changes implemented in November 2021, there are two methods to calculate this tax, and sellers can choose the one that is most favourable to them:</p> <ul> <li style="list-style-type: none;"> <ul> <li><strong>Objective Method:</strong> Based on the increase in the cadastral value of the land during the period of ownership.</li> </ul> </li> </ul> <p style="text-align: center;">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; Cadastral land value &times; Coefficient (based on years of ownership)</p> <p style="text-align: center;">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; The taxable amount is then multiplied by a coefficient set by the municipality, with a maximum rate of 30%.</p> <ul> <li style="list-style-type: none;"> <ul> <li><strong>Effective Method:</strong> Based on the actual increase in the property's value, calculated as the difference between the sale price and the purchase price. The formula is:</li> </ul> </li> </ul> <p style="text-align: center;">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; (Sale price &minus; Purchase price) &times; (Cadastral land value/Total cadastral value)</p> <p style="text-align: center;">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; This amount is then multiplied by the municipal coefficient, up to a maximum of 30%.</p> <p>The final tax rate for the Plusval&iacute;a Municipal depends on the municipality where the property is located. Each Ayuntamiento sets its own rates and calculations.</p> <h2 style="color: #51c8b8; font-size: 18px; font-family: 'Montserrat Bold';">C. Additional Costs</h2> <p>Apart from the taxes mentioned, you should also budget for fees related to legal services, real estate agents, and other professionals involved in the selling process.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Conclusion</h2> <p>Navigating the Spanish tax system can be complex, especially for non-residents. Understanding these taxes will help you manage your property investment more effectively and avoid unforeseen expenses. For personalized assistance and to ensure compliance with all tax obligations, consider using IberianTax. Our platform offers high-quality tax filing services at a reasonable cost, backed by excellent customer support. IberianTax can help you manage your tax obligations online easily.</p>

<p>For UK citizens owning property in Spain, understanding the tax obligations is crucial, especially post-Brexit. The Spanish tax system imposes several obligations on non-resident property owners, encompassing income tax, property tax, and capital gains tax. Here&rsquo;s a detailed guide on what UK citizens need to know about their tax responsibilities in Spain.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Non-Resident Income Tax (Modelo 210)</h2> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Imputed Income</h3> <p>For non-residents who own property in Spain that is not rented out, an imputed income tax is levied. This tax is based on a percentage of the property&rsquo;s cadastral value (valor catastral), which is the value assigned by the local municipality for tax purposes. The imputed income rate is 2% of the cadastral value, or 1.1% if the cadastral value has been revised in the last ten years. The tax rate applied to this imputed income is 24% for UK citizens post-Brexit.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Rental Income</h3> <p>Non-residents who rent out their property must declare the rental income received. The tax rates and deductions have changed post-Brexit:</p> <p>Pre-Brexit:</p> <ul> <li>Income Tax Rate: 19% on rental income.</li> <li>Deductions: Rental expenses such as maintenance costs, local taxes, and mortgage interest were deductible.</li> </ul> <p>Post-Brexit:</p> <ul> <li>Income Tax Rate: 24% on rental income.</li> <li>Deductions: Rental expenses are no longer deductible for UK citizens. This means the gross rental income is subject to the 24% tax without any allowances for expenses.</li> </ul> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Capital Gains</h3> <p>The capital gains tax rate for non-residents selling property in Spain remains the same, regardless of the owner&rsquo;s residency status. Both pre- and post-Brexit, UK citizens are subject to a flat rate of 19% on any gains from the sale of property. Expenses related to the acquisition and sale of the property, such as legal fees, improvement costs, and agent commissions, remain deductible for non-residents, including those from non-EU countries.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Property Tax (IBI)</h2> <p>All property owners in Spain, including non-residents, must pay the local property tax, known as Impuesto sobre Bienes Inmuebles (IBI). The rate varies depending on the property&rsquo;s location and the local municipality&rsquo;s regulations.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Wealth Tax</h2> <p>Non-resident property owners may also be subject to Spain&rsquo;s Wealth Tax if their worldwide assets exceed certain thresholds. The rates and thresholds for 2024 in different regions are as follows:</p> <p>Exempt Thresholds for 2024:</p> <ul> <li>Balearic Islands: The exemption threshold is &euro;3,000,000. Above this amount, the tax rates range from 0.2% to 2.5% depending on the value of the assets.</li> <li>Andaluc&iacute;a: The exemption threshold is &euro;1,000,000. Above this amount, the tax rates range from 0.2% to 2.5%.</li> <li>Catalonia: The exemption threshold is &euro;500,000. Above this amount, the tax rates range from 0.2% to 2.5%.</li> </ul> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Special Considerations</h2> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Double Taxation Agreement</h3> <p>The UK and Spain have a Double Taxation Agreement (DTA) to prevent double taxation on income and gains. This agreement allows UK citizens to offset the Spanish tax paid on their rental income or capital gains against their UK tax liability on the same income or gains.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Annual Tax Filing Deadlines (Starting 2024)</h2> <p>From 2024, the filing deadlines for non-resident taxes in Spain are as follows:</p> <p><strong>Imputed Income:</strong></p> <p>The imputed income is declared the following year. Therefore, the imputed income return for 2023 must be declared within 2024 by 31st December (20th December for Direct Debit).</p> <p><strong>Rental Income:</strong></p> <p>Rental income must be declared annually from 2024 (previously, it was quarterly). The filing period is the first 20 days of January of the following year. Rental income earned in 2024 must be reported in the first 20 days of January 2025.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Consequences of Missing Tax Obligations</h2> <p>Failing to comply with Spanish tax obligations can lead to significant consequences. The Spanish tax office (Hacienda) can review tax filings and impose penalties for up to four tax years retrospectively. If a non-resident voluntarily declares past periods, the penalties are lower, with a maximum of 15% of the owed tax. However, if the tax office requests the submission, the penalties are much steeper, starting from 50% of the owed tax. This substantial difference underscores the importance of proactive compliance and timely tax filing.</p> <p>&nbsp;</p> <p>Understanding these tax obligations helps UK citizens avoid unexpected liabilities and ensure compliance with Spanish tax laws. While Brexit has introduced some unfavourable changes, being informed and proactive about these tax responsibilities is essential for UK property owners in Spain. For tailored advice and assistance with your tax filings, consider using IberianTax's expert services.</p>

<p>The Mediterranean coast and Spanish archipelagos are hotspots for foreign property buyers. According to <a class="color-primary link-secondary" title="Idealista" href="https://www.idealista.com/" target="_blank" rel="noopener">Idealista</a>, over 100 districts and neighbourhoods see more than 50% of interest coming from abroad. We&rsquo;re going to be taking a detailed look at the most popular areas and the nationalities most interested in them.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Top Coastal Areas for Foreign Buyers</h2> <p>In Roses, Girona, neighbourhoods such as Port Esportiu. Puig Rom and Canyelles are highly popular, with French buyers making up 72% of the demand. Calpe, in Alicante, particularly the Maryvilla district, sees major interest from Dutch buyers, also at 72%. In Andratx, Balearic Islands, areas like Es Camp de Mar and Port d'Andratx attract significant foreign interest, with Germans dominating demand at over 66%. Torrevieja in Alicante is favoured by Swedes, especially in the Frutales area, with Swedish interest peaking at 65%.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Recent Trends in Foreign Property Purchases</h2> <p>From 2021 to 2023, foreign home purchases in Spain saw a significant rise, with foreigners making 15% of total home purchases in 2023, up from 13.8% in 2022. The first quarter of 2024 continues this trend, with foreign demand at 14.2%.</p> <p>The Property Registrars report that in recent years, the Mediterranean arc and the Balearic and Canary Islands have consistently attracted foreign buyers, with the percentage of transactions involving foreigners significantly exceeding national averages. This consistent demand underscores the appeal of Spain&rsquo;s coastal and island regions, known for their sun, sea, and relaxed lifestyle.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Popular Locations by Province</h2> <p>In Alicante province, areas like Moraira and Orihuela (Playa Flamenca and La Zenia) are highly popular, with foreign interest ranging from 64% to 65%. The province has 30 high-demand locations overall.&nbsp;</p> <p>The Balearic Islands feature areas such as Cala Ratjada, Canyamel, and Cala d'Or, with significant foreign interest. Santa Cruz de Tenerife has 23 high-demand locations, including Playa de Fa&ntilde;ab&eacute; and La Caleta in Adeje. Girona, with popular spots like Santa Margarida and Empuriabrava. &nbsp;</p> <p>In M&aacute;laga province, Nerja&rsquo;s districts such as Burriana and Nueva Nerja, each have 12 high-demand locations. Finally, there is Las Palmas, including areas like Taurito-Playa de Mog&aacute;n and Playa del Ingl&eacute;s, which also has 12 high-demand locations.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Leading Nationalities</h2> <p>Germans now top the list of buyers, especially in the Balearic and Canary Islands, followed by Swedes and the Dutch. The British, while still major home buyers in Spain, surprisingly do not lead in demand in the highest-interest locations. Other significant nationalities include French buyers in Girona and Italians in the Canary Islands.</p> <p>This shift in demand highlights the growing diversity among foreign buyers in Spain. The Germans, in particular, have shown a strong preference for the Balearic Islands, while the Dutch and Swedes favour Alicante and M&aacute;laga. This diversification is beneficial for the Spanish property market, ensuring steady demand across various regions and mitigating the risk associated with reliance on a single nationality.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Navigating Non-Resident Property Taxes with IberianTax</h2> <p>As the popularity of Spanish properties among foreign buyers continues to rise, navigating the complexities of purchasing property and managing tax obligations in Spain can be challenging for non-residents. This is where IberianTax comes in!</p> <p>IberianTax offers an <a class="color-primary link-secondary" title="IberianTax" href="https://www.iberiantax.com/how-it-works" target="_blank" rel="noopener">online platform</a> that allows you to file your taxes conveniently anytime, anywhere. Our services start from just &euro;34.95, providing an affordable and user-friendly solution that&rsquo;s fully approved by the Spanish tax authorities. Whether you're dealing with Imputed Income, Rental Income, or Capital Gains Taxes, IberianTax simplifies the process, ensuring compliance while saving you time and stress.</p> <p>One of the key advantages of using IberianTax is the ability to file your tax returns online in minutes. Our platform is designed to be intuitive and easy to use, even for those who have never filed a tax return before. This ease of use is complemented by our comprehensive customer support, available in multiple languages, including English, German, and French.</p> <p>IberianTax is fully recognised and approved by the Spanish tax authorities, giving you peace of mind that your tax filings are in good hands. The secure payment system ensures your financial information is protected, and the entire process can be completed from the comfort of your home, without the need to be physically present in Spain.</p> <p>By choosing IberianTax, you can ensure that your tax obligations in Spain are met efficiently and affordably, allowing you to focus on enjoying your property without the administrative burden. Our goal is to make the tax filing process as seamless as possible, providing you with the tools and support you need to stay compliant with Spanish tax laws.&nbsp;</p> <p><a class="color-primary link-secondary" title="Register" href="https://www.iberiantax.com/register" target="_blank" rel="noopener">Register</a> for your free account with IberianTax today, and we&rsquo;ll send you convenient reminders when your non-resident taxes are due &ndash; it couldn&rsquo;t be easier!&nbsp;</p>

<p style="text-align: justify;">Inheriting property in Spain can present a range of tax obligations. From inheritance tax to non-resident taxes such as imputed income and capital gains tax, it is essential to understand these requirements for effective estate management. This guide provides non-resident property owners with the necessary information to navigate these responsibilities confidently.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;"><br />Inheritance and Gift Tax</h2> <p style="text-align: justify;">Inheritance and Gift Tax in Spain applies to the transfer of assets, including real estate, from a deceased person to their heirs. This progressive tax increases with the value of the inheritance and varies across Spain's regions. EU residents can choose to apply either regional or state tax rates, while non-EU residents must use the state tax rate.</p> <p style="text-align: justify;"><br />The Inheritance Tax must be filed within six months from the date of death. An extension of six additional months can be requested before the initial deadline expires.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;"><br />Imputed Income Tax (Non-Resident Tax)</h2> <p style="text-align: justify;">When inheriting property in Spain, heirs are liable for <a class="color-primary link-secondary" title="imputed income tax" href="https://www.iberiantax.com/modelo-210/imputed-income" target="_blank" rel="noopener">imputed income tax </a>from the date of the deceased&rsquo;s death.</p> <p style="text-align: justify;"><br /><strong>Calculation:</strong> Imputed income tax is calculated as 1.1% or 2% of the property's cadastral value, taxed at a rate of 19% for EU residents and 24% for non-EU residents. For instance, if the cadastral value is &euro;300,000 and the property is inherited on March 1, the imputed income tax for the year is calculated for the period from March 1 to December 15 (290 days).</p> <p style="text-align: justify;"><br /><strong>Filing:</strong> This tax must be declared via the Modelo 210 tax form and paid by December 31st of the following year. For property inherited on March 1st, 2024, the imputed income tax filing deadline would be December 31st, 2025.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;"><br />Capital Gains Tax (Non-Resident Tax)</h2> <p style="text-align: justify;">If the heir decides to sell the inherited property, <a class="color-primary link-secondary" title="capital gains tax" href="https://www.iberiantax.com/modelo-210/capital-gains-tax" target="_blank" rel="noopener">capital gains tax </a>applies to the difference between the property's declared value in the inheritance tax and the transfer (sale) value.</p> <p style="text-align: justify;"><br /><strong>Calculation:</strong> Capital gains tax is calculated by subtracting the acquisition value (value declared in the inheritance tax) from the sales value. The tax rate is 19% for EU residents and 24% for non-EU residents. For example, if the property was inherited at a value of &euro;500,000 and sold for &euro;600,000 on December 15th, 2024, the capital gain would be &euro;100,000.</p> <p style="text-align: justify;"><br /><strong>Deductible Expenses</strong>: Certain expenses related to the acquisition and sale, such as notary fees, legal fees, and improvements made to the property, can be deducted from the capital gain.</p> <p style="text-align: justify;"><br /><strong>Payment and Filing: </strong>The capital gains tax must be paid and filed via the Modelo 210 tax form within four months from the sale date. For a sale on December 15th, 2024, the filing deadline would be April 15th, 2025. Additionally, the buyer must withhold 3% of the purchase price as an advance payment towards the seller&rsquo;s capital gains tax.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;"><br />Plusval&iacute;a Municipal (Municipal Capital Gains Tax)</h2> <p style="text-align: justify;">Plusval&iacute;a Municipal is a local tax applied to the increase in land value from the date the deceased acquired the property to the date of death, and again at the time of sale.</p> <p style="text-align: justify;"><br /><strong>Calculation:</strong> This tax is based on the cadastral value of the land and the number of years it has been owned. The tax rates and calculation methods vary by municipality.</p> <p style="text-align: justify;"><br /><strong>Filing</strong>: For inheritance, the Plusval&iacute;a Municipal tax must be paid within six months from the date of death. For property sale, it must be paid within 30 days of the sale.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;"><br />Local Taxes</h2> <p style="text-align: justify;"><strong>Property Tax (IBI):</strong> Impuesto sobre Bienes Inmuebles (IBI) is an annual property tax based on the cadastral value of the property. It is paid to the local municipality and is due from the date of acquisition (the date of the deceased&rsquo;s death).&nbsp;</p> <p style="text-align: justify;"><strong>Rubbish Collection Tax:</strong> This local tax covers the cost of waste collection services and is typically billed annually. The exact amount and payment schedule depend on the municipality.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold'; text-align: justify;"><br />An Example Situation</h3> <p style="text-align: justify;">An EU resident who inherits a property in the Balearic Islands, valued at &euro;500,000 on March 1st 2024, and sells it on December 15th, 2024:&nbsp;</p> <p style="text-align: justify;"><strong>Inheritance Tax:</strong> This tax must be filed by September 1st, 2024. Assume a regional inheritance tax rate of 15% after allowances.</p> <p style="text-align: justify;"><strong>Imputed Income Tax:</strong> The cadastral value of the property is &euro;300,000. Imputed income tax is calculated for 290 days (March 1st to December 15th) at 1.1% of &euro;300,000, taxed at 19% for EU residents:</p> <p style="text-align: justify;">Imputed Income = 1.1% &times; 300,000&euro; = 3,300 &times; 290/365 = 2,617&euro;</p> <p style="text-align: justify;">Tax Payable = 19% &times; 2,617&euro; = 497&euro;</p> <p style="text-align: justify;">This must be filed by December 31st, 2025.</p> <p style="text-align: justify;"><strong>Capital Gains Tax:</strong> If the property is sold for 600,000 &euro; the gain is 100,000&euro;. However, deductible expenses may reduce this amount. The tax payable is:</p> <p style="text-align: justify;">19% &times; 100,000&euro; = 19,000&euro;</p> <p style="text-align: justify;">This must be filed and paid by April 15th, 2025.</p> <p style="text-align: justify;"><strong>Plusval&iacute;a Municipal</strong>: This is calculated based on the increase in the cadastral value of the land from the date the deceased acquired the property to March 1st, 2024 (the date of death), and again at the time of sale. The inheritance Plusval&iacute;a Municipal must be paid by September 1st, 2024, and the sale Plusval&iacute;a Municipal must be paid by January 14th, 2025 (30 days after the sale).</p> <p style="text-align: justify;"><strong>Local Taxes:</strong> The heir must also pay the IBI and rubbish collection tax from the date of inheritance.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;"><br />Simplify Your Tax Obligations with IberianTax</h2> <p style="text-align: justify;">Finding your way through the intricacies of Spanish tax laws when inheriting property can be daunting, but there&rsquo;s no need to worry when you have IberianTax on your side. Our <a class="color-primary link-secondary" title="how it works" href="https://www.iberiantax.com/how-it-works" target="_blank" rel="noopener">expertise and tailored services</a> ensure that non-resident property owners stay compliant with all tax requirements, minimising the risk of penalties and maximising peace of mind.&nbsp;</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;"><br />Why Choose IberianTax?</h2> <ul style="text-align: justify;"> <li><strong>Expert Guidance</strong>: Our experienced team of tax professionals is well-versed in Spanish tax law and dedicated to providing you with accurate, up-to-date information.</li> <li><strong>Streamlined Process</strong>: We simplify the tax filing process, making it easy for you to meet all deadlines and requirements without the usual stress and confusion.</li> <li><strong>Comprehensive Support</strong>: From inheritance tax to imputed income and capital gains tax, we cover all aspects of your tax obligations, offering personalised advice and assistance.</li> <li><strong>User-Friendly Platform</strong>: Our online platform is designed to be intuitive and accessible, ensuring you can manage your taxes efficiently, even from abroad.</li> <li><strong>Multilingual Assistance</strong>: We offer support in multiple languages, including English, German, and French, to cater to our diverse clientele.</li> </ul> <p style="text-align: justify;">Don&rsquo;t let the complexities of tax laws overwhelm you. <a class="color-primary link-secondary" title="Dashboard" href="https://www.iberiantax.com/dashboard" target="_blank" rel="noopener">Reach out to IberianTax today</a> and let us handle your tax obligations with professionalism and care. Whether you have inherited property or need assistance with other non-resident tax matters, we are here to help.</p>

<p>Are you an <strong>expatriate moving to Spain</strong> for work? Understanding the <strong>Beckham Law</strong>, also known as the "Impatriate Law," can help you save significantly on taxes. This special tax regime allows qualifying individuals to benefit from a lower tax rate on their global employment income, making Spain an attractive destination for foreign professionals.</p> <p>Whether you&rsquo;re a high-level executive, digital nomad, or newly appointed company administrator, this guide will walk you through the benefits, eligibility criteria, and application process of the Beckham Law.</p> <p>&nbsp;</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">What is the Beckham Law?</h2> <p>In Spain, there is an opportunity to benefit from a special tax regime, commonly known as the "Beckham Law," which allows individuals to be taxed at a lower rate on their global employment income. This applies if they have not been a resident in Spain for the last five years and are moving to Spain for work purposes.</p> <p>Although there is no official law named "Beckham Law," it is referred to as such because it was introduced to benefit the football player David Beckham when he started playing for Real Madrid. However, the legislation has since been modified, and athletes can no longer take advantage of this regime.</p> <p>&nbsp;</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">What was the Tax Situation Before the Beckham Law?</h2> <p>Before 2005, foreigners who stayed in Spain for more than 183 days were considered tax residents and had to pay Spanish income tax (IRPF) on their global income, with rates reaching up to 47%. This high tax burden led to complaints from many expatriates, prompting the introduction of the Beckham Law.</p> <p>&nbsp;</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Main Benefits of the Beckham Law</h2> <p>The Beckham Law offers several significant tax benefits for qualifying individuals moving to Spain for work. Here&rsquo;s a detailed explanation of the primary <strong>advantages</strong>:</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Flat Tax Rate</h3> <ul> <li>Simplified Taxation: Individuals who qualify and earn less than 600,000 euros in employment income benefit from a flat tax rate of 24%. This is lower than the progressive tax rates that apply to Spanish residents, which can reach up to 47%.</li> <li>Predictable Tax Liability: The flat rate simplifies tax planning and provides certainty regarding the amount of tax to be paid.</li> </ul> <p>For example, John, a high-level foreign executive, earns a gross annual salary of 100,000 euros. If he moves to Spain under this regime, he would be taxed at 24% on his income, instead of the 32% applicable to Spanish residents.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Exemption on Foreign-Sourced Income</h3> <ul> <li>Non-Taxation of Non-Spanish Income: Dividends, interest, rental income, and other earnings sourced from outside Spain are not taxed in Spain. This is particularly advantageous for expatriates who maintain investments or rental properties in other countries.</li> <li>Global Employment Income: Only the global employment income and qualified entrepreneurial activities are taxed in Spain. This means that other forms of income, such as capital gains or foreign-sourced investment income, remain untaxed by Spanish authorities, provided they are not earned within Spain.</li> </ul> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">No Obligation to Declare Foreign Assets (Form 720 and Wealth Tax)</h3> <ul> <li>Simplified Reporting Requirements: Under the Beckham Law, there is no requirement to declare foreign assets using Form 720 or include them in the Wealth Tax return in Spain. This exemption reduces the administrative burden and complexity for expatriates who hold significant assets abroad.</li> <li>Privacy of Foreign Holdings: This benefit ensures that expatriates can maintain privacy regarding their foreign investments and assets.</li> </ul> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Long-Term Benefits</h3> <ul> <li>Extended Duration: The benefits of the Beckham Law apply during the first tax year when the individual becomes a Spanish resident and for the subsequent five tax years. This extended period allows expatriates to enjoy significant tax savings over several years.</li> </ul> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Incentives for High-Earning Professionals</h3> <ul> <li>Attraction for Talent: The regime is designed to attract high-earning professionals, such as executives, engineers, and digital nomads, to Spain. By offering a favorable tax rate and exemptions, Spain becomes a more attractive destination for skilled workers.</li> </ul> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';"><br />Limitations</h2> <ul> <li>No Deductions or Allowances: It is important to note that individuals under this regime cannot deduct expenses such as social security contributions or apply the standard tax-free allowance (5,550&euro;) or reductions.</li> </ul> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';"><br />Eligibility Criteria for the Beckham Law</h2> <p>To qualify for the Beckham Law, any foreign worker relocating to Spain for employment must meet the following criteria:</p> <ol> <li><strong>Non-Residency</strong>: The individual must not have been a tax resident in Spain during the five tax years preceding their move.</li> <li><strong>No Permanent Establishment</strong>: Income should not be generated through a permanent establishment in Spain.</li> <li><strong>Main Relocation Reasons</strong>:</li> </ol> <ul> <li style="list-style-type: none;"> <ul> <li>Due to a new employment contract with a Spanish employer (e.g., Juergen, a German engineer, moves to work for a Spanish company).</li> <li>Employer-mandated transfer to Spain (e.g., Juergen's company requires him to move to Spain).</li> <li>Relocation as a digital nomad, working remotely for a foreign company using exclusively digital means.</li> <li>Becoming an administrator of a Spanish entity.</li> </ul> </li> </ul> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';"><br />How to Apply for the Regime</h2> <p>If you meet the eligibility criteria, you must submit your application using<strong> form 149</strong> within <strong>six months from the start of your activity and registration with Spanish Social Security</strong>. The necessary documents include:</p> <ul> <li>Passport and NIE</li> <li>Social Security number</li> <li>Employment contract with a Spanish company</li> </ul> <p><br />Once residency in Spain is established, income must be declared using form 151, not the regular IRPF declaration.</p> <p>At IberianTax, we offer a quick and cost-effective way to file form 151. Additionally, if you meet the requirements, we can assist in registering for the regime using form 149.</p> <p>For more information or assistance, please contact us at support@iberiantax.com.</p> <p>&nbsp;</p>

<p style="text-align: justify;">Filing the Modelo 210 tax form is a crucial tax obligation for non-resident property owners in Spain. However, several common mistakes can complicate the process and result in penalties. As the first tax filing software for non-residents in Spain, IberianTax is here to guide you through these errors and how to avoid them.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;">Determining the Cadastral Value</h2> <p style="text-align: justify;">One of the most frequent mistakes is confusing the cadastral value with other property values such as the acquisition value or the reference value. In Spain, each value serves a different purpose:</p> <ul style="text-align: justify;"> <li><strong>Acquisition value</strong>: The price at which the property was purchased plus the acquisition costs.</li> <li><strong>Cadastral value (Valor Catastral)</strong>: The value can be found on the IBI (property tax) receipt. It is an administrative value given by the Direcci&oacute;n General de Catastro, which depends on the Ministry of Finance. The cadastral value is typically lower than the reference value and acquisition value.</li> <li><strong>Reference value (Valor de Referencia)</strong>: An administrative value determined by the Directorate General of Cadastre, used for the Property Transfer Tax and the Inheritance and Gift Tax.</li> </ul> <p style="text-align: justify;">To avoid this confusion, ensure you use the correct cadastral value when completing the Modelo 210. This value can be found on the IBI receipt. Verify that the value you are using is the correct one and not confused with other property values.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;">Using the Incorrect Imputation Rate</h2> <p style="text-align: justify;">Another common error is using the wrong imputation rate to calculate the deemed income. Many taxpayers mistakenly apply 1.1% instead of 2%. The correct rates are:</p> <p style="text-align: justify;">1.1%: For properties whose cadastral value has been revised and updated in the last ten years as a result of a general collective valuation procedure. Individual revisions of the cadastral values do not impact the applicable imputed percentage.</p> <p style="text-align: justify;">2%: For properties whose cadastral value has not been revised in the last ten years through a general collective valuation procedure.</p> <p style="text-align: justify;">The tax office publishes the list of municipalities that can apply for the reduced 1.1% imputed percentage. To ensure accuracy, check the revision date of your property&rsquo;s cadastral value on the IBI receipt or the list of municipalities that can apply the 1.1%. If the value has been revised as part of a general collective valuation procedure in the last ten years, use 1.1%. If not, apply 2%.</p> <p style="text-align: justify;">IberianTax&acute;s filing software is 100% accurate and updated using the correct percentage.</p> <h2 style="text-align: justify; color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Declaring the Property as 100% Owned by One Owner</h2> <p style="text-align: justify;">Declaring the property as 100% owned by one owner when it actually belongs to two or more people is another frequent mistake. Unlike the IBI, the Modelo 210 requires that each owner file their own declaration according to their ownership percentage, rather than submitting a single declaration per property.</p> <p style="text-align: justify;">To prevent inconsistencies and potential penalties, ensure that each owner files their own Modelo 210 according to their ownership percentage.&nbsp;</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;">Declaring the Garage and Storage Room Together with the Property</h2> <p style="text-align: justify;">Another common error is declaring the parking space and storage room along with the main property. When the garage and storage room have different cadastral references and values, they must be declared separately.</p> <p style="text-align: justify;">To avoid this mistake, check if the garage and storage room have separate cadastral references. If they do, submit separate declarations for each.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;">Not Taking Advantage of All Deductible Expenses</h2> <p style="text-align: justify;">When it comes to rental income, not utilizing all deductible expenses allowed by law, such as property depreciation, is a common error. This oversight can lead to paying higher taxes than necessary.</p> <p style="text-align: justify;">To ensure you are not overpaying, make sure you are informed about all allowable deductible expenses and include them in your declaration. Examples of deductible expenses include:</p> <ul style="text-align: justify;"> <li>Property depreciation</li> <li>Homeowner&rsquo;s association costs</li> <li>Local taxes</li> <li>Property management fees</li> </ul> <p style="text-align: justify;">Including these expenses in your declaration can significantly reduce your taxable base.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;">Failing to File the Declaration</h2> <p style="text-align: justify;">Surprisingly, a common mistake is not filing the declaration at all. Many taxpayers think they only need to pay the IBI or SUMA with the local administration and forget about the state Non-Resident Income Tax declaration that must be filed with the Spanish Tax Agency.</p> <p style="text-align: justify;">To avoid missing this critical obligation, remember that in addition to paying local taxes like the IBI or SUMA, you must file the Modelo 210 with the Spanish Tax Agency even if the property is for personal use or empty. Keep track of your tax obligations and set reminders to ensure you meet all necessary filings.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;">Missing Deadlines</h2> <p style="text-align: justify;">Missing deadlines is another frequent issue. Depending on the type of income, different deadlines apply:</p> <ul style="text-align: justify;"> <li><strong>Imputed income: </strong>Must be reported any time during the following year, but no later than December 31st.</li> <li><strong>Rental income (from 2024 onwards)</strong>: Must be reported in the following year but within the first 20 days of January.</li> <li><strong>Capital gains</strong>: Must be reported within 4 months from the sale date.</li> </ul> <p style="text-align: justify;">To stay compliant, mark your calendar with these deadlines and ensure you file within the specified timeframes.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;">Additional Tips to Avoid Errors</h2> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold'; text-align: justify;">Keep Your Documentation Organized</h3> <p style="text-align: justify;">Ensure you have all necessary documents, such as the IBI receipt, handy when completing the Modelo 210. Proper organization of your paperwork can help streamline the filing process and prevent errors.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold'; text-align: justify;">Double-Check Your Information</h3> <p style="text-align: justify;">Review all details twice before submitting the form. This includes names, tax identification numbers, and numerical values. Double-checking can catch minor errors that might lead to complications later.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold'; text-align: justify;">Use IberianTax for Hassle-Free Filing</h3> <p style="text-align: justify;">Instead of navigating these complexities on your own, consider using IberianTax. Our platform simplifies the process of filing the Modelo 210 by guiding you step-by-step and ensuring all details are correctly entered. With IberianTax, you can avoid common mistakes and ensure compliance with Spanish tax regulations effortlessly.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold'; text-align: justify;">Stay Updated with Tax Regulations</h3> <p style="text-align: justify;">Tax laws and regulations can change. Stay informed about any updates that might affect your obligations as a non-resident property owner. IberianTax provides regular updates and resources to keep you informed about relevant changes in tax law.</p> <p style="text-align: justify;">At IberianTax, we specialize in helping non-resident property owners in Spain navigate their tax obligations. Our software is designed to make the tax filing process straightforward and error-free. By using IberianTax, you can ensure your Modelo 210 is filed correctly and on time, avoiding costly mistakes and penalties.<br />Avoiding these common mistakes when filing the Modelo 210 can save you time, money, and legal complications. Stay informed and always double-check the details before submitting your declaration. For a seamless and accurate tax filing experience, trust IberianTax to handle your Modelo 210 needs.</p>

<p>Many non-resident property owners in Spain face the concern of double taxation, where taxes are paid on the same income in both Spain and their home country. Understanding and leveraging Double Taxation Agreements (DTAs) can mitigate this issue effectively.</p> <p>&nbsp;</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Tax Obligations for Non-Residents&nbsp;</h2> <p>As a non-resident owning property in Spain, you are required to:</p> <ul> <li>Declare and pay taxes on any income generated from your Spanish properties, such as rental income, capital gains or imputed income (deemed rental income from properties not actually rented out).</li> <li>File Form 210 with the Spanish Tax Agency, which is essential for official tax documentation and future deductions.</li> </ul> <p>Despite the income typically being taxed in Spain, property owners must also be aware of their home country's tax regulations. The general principle upheld by DTAs is that while the income may be taxed in the country of origin (Spain, in this case), your home country can also tax this income. However, you can often claim a deduction for the taxes already paid in Spain, thus avoiding double taxation.</p> <p>&nbsp;</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Double Taxation Agreements</h2> <p>Double Taxation Agreements (DTAs) play a crucial role in determining where income derived from real estate is taxed. The core principle of these agreements is that income from real estate should be taxed in the country where the property is situated. For non-resident property owners in Spain, this means that any income generated from their Spanish properties&mdash;whether from rental income or imputed income&mdash;is typically taxed in Spain.</p> <p>In particular, the vast majority of DTAs assign the right to tax real estate income to the country where the property is located. In the case of properties in Spain, Spanish tax laws apply to this income.</p> <p>However, DTAs are also designed to prevent the complication of being taxed in two countries and they establish clear rules that allow the property owner's home country to tax the same income but also to grant a <strong>tax credit or deduction </strong>for the taxes paid in Spain, thus <strong>avoiding double taxation</strong>.</p> <p>This arrangement ensures that non-resident property owners are not unduly burdened by double taxation and can benefit from systematic tax relief provided under the terms of the relevant DTAs between Spain and their home countries.</p> <p>&nbsp;</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Double Taxation Deduction</h2> <p>Following international tax rules, double taxation must be corrected in the country of tax residence. For this purpose, it is necessary to justify the payments made in another jurisdiction. Filing Form 210 helps document your tax payments in Spain, serving as <strong>proof for tax deductions</strong> in your home country. It is important to maintain copies of all official tax forms and receipts. These documents are vital for any future tax-related needs or audits.</p> <p>It is important to note that only the <strong>non-resident tax </strong>can be deducted from the home country income tax. It is not possible to claim a tax credit for <strong>local taxes</strong> such as IBI, SUMA, or rubbish collection tax, since these local taxes are not based on income but on ownership and they are not covered by the DTAs.</p> <p>At IberianTax, we specialize in simplifying the tax declaration process for non-resident property owners in Spain. We ensure that your declarations are accurately submitted within 72 hours, providing copies of all official forms for your records and future reference. All forms are duly stored in your personal dashboard and are available to you at any time and from anywhere.</p> <p>Navigating tax obligations in Spain as a non-resident doesn't have to be a daunting task. With the right knowledge and support from IberianTax, you can efficiently manage your tax duties and avoid the complications of double taxation, letting you enjoy the benefits of your property investment worry-free.</p> <p>&nbsp;</p> <p>&nbsp;</p>

<p>Have you invested in Spanish companies and received dividends? As a non-resident taxpayer in Spain, these dividends are subject to a 19% withholding tax by default. However, depending on the tax treaty arrangements between Spain and your country of residence, you may be entitled to a lower withholding tax rate or even a full refund of the withheld amount.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';"><br />Understanding Withholding Tax and Double Tax Agreements</h2> <p>&nbsp;It's important to know both the withholding percentage applied to your dividends and the applicable DTA limit to identify the potential recoverable withholding tax on your Spanish dividends:</p> <p><strong>Withholding Tax&nbsp;</strong></p> <p>When you receive dividends from a Spanish company, the company is obligated to withhold 19% of the gross dividend amount as Withholding Tax. This Withholding Tax is intended to cover the taxes you owe on the dividends in Spain.</p> <p><strong>Double Tax Agreements</strong>&nbsp;</p> <p>Double Tax Agreements are treaties between countries that aim to prevent double taxation of income earned in both countries. They typically specify the tax rates and rules applicable to various types of income, including dividends.</p> <p>With a Double Tax Agreement between Spain and your country of residence, you can <a class="color-primary link-secondary" title="reclaim excess withholding tax" href="https://www.iberiantax.com/calculator/dividend-withholding-tax-reclaim" target="_blank" rel="noopener">reclaim excess withholding tax</a> on your Spanish dividends. This means you can get a refund for the difference between the tax rate actually applied (usually 19%) and the lower rate stipulated in the DTA (which could be 15% or a reduced rate).</p> <p><strong>Example: </strong>Let's say you're a non-resident taxpayer and hold investments in a Spanish company. You receive a gross dividend of 2,000&euro;. By default, the company withholds 19% WHT, resulting in a deduction of 380&euro; (2,000&euro; * 19%) and a net dividend payment of 1,620&euro;.</p> <p>However, imagine your country has a DTA with Spain that establishes a lower withholding tax rate of 15% for dividends. In this scenario, the appropriate WHT amount should be 300&euro; (2,000&euro; * 15%).</p> <p>Because the applied withholding tax (19%) is higher than the DTA-specified rate (15%), you're entitled to reclaim the 80&euro; difference (380&euro; withheld - 300&euro; DTA rate).</p> <p>&nbsp;</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Steps to Reclaim Excess Withholding Tax</h2> <p>1. <strong>Gather Required Documents</strong>: Collect the necessary documents, including:</p> <ul> <li>Proof of dividend income (e.g., withholding tax certificate, bank statement)</li> <li>Certificate of Tax Residency in your country of residence</li> <li>Bank holder&acute;s certificate where the refund should be made.</li> </ul> <p>2. <strong>Calculate the Excess WHT</strong>: Calculate the difference, which represents the excess WHT you can reclaim. At IberianTax, we can help you calculate the potential claim.</p> <p>3. <strong>Submit your claim:</strong> File your claim for the excess withholding tax refund using the Modelo 210 form.&nbsp;</p> <p>4. <strong>Timeline and Processing:</strong> The Spanish tax authorities typically process claims within 6 months. If your claim is approved, you will receive the refund directly into your bank account.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';"><br />Filing period</h2> <p>The filing period typically opens on February 1st of the following year. The overall claim period is four years.</p> <p>For instance, imagine that a German tax resident received dividends from Banco Santander in Spain in January 2023. The standard 19% withholding tax was applied, but the DTA between Germany and Spain allows a lower rate of 15%. The taxpayer can reclaim the 4% difference (19% withheld - 15% DTA rate) by filing a claim with the Spanish tax authorities. While the deadline to submit the claim typically falls on February 1st of the following year (in this case, February 1st, 2024), the taxpayer generally has four to make the reclaim.</p> <p>At IberianTax, we offer a seamless solution to help you reclaim your excess withholding tax on Spanish dividends. Our team of tax experts can guide you through every step, from identifying the applicable DTA rate to filing your claim with the Spanish tax authorities. Contact IberianTax today and let us simplify your tax reclaim process!</p> <p>&nbsp;</p>

<p>Tax residency in Spain has increasingly become a topic of interest over the past few years, especially with recent rulings from the Spanish Supreme Court (TS) and the Central Economic Administrative Tribunal (TEAC). These pronouncements shed light on how tax residency is determined under the Personal Income Tax Law (LIRPF), offering clarity for both Spanish residents and non-residents alike.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';"><br />Understanding Tax Residency Criteria in Spain</h2> <p>Spanish tax law outlines two primary criteria for establishing tax residency:</p> <p><strong>Physical Presence (183-Day Rule):</strong> This criteria is perhaps the most straightforward. If an individual spends more than 183 days in Spain during a calendar year (as per Article 9.1.a of LIRPF), they are considered tax residents.</p> <p><strong>Economic Ties</strong>: In addition to a physical presence in the country, residency can also be determined based on an individual's main economic activity or interests being centred in Spain (as per Article 9.1.b of LIRPF). This means that even with fewer than 183 days physically present, an individual could still be considered a tax resident if their economic ties to Spain are substantial.</p> <p>&nbsp;</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Decoding Residency Requirements with TEAC and TS</h2> <p>The recent rulings from TEAC and TS offer valuable insights into addressing practical challenges in applying these residency criteria:</p> <p><strong>Certified Presence Days</strong>: Days with clear evidence of physical presence in Spain, such as entry/exit stamps in a passport, carry significant weight in determining residency.</p> <p><strong>Sporadic Absences</strong>: Brief departures from Spain generally count towards the 183-day threshold, provided there is other evidence of residency. However, TS rulings emphasise that temporary absences shouldn't disrupt residency status.</p> <p><strong>Presumed Days</strong>: These are days logically assumed to be spent in Spain, filling the gaps between documented periods of presence. TEAC takes a flexible approach, suggesting that days between documented presence should count as days in Spain unless proven otherwise.</p> <p>I's important to note that the concept of &lsquo;presumed days&rsquo; may lead to potential conflicts between taxpayers and the Spanish Tax Agency (AEAT) due to its indeterminate nature. The definition of &lsquo;reasonable&rsquo; can vary based on factors like the duration of stay, specific dates, and distance between Spain and other potentially visited countries.</p> <p>&nbsp;</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">The Role of Double Taxation Treaties and Residency Certificates</h2> <p>TEAC and TS also underscore the significance of residency certificates when applying double taxation treaties. These treaties aim to prevent individuals from being taxed twice on the same income. Recent rulings emphasise that Spanish authorities must respect residency certificates issued abroad, highlighting their crucial role in determining residency under these treaties.</p> <p>&nbsp;</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">How IberianTax Can Help Non-Residents in Spain</h2> <p>Navigating the intricacies of tax residency in Spain can be complex, but services like IberianTax can provide invaluable assistance. From understanding non resident tax obligations to ensuring compliance with Spanish tax laws, IberianTax offers tailored solutions to help non-resident property owners fulfil their tax liabilities in Spain easily and affordably.</p> <p>By leveraging innovative technology and expert guidance, IberianTax simplifies the tax filing process, ensuring peace of mind for non-residents in Spain. To learn more about how IberianTax can assist you with your tax residency concerns and to receive free reminders when your tax is due, create your <a class="color-primary link-secondary" title="IberianTax" href="https://www.iberiantax.com/dashboard" target="_blank" rel="noopener">FREE IberianTax account</a> today.</p> <p>Whether you're a seasoned investor or a first-time non-resident property owner in Spain, having a trusted partner like IberianTax by your side can make all the difference in navigating the complexities of Spanish taxes.</p>

<p>The Real Estate Yearbook of Property Registrars (Anuario Inmobiliario de los Registradores de la Propiedad) has recently revealed some interesting statistics about the buying habits of expats in Spain in 2023.</p> <p>Foreign transactions have once again demonstrated exceptional performance, marking three consecutive years (2021-2023) of significant growth in their share of the national market in Spain. Despite facing the COVID pandemic, foreign buyers have consistently maintained their presence throughout the country, with their weight in total operations remaining above 10% since 2013. During 2023, expats accounted for a staggering 15% of property purchases in Spain, with more than 87,300 transactions. This increase, in comparison to 13.8% in 2022, shows a robust demand from international buyers and strengthens Spain&rsquo;s real estate market even further.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';"><br />British Still Leading, But Other Nationalities Are Catching Up</h2> <p>Whilst British buyers continue to lead with a solid 9.5% of total transactions, other nationalities are trailing closely behind them. German (7.3%) and French (6.7%) buyers maintain their positions, however, nationalities such as Moroccans, Belgians and Italians are diversifying the buyers market.&nbsp;</p> <p>Several nationalities have witnessed a surge in growth during 2023 too, with Russians, Ukrainians, Chinese and Americans among the standout performers for snapping up properties. This trend underscores the broader distribution of foreign buyers across Spain, with buyers from Mexico, Venezuela, Colombia, Peru, Portugal and the Czech Republic also contributing to the market.&nbsp;</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';"><br />Preferred Areas for Expats Buying Property</h2> <p>Geographical preferences among nationalities play a pivotal role in home purchases, with regions like Andaluc&iacute;a, Comunitat Valenciana, and Catalonia attracting diverse buyer demographics. Alicante remains a hotspot for foreign investment, followed closely by Santa Cruz de Tenerife and M&aacute;laga. Together, these provinces account for over 37% of total transactions by expats.</p> <p>The type and size of properties preferred by foreign buyers vary, with homes exceeding 100 square metres dominating the market. Americans, Dutch, and British gravitate towards larger properties, while Belgians, Dutch, and Poles show a preference for new homes. Meanwhile, the French, Argentines, and Irish favour used and resale properties.</p> <p>A significant proportion of purchases by expats exceed 500,000 euros, with regions like the Balearic Islands, the Community of Madrid, Andaluc&iacute;a, and Catalonia witnessing the highest number of high-value transactions. It's also worth noting that non-EU citizens in particular stand to benefit from residency permits, further fueling demand in the luxury real estate industry.&nbsp;</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';"><br />Non-Resident Property Taxes with IberianTax</h2> <p>As the real estate industry in Spain continues to evolve, meeting your tax obligations becomes essential for non-resident property owners.&nbsp;</p> <p>At IberianTax, we understand the complexities of the Spanish tax system and aim to simplify the process for non-residents. Our user-friendly platform enables property owners to pay their non-resident property taxes easily and affordably. From as little as 34.95&euro;, you can ensure compliance with Spanish tax laws without the hassle.&nbsp;</p> <p>If you&rsquo;re wondering how much you might need to pay, head over to our <a class="color-primary link-secondary" title="calculator" href="https://www.iberiantax.com/calculator" target="_blank" rel="noopener">free tax calculator</a>, and with just a handful of details, we can accurately calculate how much your <a class="color-primary link-secondary" title="Imputed Income" href="https://www.iberiantax.com/modelo-210/imputed-income" target="_blank" rel="noopener">Imputed Income</a> and <a class="color-primary link-secondary" title="Capital Gains" href="https://www.iberiantax.com/modelo-210/capital-gains-tax" target="_blank" rel="noopener">Capital Gains </a>Taxes will be.</p> <p>Don't let tax obligations weigh you down. Join IberianTax today to receive free reminders of when your non-resident property taxes are due. Experience peace of mind when it comes to managing your non-resident property taxes in Spain.</p>

<p>As a non-resident property owner in Spain, understanding the various taxes that apply to your property is crucial. Among these, the <strong>Local Property Tax (IBI)</strong> and <strong>Non-Resident Income Tax (NRIT - Modelo 210)</strong>, are particularly important. Though both taxes relate to property ownership, their bases, management and application are significantly different.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';"><br />1. Tax Administration</h2> <p>The <strong>Non-Resident Income Tax </strong>is managed by the <strong>Spanish Tax Agency</strong> (Agencia Tributaria), a national body, and requires self-assessment by the taxpayer. This means the property owner is responsible for calculating, declaring, and paying this tax without prior review by the Agency.</p> <p>Conversely, the <strong>Property Tax</strong> (IBI) is collected not only by the respective <strong>Municipalities</strong> but also by specific entities in certain regions, such as <strong>SUMA</strong> in Alicante, <strong>Patronato de Recaudaci&oacute;n in Malaga</strong>, or <strong>ATIB </strong>in the Balearic Islands. These entities issue a payment notice indicating the amount the owner needs to pay, based on the calculation performed by the entity.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';"><br />2. Tax Calculation</h2> <p>The calculation basis also differs between these taxes.&nbsp;</p> <p>The <strong>Local Property Tax (IBI) </strong>is calculated by applying a <strong>municipal rate to the cadastral value </strong>of the property. This rate varies significantly depending on the property's location and the range of public services provided by the local authorities. It is a reflection of how municipal services&mdash;such as infrastructure, parks, and public safety&mdash;are funded through property taxes. The IBI rate typically spans from <strong>0.4% to 1.3%</strong>. This calculation results in the property&rsquo;s annual tax bill.</p> <p>Conversely, the <strong>Non-Resident Income Tax </strong>related to property ownership, declared through form 210, uses a fixed percentage of the cadastral value to calculate the tax base. This fixed rate is applied uniformly across Spain, set at <strong>2% of the cadastral value, or at a reduced rate of 1.1% if the cadastral value has been revised or updated within the last ten years under a general collective valuation procedure </strong>(not individual revisions). This calculation method aims to approximate the potential income that the property could generate for the owner and applies solely to non-resident individuals, focusing on urban properties not utilized for economic activities. It&rsquo;s a measure to ensure that property ownership contributes to the national tax revenue, irrespective of the property&rsquo;s direct use or income production.</p> <p>This imputed income figure is then subjected to a further tax rate to obtain the final tax due. Non-resident individuals from within the EU, Norway, Iceland and Liechtenstein are taxed at a rate of <strong>19%</strong>, while those from outside these regions face a higher rate of<strong> 24%</strong>.&nbsp;</p> <p>&nbsp;</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">3. Declaration of taxes and the impact of ownership</h2> <p>Declaring the <strong>Non-Resident Income Tax</strong> involves submitting <strong>form 210 for each taxpayer</strong>, which means in the case of co-owned properties, <strong>each non-resident property owner must file their own tax return</strong>. This requirement highlights the personalised nature of the tax, as it is based on individual ownership interests in the property. Therefore, if a property is co-owned by multiple non-residents, each must submit a separate tax return for their share of the property, ensuring the tax obligations are accurately met according to each owner's stake.</p> <p>In contrast, the <strong>Local Property Tax (IBI) is levied on the property itself</strong>, regardless of the number of owners. This tax is assessed per property, not per owner, simplifying the process for properties with multiple owners. The issued payment notice for IBI will cover the total tax due for the property, and it is the responsibility of the co-owners to arrange how they split and pay this cost. This system streamlines the payment process for IBI, as only one bill is issued for each property annually, reducing the administrative burden on property owners.</p> <p>&nbsp;</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">4. Tax period and filing deadlines</h2> <p>The <strong>Non-Resident Income Tax </strong>must be declared and paid retrospectively, covering the <strong>previous full fiscal year</strong>, whereas the<strong> IBI</strong> is paid within the <strong>same fiscal year</strong> it refers to. This underscores the importance of understanding deadlines to avoid non-compliance.</p> <p>Another difference relates to the filing period. For the non-resident tax, the filing deadlines are uniform across Spain, providing a consistent timeframe for all non-resident property owners regardless of the property's location. Specifically, for the tax year 2023, the filing period extends throughout the calendar year 2024. This means that no matter where your property is situated in Spain, you have from January 1st, 2024, to December 31st, 2024, to file your tax return for the income attributed to the 2023 tax year. This uniformity simplifies planning and compliance for non-resident owners, ensuring that everyone follows the same schedule for their tax filings.</p> <p>Contrastingly, the Local Property Tax (IBI) exhibits <strong>regional variations</strong> in its filing and payment schedules, which are determined by the local municipality or the designated regional collection agency. This means the specific period within which you must pay your IBI can vary significantly depending on where your property is located. Some municipalities might set the IBI payment window in the spring, others in the summer, or even in the fall, reflecting a diversity of administrative practices across Spain. This variability underscores the importance of being aware of local tax calendars to ensure timely payment and avoid any penalties.</p> <p>&nbsp;</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">5. Imputed income only applies to individuals</h2> <p>A notable distinction lies in the application of imputed income under the Non-Resident Income Tax (IRNR). This tax, specifically in the context of income imputation, is applicable solely to non-resident individuals. It targets owners of urban properties not engaged in economic activities, emphasizing the personal use aspect of property ownership. While the <strong>IBI</strong> applies to<strong> both physical and legal persons</strong>, covering a wider range of properties, including urban and rustic real estate.</p> <p>A critical distinction in the realm of Spanish property taxes lies in the application of imputed income under the Non-Resident Income Tax (IRNR). This tax, specifically in the context of income imputation, is applicable solely to non-resident individuals. It targets owners of <strong>urban properties not engaged in economic activities</strong>, emphasizing the personal use aspect of property ownership. This means that the IRNR's imputed income provisions do not extend to companies or legal entities. Such entities, while still obligated to the Non-Resident Income Tax, are taxed solely on actual income generated from the property, such as rental income or capital gains, rather than imputed income.</p> <p>In contrast, the<strong> Local Property Tax (IBI)</strong> is far-reaching, applying to both physical persons and legal entities without distinction. It encompasses a broad spectrum of properties, including <strong>both urban and rustic real estate</strong>. This inclusivity ensures that any entity, regardless of its nature, holding property rights is subject to IBI, reflecting the universal obligation towards local infrastructure and services financed by this tax.</p> <p>This delineation means that companies owning property in Spain are subject to both the IBI and the Non-Resident Income Tax. However, for the latter, their liability is tied to actual economic benefits derived from the property&mdash;such as from leasing or selling&mdash;rather than the concept of imputed income, which presupposes a benefit from merely owning the property.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';"><br />6. Tax Declaration</h2> <p>Declaring the Non-Resident Income Tax is done through the Spanish tax form <strong>Modelo 210</strong>. This declaration must be completed and submitted by the taxpayer themselves, implying their responsibility to determine the owed amounts based on the calculation of the tax base. This self-assessment process allows non-residents to comply with their tax obligations independently, without prior review by the Tax Agency.</p> <p>In contrast, the declaration of IBI is not conducted through a self-assessment process by the owner. Instead, the corresponding Municipality or designated entity, such as SUMA in Alicante, M&aacute;laga Collection Agency, or ATIB in the Balearic Islands, determines the owed amount and issues a payment notice. This notice specifies the amount the owner needs to pay, based on the cadastral value of the property and the tax rate applied by the local entity. Owners have the option to arrange for the IBI payment to be directly debited from their bank account, facilitating compliance with this tax obligation.</p> <p>&nbsp;</p> <p>At <a class="color-primary link-secondary" title="IberianTax" href="https://www.iberiantax.com/" target="_blank" rel="noopener">IberianTax.com</a>, we offer expert services to assist non-resident property owners in managing their tax obligations in Spain, ensuring IRNR is correctly declared and paid.&nbsp;</p> <p>Contact us for more information on how we can assist you in optimizing your tax burden and ensuring regulatory compliance for your properties in Spain.</p> <p>&nbsp;</p>

<p>Managing your tax obligations as a property owner in Spain, particularly when living outside the country, can pose a few challenges for non-resident property owners. Filing your taxes late is not uncommon, but it may result in surcharges imposed by the Spanish Tax Agency (Agencia Tributaria) as penalties. In this comprehensive guide, we'll explore the process of paying these surcharges and penalties from abroad and offer insights into how IberianTax can simplify your non-taxation process for non-residents.&nbsp;</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';"><br />Understanding Tax Agency Correspondence</h2> <p>When taxes are declared and paid after the stipulated deadline, the Agencia Tributaria typically issues two payment letters. The first, titled &lsquo;Propuesta de Liquidaci&oacute;n&rsquo;, provides details about the surcharge calculated on the tax paid. This letter serves as an informative notice. The second letter, known as the &lsquo;Liquidaci&oacute;n de Recargo&rsquo;, is the one that contains instructions for making the surcharge payment.&nbsp;</p> <p><br />If you receive the &lsquo;Providencia de Apremio&rsquo; letter, we must refer to the document attached at the end of the letter with the necessary details to pay the tax, plus the surcharge applied. &nbsp;</p> <p><br />Both surcharges can be settled via bank transfer from abroad. However, it's important to accurately identify the essential data on the payment document to ensure that the payment is processed correctly. It's also important to consider whether the tax was paid late or during the enforcement period to determine the appropriate steps for payment.&nbsp;</p> <p><br />Here are the steps you&rsquo;ll need to follow to make a payment for the surcharges via bank transfer from abroad in case you receive a &lsquo;Liquidaci&oacute;n de Recargo&rsquo; or &lsquo;Providencia de Apremio&rsquo; letter.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';"><br />Steps for Bank Transfer Payment</h3> <p>1.<strong> Visit the Agencia Tributaria Website</strong>: Begin by navigating to the payment section on the Agencia Tributaria website <strong><a class="color-primary link-secondary" title="Agencia Tributaria" href="https://sede.agenciatributaria.gob.es/Sede/en_gb/tramitacion/ZI01.shtml" target="_blank" rel="noopener">here</a></strong>. Select the option for payment by bank transfer.</p> <p><img title="Payment" src="https://iberiantax-blog.s3.eu-west-1.amazonaws.com/ecc675f9-16ed-4795-bae4-4922e7cdba0c/images/en/Payment.png" alt="" width="538" height="262" /></p> <p>2. <strong>Provide Account Details</strong>: Enter the first 8 characters of your bank account and the SWIFT/BIC code associated. Please note that this payment option is only available if use a non-Spanish bank account.&nbsp;</p> <p><img title="SWIFT" src="https://iberiantax-blog.s3.eu-west-1.amazonaws.com/ecc675f9-16ed-4795-bae4-4922e7cdba0c/images/en/SWIFT.png" alt="" width="820" height="185" /></p> <p>3. <strong>Select Form and Amount</strong>: Specify the type of form indicated in the payment letter received from the Agencia Tributaria. This is usually the 002 form, but it may sometimes be the 010 form. Enter the voucher number and the exact amount requested for payment.</p> <p><img title="Payment letter" src="https://iberiantax-blog.s3.eu-west-1.amazonaws.com/ecc675f9-16ed-4795-bae4-4922e7cdba0c/images/en/Payment%20letter.png" alt="" width="687" height="385" /></p> <p><img title="step 1" src="https://iberiantax-blog.s3.eu-west-1.amazonaws.com/ecc675f9-16ed-4795-bae4-4922e7cdba0c/images/en/step%201.png" alt="" width="614" height="407" /></p> <p>&nbsp;</p> <p>4. <strong>Review Information</strong>: Take a moment to review the filled-in details on the following page to ensure accuracy.</p> <p><img title="Step 2" src="https://iberiantax-blog.s3.eu-west-1.amazonaws.com/ecc675f9-16ed-4795-bae4-4922e7cdba0c/images/en/Step%202.png" alt="" width="625" height="384" /></p> <p>5.<strong> Confirm Payment</strong>: Once satisfied with the information provided, you can then proceed to make the payment. A summary will be displayed confirming the impending payment &ndash; and you&rsquo;re done!&nbsp;</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';"><img title="Step 3" src="https://iberiantax-blog.s3.eu-west-1.amazonaws.com/ecc675f9-16ed-4795-bae4-4922e7cdba0c/images/en/Step%203.png" alt="" width="667" height="425" /></h2> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">&nbsp;</h2> <p>Please note that the ID refers to the concept or reference to be included in the bank transfer. It is usually your NIE/NIF.</p> <p>As beneficiary you should indicate the AGENCIA ESTATAL DE LA ADMINISTRACI&Oacute;N TRIBUTARIA.</p> <p>&nbsp;</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Why Choose IberianTax?</h2> <p>Navigating Spanish tax obligations, particularly from abroad, can be complex and overwhelming, but that's where<a class="color-primary link-secondary" title="IberianTax" href="https://www.iberiantax.com/how-it-works" target="_blank" rel="noopener"> IberianTax </a>comes in. Our comprehensive tax services are tailored to meet the needs of non-resident property owners, offering expert guidance and support every step of the way. Not only do we make the process easier, but we&rsquo;ll also remind you every year when your non-resident taxes are due to be filed, so you&rsquo;ll never miss a deadline again.&nbsp;</p> <p><br />With IberianTax, you can rest assured that your tax obligations are handled efficiently and accurately. From calculating taxes to filing returns, we simplify the entire process, ensuring compliance with Spanish tax laws. Our user-friendly platform makes it easy to manage your taxes from anywhere in the world, <a class="color-primary link-secondary" title="Pricing" href="https://www.iberiantax.com/pricing" target="_blank" rel="noopener">saving you time, money, and unnecessary stress.</a></p> <p><br />Join the thousands of satisfied customers who rely on IberianTax for their tax needs. <a class="color-primary link-secondary" title="Register" href="https://www.iberiantax.com/register" target="_blank" rel="noopener">Sign up today</a> and experience peace of mind with our expert tax solutions. Let us help you navigate the complexities of Spanish taxation while you focus on enjoying the benefits of property ownership in Spain!&nbsp;</p>

<p>Owning property in Spain comes with its fair share of tax responsibilities, and getting through the complexities of the Spanish tax system can be daunting for many property owners, especially with a language barrier.</p> <p>The late filing of taxes in Spain is a common occurrence, but with the right guidance, it can easily be avoided. In this article, we&rsquo;ll be taking a look at the repercussions of late tax payments and provide a comprehensive guide to help property owners get to grips with the consequences of paying taxes late.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';"><br />Late Filing Surcharge</h2> <p>The Spanish Tax Agency (Agencia Tributaria) imposes surcharges on overdue tax payments, which vary depending on the timing of the payment. If a tax return is voluntarily filed after the deadline, a surcharge of 1% per month is applied for each month following the end of the voluntary declaration period. For instance, if the deadline for tax declaration ends on December 31st and the tax is filed in March, a 3% surcharge will be applied. From the thirteenth month onwards, a fixed surcharge of 15% plus interest for late payment will be applied.</p> <p>&nbsp;</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Executive Period Surcharge</h2> <p>In some cases where tax returns are filed but payment is not completed, an executive period surcharge comes into play. This occurs when, for example, a direct debit payment fails due to insufficient funds. The executive period starts when the original deadline for voluntary payment passes. During this period, there are three types of surcharges that may apply:</p> <ul> <li><strong>Executive Surcharge (5%):</strong> This is applied if the tax is paid before the Agencia Tributaria sends a formal demand for payment.</li> <li><strong>Reduced Enforcement Surcharge (10%):</strong> This is imposed after receiving a formal notice, provided payment is made within specified deadlines.</li> <li><strong>Enforcement Surcharge (20%):</strong> This is applied if the deadlines for the reduced enforcement surcharges are not met.</li> </ul> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';"><br />Penalties</h2> <p>Penalties are applied by the tax authorities in specific instances, such as late filing without prior demand or discrepancies in the paid amount. Penalties typically start at 50% of the demanded amount for discrepancies not exceeding 3000 &euro;.</p> <p>It&rsquo;s important to note that penalties and surcharges for late filing are mutually exclusive. This means that if taxes are proactively filed after the deadline, but before any formal demand from the tax authorities, surcharges will be applied to account for the delay, but additional penalties will not be charged.</p> <p>&nbsp;</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Revolutionising Taxes for Non-Residents in Spain</h2> <p>Late payment of non-resident taxes in Spain can result in surcharges and penalties imposed by the Agencia Tributaria, adding to the financial burden of property owners, but understanding the consequences of late payment and adhering to deadlines is crucial for avoiding these unwanted additional charges. By staying informed and seeking professional guidance when needed, property owners can navigate the Spanish tax system more effectively and ensure compliance with your tax obligations in Spain.</p> <p><br />At IberianTax, we&rsquo;re committed to helping non-resident property owners in Spain manage their tax responsibilities efficiently. Our comprehensive services and expert guidance make tax filing a hassle-free experience, allowing property owners to stay compliant with Spanish tax laws and avoid unnecessary penalties and surcharges.</p> <p><br />By utilising our<a class="color-primary link-secondary" title="Tax software" href="https://www.iberiantax.com/how-it-works" target="_blank" rel="noopener"> tax software</a>, non-resident property owners will not only find the process much easier, but they can also save potentially hundreds of euros each year, in comparison to using an accountant or gestor.</p> <p><br />Our prices start from just 34.95&euro; - the price of a nice lunch! &ndash; for guaranteed peace of mind when it comes to your<a class="color-primary link-secondary" title="Imputed Income Tax" href="https://www.iberiantax.com/modelo-210/imputed-income" target="_blank" rel="noopener"> Imputed Income Tax</a>, <a class="color-primary link-secondary" title="Rental Income Tax" href="https://www.iberiantax.com/modelo-210/rental-income" target="_blank" rel="noopener">Rental Income Tax</a> and <a class="color-primary link-secondary" title="Capital Gains Tax" href="https://www.iberiantax.com/modelo-210/capital-gains-tax" target="_blank" rel="noopener">Capital Gains Tax</a> in Spain. Say goodbye to tax stress and hello to simplicity with IberianTax.</p> <p><br /><a class="color-primary link-secondary" title="Dashboard" href="https://www.iberiantax.com/dashboard" target="_blank" rel="noopener">Sign up for your free account</a> with IberianTax today, and we&rsquo;ll even send you a reminder when you need to file your non-resident taxes!</p>

<p>If you're a non-resident property owner in Alicante, ensuring compliance with Spanish tax obligations is essential. Even if your property is unoccupied, you're still required to fulfil various tax duties, including reporting imputed income based on the property's cadastral value. To access this crucial information, your IBI (local property tax) receipt is indispensable, as it provides the latest cadastral value updates necessary for tax filing and other purposes.</p> <p>The calculation of the Imputed Income Tax is based, among other things, on the cadastral value of the property. The most reliable place to find the latest cadastral value of your property is on your IBI (local property tax) bill. This document is issued annually and will reflect any updates to the cadastral value, ensuring you have the most up-to-date information for tax and other purposes.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">What is SUMA?</h2> <p>SUMA is an autonomous body created by the Provincial Council of Alicante, whose main functions are to manage and collect municipal taxes in the province of Alicante. Among these taxes is the IBI, which, as mentioned above, contains in its receipt a series of essential data to fill in the imputed income form.</p> <p>In this post, we will explain how to download the IBI receipt to obtain this information through the SUMA website.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';"><br />Here's a step-by-step guide to downloading your IBI receipt from the SUMA website:</h2> <p><br />1. Visit the SUMA website using the following link: <a class="color-primary link-secondary" title="SUMA" href="https://www.suma.es/PortalWeb/localizadores/cuerpo_localizador.xhtml" target="_blank" rel="noopener">https://www.suma.es/PortalWeb/localizadores/cuerpo_localizador.xhtml</a></p> <p>2. Have your bank receipt for the IBI payment ready, as it typically includes a specific code (CSV) necessary for downloading the official IBI receipt from the regional tax office's website.</p> <p><img title="Captura de pantalla 2024-03-06 134145.png" src="https://iberiantax-blog.s3.eu-west-1.amazonaws.com/f142a774-bc2f-4c2f-a0af-366f6918f671/images/en/Captura%20de%20pantalla%202024-03-06%20134145.png.png" alt="Bank receipt" width="730" height="214" /></p> <p>3. Enter the code (CSV) from your bank receipt into the designated field on the SUMA website:</p> <p><img title="Captura de pantalla 2024-03-05 095936.png" src="https://iberiantax-blog.s3.eu-west-1.amazonaws.com/f142a774-bc2f-4c2f-a0af-366f6918f671/images/en/Captura%20de%20pantalla%202024-03-05%20095936.png.png" alt="CSV" width="730" height="373" /></p> <p>4. Then proceed to input your tax identification number.</p> <p><img title="Captura de pantalla 2024-03-05 101839.png" src="https://iberiantax-blog.s3.eu-west-1.amazonaws.com/f142a774-bc2f-4c2f-a0af-366f6918f671/images/en/Captura%20de%20pantalla%202024-03-05%20101839.png.png" alt="NIF" width="730" height="243" /></p> <p>5. Proceed to download your IBI receipt by clicking the &lsquo;Download&rsquo; button.</p> <p><img title="Captura de pantalla 2024-03-05 100133.png" src="https://iberiantax-blog.s3.eu-west-1.amazonaws.com/f142a774-bc2f-4c2f-a0af-366f6918f671/images/en/Captura%20de%20pantalla%202024-03-05%20100133.png.png" alt="" width="730" height="95" /></p> <p>6. Once downloaded, you can access the necessary data from the receipt, such as the cadastral value and reference for completing the Imputed Income form.</p> <p><img title="Captura de pantalla 2024-03-05 100550.png" src="https://iberiantax-blog.s3.eu-west-1.amazonaws.com/f142a774-bc2f-4c2f-a0af-366f6918f671/images/en/Captura%20de%20pantalla%202024-03-05%20100550.png.png" alt="IBI receipt" width="449" height="189" /></p> <p>By following these straightforward steps, you can effortlessly obtain your IBI receipt and ensure accurate completion of the imputed income form.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';"><br />Filing Non-Resident Taxes in Spain</h2> <p><br />For those who are non-resident property owners in Spain, it's crucial to understand the various taxes that may apply to you. In addition to the IBI tax, you may be subject to other non-resident taxes, depending on how you utilise your property during the year. These taxes are typically filed using the Modelo 210 tax form, on an annual basis.</p> <p><br />If you own a property for personal use, even if it sits empty all year round, you'll still need to fill out a Modelo 210 form for your Imputed Income tax by December 31st for the previous year. And if you're renting out your property, you'll also need to submit an annual Rental Income tax form for the previous year. Good news though: Previously, this had to be done every quarter, but recent changes have made it much simpler for non-resident property owners in Spain!</p> <p><br />IberianTax offers a hassle-free solution for filing your Modelo 210 with the Spanish tax authorities, starting at just 34.95&euro;! Our intuitive online tax software guides you through the process step by step, making it easy to prepare and submit your Imputed Income and Rental Income tax returns, even if you're unfamiliar with the process.</p> <p><br />Simply complete the questionnaire with our user-friendly interface, and we'll review your submission before sending it off to the authorities on your behalf. With IberianTax, you can rest assured knowing that you comply with Spanish tax laws. Plus, our knowledgeable team of tax experts are available to assist you whenever you need it.</p> <p><br />Don't let tax filing overwhelm you &ndash; start saving time and money today by using IberianTax to file your Modelo 210!</p>

<p style="text-align: justify;">The <strong>Spanish Association of Science and Technology Parks (APTE) </strong>has recently honored <strong>IberianTax</strong> by naming it one of <strong>Spain's top 100 innovative startups</strong> for the year <strong>2023</strong>. This distinction highlights IberianTax as a leader not only in the tech sector but also as a pioneer in fiscal services for non-resident taxpayers in Spain.</p> <p style="text-align: justify;">APTE's list showcases innovative companies across various fields including biotech, artificial intelligence, green energy, telecom, healthcare, space, automotive, semiconductors, agrotech, blockchain, and software. This recognition reflects the dynamic and entrepreneurial spirit within Spain's 51 science and technology parks, across 15 autonomous communities.</p> <p style="text-align: justify;">IberianTax's recognition is a testament to its unique software platform that has transformed tax management for non-resident property owners in Spain. As a first-of-its-kind service, IberianTax has made tax obligations simpler and more straightforward, eliminating the complexities previously associated with these processes.</p> <p style="text-align: justify;">This achievement highlights IberianTax's dedication to innovation in tax services. Our goal is to improve our clients' experiences in Spain, making their stays easier and more enjoyable. By continuously improving our platform, we aim to lead in customer service and high-quality assistance at a reasonable price.</p> <p style="text-align: justify;">APTE's initiative celebrates startups like IberianTax and opens doors to potential investors interested in supporting high-growth projects. Additionally, the upcoming Transfiere Forum in M&aacute;laga, from March 20-22, 2024, will offer a special opportunity for networking. At this event, IberianTax will meet potential clients and investors, seeking new paths for growth.</p> <p style="text-align: justify;">We at IberianTax are proud of this recognition and motivated to keep innovating. We thank our clients for their trust and support, which have been key to reaching this milestone. Looking ahead, we're excited to further streamline tax management for non-residents in Spain, making the country an even more welcoming place for all.</p> <p style="text-align: justify;">Keep an eye on our blog for more updates on how we continue to revolutionize tax services for non-residents in Spain.</p>

<p>Attention all non-resident property owners in Spain! If you rent out your Spanish property, we have some exciting news that will make your tax reporting process a whole lot easier. Starting from the 2024 tax year, a significant regulatory update allows you to report rental income annually, marking a departure from the previous requirement for quarterly reporting. In this blog post, we'll delve into the details of this game- changing update and what it means for property owners like you.</p> <p><br />Under the new regulation detailed in Orden HAC/56/2024, non-resident property owners in Spain are now required to report and pay taxes on rental income just once a year. This change aims to simplify the tax filing process and reduce the administrative burden for international property owners. The filing period for income earned in 2024 is set from January 1 to January 20, 2025, with an earlier deadline of January 15, 2025, for those opting for direct debit.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';"><br />Impact on property owners</h2> <p>For non-resident property owners who rent out their Spanish properties, this update streamlines the tax reporting process significantly. Instead of having to file quarterly tax returns several times a year, you'll now only need to file one annual return for rental income. This means less paperwork and fewer deadlines to manage, making it easier to stay compliant with Spanish tax laws.</p> <p><br />Let's illustrate the impact of this update with a practical example. Consider a property owner who rents out their Spanish property for 300 days of the year and keeps it empty for the rest. Under the previous rules, they would have had to file five tax returns&mdash;one for each quarter the property was rented out and one annual return for the period it was empty. With the new regulations, the process is simplified to just two annual returns&mdash;one for rental income and another for imputed income on the days the property was not rented out.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';"><br />Key Takeaways</h2> <p>The annual rental income reporting update is a game-changer for non-resident property owners in Spain. It not only simplifies the tax reporting process but also reduces the administrative burden associated with quarterly filings.</p> <p><br />With the introduction of annual rental income reporting, non-resident property owners in Spain can look forward to a more streamlined and efficient tax reporting process. By simplifying administrative procedures, this regulatory update aims to make life easier for property owners and ensure compliance with tax obligations.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';"><br />Filing Your Non-Resident Property Taxes in Spain</h2> <p>At IberianTax, we&rsquo;re here to help you get clarity on your non-resident property taxes in Spain. Our user- friendly online tax filing platform is tailored specifically for non-resident property owners, streamlining the intricate task of managing non-resident property taxes to ensure accuracy, simplicity, and security. Whether you need to submit Imputed Income, Rental Income, or Capital Gains Tax returns using the Modelo 210 (Form 210), we've got you covered.</p> <p>With IberianTax, filing your tax return is a breeze, even if you're unfamiliar with Spanish tax regulations. Our dedicated team provides complimentary support to ensure your tax return is filed accurately, providing you with peace of mind every step of the way.</p> <p>When it comes to non-resident property taxes, trust IberianTax to be your dependable ally in simplifying the tax filing process, allowing you to fully savour the joys of your Spanish property with confidence.</p> <p>Join us today by signing up for your FREE IberianTax account and we&rsquo;ll send you a convenient reminder for when your non-resident taxes are due to be paid.</p>

<p>We&rsquo;re thrilled to share the news that the Spanish Tax Agency has introduced a significant change that will streamline tax payments for property owners living outside of Spain. Starting February 1, 2024, individuals can now use bank accounts from the SEPA area to pay their non-resident taxes in Spain. This move aims to make the tax payment process more accessible and convenient for non-resident property owners, eliminating the need for a Spanish bank account.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';"><br />Why This Change Matters</h2> <p>Previously, non-resident property owners faced a few challenges when attempting to pay their taxes directly from their bank accounts, as it required a Spanish bank account. This posed a hassle for individuals residing outside of Spain. However, with the introduction of SEPA account compatibility, property owners can now continue to use their home country's bank accounts or accounts from other SEPA countries to make tax payments towards their taxes. This change simplifies the process and alleviates the burden of setting up a separate Spanish bank unnecessarily.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';"><br />Key Details</h2> <p>It's important to understand a few key details regarding this new payment option:</p> <ul> <li style="line-height: 1.5;">Tax payments will be deducted from the account on December 31 each year.</li> <li style="line-height: 1.5;">To utilise the bank debit option, property owners must submit their tax returns during the voluntary period, which for the year 2023 spans from December 1 to December 20, 2024.</li> </ul> <p>&nbsp;</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Implications for Non-Resident Property Owners</h2> <p>This update signifies a significant step forward in enhancing accessibility to tax payments for non-resident property owners in Spain. By accepting SEPA accounts, the Spanish Tax Agency demonstrates a commitment to simplifying the tax system, particularly for individuals managing their Spanish properties from abroad. Ultimately, this move aims to make the process of owning property in Spain less cumbersome and more manageable for international property owners.</p> <p><br />The decision to accept SEPA accounts for property tax payments represents a positive development in the realm of tax administration in Spain. By embracing this change, the Spanish Tax Agency is actively working to facilitate tax compliance for non-resident property owners. As a result, managing property in Spain will become much more straightforward and less complex, contributing to a more seamless experience for Spanish property owners worldwide.</p> <p>&nbsp;</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Filing Your Modelo 210 in Spain</h2> <p>At IberianTax, we're dedicated to helping you navigate the complexities of non-resident property taxes in Spain with ease. Our intuitive online tax filing platform is specifically designed for non-resident property owners, making the management of non-resident property taxes straightforward, accurate, and secure. Whether you're required to file Imputed Income, Rental Income, or Capital Gains Tax returns using the Modelo 210 (Form 210), we've got all your needs covered.</p> <p><br />With IberianTax, filing your tax return is a stress-free experience, even if you're not well-versed in Spanish tax laws. Our expert team offers complimentary support to ensure your tax return is completed accurately, providing you with peace of mind at every stage of the process.</p> <p><br />When it comes to non-resident property taxes, rely on IberianTax to be your trusted partner in simplifying the tax filing journey, allowing you to fully enjoy the pleasures of your Spanish property with confidence.</p> <p><br />Start your hassle-free tax journey today by signing up for your FREE IberianTax account and embark on a seamless path to Spanish non-resident tax compliance.</p>

<p>We are thrilled to announce that <strong>IberianTax </strong>was selected as one of the <strong>finalists to participate in the 7th edition of Venture on the Road</strong>, a prestigious event dedicated to showcasing <strong>innovative startups across Spain</strong>. This particular stop took place in the beautiful city of Palma de Mallorca on February 15th, marking an important occasion for entrepreneurs and investors alike.</p> <p>Held at the headquarters of HotelBeds, one of our esteemed local partners, this edition of Venture on the Road in Palma was a collaborative effort with Emprenbit and HotelBeds. These partners played a crucial role in the identification and selection of<strong> projects that promise to make significant impacts in their respective industries</strong>.</p> <p>The event kicked off with an insightful introduction by the organizers from SeedRocket, BStartup, and Wayra. They shared the vision behind Venture on the Road, highlighting its commitment to nurturing the entrepreneurial ecosystem and encouraging investment at both local and national levels.</p> <p>Toni Carmona, the Regional Secretary-General for Innovation of the Balearic Government, representing Emprenbit, delivered an inspiring speech. He commended the courage of entrepreneurs and encouraged them to continue on their path of innovation and growth. Jos&eacute; Mar&iacute;a Pesta&ntilde;a, Chief of Innovation &amp; Public Affairs Officer at HotelBeds, then discussed the company's efforts to boost the regional ecosystem through the TravelTech Lab Palma Hub.</p> <p>The presentations from the selected startups were the highlight of the event, with IberianTax taking the stage to showcase our <strong>innovative tax filing software designed for non-resident property owners in Spain</strong>. Our participation underscores our commitment to simplifying tax compliance and providing exceptional service to our clients.</p> <p>Following IberianTax, other startups presented their groundbreaking solutions, including Ecologi with their real-time food product traceability system and Hydrostat with their water status monitoring sensors for crops, demonstrating the diverse and innovative spirit of the entrepreneurial community in Spain.</p> <p>The event also featured a keynote by Javier Darriba on the intricacies of investing in SaaS companies, offering valuable insights from his extensive experience as both an entrepreneur and investor. His presentation sparked great interest among the audience, shedding light on important considerations for potential investors in the SaaS sector.</p> <p>After the presentations and the keynote, the jury, comprising esteemed members from BStartup, Wayra, Emprenbit, HotelBeds, and SeedRocket, provided personalized feedback to each project. This invaluable advice is a testament to the supportive nature of the entrepreneurial ecosystem in Spain.</p> <p>The day concluded with the announcement of Hydrostat as the winning startup of this Palma stop of the Venture on the Road. The event closed on a high note with a networking session, allowing participants to connect and share ideas.</p> <p>At IberianTax, we are honored to have been part of such a significant event and to stand alongside other innovative startups. We extend our gratitude to the organizers, partners, and fellow participants for making this an unforgettable experience. We look forward to continuing our journey, contributing to the vibrant entrepreneurial landscape in Spain and showcasing our innovative tax filing software for Spain's non-resident property owners.</p>

<p>For non-resident property owners in Spain, managing the Modelo 210 tax return is an annual obligation. This guide not only offers a comprehensive overview of the essential aspects of the Spanish non-resident tax return for the 2023 tax year, to be filed in 2024, but also details the recent changes in rental income reporting and the new Direct Debit payment option.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Who Must File a Non-Resident Tax Return?</h2> <p>All non-resident property owners are required to file at least one Modelo 210 tax return annually for imputed or deemed income from their property, regardless of whether it is vacant or used occasionally by the owner.</p> <p>With recent changes, from the 2024 tax year, rental income reporting shifts from quarterly to annual declarations. Therefore, income generated in 2023 requires quarterly filings, but from 2024, an annual declaration is needed.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Self-Assessment</h2> <p>The Modelo 210 is a self-assessment tax return, placing responsibility on taxpayers to accurately complete and pay any due taxes without reminder notices from the tax authorities.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Deadline for Submission</h2> <ul> <li><strong>Not Rented Properties</strong>: Filing is due by December 31st of the year following the reported tax year, meaning 2023 filings are due by December 31st, 2024.</li> <li><strong>Rented Properties (until 2023)</strong>: Rental income is declared quarterly within the first 20 days of April, July, October, and January for the prior quarter.</li> <li><strong>Rented Properties (from 2024 onwards)</strong>: Reflecting recent adjustments, rental income from 2024 must be declared annually, with filings due between January 1st and January 20th of the subsequent year.</li> </ul> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Example: Property Rental in 2023 vs. 2024</h3> <p><strong>2023 Tax Year:</strong></p> <p>If a property was rented from January to June in 2023 and unoccupied afterward:</p> <ul> <li>File quarterly Modelo 210 tax returns for rental income from January to June within the first 20 days of April and July 2023, respectively.</li> <li>Declare imputed income for the period of July to December 2023 in 2024, with the filing due by December 31st, 2024.</li> </ul> <p><strong>2024 Tax Year:</strong></p> <p>For the same rental period in 2024:</p> <ul> <li>Submit one Modelo 210 tax return for the entire rental income from January to June, due between January 1st and January 20th, 2025.</li> <li>File for imputed income during the unoccupied period (July to December 2024) in 2025, due by December 31st, 2025.</li> </ul> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Direct Debit Payment from SEPA Accounts</h2> <p>As of February 1, 2024, a significant update has been implemented to facilitate tax payments: Direct Debit payments for tax returns can now be arranged from SEPA accounts. This expanded payment method includes accounts in both collaborating and non-collaborating entities within the SEPA zone, which encompasses 36 countries. These countries include all 27 European Union member states, as well as Iceland, Liechtenstein, Norway, Switzerland, Andorra, Monaco, San Marino, the United Kingdom, and the Vatican City State. This adjustment broadens the convenience and accessibility for international property owners, simplifying the process of making tax payments from abroad.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Online Submission</h2> <p>Our user-friendly online service allows property owners to file and pay their taxes easily, without needing prior tax knowledge or a Spanish digital certificate.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Late Submission Penalties</h2> <p>Failing to meet the filing deadline can result in a penalty of at least 50% of the tax due, in addition to possible interest charges. Proactive filing before contact by tax authorities can reduce penalties to a maximum of 15%.</p>

<p>If you're a non-resident property owner in the Balearic Islands and you need to file your Imputed Income tax return, you'll want to ensure you have your IBI receipt handy. In this article, we'll guide you through the simple steps to download your IBI receipt, ensuring you have all the information you need for accurate non-resident tax calculations.</p> <p><br />Before we walk you through the process of downloading your IBI receipt, let's understand why it's essential. Your IBI receipt contains crucial information, including the cadastral value and reference of your property. These details are necessary for accurately filing your Imputed Income tax return. Whether you're a seasoned property owner or if you&rsquo;re new to the process, having your IBI receipt ensures smooth and accurate property tax filing.</p> <p><br />Sometimes, when the property tax (IBI) payment is paid by direct debit to our bank account, we only have the proof of payment, but not the receipt itself. In this article, we will be explaining how to obtain your IBI receipt if the property you own is located in the Balearic Islands.</p> <p><br />To download the receipt, you will need to follow these steps below:</p> <p><br />1. First of all, we will need to identify the document code. This code will feature the letters &lsquo;DO&rsquo; at the<br />end of it. This code serves as a unique identifier for your IBI receipt.</p> <p><img title="Captura de pantalla 2024-02-12 154311.png" src="https://iberiantax-blog.s3.eu-west-1.amazonaws.com/c225dba8-addf-41ac-b7e1-07c5434c3c76/images/en/Captura%20de%20pantalla%202024-02-12%20154311.png.png" alt="DO code" width="427" height="62" /></p> <p>2. Go to the Tax Agency of the Balearic Islands website <strong><a class="color-primary link-secondary" title="Here" href="https://atib.es/TL/Notificaciones/Default.aspx?qrcode=DO-0" target="_blank" rel="noopener">here.</a></strong><br />3. Enter the &lsquo;DO&rsquo; code in the box and then click Verify/Pay.<br />4. Once the details of your IBI receipt appear, take a moment to review them for accuracy.</p> <p><img title="Captura de pantalla 2024-02-12 155513.png" src="https://iberiantax-blog.s3.eu-west-1.amazonaws.com/c225dba8-addf-41ac-b7e1-07c5434c3c76/images/en/Captura%20de%20pantalla%202024-02-12%20155513.png.png" alt="IBI receipt" width="623" height="131" /></p> <p>5. Select print, download the file and you&rsquo;re done &ndash; it&rsquo;s that simple!</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';"><br />Non-Resident Taxes in Spain Explained</h2> <p><br />In addition to the IBI tax, non-resident property owners in Spain need to be aware of various other taxes. Depending on how you utilise your property, you may have annual or quarterly tax obligations that require<br />filing using the Modelo 210 tax form.</p> <p>If your property is solely for personal use, regardless of whether it remains vacant throughout the year or not, you must submit a Modelo 210 form for your<a class="color-primary link-secondary" title="Imputed Income tax" href="https://www.iberiantax.com/modelo-210/imputed-income" target="_blank" rel="noopener"> Imputed Income tax</a> by December 31st for the previous year. However, if you rent out your property, you'll need to file a Modelo 210 form for your <a class="color-primary link-secondary" title=" Rental Income tax " href="https://www.iberiantax.com/modelo-210/rental-income" target="_blank" rel="noopener">Rental Income tax </a>every quarter.</p> <p><br />Fortunately, IberianTax simplifies the process of submitting your Modelo 210 to the Spanish tax authorities, starting from just 34.95&euro;! Our <a class="color-primary link-secondary" title="Dashboard" href="https://www.iberiantax.com/dashboard" target="_blank" rel="noopener">user-friendly online tax software</a> allows you to prepare and submit your Imputed Income and Rental Income tax returns effortlessly, even if you're new to tax filing.</p> <p><br />Simply complete the questionnaire with our step-by-step guidance, and we'll review your submission and handle the filing on your behalf. It's that easy! We're officially recognised and approved by the Spanish tax authorities, and our dedicated team of tax experts is available to assist you whenever you need support.</p> <p>Start saving money today by using IberianTax to file your Modelo 210!</p>

<p>As a non-resident property owner in Almer&iacute;a, ensuring you have your IBI receipt handy is essential when filing your Imputed Income tax return. In this guide, we'll take you through the straightforward steps to download your IBI receipt in Almer&iacute;a.</p> <p>Understanding the significance of your IBI receipt is crucial before delving into the downloading process. This receipt holds vital details, such as the cadastral value and reference of your property, indispensable for accurately completing your non-resident property tax returns in Spain. Whether you're well-versed in property ownership or just starting, having your IBI receipt on hand guarantees a seamless and error-free property tax filing experience.</p> <p>Occasionally, when property tax (IBI) payments are debited directly from our bank accounts, we receive confirmation of payment, but not the actual receipt. In this guide, we'll walk you through the process of obtaining your IBI receipt if you own property in Almer&iacute;a:</p> <p>1. First of all, you&rsquo;ll need to click on the following link: <a class="color-primary link-secondary" title="recaudacion" href="https://recaudacion.dipalme.org/" target="_blank" rel="noopener">https://recaudacion.dipalme.org</a>/ to visit the Virtual Tax Office of the Almeria Provincial Council.</p> <p>2. Head to the &lsquo;Requests&rsquo; section towards the bottom left hand side of the page and choose the option &lsquo;check the bill charged to my account&rsquo;.</p> <p><img title="Requests" src="https://iberiantax-blog.s3.eu-west-1.amazonaws.com/bf02b169-655b-4b1b-872d-b0c34ea65824/images/en/Requests.png" alt="" width="388" height="227" /></p> <p>3. Next, we will need to enter the taxpayer's tax identification number. This may be your NIE number.</p> <p><img title="Holder" src="https://iberiantax-blog.s3.eu-west-1.amazonaws.com/bf02b169-655b-4b1b-872d-b0c34ea65824/images/en/Holder.png" alt="" width="402" height="181" /></p> <p>4. Then, choose the document that we have at our disposal. In this case, it is the bank receipt. Therefore, we need to select &lsquo;receipt&rsquo;.</p> <p><img title="Bill" src="https://iberiantax-blog.s3.eu-west-1.amazonaws.com/bf02b169-655b-4b1b-872d-b0c34ea65824/images/en/Bill.png" alt="" width="382" height="268" /></p> <p>5. You will then be asked for the &lsquo;value identification&rsquo;. This value will be referenced in different ways, but it should always have a maximum of 22 characters and is detailed as &lsquo;ID value&rsquo;.</p> <p><img title="Almeria" src="https://iberiantax-blog.s3.eu-west-1.amazonaws.com/bf02b169-655b-4b1b-872d-b0c34ea65824/images/en/Almeria.png" alt="" width="408" height="271" /></p> <p>6. When you introduce the code, it will then give you the option to download the receipt in which you will find the cadastral value.</p> <p><img title="Captura de pantalla 2024-01-22 164352.png" src="https://iberiantax-blog.s3.eu-west-1.amazonaws.com/bf02b169-655b-4b1b-872d-b0c34ea65824/images/en/Captura%20de%20pantalla%202024-01-22%20164352.png.png" alt="download" width="475" height="94" /></p> <p><img title="Cadastral" src="https://iberiantax-blog.s3.eu-west-1.amazonaws.com/bf02b169-655b-4b1b-872d-b0c34ea65824/images/en/Cadastral.png" alt="" width="665" height="75" /></p> <p>&nbsp;</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Understanding Non-Resident Taxes in Spain</h2> <p>Beyond the IBI tax, non-resident property owners in Spain must navigate various other tax obligations. Depending on how you use your property, you may face annual or quarterly tax responsibilities that require filing using the Modelo 210 tax form.</p> <p>For properties solely for personal use, whether vacant year-round or not, filing a Modelo 210 form for <a class="color-primary link-secondary" title="imputed income" href="https://www.iberiantax.com/modelo-210/imputed-income" target="_blank" rel="noopener">Imputed Income tax</a> by December 31st for the previous year is essential. Conversely, if you rent out your property, quarterly submission of a Modelo 210 form for<a class="color-primary link-secondary" title="rental income" href="https://www.iberiantax.com/modelo-210/rental-income"> Rental Income tax </a>is necessary.</p> <p>Luckily, IberianTax streamlines the process of submitting your Modelo 210 to the Spanish tax authorities, starting from just 34.95&euro;! Our intuitive online tax software guides you through preparing and submitting your Imputed Income, Rental Income tax and even your Capital Gains Tax returns seamlessly, regardless of your previous tax-filing experience.</p> <p>Just follow our step-by-step questionnaire, and we'll handle the review and filing on your behalf and send it to the authorities, it&rsquo;s that simple! To find out more about our service, click <a class="color-primary link-secondary" title="how it works" href="https://www.iberiantax.com/how-it-works" target="_blank" rel="noopener">here</a>.</p>

<p>As property owners in Spain, ensuring the accuracy of our property's cadastral data may not always be at the forefront of your mind. However, overlooking discrepancies in the cadastral surface area can have significant financial implications, impacting taxes such as Real Estate Tax (IBI) and non-resident property taxes. At IberianTax, we understand the importance of addressing these discrepancies and unlocking potential tax savings for our clients. In this blog post, we delve into the intricacies of changing cadastral surface area and how it can impact your tax obligations in Spain.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';"><br />What is a Cadastre?</h2> <p>The Cadastral Register is an administrative register of all properties in Spain. Details noted on the cadastre include physical, economic and legal features, including location, cadastral references, surface, use, cultivation, graphic representation, cadastral value and cadastral holder.</p> <p>The purpose of the register is fiscal, collecting the descriptions of all properties in the country and their owners, as well as providing State, Autonomous and local administrations with the necessary information for the management, collection and control of various taxes.</p> <p>The Cadastral Value (valor catastral in Spanish) is an administrative value that is assigned to all Spanish properties and is used to determine the amount of local tax rates that each owner must pay, as well as calculating the tax liability for non-residents when it comes to non-rented properties.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';"><br />Cadastral Surface Area Errors</h2> <p>The cadastral surface area of a property is a crucial element that&rsquo;s used to calculate a variety of taxes in Spain. However, many people are unaware that there can be errors in this data, which could potentially lead to overpayments or inaccuracies in tax assessments &ndash; costing you money. In some cases, it can even complicate a house sale. Common discrepancies may arise from inaccuracies in measurements, misinterpretation of legal rules, or outdated information. Regardless of the cause, rectifying these errors guarantees fair and accurate taxation on your Spanish property.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';"><br />Correction Procedures</h2> <p>When it comes to addressing cadastral surface area errors, property owners have two primary procedures at their disposal:</p> <p><br /><em>Correcting discrepancies:</em> addressing errors related to property-specific data or characteristics, such as surface area discrepancies resulting from misapplied legal rules.</p> <p><br /><em>Rectifying errors:</em> correcting inaccuracies stemming from the improper application of urban planning information or measurement errors.</p> <p><br />The Cadastre and the Treasury tend to prefer discrepancy correction over rectifying errors because resolving discrepancies takes effect from the resolution date, versus retroactively when it comes to the rectifying errors route. Correcting discrepancies may offer immediate relief but may not have retroactive effects, limiting the<br />ability to seek refunds for overpaid taxes in previous years. Conversely, rectifying errors may provide retroactive relief but often involves a more complex process.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';"><br />Challenging the Supreme Court</h2> <p>For those who wish to seek refunds for overpaid taxes, this can be leveraged using legal precedents set by the Supreme Court. If you wish to choose this route, we highly recommend employing the help of an experienced lawyer/solicitor to assist you.</p> <p><br />The court has indicated that refunds can be pursued for past years if errors in the cadastral surface area existed during those periods. Although a long process, by citing relevant rulings and legal interpretations, property owners can advocate for retroactive refunds and mitigate the financial impact of cadastral errors.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';"><br />Non-Resident Property Taxes with IberianTax</h2> <p>Navigating cadastral surface area changes and correction procedures can be daunting, however, it&rsquo;s an important task that could potentially save you money in the long run, especially when it comes to paying your non-resident property taxes in Spain.</p> <p><br />If you&rsquo;re looking for a way to reduce your non-resident property taxes even further, why not consider filing your Modelo 210 with IberianTax? With our online tax software, you can say goodbye to expensive accountancy fees and file your non-resident property taxes <a class="color-primary link-secondary" title="Pricing" href="https://www.iberiantax.com/pricing" target="_blank" rel="noopener">from just 34.95&euro;!</a></p> <p><br />With our <a class="color-primary link-secondary" title="How it works" href="https://www.iberiantax.com/how-it-works" target="_blank" rel="noopener">easy-to-use software</a>, you&rsquo;ll be able to complete your Modelo 210 quickly and easily, even if you&rsquo;ve never submitted a return before. Our team of tax experts will even double-check your return, before submitting it to the Spanish tax authorities on your behalf &ndash; it couldn&rsquo;t be easier!</p> <p><br />At IberianTax, we can handle a range of different non-resident property taxes in Spain, including <a class="color-primary link-secondary" title="Imputed Income" href="https://www.iberiantax.com/modelo-210/imputed-income" target="_blank" rel="noopener">Imputed Income</a>, <a class="color-primary link-secondary" title="Rental Income" href="https://www.iberiantax.com/modelo-210/rental-income">Rental Income</a> and <a class="color-primary link-secondary" title="Capital Gains Tax" href="https://www.iberiantax.com/modelo-210/capital-gains-tax" target="_blank" rel="noopener">Capital Gains Tax</a>, even for multiple property owners. Start your journey to stress- fee filing with IberianTax today!</p>

<p>Following a good performance in property sales in Spain during 2023, the end of the year saw a slight dip in transactions on the Spanish property market. However, the resilience of property prices and the consistent uptrend in various regions since January offer promising indicators for 2024. With interest rates holding firm, the question looms: What lies ahead for Spain's property market in 2024? Well, let&rsquo;s take a look.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Reflections on 2023</h2> <p>Despite interest rates reaching 4.5% in 2023&mdash;a historical harbinger of slowed house price growth&mdash;Spanish real estate appears to have defied this trend, maintaining its value. The Tinsa property index reports a 4.3% rise in prices for the year to October, with notable increases in the Balearic and Canary Islands.</p> <p>The predicted price drops that many anticipated would occur in 2023, failed to materialise. Instead, property prices actually increased by 7% over the year, with the dynamic markets of Madrid and Barcelona experiencing extremely high price increases. &nbsp;</p> <p>Overall, 2023 looks set to end at just below 600,000 transactions in total, representing a drop in transactions between 8% and 10%.&nbsp;</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Projections for 2024</h2> <p>With the European Central Bank (ECB) holding steady on interest rates, the mortgage market in Spain is expected to remain tight&mdash;a pivotal factor influencing property prices. The number of mortgages signed in 2023 has fallen significantly and is expected to close with a drop of more than 25% year on year.&nbsp;</p> <p>However, thanks to the French senate&rsquo;s move to discuss the option of allowing British second homeowners in France the right to a long-stay visa, the news that Spain is looking to do the same has given some much-needed hope to those Brits looking for a property in the sun.&nbsp;</p> <p>UK-based international property portal, Kyero, has said that there is &lsquo;pent up British demand&rsquo; for property in Spain, as British citizens await a potential relaxation in the 90-day ruling. This news could potentially mark the start of a renewed demand from British citizens looking to buy property in Spain in 2024.&nbsp;</p> <p>Foreign Buyers Continue to Boost the Market<br />Digital nomads and affluent retirees from outside of Spain look set to continue to dominate the property market in Spain. The mix of rich culture, great healthcare, safety and a mild climate make Spain a top choice when it comes to buying property abroad. In the third quarter of 2023, foreign transactions accounted for just over 15% of the total property sales, the second-highest level in history.&nbsp;</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Supply Outstripping Demand</h2> <p>Low property levels in 2023 look to persist as a constant in the Spanish property market for 2024. This chronic shortage of supply highlights the need for adaptive strategies across the country. For rental properties, with the introduction of the reformed Housing Laws in Spain earlier this year, many landlords are now favouring short-term or holiday rentals over long-term rentals. This, in turn, has caused a drastic shortage of properties nationwide, but particularly in the popular Spanish coastal resorts and other highly sought-after areas.</p> <p>However, some experts also believe that this unprecedented demand for property may end up exhausting itself by the end of 2024, helping to moderate prices and offer more opportunities for property purchases.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Spanish Property Taxes</h2> <p>Curious about non-resident property taxes in 2024? Explore IberianTax for seamless and informed tax filing&mdash;because navigating complexity is what we do best!&nbsp;</p> <p>We&rsquo;re dedicated to helping non-resident property owners in Spain file their Modelo 210 tax forms with ease, removing the need for expensive accountants and simplifying the process entirely.&nbsp;</p> <p>Whether you&rsquo;re looking to file your Modelo 210 for your <strong><a class="color-primary link-secondary" href="https://www.iberiantax.com/modelo-210/imputed-income" target="_blank" rel="noopener">Non-Resident Imputed Income Tax</a></strong>, <strong><a class="color-primary link-secondary" href="https://www.iberiantax.com/modelo-210/rental-income" target="_blank" rel="noopener">Non-Resident Rental Income Tax</a></strong> or if you&rsquo;re looking to sell your property in Spain and you need to pay <strong><a class="color-primary link-secondary" href="https://www.iberiantax.com/modelo-210/capital-gains-tax" target="_blank" rel="noopener">Capital Gains Tax</a> </strong>&ndash; IberianTax ishere to help.&nbsp;</p> <p><strong><a class="color-primary link-secondary" href="iberiantax.com/login" target="_blank" rel="noopener">Get started today</a></strong> and save yourself time and money when it comes to paying your non-resident property taxes in Spain!</p>

<p>Owning a property in the picturesque M&aacute;laga region comes with its charms and responsibilities. One such responsibility is understanding and managing the local taxes, particularly the IBI (Impuesto sobre Bienes Inmuebles) tax. This tax is administered by the Patronato de Recaudaci&oacute;n, an institution that plays a crucial role in levying local taxes on behalf of the many Ayuntamientos in the M&aacute;laga region.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">The Patronato de Recaudaci&oacute;n: Your Gateway to Local Taxes</h2> <p>The Patronato de Recaudaci&oacute;n is the administrative body responsible for collecting local taxes in the various municipalities in M&aacute;laga. For property owners, this means that the IBI tax, among others, is managed and collected by the Patronato. It's important to note that several Ayuntamientos entrust the Patronato with this responsibility, creating a centralised system for tax collection.</p> <p><br />Here is a list of municipalities in the M&aacute;laga region whose local taxes are levied by the Patronato de Recaudaci&oacute;n:</p> <ul> <li>M&aacute;laga</li> <li>Marbella</li> <li>Mijas</li> <li>Fuengirola</li> <li>Benalm&aacute;dena</li> <li>Torremolinos</li> <li>Estepona</li> <li>Ronda</li> <li>Antequera</li> <li>V&eacute;lez-M&aacute;laga</li> <li>Nerja</li> </ul> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Your IBI Tax Receipt</h2> <p>The IBI tax receipt holds valuable information, especially for non-resident property owners. This includes details such as the cadastral value and cadastral reference of your property. These pieces of information are crucial when filing non-resident taxes, making it essential to have access to your IBI receipt.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Downloading Your IBI Receipt: A Step-by-Step Guide</h2> <p>Contrary to common belief, the Patronato de Recaudaci&oacute;n does not automatically send out IBI receipts. However, property owners can easily download their IBI receipts using the information on their bank receipts. Specifically, you'll need the ID of the property and the last three numbers of the bank account used for payment.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">The Steps to Download Your IBI Receipt:</h2> <p><strong>1. Locate Your Bank Receipt</strong>: Retrieve the bank receipt for your recent IBI tax payment.</p> <p><strong>2. Identify Property ID: </strong>Find the ID of your property on the bank receipt. This is often a unique alphanumeric code associated with your property.</p> <p><img title="Captura de pantalla 2024-02-22 165001.png" src="https://iberiantax-blog.s3.eu-west-1.amazonaws.com/a4cbc183-98b7-4236-84a8-9094df356a2f/images/en/Captura%20de%20pantalla%202024-02-22%20165001.png.png" alt="Bank receipt" width="760" height="387" /></p> <p>&nbsp;</p> <p><strong>3. Note Your Bank Account Numbers:</strong> Take note of the last three numbers of the bank account used for the payment.</p> <p><strong>4. Visit the Official Portal: </strong>Go to the official website of the <a class="color-primary link-secondary" title="Patronato de Recaudaci&oacute;n" href="https://portal.prpmalaga.es/">Patronato de Recaudaci&oacute;n</a>.</p> <p><strong>5. Access the Download Section</strong>: Look for the section related to IBI receipts or property information, there will be an icon that says &lsquo;IBI&rsquo; on the page.&nbsp;</p> <p><img title="Captura de pantalla 2024-02-22 155747.png" src="https://iberiantax-blog.s3.eu-west-1.amazonaws.com/a4cbc183-98b7-4236-84a8-9094df356a2f/images/en/Captura%20de%20pantalla%202024-02-22%20155747.png.png" alt="IBI" width="760" height="293" /></p> <p>&nbsp;</p> <p><strong>6. Go to the Virtual Office</strong>: Click on the highlighted section entitled &lsquo;Virtual Office&rsquo;.&nbsp;</p> <p><img title="Captura de pantalla 2024-02-22 155930.png" src="https://iberiantax-blog.s3.eu-west-1.amazonaws.com/a4cbc183-98b7-4236-84a8-9094df356a2f/images/en/Captura%20de%20pantalla%202024-02-22%20155930.png.png" alt="Virtual Office" width="760" height="236" /></p> <p>&nbsp;</p> <p><strong>7. Choose How to Access the Service</strong>: Choose from electronic identification (your &lsquo;Cl@ve&rsquo; pin), receipt data or reference. In this step you need to look for the "Mat/reference" and enter this data in the corresponding field with your NIF and the Municipality in which your property is located.</p> <p><img title="Captura de pantalla 2024-02-22 172349.png" src="https://iberiantax-blog.s3.eu-west-1.amazonaws.com/a4cbc183-98b7-4236-84a8-9094df356a2f/images/en/Captura%20de%20pantalla%202024-02-22%20172349.png.png" alt="Matr&iacute;cula" width="234" height="71" /></p> <p>If you don&acute;t have access, you can directly try here: <a class="color-secondary link-primary" title="Patronato" href="https://portalweb.prpmalaga.es/ImpresionReciboDomiciliado/" target="_blank" rel="noopener"><strong>https://portalweb.prpmalaga.es/ImpresionReciboDomiciliado/</strong></a></p> <p><strong>8. Enter Required Details</strong>: Input the property ID and the last three numbers of your bank account.</p> <p><strong>9. Download Your IBI Receipt</strong>: Once verified, you should be able to download your IBI receipt containing crucial details for non-resident tax filing.&nbsp;</p> <p><img title="Captura de pantalla 2024-02-22 153129.png" src="https://iberiantax-blog.s3.eu-west-1.amazonaws.com/a4cbc183-98b7-4236-84a8-9094df356a2f/images/en/Captura%20de%20pantalla%202024-02-22%20153129.png.png" alt="IBI receipt" width="760" height="460" /></p> <p>Understanding the process of downloading your IBI receipt is not just a convenience, but it&rsquo;s a necessity for ensuring you have an easy property ownership process in M&aacute;laga. By following these steps and utilising the official channels provided by the Patronato de Recaudaci&oacute;n, you can ensure that you have all the essential information at your fingertips. Keep your financial records organized, and navigating the tax landscape as a property owner in M&aacute;laga will become a much more straightforward endeavour.&nbsp;</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Non-Resident Taxes in Spain&nbsp;</h2> <p>Alongside the IBI tax, there are several other non-resident taxes to keep in mind as a non-resident property owner in Spain. Depending on how you use your property, there may be annual or quarterly taxes that you&rsquo;ll need to file using the Modelo 210 tax form.&nbsp;</p> <p>If your property is only for personal use, and regardless of whether it lays empty all year or not, you&rsquo;ll need to submit a Modelo 210 form for your Imputed Income tax by the 31st of December for the previous year. However, if you rent out your property, you&rsquo;ll need to file a Modelo 210 form for your Rental Income tax each quarter.&nbsp;</p> <p>Thankfully, IberianTax has made it easier than ever to submit your Modelo 210 to the Spanish tax authorities &ndash; and prices start from just 34.95&euro;! Using our online tax software, you can prepare and submit your Imputed Income and Rental Income tax returns with ease, even if you&rsquo;ve never submitted a return before.&nbsp;</p> <p>All you need to do is complete the questionnaire with our step-by-step guidance and we&rsquo;ll then check your submission and send it to the authorities for you. It couldn&rsquo;t be easier! We&rsquo;re fully recognised and approved by the Spanish tax authorities, and our helpful team of tax experts are always on hand to help should you need them.&nbsp;</p> <p><a class="color-primary link-secondary" href="iberiantax.com">Start saving money</a> and use IberianTax to file your Modelo 210 now! &nbsp;</p>

<p style="text-align: justify;">Here at IberianTax, we understand that saving money on your non-resident taxes is important. Spending hundreds of euros on accountancy fees to submit the Modelo 210 form is a costly undertaking, especially given the current climate.</p> <p style="text-align: justify;">But thanks to our simple online tax software, we&rsquo;ve managed to save our clients hundreds of euros on their non-resident tax returns each year, leaving them with more money to enjoy their holiday homes in the sun.</p> <p style="text-align: justify;">To say thank you for using IberianTax, we&rsquo;ve created a Referral Scheme, designed to reward you for spreading the word about our hassle-free tax services, as well as saving you even more money! Here are a few reasons why you should get on board and start referring your friends to IberianTax today!</p> <p style="text-align: justify;">&nbsp;</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;">How It Works</h2> <p style="text-align: justify;">It's simple: share the love for stress-free tax filing, and both you and your friends will benefit! When you refer a friend to IberianTax via your unique referral link, they receive a generous 10% discount on their first tax submission. As a thank you for spreading the word, we&rsquo;ll then reward you with a 10&euro; credit for each friend who signs up and submits their Modelo 210 with us. The more friends you refer, the more credit you accumulate towards your next tax return. It&rsquo;s a win-win situation!</p> <p style="text-align: justify;">&nbsp;</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;">Easy as 1-2-3</h2> <p style="text-align: justify;"><strong>Share Your Unique Referral Link:</strong> Log in to your IberianTax account, grab your unique referral link in the &lsquo;Referral&rsquo; section of your account, and then simply share it with friends, family, and neighbours. Whether it's over a coffee, through social media, or in your local community, spreading the word has never been easier.</p> <p style="text-align: justify;"><strong>Friends Enjoy a Discount:</strong> Your friends, upon using your referral link to create an account, receive an exclusive 10% discount on their first tax return. It's a warm welcome to stress-free tax filing with IberianTax!</p> <p style="text-align: justify;"><strong>You Earn 10&euro; Credit</strong>: When your referred friends make a purchase, you earn 10&euro; credit towards your next return. There's no cap on the number of friends you can refer, so you can keep referring friends to your heart's content!</p> <p style="text-align: justify;">&nbsp;</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;">Why Participate?</h2> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">1. Save More on Your Taxes</h3> <p>Your friends will benefit from a discount on their tax services, making it more enticing for them to experience the convenience of IberianTax, versus signing up alone.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">2. Earn Credits for Each Referra</h3> <p>The more friends you refer, the more credits you accumulate. These credits can be applied to your future tax filings, giving you additional savings.</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">3. Build a Community of Savvy Savers</h3> <p>By sharing the benefits of IberianTax, you're contributing to a community of savvy individuals who appreciate smart savings!</p> <h3 style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">4. It&rsquo;s Effortless</h3> <p>There are no complex procedures here! All you need to do is simply share your unique link, and the system takes care of the rest. Effortless savings and earnings.</p> <p>&nbsp;</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;">FAQs</h2> <p style="text-align: justify;"><strong>Q: Is there a limit to how many friends I can refer?</strong></p> <p style="text-align: justify;">A: Nope! You can refer as many friends as you like and watch your credits grow.</p> <p style="text-align: justify;"><strong>Q: How can I track my referrals and credits?</strong></p> <p style="text-align: justify;">A: Log in to your IberianTax account, and you&rsquo;ll find a dedicated area to track your referrals and earned credits.</p> <p style="text-align: justify;"><strong>Q: Can I use my credits whenever I want?</strong></p> <p style="text-align: justify;">A: Yes, your credits are flexible and can be applied to any of your future filings.</p> <p style="text-align: justify;">&nbsp;</p> <h2 style="color: #51c8b8; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;">Start Referring Today!</h2> <p style="text-align: justify;">Ready to unlock savings and share the joy of stress-free tax filing? Log in to your IberianTax account, grab your unique referral link, and start referring your friends to IberianTax today. It&rsquo;s a simple way to make your non-resident taxes more rewarding for you and your friends.</p> <p style="text-align: justify;">&nbsp;</p>

<p style="text-align: justify;">Owning property in Spain has always been a dream for many. The sunny landscapes and rich culture make it a Mediterranean paradise for those seeking a slice of this idyllic life. Whether you're the proud owner of a contemporary apartment in Madrid, a beachfront apartment in Mallorca, or a quiet retreat in Catalonia, it's essential to understand the intricacies of Spanish property taxes.&nbsp;</p> <p style="text-align: justify;">Today we&rsquo;ll be focusing on one tax in particular &ndash; the &lsquo;Impuesto sobre Bienes Inmuebles&rsquo;, otherwise known as the IBI tax. In this all-encompassing guide, we'll unravel the mysteries of IBI tax in Spain, delving into what it is, how it's calculated, and why it's a crucial consideration for both resident and non-resident property owners.</p> <h2 style="color: #1363b2; font-size: 18px; text-align: justify; font-family: 'Montserrat Bold';">IBI Tax: What Is It?</h2> <p style="text-align: justify;">IBI tax, known as &lsquo;Impuesto sobre Bienes Inmuebles&rsquo; in Spanish, is a property tax that is unique to Spain. It is also referred to as SUMA in some regions of Spain. This tax applies to a broad range of properties including residential homes, commercial properties, and even rural land. IBI or SUMA tax plays an important role in supporting local municipalities and ensuring the provision of essential public services.&nbsp;</p> <h2 style="color: #1363b2; font-size: 18px; text-align: justify; font-family: 'Montserrat Bold';">What is the Difference Between IBI Tax and Non-Resident Tax?</h2> <p style="text-align: justify;">It&rsquo;s very important to remember that IBI tax and non-resident taxes are two separate taxes you&rsquo;ll need to pay as a property owner in Spain.&nbsp;</p> <p style="text-align: justify;">The IBI tax is a local tax levied by the local authorities (Ayuntamiento, SUMA, Patronato de Recaudaci&oacute;n Provincial de M&aacute;laga, etc) depending on the region or municipality.&nbsp;</p> <p style="text-align: justify;">The non-resident tax is a national tax levied by the Agencia Tributaria (Spanish tax authority). The non-resident tax law obliges property owners to declare an imputed or deemed income for each Spanish property based on the cadastral value and the applicable imputed percentage (2% or 1.1%). The tax is due even if the property is empty or for personal use and must be filed every year, as opposed to the IBI tax, which does not require the submission of any specific tax return.&nbsp;</p> <p style="text-align: justify;">In contrast to the IBI tax, which remains consistent regardless of the property owner or its rental status, the non-resident tax introduces a layer of complexity influenced by factors beyond mere ownership. While the IBI tax is a fixed local levy, unaffected by the property's occupancy or the owner's identity, the non-resident tax adopts a more nuanced approach. The applicable tax rate under non-resident tax regulations varies depending on the tax residency country of the property owner. Moreover, the calculation incorporates additional elements, such as the number of days the property is rented out. This means that non-resident property owners may encounter a variable tax obligation, determined not only by ownership but also by their tax residency and the utilization of the property. Understanding these distinctions is crucial for property owners navigating the intricate landscape of Spanish property taxation.</p> <h2 style="color: #1363b2; font-size: 18px; text-align: justify; font-family: 'Montserrat Bold';">The Significance of IBI Tax</h2> <p style="text-align: justify;">IBI tax serves as a significant source of revenue for many local municipalities across Spain. The funds collected through this tax are crucial for financing a wide array of public services, such as maintaining local roads, parks, street lighting, and, in some cases, even waste collection. IBI tax also contributes to the funding of other essential services such as education and healthcare within your municipality.</p> <p style="text-align: justify;">However, the importance of the IBI tax extends beyond funding public services. This tax provides a fundamental property valuation, known as the &lsquo;valor cadastral&rsquo;, or cadastral value. This valuation is the cornerstone for calculating various property-related taxes, making it a key figure for property buyers to consider before investing.&nbsp;</p> <h2 style="color: #1363b2; font-size: 18px; text-align: justify; font-family: 'Montserrat Bold';">How Is IBI Tax Calculated?</h2> <p style="text-align: justify;">Understanding how IBI tax is calculated is essential for every property owner in Spain. This tax is computed based on the cadastral value of the property. The cadastral value represents a property's rateable value and is determined by various factors, including the property's size, location, construction costs, title and lease details, age and condition, land characteristics, and even proximity to public infrastructure.</p> <p style="text-align: justify;">Local town halls across Spain will use this information to compile a report, which is subsequently assessed by a property valuer. The valuer determines the property's rateable value based on the provided data. It's important to note that the cadastral value is typically lower than the property's actual market value, often by around 30% to 40%. This value is adjusted periodically, usually every 8 to 10 years, to account for property appreciation or depreciation.</p> <p style="text-align: justify;">The municipal IBI rate, which varies depending on the property's location and the extent of public services provided by the local authorities, is then applied to the cadastral value. This calculation determines the property's annual tax bill. The IBI rate typically ranges from 0.4% to 1.3%, with some municipalities offering reductions for early payments, environmentally friendly property improvements like solar panels, or properties with three or more children.</p> <h2 style="color: #1363b2; font-size: 18px; text-align: justify; font-family: 'Montserrat Bold';">Understanding IBI Tax Due Dates</h2> <p style="text-align: justify;">The due date for IBI tax payments varies depending on the property's location and from town hall to town hall. However, IBI tax obligations generally align with the start of the fiscal year on January 1st and extend through the summer and into the winter. Property owners often have the flexibility to make an annual payment in one installment or split it into two payments. The first installment is typically due in June, while the second installment falls due in November, though do check with your town hall to confirm exactly.&nbsp;</p> <p style="text-align: justify;">Most town halls will send the property owners a letter requesting payment, detailing the amount due, the payment deadline, and the payment methods. Even if you don't receive a letter, you are still responsible for paying the tax. Therefore it's crucial to proactively check with your town hall.</p> <p style="text-align: justify;">Payment options include making payments in person at the town hall or a bank, paying online through the town hall's official website, or setting up a Direct Debit to split the outstanding tax into smaller payments. Some town halls that offer this option may also provide a small discount, usually around 5%, for bills paid through Direct Debit to encourage property owners to take a proactive approach to paying IBI.</p> <h2 style="color: #1363b2; font-size: 18px; text-align: justify; font-family: 'Montserrat Bold';">Consequences of Non-Payment</h2> <p style="text-align: justify;">Failing to pay your annual IBI tax can have serious consequences. The local authority may charge penalty fees for late payments, ranging from 5% to 20%, depending on the length of the overdue payment. These penalties can accumulate if you continue to neglect the payments. In extreme cases, the local authority may even freeze your bank account or seize your property.</p> <p style="text-align: justify;">Many non-resident property owners may not be aware of their IBI tax obligations, but Spanish town halls are increasingly focused on pursuing property owners in their regions with outstanding tax bills and penalties for missed payment deadlines. While some local authorities may not actively pursue property owners who have missed payments, they will keep a record of the unpaid taxes. If you ever plan to sell your property or take out a loan, this unpaid IBI debt will surface and can lead to complications, including rejections or deductions from the sale price to cover the debt.</p> <p style="text-align: justify;">Understanding and keeping up to date with your IBI tax is essential for both resident and non-resident property owners in Spain. Compliance with IBI tax obligations ensures seamless and stress-free property ownership.&nbsp;</p>

<p>Spain's sun-kissed landscapes, vibrant culture, and charming towns have long attracted people from around the world to own a piece of this Mediterranean paradise. Whether you own a quaint cottage in Andalusia, a beachfront apartment in Costa del Sol, or a rural retreat in Catalonia, understanding the nuances of Spanish property choices is vital. One such decision, whether to opt for a newly built property or a resale, often leaves buyers in contemplation. Each option comes with its own set of pros and cons, making it crucial to know which one aligns best with your Spanish property dreams.&nbsp;</p> <p>In this guide, we'll make these factors clear and straightforward, helping you make the choice that best suits your needs in Spain.</p> <h2 class="h2-blog font-bold color-primary font-blog">The Pros of New Properties and Developments</h2> <p><strong>1. Contemporary Design:</strong> New build properties in Spain are synonymous with modern comfort. You can expect energy-efficient appliances, contemporary interiors, and cutting-edge technology from the get-go, providing you with a hassle-free and comfortable lifestyle from day one.</p> <p><strong>2. Customisation: </strong>As the first owner of a new property, you have the privilege of tailoring it exactly how you want it. Personalise everything from colour schemes to kitchen cupboards, creating the home you've always envisioned.</p> <p><strong>3. Lower Maintenance:</strong> New builds in Spain are pristine and free from the wear and tear that older properties often carry. This means less maintenance and renovation work, allowing you to focus on enjoying your Spanish property, rather than having to tackle a long to-do list.&nbsp;</p> <p><strong>4. Build Warranty: </strong>Newly constructed homes and developments frequently come with structural warranties, ensuring peace of mind regarding the property's structural integrity. Many issues are typically covered for the first ten years, providing a safety net should things go awry.&nbsp;</p> <h2 class="h2-blog font-bold color-primary font-blog">The Cons of New Properties and Developments</h2> <p><strong>1. Higher Initial Costs</strong>: Modern amenities and conveniences often come with a higher price tag, varying depending on the location. New build properties are generally more expensive than their resale counterparts.</p> <p><strong>2. Incomplete Surroundings</strong>: New developments may be in areas that are still undergoing growth and development, resulting in an incomplete or quieter urbanisation. This can lead to temporary inconveniences from construction work and noise, as well as fewer things to do in the area.</p> <p><strong>3. Limited Character:</strong> New builds may lack the unique character and charm often associated with older and more established properties.</p> <h2 class="h2-blog font-bold color-primary font-blog">The Pros of Resale Properties</h2> <p><strong>1. Character and History:</strong> Resale properties often have a certain character and charm that tells a story. Traditional architecture, antique features, and a sense of authenticity can be immensely appealing to homeowners and buyers alike.</p> <p><strong>2. Established Urbanisations &amp; Communities: </strong>Resale properties are frequently located in well-established areas with mature gardens and well-operated community systems. You'll get to experience the charm and convenience of a well-rounded community right from the start, without having to wait for your neighbours to move in!&nbsp;</p> <p><strong>3. Potential Value:</strong> Older properties can offer excellent value for your money, particularly if it&rsquo;s in need of a bit of TLC or a complete renovation. There are some fantastic deals to be had if you&rsquo;re willing to put in the work, and you might find that you can get more space and a unique setting at a lower price compared to a new build.</p> <h2 class="h2-blog font-bold color-primary font-blog">The Cons of Resale Properties</h2> <p><strong>1. Maintenance: </strong>Resale properties may require more maintenance and potential renovations. Be prepared for any additional costs and projects to bring the property up to modern standards. As the property ages, you may find yourself having to replace potentially costly elements.</p> <p><strong>2. Limited Customisation:</strong> While the existing charm and character may be a big selling point for some, it can also potentially limit your ability to customise the property to your preferences.&nbsp;</p> <p><strong>3. Uncertain History:</strong> Older properties might have hidden defects that require more investigation and a thorough understanding of the property's history. We would always recommend hiring an experienced lawyer in your local area to ensure that all of the necessary checks are carried out before you commit to a property.</p> <h2 class="h2-blog font-bold color-primary font-blog">Property Taxes in Spain&nbsp;</h2> <p>For newly built properties in Spain, you&rsquo;ll be required to pay VAT, also known as &lsquo;Impuesto sobre el Valor A&ntilde;adido&rsquo;, which is currently 10%. If you&rsquo;re looking at purchasing a pre-owned property, you&rsquo;ll be required to pay a Property Transfer Tax (ITP), otherwise known as &lsquo;Impuesto sobre Transmisiones Patrimoniales&rsquo;, which varies between 6-10% of the property&rsquo;s value, depending on the region. These are both important factors you&rsquo;ll need to consider before buying a property in Spain.</p> <p>In addition to the above, and particularly if you&rsquo;re planning on being a non-resident in Spain, there are a handful of other Spanish property taxes you&rsquo;ll need to know about. Did you know, that even if you don&rsquo;t intend on living in your property in Spain, you are still obligated to pay non-resident Spanish taxes? Many property owners are simply unaware that such taxes are in force and end up in difficult situations when the Spanish Tax Authorities find out.&nbsp;</p> <h2 class="h2-blog font-bold color-primary font-blog">Pay your Non-Resident taxes with Ease</h2> <p>There&rsquo;s no need to fret, as your non-resident taxes can be easily paid from anywhere in the world by utilizing simple online tax services like <a class="color-primary link-secondary" href="https://www.iberiantax.com/about" target="_blank" rel="noopener">IberianTax</a>. Using <a class="color-primary link-secondary" href="https://www.iberiantax.com/how-it-works" target="_blank" rel="noopener">a simple questionnaire </a>and with guidance from our team, you can easily, and most importantly, safely, complete and submit your Modelo 210 form to the Spanish Tax Authorities. With customer support available in English, German and French, there&rsquo;s no need to worry when it comes to paying your non-resident taxes in Spain.</p> <p>Our intuitive online tax software can help you submit a range of non-resident taxes in Spain, including Imputed Income, Rental Income and Capital Gains Tax. There&rsquo;s no need for expensive accountancy fees either, as our services start at just &euro;34,95!&nbsp;</p> <p><a class="color-primary link-secondary" href="https://www.iberiantax.com/register" target="_blank" rel="noopener">Sign up for your free account today</a>, and when you refer a friend, you&rsquo;ll both earn &euro;10 credit towards your next tax submission!</p> <p>&nbsp;</p> <p>&nbsp;</p> <div>&nbsp;</div>

<p>As the year draws to a close and the festive season approaches, there's another important date to mark on your calendar&mdash;December 31^st. No, it's not about your New Year's celebrations, but rather a critical deadline for non-resident property owners in Spain. On this day, the Non-Resident Income Tax on imputed income focuses on reminding property owners of their tax obligations.&nbsp;</p> <h2 class="h2-blog font-bold color-primary font-blog">Understanding Non-Resident Income Tax on Imputed Income</h2> <p>The Non-Resident Income Tax (&ldquo;Impuesto sobre la Renta de los No Residentes&rdquo;, also known as IRNR) is a unique tax requirement in Spain that affects non-resident property owners. Whether you own a charming villa on the Costa del Sol or a cosy apartment in the heart of Barcelona, this tax applies to you.&nbsp;</p> <p>This tax is based on a concept known as "imputed income," which essentially means the Spanish tax authorities assume that non-resident property owners derive some financial benefit from their property, even if they don't rent it out. It's important to note that this tax applies to all non-residents who own property in Spain, regardless of whether the property is used solely for personal purposes or if it remains vacant for most of the year.</p> <h2 class="h2-blog font-bold color-primary font-blog">Rate of Taxation</h2> <p>The Non-Resident Imputed Income Tax is not particularly onerous, making it a manageable obligation for non-resident property owners. The rate is typically around a few hundred euros, varying depending on the property's administrative value, as well as some other factors.</p> <p>As a non-resident property owner, the exact amount you owe is determined by multiplying a fixed percentage (1.1% or 2%) by the <strong><a class="color-primary link-secondary" href="https://www.iberiantax.com/blog/what-is-the-cadastral-value-and-how-to-find-it" target="_blank" rel="noopener">cadastral value of your property</a></strong>. The resulting figure is then subject to the standard tax rate of 19% for residents of the EU, Norway, Liechtenstein and Iceland. For non-EU residents, the tax rate is 24%.&nbsp;</p> <p>This means that for most property owners, the Non-Resident Imputed Income Tax remains an affordable and straightforward tax obligation.</p> <h2 class="h2-blog font-bold color-primary font-blog">Why It Matters</h2> <p>You might wonder why it's crucial to pay attention to the Non-Resident Imputed Income Tax. Well, failing to comply with this requirement can result in unwanted penalties and late interest fees being imposed.&nbsp;</p> <p>If you miss the deadline but file late before the tax office requests it, you will be subject to the following fines or penalties:</p> <ul> <li>Up to 12 months: 1% per each late month</li> <li>12 months onwards: 15% plus interest</li> </ul> <p>However, if the tax office requests the submission before you do it voluntarily, penalties start at 50% plus interest.</p> <p>In essence, meeting your Non-Resident Imputed Income Tax obligations keeps you in good standing with the Spanish Tax Authorities, so it&rsquo;s important to keep on top of it.&nbsp;</p> <h2 class="h2-blog font-bold color-primary font-blog">How IberianTax Can Help</h2> <p>Navigating the intricacies of Spanish property taxation can be challenging, especially if you reside in another country. That's where IberianTax can provide invaluable assistance. We specialise in aiding non-resident property owners in Spain with their tax requirements.</p> <p>Our team of experts are well-versed in Spanish tax regulations and can ensure that you're fully compliant with your obligations. We'll assist you in calculating your tax liability, filing the necessary forms, and ensuring a seamless process that keeps you stress-free and in good standing with the tax authorities.</p> <h2 class="h2-blog font-bold color-primary font-blog">Act Now</h2> <p>As the December 31st deadline approaches, it's time to act. Avoid penalties and late interest fees by ensuring your Non-Resident Imputed Income Tax is filed correctly and on time.&nbsp;</p> <p>Contact IberianTax today and let us help you meet your Non-Resident Imputed Income Tax obligations. We're your trusted partner in navigating the complex world of Spanish property taxation. Ensure that your dream property in Spain brings joy, not tax-related stress.</p> <h2 class="h2-blog font-bold color-primary font-blog">Submit your Spanish Non-Resident Taxes with IberianTax</h2> <div>Mark December 31st on your calendar as a date of financial responsibility. Ensure your Non-Resident Income Tax on Imputed Income obligations are met on time and enjoy the peace of mind that comes with fulfilling your responsibilities as a non-resident property owner in Spain.&nbsp;</div> <p>&nbsp;</p> <p>Sign up for your FREE account with IberianTax today and submit a range of <strong><a class="color-primary link-secondary" href="https://www.iberiantax.com/how-it-works" target="_blank" rel="noopener">Non-Resident Taxes in Spain</a></strong> with ease!</p> <div>&nbsp;</div> <p>&nbsp;</p>

<p>Spain's sunny shores, vibrant culture, and rich history have made it a dream destination for property buyers around the world. However, before you embark on your journey to own a property in this Mediterranean paradise, there are crucial considerations to keep in mind.&nbsp;</p> <p>Whether you&rsquo;re looking for property on the Costa del Sol, Costa Blanca, the Balearic Islands or Canaries, there are a number of things that you should consider before you commit to a new home in the sun.</p> <p>In this guide, we'll explore ten essential things you should know before buying property in Spain.&nbsp;</p> <h2 class="h2-blog font-bold color-primary font-blog">1. Location, Location, Location</h2> <p>Choosing the right location is crucial. Consider your lifestyle and priorities when selecting the region and neighbourhood for your property. Proximity to amenities, schools, healthcare, and transportation can significantly impact your daily life, so it&rsquo;s important to consider these when searching. Many people also recommend renting a property within the area you&rsquo;re looking to buy before you commit to buying. This way, you&rsquo;ll get a good understanding of the area to make sure it&rsquo;s right for you.&nbsp;</p> <h2 class="h2-blog font-bold color-primary font-blog">2. Property Market Research</h2> <p>The property market in Spain varies greatly by region. Conduct thorough research on your chosen area to understand market trends, prices, and demand. This information will help you make informed decisions and negotiate effectively. Many prospective buyers forget, or just simply aren&rsquo;t aware that the market has changed drastically in recent years, so it&rsquo;s essential to start your search with realistic expectations. We recommend looking at online real estate websites such as Idealista to get an idea of property prices in your chosen area.</p> <h2 class="h2-blog font-bold color-primary font-blog">3. Property Type: New Build, Resale or Off-Plan Properties&nbsp;</h2> <p>Decide whether you prefer a new build, resale or even off-plan property. New builds offer modern amenities, while resales might have character but could require renovations. Off-plan properties are also a popular choice when buying a home in Spain, but they do require some research before committing. Your choice should align with your preferences and budget. Speak with a real estate expert in your area or join local groups to seek out advice from others.</p> <h2 class="h2-blog font-bold color-primary font-blog">4. Setting a Realistic Budget</h2> <p>Your budget should encompass not only the property price but also additional expenses. Factor in property taxes, legal fees, ongoing maintenance costs, and even potential renovations further down the line.&nbsp;</p> <h2 class="h2-blog font-bold color-primary font-blog">5. Verification of Property Details</h2> <p>Before sealing the deal on your Spanish property, it's vital to conduct a thorough examination to guarantee a seamless transaction. Here are the key aspects to consider:</p> <ul> <li><strong>Check for Encumbrances:</strong> Assess the property's financial status by checking for mortgages, outstanding charges, and liens through a "nota simple" from the Property Registry.</li> <li><strong>Community Bylaws and Levies:</strong> Review community rules, approved levies, and payment methods to understand your obligations within the community.</li> <li><strong>Latest IBI Payment Receipt:</strong> Confirm the seller's up-to-date property tax (IBI) payments, adjusting the share based on the months of ownership if purchased mid-year.</li> <li><strong>Energy Certificate:</strong> Ensure possession of the energy efficiency certificate, a mandatory requirement for selling a property.</li> <li><strong>Habitation Certificate:</strong> Verify compliance with minimum habitability standards by obtaining this certificate, especially in specific Spanish communities.</li> <li><strong>ITE Certificate:</strong> If the property is over 45 years old, acquire the Technical Building Inspection (ITE) certificate, although it's possible to sell without it, subject to buyer exemption.</li> <li><strong>Certificate of Being Up-to-Date with Community Expenses</strong>: Request a certificate confirming no outstanding community debts from the seller.</li> <li><strong>Latest Paid Utility Bills:</strong> Verify the owner's current payments for electricity, water, and gas bills associated with the property.</li> <li><strong>Reservation Agreement (Contrato de Arras):</strong> Examine the reservation agreement detailing property and transaction specifics, along with the public deed of sale.</li> </ul> <h2 class="h2-blog font-bold color-primary font-blog">6. Tax Implications</h2> <p>Understanding the tax implications of property ownership in Spain is vital. Even if you don&rsquo;t plan to live in or rent out your Spanish property on a full-time basis, you&rsquo;re still subject to non-resident property taxes. But don&rsquo;t worry, this is where IberianTax can be a valuable partner! Our online tax filing service simplifies the process, guiding you through tax return submission, ensuring compliance, and safety at all times.&nbsp;</p> <h2 class="h2-blog font-bold color-primary font-blog">7. Financing Considerations</h2> <p>If you require a mortgage, it&rsquo;s a good idea to explore the options available to you in Spain. Interest rates and lending criteria may differ from your home country, so research thoroughly and consult with local banks or mortgage brokers to get as much information as possible.&nbsp;</p> <h2 class="h2-blog font-bold color-primary font-blog">8. Residency Status</h2> <p>Your residency status in Spain affects your tax obligations. Non-residents and residents have distinct tax responsibilities, and it&rsquo;s your responsibility to ensure that you&rsquo;re aware of your obligations in Spain. At IberianTax, we can help you with a range of non-resident taxes quickly and easily, all from the comfort of your home.&nbsp;</p> <h2 class="h2-blog font-bold color-primary font-blog">9. Property Inspection and Survey</h2> <p>For older properties, consider hiring a professional inspector or surveyor to assess the property's condition thoroughly. Identifying potential issues before purchase can save you money and headaches in the long run.</p> <h2 class="h2-blog font-bold color-primary font-blog">10. Negotiating the Price</h2> <p>In Spain, negotiation is common in property transactions. Sellers often set higher prices than they expect to receive, leaving room for negotiation. Be prepared to haggle and potentially secure a better deal!&nbsp;</p> <h2 class="h2-blog font-bold color-primary font-blog">Filing Spanish Non-Resident Taxes with IberianTax online</h2> <p>Owning a property in Spain is a dream come true for many, and with careful planning and professional guidance, it can be a seamless and rewarding experience.&nbsp;</p> <p>IberianTax is here to support you on your journey. Our online tax filing service is tailored to non-resident property owners, making the complex task of managing non-resident property taxes simple, accurate, and secure. We&rsquo;re able to help you submit a range of non-resident taxes in Spain, including Imputed Income, Rental Income and Capital Gains Tax returns using the Modelo 210 (Form 210).&nbsp;</p> <p>With IberianTax, you can file your tax return within minutes, even if you have no previous knowledge of Spanish tax laws. Our team also provides free support to ensure that your tax return is submitted correctly and to give you peace of mind.&nbsp;</p> <p>When it comes to non-resident property taxes, let IberianTax be your trusted partner in simplifying the tax-filing process, so you can fully enjoy your Spanish property with peace of mind.&nbsp;</p> <p><strong><a class="color-primary link-secondary" href="http://iberiantax.com/register" target="_blank" rel="noopener">Sign up</a></strong> for your FREE IberianTax account today, and start paying your Spanish non-resident taxes with ease.</p>

<div>As a non-resident, property owner in Spain, you are required to pay tax on any income you earn from renting out your property every quarter. This is done by filing Form 210 (Modelo 210).</div><div><br></div><div>The deadline for filing Quarter 3 taxes (for rental income earned in July, August, and September 2023) is 20th October 2023.</div><div><br></div><div>In this blog post, we'll be looking at this essential tax obligation and how you can best prepare yourself to submit your Modelo 210 this October.&nbsp;</div><div><br></div><h2 class="h2-blog font-bold color-primary font-blog">Understanding Rental Income Tax in Spain for Non-Residents</h2><div><br></div><div>When you rent out your property in Spain, the income you earn from those rentals is subject to taxation. As a non-resident property owner, this tax is known as non-resident rental income tax in Spain.&nbsp;</div><div><br></div><h2 class="h2-blog font-bold color-primary font-blog">Quarterly Rental Income Tax&nbsp;</h2><div><br></div><div>In Spain, rental income tax isn't an annual affair. Instead, it's a quarterly obligation. That means you'll need to file a tax declaration at the end of each quarter. These quarters align with April, July, October, and January of the following year, and payment is expected within the first 20 days of those months.</div><h2 class="h2-blog font-bold color-primary font-blog"><br>Why Is This Important?</h2><div><br></div><div>Meeting this deadline is crucial when it comes to complying with Spanish tax regulations. Failing to file your rental income tax return on time can lead to expensive penalties and unnecessary added stress. However, on the flip side, timely compliance ensures a hassle-free tax journey in Spain and keeps you in good standing with the Spanish tax authorities.&nbsp;</div><h2 class="h2-blog font-bold color-primary font-blog"><br>What to Include in Your Q3/October Declaration</h2><div><br></div><div>Your Q3 declaration should reflect the income you've earned from renting out your property during the third quarter, i.e., from July to September. It's essential to accurately report your earnings to calculate the tax liability correctly.</div><h2 class="h2-blog font-bold color-primary font-blog"><br>Deductible Expenses</h2><div><br></div><div>Here's some good news! If you’re a resident of the European Union, Norway, Iceland or Liechtenstein, you can offset your rental income against these deductible expenses:&nbsp;</div><div><br></div><ul><li>Taxes, rates and local surcharges (Property Tax Bill (IBI) Rubbish Collection Bill (Basura)</li><li>Personal third-party services such as administration, surveillance, porter services or similar</li><li>Utilities like electricity, water, and gas</li><li>Community fees</li><li>Insurance premiums</li><li>Costs relating to the drawing up of a rental lease and legal defence costs&nbsp;</li><li>Advertising fees to promote your rental property</li><li>Costs associated with home maintenance and repairs</li></ul><div>Deducting these expenses may help in reducing your taxable income, ultimately lowering the amount of tax you owe in Spain, so it’s well worth looking into.&nbsp;</div><h2 class="h2-blog font-bold color-primary font-blog"><br>Rental Income Taxes for Mixed Rental Periods</h2><div><br></div><div>If you, as a non-resident property owner in Spain, engage in partial property rentals, your tax filing process becomes a bit more intricate. In this scenario, you'll likely find yourself dealing with multiple Form 210 submissions to account for both your actual rental income and the ‘imputed income’, on days when the property was not rented out and was either empty or used for personal use.</div><div><br></div><div>To help clarify this, let's walk through an example featuring Paul, a non-resident property owner in Spain:</div><div><br></div><div>1. Modelo 210 for the First Quarter of 2023: Paul needs to report the rental income he earned from January to March. The deadline for submitting this Form 210 is the first 20 days of April 2023.</div><div><br></div><div>2. Modelo 210 for the Third Quarter of 2023: For the period of July to September, Paul must declare his rental income. This Modelo 210 form should be filed within the initial 20 days of October 2023.</div><div><br></div><div>3. Additional Modelo 210 Form: In addition to the above forms, Paul also must complete another Modelo 210 form. This one addresses the ‘imputed income’ for those days when the property was at his disposal but was not being rented out (even if it was empty). The deadline for submitting this third Modelo 210 for the 2023 tax year form falls at any point in 2024. In 2023, Paul will instead have to declare imputed income for the not rented days in 2022.</div><h2 class="h2-blog font-bold color-primary font-blog"><br>The Impact of Brexit on British Citizens</h2><div><br></div><div>For those Spanish property owners who reside in the UK, it's important to be aware that Brexit has brought changes to the tax landscape. Any rental income generated from January 1, 2021, is now taxed at a rate of 24% on the gross income. Additionally, owners in the UK can no longer deduct expenses from their rental income.</div><div><br></div><div>For residents in the EU, Iceland, Liechtenstein and Norway, the tax rate on rental income remains at 19%, and they can still deduct expenses.</div><h2 class="h2-blog font-bold color-primary font-blog"><br>Submit your Rental Income Tax Return with IberianTax</h2><div><br></div><div>Navigating rental income tax in Spain, especially as a non-resident, can be challenging. To ensure that you're meeting your tax obligations effectively, whilst optimising your financial situation, it's wise to consider professional advice or utilise specialised tax services like IberianTax.</div><div><br></div><div>Here at IberianTax, we’ve simplified the rental income tax process with our easy-to-use online tax filing service. By utilising IberianTax, you can submit your Modelo 210 to the Spanish tax authorities with ease, even if you have never submitted a Spanish tax return before!</div><div><br></div><div>Our team of Spanish tax experts are on hand to guide you through the tax return process smoothly and efficiently and offer support when it’s needed. We’ll even check through your return before submitting it to the authorities to ensure that all your information is correct.</div><div><br></div><div>Stay informed, stay compliant, and get the most out of your non-resident rental income in Spain with IberianTax.&nbsp;</div><div><br></div>

<p style="text-align: justify;">For Brits interested in buying property abroad, the decision has become more complex after Brexit. Since the UK left the EU in 2016, Brits have had to think about how easy it would be to move to another country under these new rules.</p> <p style="text-align: justify;">The aftermath of the decision to leave the European Union has cast a new light on buying property abroad for many British citizens. But whilst there are new taxes to consider, visa and residency options, as well as other financial considerations, it hasn&rsquo;t put a stop to Brits continuing to purchase property in Europe.&nbsp;</p> <p style="text-align: justify;">In this blog, we&rsquo;ll be taking a look at where Brits are considering buying, and where expats might find a good quality of life and job opportunities in these leading European countries.&nbsp;</p> <h2 class="h2-blog font-bold color-primary font-blog" style="text-align: justify;">1. Spain</h2> <div style="text-align: justify;">Spain comes out on top of the list for British property buyers. The country has long been a favourite for British buyers, with places like Torrevieja, Villamartin, Estepona, Ciudad Quesada, and Marbella being some of the most popular destinations on the Iberian Peninsula, particularly for their large expat populations. The average price spent on properties in Spain is about &pound;159,395 &ndash; which is also significantly cheaper than many UK properties.&nbsp;</div> <div> <div style="text-align: justify;">&nbsp;</div> <div style="text-align: justify;">There are a number of taxes that must be paid when buying and owning a property in Spain, even if you don&rsquo;t intend to become a resident. Most taxes are paid on an annual basis, but depending on how you intend to use the property, this could also be quarterly. For example, you will need to submit a rental income tax return every quarter, but if your property remains empty, this only needs to be submitted annually.</div> <div style="text-align: justify;">&nbsp;</div> <div style="text-align: justify;">Many of the taxes that need to be paid as a non-resident, in particular, are completed by filing the Modelo 210 form to the Spanish tax authorities.&nbsp;</div> <div style="text-align: justify;">&nbsp;</div> <div style="text-align: justify;">If you want to stay in Spain for up to 90 days, you don't need a visa. But if you plan to work or stay longer, you'll need a visa or permit. If you want to live in Spain for over 90 days but less than five years, you can apply for temporary residency. Long-term residency lets you stay indefinitely.&nbsp;</div> <div style="text-align: justify;">&nbsp;</div> <h2 class="h2-blog font-bold color-primary font-blog" style="text-align: justify;">2. France</h2> <div style="text-align: justify;">France comes second on the list. Whilst searches for properties in France were just a quarter of the searches made for those in Spain, the average price for a property in France is similar, at around &pound;158,249.&nbsp;</div> <div> <div style="text-align: justify;">&nbsp;</div> <div style="text-align: justify;">Nice, a beautiful city on the French Riviera, is a popular choice for many British buyers, however, other places such as Sauz&eacute;-Vaussais, Eymet, Villefagnan, and Limoux are also seeing high demand.</div> <div style="text-align: justify;">&nbsp;</div> <div style="text-align: justify;">If you want to stay in France for longer than 90 days, you can apply for a long-stay visa, which is good for three months to one year. After that, you'll need to apply for a residence permit.</div> <div style="text-align: justify;">&nbsp;</div> <h2 class="h2-blog font-bold color-primary font-blog" style="text-align: justify;">3. Portugal</h2> <div style="text-align: justify;">Portugal is the third-most popular choice for Brits. The average spend on a property in Portugal is about &pound;342,276, which is higher than Spain and France. British buyers often look at places like Lagos, Praia da Luz, Cabanas de Tavira, and Luz, however, Castelo Branco is another option with more affordable houses.</div> <div style="text-align: justify;">&nbsp;</div> <div style="text-align: justify;">If you want to stay in Portugal for more than 90 days, you should check with the Portuguese Immigration Service or the Embassy of Portugal in the UK for the right visas.&nbsp;</div> <div style="text-align: justify;">&nbsp;</div> <h2 class="h2-blog font-bold color-primary font-blog" style="text-align: justify;">How IberianTax Can Help</h2> <div style="text-align: justify;">Navigating property investments and taxes can be tricky, especially in a foreign country where you might not know the language, but that's where IberianTax comes in. We specialise in helping non-residents manage and submit their taxes in Spain through our easy-to-use online tax software.&nbsp;</div> <div style="text-align: justify;">Whether you're dreaming of a sunny retreat on the Spanish mainland, or an island escape on the Balearics or Canary Islands, IberianTax can help you navigate Spanish property taxes with complete ease.&nbsp;</div> <div style="text-align: justify;">&nbsp;</div> <div style="text-align: justify;">Submitting your Modelo 210 tax return in Spain is quick and easy with IberianTax, and with prices starting at just &euro;34.95, you&rsquo;ll not only be saving time and stress, but you&rsquo;ll also be avoiding expensive accountancy fees. Our service is available in English, German and French, and if you need any assistance, our in-house tax experts are on hand to help you. Our service is 100% safe and secure and is also authorised by the Spanish tax agency, so you&rsquo;re in great hands.&nbsp;</div> <div style="text-align: justify;">&nbsp;<br /><a class="color-primary link-secondary" href="http://iberiantax.com/register">Sign up for your FREE account with IberianTax today</a>, and start saving money on your non-resident property taxes!&nbsp;<br />&nbsp;</div> </div> </div> <div>&nbsp;</div> <div>&nbsp;</div>

<p style="text-align: justify;">As a non-resident property owner in Spain, staying on top of your tax responsibilities is not only essential, but it&rsquo;s also a key factor in maintaining a smooth and hassle-free financial journey. Filing your non-resident tax return (Modelo 210) might seem like just another item on your ever-increasing to-do list, but it holds significant implications that can affect your finances in Spain, so it&rsquo;s important to take note!</p> <p style="text-align: justify;">In this article, we'll be shedding light on the importance of timely tax compliance in Spain, the potential pitfalls of late filing, and how filing your Modelo 210 tax return with IberianTax can help you in navigating the Spanish tax process with ease.</p> <div> <h2 class="h2-blog font-bold color-primary font-blog" style="text-align: justify;">Annual Tax Filing Deadlines in Spain</h2> <div> <div style="text-align: justify;">Understanding the crucial annual filing deadlines is one of the first steps you should be taking to ensure that you have a stress-free tax experience. Here are some of the key deadlines you&rsquo;ll need to adhere to as a non-resident property owner:</div> <div style="text-align: justify;">&nbsp;</div> <div style="text-align: justify;">The deadline for the imputed income return is typically before December 31st of the following year. For example, the deadline to submit your return for the 2022 tax year is December 31st, 2023.&nbsp;</div> <div style="text-align: justify;">&nbsp;</div> <div style="text-align: justify;">The deadline for the Rental Income tax return must be submitted on a quarterly basis, within the first 20 days of April, July, October and January, for the prior quarter. For example, if you obtained rental income from January to March 2023, the deadline to file your 210 tax form is the first 20 days of April 2023.</div> <div style="text-align: justify;">&nbsp;</div> <div style="text-align: justify;"><strong>Important note:</strong> Starting from the 2024 tax year, the declaration of rental income will shift to an annual basis, with the deadline for submission set between January 1st and January 20th of the following year.&nbsp;</div> <div style="text-align: justify;">&nbsp;</div> <div style="text-align: justify;">The deadline for reporting Capital Gains Tax on a property sale is within 4 months of the sale date.</div> <div style="text-align: justify;">&nbsp;</div> <div style="text-align: justify;">Missing these deadlines can lead to avoidable financial burdens and complications that nobody wants the hassle of dealing with!</div> </div> <div style="text-align: justify;">&nbsp;</div> <h2 class="h2-blog font-bold color-primary font-blog" style="text-align: justify;">Late Filing Surcharge</h2> <div> <div style="text-align: justify;">Nobody likes extra charges, especially when it comes to taxes. Voluntarily filing your tax return late &ndash; that is, without any prompting from the tax authorities &ndash; can result in a surcharge. This surcharge starts at 1% of the unpaid tax due for every month of delay. Let's do some quick math: if you file in January, that's 1%; in February, it jumps to 2%, and so on, until it reaches a maximum of 12%. And if it escalates to 12% (12 months late), it will then automatically hike to 15%, along with added interest, so it&rsquo;s essential to file in a timely manner.</div> <div style="text-align: justify;">&nbsp;</div> <div style="text-align: justify;">Surcharges are notified by the tax authorities after submission and payment of each late tax return. The tax office usually sends two letters. The first one is named &ldquo;Propuesta de Liquidaci&oacute;n&rdquo; where they inform you about the surcharge that they will impose and, after 1 or 2 months, they send another letter named &ldquo;Liquidaci&oacute;n&rdquo; that contains a payment letter as well as the instructions to pay the applicable surcharge.</div> </div> <div style="text-align: justify;">&nbsp;</div> <h2 class="h2-blog font-bold color-primary font-blog" style="text-align: justify;">Penalties Imposed by the Spanish Tax Authorities</h2> <div> <div style="text-align: justify;">Penalties imposed by the Spanish tax authorities are perhaps even more unwelcome than surcharges. If you've received a letter from the authorities regarding your late filing and before you file voluntarily; the penalties start at a hefty 50% of the unpaid tax due, in addition to the interest charged from the first day of the delay. These penalties can quickly add up and leave you with a substantially increased total tax bill.&nbsp;</div> <div style="text-align: justify;">&nbsp;</div> </div> <h2 class="h2-blog font-bold color-primary font-blog" style="text-align: justify;">Advantages of Timely Tax Filing</h2> <div style="text-align: justify;">Avoiding these financial pitfalls is not just about saving money, however. The timely filing of your taxes offers other advantages too. By submitting your tax return within the deadlines, you're preventing taking on any additional financial burdens and you&rsquo;re also maintaining a positive relationship with the Spanish tax office. Think of it as building good karma in the financial realm &ndash; you're reducing the risk of audits, investigations, and unnecessary headaches.&nbsp;&nbsp;</div> <div style="text-align: justify;">&nbsp;</div> <h2 class="h2-blog font-bold color-primary font-blog" style="text-align: justify;">The Importance of Compliance</h2> <div style="text-align: justify;">Beyond the immediate financial implications, timely tax filing helps you to build and maintain a favourable tax record here in Spain. Being in good standing with the Spanish tax authorities can safeguard you from potential scrutiny or issues, and it will help you to maintain a stress-free financial journey.&nbsp;</div> <div style="text-align: justify;">&nbsp;</div> <h2 class="h2-blog font-bold color-primary font-blog" style="text-align: justify;">Filing your Modelo 210 Tax Return with IberianTax</h2> <div style="text-align: justify;">Navigating the world of non-resident tax returns in Spain doesn't have to be daunting. By understanding the significance of timely filing and the potential consequences of late submission, you're taking a proactive step toward financial stability and peace of mind. At<strong> <a class="color-primary link-secondary" href="http://iberiantax.com/about" target="_blank" rel="noopener">IberianTax</a></strong>, we're here to guide you through this process seamlessly. As a registered collaborator of the Agencia Tributaria, we offer a comprehensive online tax-filing solution that is designed to make your tax journey easy, accurate, and worry-free.&nbsp;</div> <div style="text-align: justify;">&nbsp;</div> <div style="text-align: justify;">Don't let late filing pitfalls derail your financial plans &ndash; get your taxes filed quickly and easily with IberianTax today and enjoy the benefits of timely and stress-free tax compliance.&nbsp;</div> <div style="text-align: justify;">&nbsp;</div> <div style="text-align: justify;">Start your journey with <strong><a class="color-primary link-secondary" href="http://iberiantax.com/register" target="_blank" rel="noopener">IberianTax</a></strong> today!</div> <div style="text-align: justify;">&nbsp;</div> </div>

<p>If you're a non-resident individual who has earned capital gains from the sale of assets in Spain, understanding the intricacies of capital gains tax is essential. Navigating the tax obligations and requirements can be complex, but fear not! In this comprehensive guide, we will delve into the details of capital gains tax in Spain for non-residents, equipping you with the knowledge to navigate the process easily and effectively with IberianTax.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">What is Capital Gains Tax?</h2> <p>Capital gains tax is a tax levied on the profits from the sale of assets, most commonly property or land. In the context of non-residents in Spain, Capital Gains Tax applies to individuals and companies who sell assets within Spain and earn capital gains from those transactions.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Calculation of Capital Gains</h2> <p>When calculating capital gains, the sales price of the asset is subtracted from the acquisition cost (purchase price) to determine the profit. However, it's important to note that certain expenses directly related to the acquisition and sale, such as legal fees, taxes, and improvement costs, can be deducted from the taxable capital gain.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Tax Rates for Non-Residents</h2> <p>For non-resident individuals in Spain, the capital gains tax rate is a flat 19% for residents of the European Union (EU), European Economic Area (EEA), and for those non-EU/EEA residents. It's crucial to stay updated on any changes to tax rates, as they are sometimes subject to revision!</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Withholding Tax</h2> <p>When the seller is a non-resident taxpayer, the purchaser must withhold 3% of the sale price on account of the Capital Gains tax of the seller. This 3% will be deducted from the final tax due. If the 3% exceeds the final tax due (for example, if the property is sold at loss), the seller can claim the 3% back by submitting the capital gains tax return.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Reporting and Filing Obligations</h2> <p>Non-residents who have earned capital gains from the sale of Spanish assets are required to file a non-resident tax return (Modelo 210) within 4 months from the sale date. This tax return should include accurate information regarding the capital gains and any applicable deductions. It&rsquo;s important to note that these transactions are regularly monitored by the Spanish tax authorities, as Spanish notaries report these transactions to the authorities, therefore compliance with reporting and filing obligations is crucial to avoid penalties and interest charges from the Spanish tax agency.&nbsp;</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Deductions and Allowable Expenses</h2> <p>To optimise your tax liability, it's important to consider the deductions and allowable expenses that can be claimed when calculating capital gains tax. These deductions may include acquisition costs such as notary fees, lawyer fees, land registry fees, VAT or property transfer tax, improvement expenses, and other direct expenses related to the sale e.g., real estate agent fees and Plusvalia tax. Ensuring proper documentation and understanding the eligibility criteria for these deductions is essential.</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Tax Treaties with Other Countries</h2> <p>Many countries around the world have tax treaties with Spain that aim to prevent double taxation and provide some benefits for taxpayers. All of the tax treaties that have been signed by Spain details that any capital gains derived from Spanish real estate are subject to taxation in Spain. In the case of double taxation, the country of tax residency should allow you to deduct taxes paid in Spain.&nbsp;</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Seeking Professional Assistance</h2> <p>Given the complexities of capital gains tax and its potential impact on your financial obligations, seeking professional assistance is highly recommended. A specialized service, such as IberianTax, can provide invaluable guidance, ensure compliance, and help you to optimise your tax obligations in Spain.&nbsp;</p> <h2 style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">How to File Your Capital Gains Tax with IberianTax</h2> <p>IberianTax is an online tax-filing service designed specifically for non-resident property owners in Spain. Our user-friendly software simplifies the process of calculating and filing capital gains tax, allowing you to file your return quickly and easily. With our expertise and regularly updated tax tools, you&rsquo;ll have peace of mind knowing that your taxes will be calculated accurately.&nbsp;</p> <p>Using IberianTax's software, you can easily navigate the complexities of capital gains tax as a non-resident in Spain, <a class="color-primary link-secondary" href="https://www.iberiantax.com/pricing" target="_blank" rel="noopener">starting at just &euro;149,95</a>! Our software guides you step-by-step, ensuring that all the necessary information is gathered, and that calculations are made accurately &ndash; our team even double checks your return before filing, to give you that extra peace of mind.&nbsp;</p> <p>Don't let capital gains tax overwhelm you! Visit IberianTax's website and discover our user-friendly tax software designed for non-residents in Spain. Simplify your tax obligations, optimise your tax liability, and gain peace of mind with IberianTax's expertise and support. <a class="color-primary link-secondary" href="https://www.iberiantax.com/dashboard" target="_blank" rel="noopener">Register for your FREE</a> account today and experience the convenience and accuracy of our online tax-filing service!</p>

<p style="text-align: justify;">When it comes to purchasing a property in Spain, joint ownership of a property brings its own set of considerations and obligations. Whether you are purchasing a holiday home as a married couple, with a friend or partner, or perhaps investing in a rental property with a business partner, it's essential to grasp the basics of non-resident property taxes for joint owners in Spain. In this comprehensive guide, we&rsquo;ll take you through everything you need to know!</p> <h2 class="h2-blog font-bold color-primary font-blog" style="text-align: justify;">Clarifying Ownership Shares</h2> <p style="text-align: justify;">When multiple individuals jointly own a property in Spain, it's crucial to establish and clarify the ownership shares in good time. By doing this, you can determine each co-owner's rights and responsibilities, including their respective shares of property income and expenses. Clarifying everyone&rsquo;s shares is a crucial step in submitting your non-resident, Spanish property tax return.&nbsp;&nbsp;</p> <h2 class="h2-blog font-bold color-primary font-blog" style="text-align: justify;">Individual Tax Returns</h2> <p style="text-align: justify;">In Spain, joint owners are required to file their tax returns separately. Each co-owner must report their share of the property and any associated income, or expenses on their individual tax return. Non-residents have to file quarterly tax returns (one per property and per owner).&nbsp;</p> <p style="text-align: justify;">For instance, if a married couple owns two apartments that are rented out for the entire calendar year, they will have to file a total of 16 tax returns, 2 tax returns per owner in each quarter. However, it&rsquo;s important to note that the tax is filed separately, meaning that they won&rsquo;t pay tax twice, as it&rsquo;s split according to each person&rsquo;s percentage of ownership.&nbsp;</p> <p style="text-align: justify;"><strong>Important note: </strong>Starting from the 2024 tax year, the declaration of rental income will shift to an annual basis, with the deadline for submission set between January 1st and January 20th of the following year.</p> <div> <h2 class="h2-blog font-bold color-primary font-blog" style="text-align: justify;">Coordinating with Co-Owners</h2> <div style="text-align: justify;">Having good communication and coordination with your co-owners is crucial. It's essential to ensure that all co-owners are aware of their tax obligations and, most importantly, properly report their share of the property's income and expenses. It&rsquo;s important to note that 50% co-owners must declare the same income and expenses for the property, otherwise, there will be discrepancies! Clear agreements and open dialogue can help avoid any misunderstandings.</div> <div style="text-align: justify;">&nbsp;</div> <h2 class="h2-blog font-bold color-primary font-blog" style="text-align: justify;">Non-Resident Tax Obligations</h2> <div style="text-align: justify;">If you are non-resident joint owners, it's important to understand that you are still liable to pay tax in Spain. You will need to file the non-resident tax return (Modelo 210) and pay taxes on your respective share of the property.&nbsp;</div> <div> <div style="text-align: justify;">&nbsp;</div> <div style="text-align: justify;">The tax rate is the same for imputed and rental income, but what is different is the way that the tax due is calculated. The taxable base for the imputed income tax is calculated by multiplying the <strong><a class="color-primary link-secondary" href="https://www.iberiantax.com/blog/what-is-the-cadastral-value-and-how-to-find-it" target="_blank" rel="noopener">cadastral value</a></strong> of the property, by the imputed percentage.&nbsp;</div> <div style="text-align: justify;">&nbsp;</div> <div style="text-align: justify;">The taxable base for rental income tax is calculated by the difference between the rental income and the expenses of the relevant quarter, except for Non-EU tax residents who cannot offset expenses.&nbsp;&nbsp;</div> <div style="text-align: justify;">&nbsp;</div> <h2 class="h2-blog font-bold color-primary font-blog" style="text-align: justify;">Deductible Expenses for Rentals</h2> </div> <div style="text-align: justify;">Joint owners in Spain may be eligible to deduct certain expenses related to the property the rent out. Such costs may include taxes, rates and local surcharges (e.g. Property Tax Bill (IBI) Rubbish Collection Bill (Basura), personal third-party services such as administration, surveillance, porter services or similar, costs relating to the drawing up of a lease and legal defence costs, insurance premiums and amounts relating to services or supplies (e.g. electric, gas, water, community fees etc.) It&rsquo;s highly advisable to keep accurate records of these expenses, as the Spanish tax authorities may request those records during the following 4 years.</div> <div style="text-align: justify;">&nbsp;</div> <h2 class="h2-blog font-bold color-primary font-blog" style="text-align: justify;">Submitting your Modelo 210 with IberianTax</h2> <div> <div style="text-align: justify;">At IberianTax, we understand the challenges faced by non-resident property owners in Spain when it comes to filing their non-resident taxes &ndash; which is why we developed online tax-filing software that is specifically designed to make the process simple, accurate and secure. Our software even allows you to complete up to 4 owners per property, making your joint ownership tax return super simple too.&nbsp;</div> <div style="text-align: justify;">Our entire website is written in both English and German language too, so even those without any previous knowledge of the Spanish language, can compile a tax declaration that is fully in compliance with Spanish tax law!&nbsp;</div> <div style="text-align: justify;">&nbsp;</div> <div> <h2 class="h2-blog font-bold color-primary font-blog" style="text-align: justify;">A Simplified Filing Process</h2> <div style="text-align: justify;">Navigating the complexities of property taxes for joint owners in Spain can be challenging, but we&rsquo;ve made submitting the Modelo 210 form easier than ever at IberianTax. Our easy-to-use software will guide you through the process in minutes, without the need for expensive accountants. We have streamlined the filing process to eliminate any complexities and have made our platform accessible to everyone. Our user-friendly interface provides clear instructions in English and German, so that you can file your tax return with absolute confidence!&nbsp;</div> <div style="text-align: justify;">&nbsp;</div> <div style="text-align: justify;">If you want to file your Modelo 210 tax return quickly, efficiently and with complete ease, sign up with IberianTax today.</div> </div> </div> </div> <div>&nbsp;</div> <div>&nbsp;</div> <div>&nbsp;</div>

<p style="text-align: justify; ">Understanding the 3% withholding on the purchase price for non-residents is crucial when dealing with property transactions in Spain. This mechanism ensures compliance with non-resident tax obligations. In this context, let's delve into the details of this withholding tax and its implications.</p><h2 class="h2-blog font-bold color-primary font-blog" style="text-align: justify; ">What is the 3% withholding on the purchase price for non-residents?</h2><p style="text-align: justify; ">If you find yourself as a non-resident in Spain seeking to sell a property, it's important to be aware that 3% of the transaction price will be withheld.</p><p style="text-align: justify; ">This amount is withheld by the buyer from the selling price on account of your non-resident tax in Spain. The buyer will deposit the 3% to the Spanish Treasury via 211 Form within one month from the sale date.</p><p style="text-align: justify; ">It is important to note that the buyer is required to send a copy of the 211 Form to you. The 211 form contains a unique code that will have to be included in your Capital Gains Tax return in order to offset the 3% withholding tax or apply for a refund where applicable.</p><h2 class="h2-blog font-bold color-primary font-blog" style="text-align: justify; ">Why is the 3% withholding tax applied to non-residents?</h2><p style="text-align: justify; ">When a non-resident sells a property in Spain, they are obligated to pay non-resident tax based on the profit made from the transaction.&nbsp;</p><p style="text-align: justify; ">It's worth noting that residents in Spain also face a similar tax when selling a property. However, the difference lies in the timing of the payment. Tax residents fulfil their tax obligations through their annual income tax return, whereas non-residents encounter both withholding and Capital Gains Tax return at the time of sale. This mechanism ensures the collection of taxes from non-residents, as it can be more challenging to guarantee payment after the property transaction has concluded.</p><p style="text-align: justify; ">Furthermore, the rate of this tax differs for non-residents. For non-residents either a flat rate of 19% applies regardless of the country of tax residency. On the other hand, tax residents in Spain are subject to a different percentage, ranging from 19% to 28% based on the profit made.</p><h2 class="h2-blog font-bold color-primary font-blog" style="text-align: justify; ">What if the 3% withholding does not match the tax liability?</h2><p style="text-align: justify; ">After the sale, non-residents are required to declare the sale to the Spanish tax authorities through the Capital Gains tax return via 210 Form (“Modelo 210”). It is likely that the final tax due will not correspond to the 3% that was initially withheld. The final tax liability may be lower or higher. What should sellers of non-resident properties do in such instances?</p><p style="text-align: justify; ">If less tax has been withheld than the final amount due:</p><p style="text-align: justify; ">In this scenario, the seller must declare and pay the difference between what has already been paid and the final tax amount. The seller has a three-month period from the end of the one-month period to settle the withholding tax. To do so, the seller needs to complete Form 210 and attach Form 211, which should have been provided by the buyer.</p><p style="text-align: justify; ">If more withholding tax has been withheld than what was due:</p><p style="text-align: justify; ">The opposite situation may also occur, where the 3% withholding exceeds the tax liability based on the profit from the transaction. In such cases, the seller must still declare the final tax amount and request a refund for the difference.</p><h2 class="h2-blog font-bold color-primary font-blog" style="text-align: justify; ">What if the seller does not file the 210 tax return?</h2><p style="text-align: justify; ">In the event that the seller has generated a profit and the tax liability surpasses the amount withheld, it becomes obligatory for the seller to submit Form 210 and pay the remaining tax due on the profit from the property sale. Failure to comply with this requirement grants the Spanish tax authorities the authority to issue a supplementary tax return and impose penalties.</p><p style="text-align: justify; ">Furthermore, since the Spanish tax authorities may not possess information regarding the acquisition value, they will assume it to be zero euros and no deductions will be applied. Consequently, in the eyes of the tax authorities, the entire sale price will be considered a gain.</p><div><br></div>

<p style="text-align: justify;">As a non-resident with a second property in Spain, it's essential to stay informed about your tax obligations to ensure compliance with Spanish tax laws. One question that often arises when tax obligations are missed is, "How many years can the Spanish tax authorities go back". In this article, we will shed light on this important topic and provide you with a clear understanding of the time limit for non-resident tax filing in Spain.</p> <h2 class="h2-blog font-bold color-primary font-blog" style="text-align: justify; color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">The Four-Year limit</h2> <p style="text-align: justify;">The Spanish tax authority, known as the Agencia Tributaria, has the authority to review and assess your tax returns for a specific period. For non-resident tax filings in Spain, the general rule is that the taxman can go back up to four years from the end of the voluntary period to submit your tax return.</p> <h2 class="h2-blog font-bold color-primary font-blog" style="text-align: justify; color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Understanding the Voluntary Period</h2> <p style="text-align: justify;">The voluntary period refers to the timeframe during which you have the opportunity to submit your tax return voluntarily. In Spain, the standard voluntary period for non-resident tax filings is the calendar year following the date of accrual. Specifically, the deadline for submission is December 31st of each year. For example, the voluntary period to submit the 2022 tax year is from 1st January to 31st December.</p> <h2 class="h2-blog font-bold color-primary font-blog" style="text-align: justify; color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Implications of missing the deadline</h2> <p style="text-align: justify;">If you fail to submit your non-resident tax return within the voluntary period, the taxman retains the right to go back up to four years from the end of the voluntary period. For example, if you miss the deadline to submit your 2022 tax return (due in 2023), the taxman can review and assess your tax returns for the period from January 1st, 2024 to December 31st, 2027.</p> <h2 class="h2-blog font-bold color-primary font-blog" style="text-align: justify; color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Consequences of late filing</h2> <p style="text-align: justify;">The consequences of late filing can vary depending on whether the tax office requires the submission or if you submit the return before the tax authorities reach out to you. Here are the two possibilities:</p> <p style="text-align: justify;">a) Late filing upon Tax Office request: If the tax office requires the submission of your tax return and you miss the deadline, penalties and interest may be imposed. Typically, the tax authorities can impose penalties of around 50% of the tax owed, along with interest for late payments. These penalties are designed to encourage timely compliance with tax obligations and can significantly impact your overall tax liability.</p> <p style="text-align: justify;">b) Voluntary late filing: If you voluntarily submit your tax return after missing the deadline but before the tax authorities initiate any proceedings, there are no penalties involved. However, a surcharge of a maximum of 15% may apply. It's important to note that while you can avoid penalties in this scenario, the surcharge can still increase your tax liability.</p> <h2 class="h2-blog font-bold color-primary font-blog" style="text-align: justify; color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Why compliance matters</h2> <p style="text-align: justify;">Maintaining compliance with Spanish tax regulations is not only a legal requirement but also crucial for financial stability and peace of mind. By filing your non-resident tax return within the voluntary period and meeting all the necessary obligations, you can avoid unnecessary additional costs such as penalties and interest for late payment. Staying compliant not only protects you from potential fines but also ensures a smooth and worry-free tax filing process.&nbsp;</p> <h2 class="h2-blog font-bold color-primary font-blog" style="text-align: justify; color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Seeking assistance</h2> <p style="text-align: justify;">Navigating the intricacies of non-resident tax filing can be complex. When it comes to fulfilling your non-resident tax obligations in Spain, professional assistance is essential. However, you don't necessarily need to hire a traditional tax consultant or accountant. You can now rely on reliable tax filing software like IberianTax.com for expert guidance and support at a fraction of the cost compared to traditional tax consultants. It's a cost-effective and efficient solution that empowers you to handle your non-resident tax filings with confidence.</p> <p style="text-align: justify;">IberianTax.com offers a user-friendly and comprehensive platform that simplifies the tax filing process for non-residents in Spain. The software provides step-by-step instructions, ensures accurate calculations, and helps you navigate through the complexities of Spanish tax regulations. You can also trust the expertise of IberianTax to ensure compliance with the latest tax laws and regulations.</p> <h2 class="h2-blog font-bold color-primary font-blog" style="text-align: justify; color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Conclusion</h2> <p style="text-align: justify;">In conclusion, ensuring compliance with Spanish tax regulations is crucial for non-resident property owners in Spain. It not only helps avoid penalties and unnecessary costs but also provides financial stability and peace of mind. Consider leveraging the convenience and efficiency of online tax filing software like IberianTax.com to simplify the process and ensure accurate and timely submissions. With user-friendly features and expert support, IberianTax.com is here to assist you in meeting your tax obligations effectively.</p> <p style="text-align: justify;">If you have any questions or require further assistance, do not hesitate to contact our team at IberianTax.com. We are here to help you navigate the complexities of non-resident tax filing in Spain and ensure a smooth and hassle-free experience.</p> <div style="text-align: justify;">&nbsp;</div>

<p class="MsoNormal" style="text-align: justify;">Non-resident property owners have to deal with the non-resident tax return, known as Modelo 210, every year. Here is a summary of the most important aspects of the Spanish non-resident tax return for 2022 to be filed and paid in the calendar year 2023.</p><h2 style="text-align: justify;" class="h2-blog font-bold color-primary font-blog">Who must file a non-resident tax return?</h2><p class="MsoNormal" style="text-align: justify;">Every non-resident property owner must file at least one annual tax return (Modelo 210), in which they must declare imputed or deemed income from their property. This applies to any property, regardless of whether it is vacant or occupied by the owner.</p><p class="MsoNormal" style="text-align: justify;">If the property is rented out, non-resident property owners must also file a quarterly tax return (through Modelo 210) to report rental income earned in the previous quarter.</p><p class="MsoNormal" style="text-align: justify;">If the property is partially rented out during the tax year, non-resident taxpayers must file both the annual and quarterly tax returns.</p><p class="MsoNormal" style="text-align: justify;"><span lang="EN-US"></span></p><p class="MsoNormal" style="text-align: justify;">The tax return for non-residents (Modelo 210) is a self-assessment return. Consequently,&nbsp;</p><p class="MsoNormal" style="text-align: justify;"><span lang="EN-US">Non-resident property owners in Spain must deal every year with the non-resident tax return known as Modelo 210. Here you will find a summary of the main aspects of&nbsp;<span style="font-weight: 600;">Spain's non-resident tax return for the 2022 tax year</span>&nbsp;that must be filed and paid in 2022.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="color: rgb(19, 99, 178); font-family: &quot;Montserrat Bold&quot;, serif; font-size: 1.125rem; text-indent: 35.4pt;">Self-Assessment</span></p><p class="MsoNormal" style="text-align: justify;"><span lang="EN-US">The tax return for non-residents (Modelo 210) is a self-assessment return. Consequently, non-resident taxpayers are responsible for completing the non-resident tax return and paying any tax due on their own. The tax office does not send any reminders.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="color: rgb(19, 99, 178); font-family: &quot;Montserrat Bold&quot;, serif; font-size: 1.125rem; text-indent: 35.4pt;">When is the deadline to submit a non-resident tax return?</span></p><p class="MsoNormal" style="text-align: justify;"><span lang="EN-US">When it comes to not rented properties, the deadline for your tax return is December 31st of the year following the tax year. The deadline for submitting the non-resident tax return (Modelo 210) for the 2022 tax year is&nbsp;<span style="font-weight: 600;"><u>31st December 2023</u></span>. However, if you wish to set up a Direct Debit order for the payment of the tax, the deadline is 23<sup style="font-size: 9.75px;">rd</sup>&nbsp;December 2023.<o:p></o:p></span></p><p class="MsoNormal" style="text-align: justify;"><span lang="EN-US">Regarding rented properties, non-resident taxpayers must declare rental income quarterly within the first 20 days of April, July, October and January concerning the prior quarter. For example, rental income obtained within the second quarter of 2023 (April - June 2023), must be reported within the first 20 days of July 2023.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="color: rgb(19, 99, 178); font-family: &quot;Montserrat Bold&quot;, serif; font-size: 1.125rem; text-indent: 35.4pt;">When will taxes be taken out of my account?</span><br></p><p class="MsoNormal" style="text-align: justify;"><span lang="EN-US">If you are filing the annual tax return and choose Direct Debit as the payment method, the tax due will be collected by the Agencia Tributaria from your Spanish bank account on 31<sup style="font-size: 9.75px;">st</sup>&nbsp;December.<o:p></o:p></span></p><p class="MsoNormal" style="text-align: justify;"><span lang="EN-US">If you wish to pay earlier, you can make a transfer to IberianTax, and we will handle the payment of the tax simultaneously with the submission of the tax return to the Agencia Tributaria.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="color: rgb(19, 99, 178); font-family: &quot;Montserrat Bold&quot;, serif; font-size: 1.125rem; text-indent: 35.4pt;">How is the non-resident tax calculated?</span></p><p class="MsoNormal" style="text-align: justify;"><span lang="EN-US">The non-resident tax on not rented properties is calculated as follows:<o:p></o:p></span></p><p class="MsoListParagraphCxSpFirst" style="text-align: justify; text-indent: -18pt;"><span lang="EN-US">1.<span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: &quot;Times New Roman&quot;;">&nbsp; &nbsp;</span></span><span lang="EN-US">First of all, it should be calculated an&nbsp;<span style="font-weight: 600;">imputed income</span>&nbsp;on not rented properties which is the result of multiplying 2% or 1.1% by the property cadastral value (Valor Catastral). As a general rule, the 2% percentage applies unless there has been a General Cadastral Revision in the municipality in the previous 10 tax years.<o:p></o:p></span></p><p class="MsoListParagraphCxSpMiddle" style="text-align: justify;">This income is generated by legal imperative regardless of whether the property is empty or for personal use.</p><p class="MsoListParagraphCxSpMiddle" style="text-align: justify;">The imputed income is proportionally divided among the owners.<br></p><p class="MsoListParagraph" style="text-align: justify; text-indent: -18pt;"><span lang="EN-US">2.<span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: &quot;Times New Roman&quot;;">&nbsp;&nbsp;</span></span><span lang="EN-US">The&nbsp;<span style="font-weight: 600;">tax liability</span>&nbsp;results from multiplying the imputed income by the applicable tax rate. The tax rate is&nbsp;<span style="font-weight: 600;">24%</span>&nbsp;(19% for EU, Norway, Iceland and Liechtenstein tax residents).&nbsp;</span><span style="font-weight: 600;"><span lang="EN-US">Important note:</span></span><span lang="EN-US">&nbsp;Due to Brexit, from the 2021 tax year the tax rate for UK residents increased from 19% to 24%.</span></p><p class="MsoNormal" style="text-align: justify;"><span lang="EN-US">The calculation formula is as follows:<o:p></o:p></span></p><p class="MsoNormal" style="text-align: justify;"><span lang="EN-US" style=""><b>Cadastral Value x Imputed Percentage (2% or 1.1%) x Tax Rate (24% or 19%).</b></span></p><p class="MsoNormal" style="text-align: justify;"><span style="color: rgb(19, 99, 178); font-family: &quot;Montserrat Bold&quot;, serif; font-size: 1.125rem; text-indent: 35.4pt;">How do I submit my non-resident tax return online?</span></p><p class="MsoNormal" style="text-align: justify;"><span style="text-indent: 35.4pt;">You can use our simple online service which does not require previous tax knowledge and allows you to file and pay your tax online from your home country. You can also send your tax return to the Agencia Tributaria online if you have a Spanish digital certificate and you are brave enough to deal with the Spanish tax system.</span></p><p class="MsoNormal" style="text-align: justify;"><span style="color: rgb(19, 99, 178); font-family: &quot;Montserrat Bold&quot;, serif; font-size: 1.125rem; text-indent: 35.4pt;">What happens if I miss the non-resident tax return deadline?</span></p><p class="MsoNormal" style="text-align: justify;"><span lang="EN-US">If you fail to submit your tax return on time, you can be fined at least 50% of the tax you owe on top of your original tax bill. Additionally, you may have to pay interest for the late payment.<o:p></o:p></span></p><p class="MsoNormal" style="text-align: justify;"><span lang="EN-US">You can avoid the penalty if you file voluntarily before the Spanish tax authorities reach you. If you pay your tax bill between 1 to 12 months late, you only must pay a surcharge from 1% to 12% of the tax you owe.<o:p></o:p></span></p><p class="MsoNormal" style="text-align: justify;"><span lang="EN-US">If you pay more than 12 months late, you’ll be subject to 15% of your tax bill plus interest for the late payment.<o:p></o:p></span></p><p class="MsoNormal" style="text-align: justify;"><span lang="EN-US">For example, if you file your Spanish non-resident tax return for the 2021 year in May 2023 (as a late tax return), you will have to pay a surcharge of 5%. That is notified directly by the tax office which usually issued two letters. The first one is known as “Propuesta de Liquidación” where the Agencia Tributaria informs you about the surcharge and, one or two months later, another letter known as “Liquidación” that includes a payment letter that would allow you to make the payment of the surcharge or penalty.</span></p>

<p>Non-resident property owners who receive rental income from their Spanish property must declare it quarterly, regardless of the taxation applicable in their home country. In particular, the Spanish tax authorities require the submission of Form 210, the tax return for non-residents' income tax in Spain. The deadlines fall on 20 April, 20 July, 20 October and 20 January of the following year, each for the previous quarter.</p> <p><strong>Important note:</strong> Starting from the 2024 tax year, the declaration of rental income will shift to an annual basis, with the deadline for submission set between January 1st and January 20th of the following year.&nbsp;</p> <p>Via Form 210 non-residents report their rental income received in Spain, as well as any expenses or deductions incurred. In this regard, it is important to note that only tax residents in EU countries, Iceland, Norway, and Liechtenstein are allowed to offset expenses from rental income. However, tax residents in other countries must declare gross income and are not allowed to deduct expenses.&nbsp;</p> <p>For those who are in the first group (tax residents in EU countries, Iceland, Norway, and Liechtenstein), here are eight deductible expenses that can be taken from rental income in Spain:</p> <div> <div><strong>Property-related expenses: </strong>local property taxes (IBI or rubbish collection fee), community fees, or house insurance premiums.</div> <div>&nbsp;</div> <div><strong>Utility bills:</strong> Expenses related to water, gas, electricity, and other utilities can also be deducted from rental income if the property owner bears them.</div> <div>&nbsp;</div> <div><strong>Maintenance costs:</strong> Costs incurred to maintain the property, including repairs and cleaning, can also be deducted. In this regard, it has to be noted that the purchase of furniture can only be deducted via depreciation at the rate of 10% per annum (2.5% per quarter).</div> <div>&nbsp;</div> <div><strong>Mortgage interest: </strong>Non-residents who have a mortgage on the Spanish property are allowed to deduct the interest paid on their mortgage from their rental income.</div> <div>&nbsp;</div> <div><strong>Property management fees: </strong>If a non-resident hires a property management company to manage the property, the fees paid to the company can be deducted.</div> <div>&nbsp;</div> <div><strong>Advertising and marketing expenses:</strong> Costs incurred to advertise and market the property to potential tenants can also be deducted.</div> <div>&nbsp;</div> <div><strong>Legal and accounting fees:</strong> Fees paid to legal and accounting professionals to assist with the rental of the property can be deducted.</div> <div>&nbsp;</div> <div><strong>Depreciation:</strong> Non-residents are allowed to deduct the depreciation of the property over time. The depreciation cost for rental property is calculated as 3% of the greater of the purchase price or the cadastral value of the property. In both cases excluding the plot value.&nbsp;</div> <div>&nbsp;</div> <div>Besides, when calculating the deductible expenses from rental income in Spain, it is important to note that certain expenses can only be deducted proportionally based on the number of rental days. For example, property-related expenses, such as property taxes and community fees, can be deducted proportionally based on the number of days the property was rented out during the quarter. Similarly, utility bills or depreciation costs can only be deducted proportionally based on the rental days.</div> <div>&nbsp;</div> <div>Hence, it is important to keep detailed records of rental income and expenses, including the number of days the property was rented out, to accurately calculate the proportion of deductible expenses.&nbsp;</div> <div>&nbsp;</div> <div>Finally, it is worth noting that most double tax treaties allow offsetting taxes paid in Spain against the income tax paid in the home country for the same rental income.</div> <div>&nbsp;</div> <div>With IberianTax you can take all the hassle out as we calculate the tax due accurately while we help you to reduce your tax burden in Spain.</div> </div> <div>&nbsp;</div>

<p style="text-align: justify;">Buying a property in Spain has become increasingly popular among non-resident buyers in recent years, and for good reason. Spain boasts a warm climate, stunning landscapes, and a rich cultural heritage, making it a sought-after destination for many. However, when buying a property in Spain, it is important to keep in mind the legal aspects that come with the process. By being informed of the 10 key legal considerations, you can help ensure a smooth and successful purchase.</p> <h2 class="h2-blog font-bold color-primary font-blog" style="text-align: justify; color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">1. Check Land Registry information&nbsp;</h2> <p style="text-align: justify;">Before buying a property, you should carry out a thorough search to make sure there are no outstanding debts or charges on the property, such as mortgages, taxes or community fees.&nbsp;</p> <p style="text-align: justify;">Whether it is the future owner who negotiates the purchase directly or through a real estate agent, the first step to take is to go to the corresponding Land Registry to find out the legal situation of the property by obtaining a Nota Simple. The Nota Simple is a basic certification issued by the Land Registry that provides important information about the property. It provides information about the current owner of the property, as well as information about mortgages secured by the property, rights of way, or any preventive seizure annotations from the tax authorities. It's crucial to be aware of this information because the information provided by the registry takes prevails before third parties.&nbsp;</p> <h2 class="h2-blog font-bold color-primary font-blog" style="text-align: justify; color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">2. Check Catastro information</h2> <p style="text-align: justify;">Another source of information that can be consulted is the Catastro. The Catastro contains a map or a plan of the property, which shows its exact location, size, and boundaries. This information is essential to ensure that the property you are purchasing corresponds to the property you are interested in.</p> <p style="text-align: justify;">The Catastro is also used by the Spanish tax authorities to determine the taxable value of the property, so checking the information contained in the Catastro can help you understand the property's estimated value and any taxes you may be responsible for after purchasing it.</p> <p style="text-align: justify;">It is important to note that, on occasions, the information offered by the Cadastre does not coincide with the one from the Land Registry. Since 2015 an attempt has been made to unify both registers.</p> <p style="text-align: justify;">Overall, checking the information contained in the Catastro is a key step in the process of buying a property in Spain, as it helps to ensure that you have a complete and accurate understanding of the property you are interested in purchasing.</p> <h2 class="h2-blog font-bold color-primary font-blog" style="text-align: justify; color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">3. Review the Residents' Association Rules.</h2> <p style="text-align: justify;">Before buying a property in Spain, it is crucial to familiarize yourself with the rules that govern the building. The bylaws of the Residents' Association are recorded on the building's page in the Land Registry and outline the obligations and rights of the owners. This information can be obtained from the seller or the property manager.</p> <p style="text-align: justify;">Additionally, there may also be internal rules that are specific to the building and different from the Residents' Association rules. These rules are usually private and do not appear on the Land Registry. However, it is important to be aware of them as they do bind third parties, according to recent interpretations by the courts. Hence, it is advisable to inquire about these internal rules from the seller or property manager and have a clear understanding of them before finalizing the purchase.</p> <h2 class="h2-blog font-bold color-primary font-blog" style="text-align: justify; color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">4. Review urban planning infringements</h2> <p style="text-align: justify;">When purchasing a property in Spain, it is important to check for any urban planning infringements. This may include unapproved modifications, such as the installation of a window without the required permit, or the placement of enclosures on terraces. To obtain this information, it is recommended to directly contact the local Ayuntamiento.</p> <h2 class="h2-blog font-bold color-primary font-blog" style="text-align: justify; color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">5. Understanding Spanish property laws.&nbsp;</h2> <p style="text-align: justify;">It's important to familiarize yourself with Spanish property laws, especially those that are specific to non-resident buyers, such as restrictions on purchasing property near military installations or in protected natural areas.</p> <p style="text-align: justify;">Once you've found the right property, you will need to make a sales contract, which should include all the terms and conditions of the sale, including the purchase price, payment terms, and completion date.</p> <p style="text-align: justify;">After the sales contract is signed, you will need to complete the transaction by paying the purchase price and registering the property in your name.</p> <p style="text-align: justify;">On occasions, it's recommended that you hire a lawyer to help you with the purchase process and to advise you on any legal issues that may arise.</p> <h2 class="h2-blog font-bold color-primary font-blog" style="text-align: justify; color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">6. Community fees</h2> <p style="text-align: justify;">&nbsp;If you purchase a property in Spain that is part of a community, such as an apartment building, you will be required to pay community fees. These fees are used to cover the costs of maintenance and upkeep of the common areas, such as elevators, swimming pools, and gardens. Before purchasing a property, it is important to understand the amount of community fees you will be required to pay and how often they will be due.</p> <h2 class="h2-blog font-bold color-primary font-blog" style="text-align: justify; color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">7.<span style="white-space: pre;"> </span>Insurance</h2> <p style="text-align: justify;">Lastly, it is important to consider purchasing insurance for your property in Spain. There are different types of insurance available, including home insurance, which covers damages to the property, and liability insurance, which covers any damages you may cause to third parties while living in the property. By taking out insurance, you can protect yourself against any potential risks and ensure peace of mind.</p> <h2 class="h2-blog font-bold color-primary font-blog" style="text-align: justify; color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">8. Obtaining a NIE number.</h2> <p style="text-align: justify;">As a non-resident, you will need to obtain a NIE number (N&uacute;mero de Identificaci&oacute;n de Extranjero), which is a tax identification number for foreigners in Spain.</p> <h2 class="h2-blog font-bold color-primary font-blog" style="text-align: justify; color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">9. Taxes on the acquisition</h2> <p style="text-align: justify;">When acquiring a property in Spain, it is important to consider the taxes that will be owed on the transaction. For new build properties, the taxes owed are the Value Added Tax (VAT) and the Stamp Duty. Second-hand properties, on the other hand, are taxed through the Property Transfer Tax, which is a percentage of the purchase price, determined by the regional government.</p> <h2 class="h2-blog font-bold color-primary font-blog" style="text-align: justify; color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">10. Non-Resident Tax (Modelo 210)</h2> <p style="text-align: justify;">In addition to the taxes on the acquisition of the property, non-resident property owners are also required to file the non-resident tax (Modelo 210). This tax declaration reports both the rental income received from the property and the imputed income, which is a presumed income for the days during which the property has not been rented. Filing the non-resident tax can be a complicated process, but it is important to stay compliant with Spanish tax laws.</p> <p style="text-align: justify;">If you're a non-resident property owner in Spain, consider using <strong><a class="color-secondary link-primary" href="http://www.iberiantax.com" target="_blank" rel="noopener">IberianTax</a></strong>&nbsp;for your tax filing needs. As one of the leading companies in the field, IberianTax provides an online tax filing service for the submission of the non-resident tax return without the need for any tax knowledge. With their user-friendly platform and knowledgeable team, you can trust iberiantax.com to handle your tax obligations so that you can focus on enjoying your property in Spain.</p> <p>In conclusion, buying a property in Spain can be a rewarding experience, but involves a complex set of legal considerations that can be overwhelming for non-resident buyers. It is important to be informed of the key legal considerations, taxes, and obligations that come with the process. By taking these factors into account, you can help ensure a smooth and successful purchase.&nbsp;</p> <div>&nbsp;</div>

<p>Each year, thousands of non-resident property owners are required to submit their annual tax returns in Spain (Modelo 210). Some are brave enough to file online via the government website (sede.agenciatributaria.gob.es). However, for the majority, it might be difficult to be up to date with the complex Spanish tax system and deal with the official website in Spanish and no assistance.</p> <p>On the other hand, the tax office does not make easy the payment. For example, the official website does not allow setting up a Direct Debit order if the taxpayer doesn&rsquo;t hold a Spanish electronic certificate in force. Payment via bank transfer is also quite confusing and not risk-free if a mistake is committed.&nbsp;</p> <p>Those are just some of the reasons why a large number of taxpayers still use the service of lawyers or &ldquo;gestorias&rdquo;. These options are usually expensive and may not always provide an efficient service. Fortunately, there are other new solutions that can help you with your Spanish tax obligations for a more reasonable fee and of course excellent customer service. Here are some reasons to use a self-Assessment tax return software such as IberianTax.&nbsp;&nbsp;</p> <h2 class="h2-blog font-bold color-primary font-blog">1. IberianTax can save you lots of time</h2> <p>On average, filing your non-resident tax return with IberianTax takes non longer than 15 minutes. Barely 2 minutes if you are already a client.&nbsp;</p> <p>Reviewing the Spanish legislation in force, understanding the new changes on the Agencia Tributaria website or filling out your own tax return at the official website, could take many hours and in most cases without having the certainty of having done it well. There&rsquo;s probably a very long list of things you would much rather be doing than filling out your Spanish non-resident tax return. Your time is precious, so you may want to finish it as quickly and painlessly as possible.</p> <p>If you fill in your tax return via IberianTax, you&rsquo;ll get the job done quickly and accurately saving you time and effort. Our Spanish tax filing software provides time-saving shortcuts, quickly guiding you through the parts of the non-resident tax return that are relevant to you and providing support if needed.</p> <h2 class="h2-blog font-bold color-primary font-blog">2. IberianTax can prevent basic mistakes&nbsp;</h2> <p>It can be easy to make mistakes when completing a non-resident tax return, which can cost you lots of time and money. For example, when it comes to tax calculation, we noticed that a significant number of taxpayers have unintentionally made mistakes when calculating the tax due.</p> <p>That&rsquo;s very unlikely if you use a Self-Assessment tax return software designed to prevent basic errors. Prompts are generated if it looks like you&rsquo;ve got something wrong, enabling you to quickly correct any mistakes in your Self-Assessment tax return. Our calculation tool is always up-to-date and in line with the latest Spanish tax legislation and the Agencia Tributaria criteria.</p> <h2 class="h2-blog font-bold color-primary font-blog">3. IberianTax is very easy to use</h2> <p>You don&rsquo;t need previous tax know-how if you use our tax tool. IberianTax is designed with the user in mind, users with very limited Spanish tax knowledge, so it&rsquo;s very user-friendly.&nbsp;</p> <p>You don't need to be an expert to complete your Spanish non-resident tax return.&nbsp;&nbsp;</p> <h2 class="h2-blog font-bold color-primary font-blog">4. IberianTax can keep your Spanish non-resident tax returns organised</h2> <p>A Self-Assessment tax return software enables you to complete your returns online. These are then stored digitally, itemised per tax year and type of declaration. You will have access to your Spanish tax returns wherever and at any time.</p> <h2 class="h2-blog font-bold color-primary font-blog">5. IberianTax offers reliable customer support</h2> <p>Using IberianTax allows you access to our comprehensive customer support that you can access if you ever get stuck or need any clarification regarding the Spanish tax system.&nbsp;</p> <p>We want to make sure that your taxes are done right but also that you understand what you are paying for.</p> <h2 class="h2-blog font-bold color-primary font-blog">6. IberianTax can save you hundreds each year</h2> <p>Using our tax filing service is much cheaper than any lawyer or &ldquo;gestorias&rdquo;. Why is so cheap? The reason is simple, we are focused on non-resident taxation which allows us to be very efficient when providing the service. Our online tax tool helps us to reduce unnecessary costs that we prefer to invest in customer service.</p> <p>If you are currently paying a Spanish accountant to complete and file your tax return for you, using an online tax filing service instead could offer you significant savings for the same declaration and result.</p> <p>IberianTax is the leading self-assessment tax software in Spain that offers you an easier way to complete and file your Spanish non-resident tax return. <a class="color-primary link-secondary" href="http://www.iberiantax.com/register" target="_blank" rel="noopener">Start for free now!</a></p> <div>&nbsp;</div>

<p style="text-align: justify; ">Last April 2022, IberianTax participated in the Talent Tour forum, promoted by the Princess of Girona Foundation. The event aimed at promoting STEAM professions, innovation and young talent was attended by Their Majesties the King and Queen of Spain.</p><p style="text-align: justify; ">King Felipe and Queen Letizia were interested in the IberianTax project, a digital solution that allows non-resident with properties in Spain to meet their tax obligations. Each year thousands of property owners must deal with the non-resident tax return (Form 210) facing difficulties due to language barriers or the complexity of the Spanish tax system. IberianTax is the first tax filing software developed in Spain to facilitate the submission and payment of taxes in Spain for non-resident property owners and Spaniards living abroad.</p><p style="text-align: justify; ">The King and Queen showed interest in the project and learned about the development and functioning of the platform from its founders. It was an excellent opportunity to make the project known at a national level.</p><p style="text-align: justify; ">During the main event of the Talent Tour, the physicist Eleonora Viezzer was also distinguished with the Princess of Girona Foundation Award in the category of Scientific Research 2022.&nbsp; Her project focuses on the development of fusion plasma with high confinement and without fluctuations to avoid the loss of particles that would damage the reactor walls.</p><div style="text-align: justify; "><br></div>

<p>According to INE data, the number of Spaniards living abroad reached 2,742,605 on 1 January 2022. This is a significant and growing figure that has implications in several areas, including taxation.</p> <h2 class="h2-blog font-bold color-primary font-blog">Spanish Expats are also liable to Spanish taxes</h2> <p>It is common for Spanish Expats (like many other non-residents of Spain) to wonder whether they have to pay taxes in Spain if they live abroad. There is a widespread belief that if you live abroad you only pay taxes in your country of residence. This is only correct in certain cases. A high percentage of these Spanish citizens must pay taxes in Spain despite their status as non-resident taxpayers. This happens, among other cases, when the citizen maintains economic interests in Spain either in the form of income or assets. In particular, the obligation to pay tax in Spain remains for all those Spanish citizens residing abroad but owning a property in the Spanish territory, either for personal use or for rental purposes.&nbsp;</p> <p>If the property is for personal use, non-resident Spaniards, as is the case for non-residents of any other nationality, must declare an annual imputed income on the property regardless of whether or not they generate any income from it.</p> <p>In general terms, the amount to be declared is 2% of the cadastral value of the property. However, this percentage would be reduced to 1.1% of the cadastral value in those cases where the property is located in a municipality where the cadastral values have been revised in the last ten years. A tax rate of 19% is applied to this amount for Spaniard residents in the European Union (EU) or European Economic Area (EEA) countries, or 24% for the rest of the cases.</p> <p>Thus, for example, if a Spaniard resident in the UK has a property in Spain with a cadastral value of &euro;100,000, he/she would have to pay between &euro;264 and &euro;480 per year depending on the municipality where the property is located.&nbsp;</p> <p>On the other hand, in the case of rented properties, non-residents must declare the income obtained quarterly, without the possibility of deducting the related expenses unless they are residents in the EU or EEA.</p> <p>Thus, following the above example, a Spaniard resident in the UK who rents a property in Spain at a monthly rate of &euro;1,000, will have to pay the sum of &euro;720 per quarter to the Treasury for Non-Resident Income Tax, i.e. &euro;2,880 per year. And this, regardless of the expenses associated with this rent, given that the regulations do not allow the deduction of expenses in these cases, which significantly increases the tax burden for this group.</p> <p><strong>Important note</strong>: Starting from the 2024 tax year, the declaration of rental income will shift to an annual basis, with the deadline for submission set between January 1st and January 20th of the following year.&nbsp;</p> <h2 class="h2-blog font-bold color-primary font-blog">How is Non-Resident Income Tax declared?</h2> <p>In both cases, the tax is self-assessed using Form 210, the form that brings together the returns of non-resident taxpayers.&nbsp;</p> <p>In order to file the tax directly online, you need a digital certificate and some knowledge of the Tax Agency's website. However, there are also online solutions that make it easier to file Form 210 quickly and online.</p> <h2 class="h2-blog font-bold color-primary font-blog">Who is a non-resident in Spain?</h2> <p>The regulation does not establish a definition of "non-resident", but that any person who does not meet the requirements to be considered a tax resident in Spain, i.e. who does not meet any of the following circumstances, is a non-resident:</p> <p>- That he/she stays in Spain for more than 183 days during the calendar year.</p> <p>- That the main source of income is located directly or indirectly in Spain.</p> <p>Likewise, it will be presumed, unless proved otherwise, that a taxpayer is habitually resident in Spain when, following the above criteria, the non-legally separated spouse and dependent minor children are habitually resident in Spain.</p> <p>&nbsp;</p>

<p style="text-align: justify;">If you have a second home in Spain, you must pay non-resident income tax in Spain on your property, even if you live abroad and do not generate any income from it.</p> <p style="text-align: justify;">In this article, you will find a summary of the most common situations where a non-resident taxpayer must file a tax return for having a property in Spain.</p> <h2 class="h2-blog font-bold color-primary font-blog" style="text-align: justify;">Do I have to pay tax on my Spanish property?</h2> <h3 class="h3-blog font-bold color-secondary font-blog" style="text-align: justify;"><strong>I do not rent my property:</strong></h3> <p style="text-align: justify;">You are required to file the annual non-resident tax return to declare an imputed or deemed income on the property (even though you do not generate any income from it).</p> <p style="text-align: justify;">The imputed income consists of 2% of the cadastral value of the property or 1.1% if a general revision of the cadastral values has taken place in your municipality within the previous ten years.</p> <h3 class="h3-blog font-bold color-secondary font-blog" style="text-align: justify;">I partially rented out my property.</h3> <p style="text-align: justify;">You are required to file the annual non-resident tax return on imputed income but only for the days during which the property was NOT rented. For example:</p> <p style="text-align: justify;">In 2024 Petra and Markus spent 30 days in their second home in Mallorca. For the rest of the year, the property was rented out. They will have to declare in 2025 an imputed income on the property for 30 days, that is during the period where the house was not rented. In addition, in 2025, they had to declare the rental income in a separate tax return.</p> <h3 class="h3-blog font-bold color-secondary font-blog" style="text-align: justify;">I rented my property the entire 2024 (365 days rented)</h3> <p style="text-align: justify;">You are not liable to file the annual tax return on imputed income as the property was rented out for the entire 2024 tax year. Instead, in 2025 you had to declare the rental income with the deadline for submission set between January 1st and January 20th of the following year.&nbsp;</p> <h3 class="h3-blog font-bold color-secondary font-blog" style="text-align: justify;">I bought my property in 2024.</h3> <p style="text-align: justify;">You are required to file the annual non-resident tax return to declare an imputed income on the property from the purchase date to the 31st of December 2025.&nbsp;</p> <p style="text-align: justify;">As a case in point, let&rsquo;s look at the situation in which a non-resident taxpayer, Timothy, bought a property in Marbella on 15th November 2024. He did not rent the property nor use it until the end of the year. Timothy must report in 2025 an imputed income on the property but only from the purchase date to 31st December.</p> <h3 class="h3-blog font-bold color-secondary font-blog" style="text-align: justify;">I sold my property in 2024.</h3> <p style="text-align: justify;">Like the previous scenario, you are required to file the annual non-resident tax return to declare an imputed income on the property from the 1st of January 2024 to the sale date.&nbsp;</p> <p style="text-align: justify;">For any of the scenarios above, the relevant form is &ldquo;<strong>Modelo 210</strong>&rdquo;. If you want to know more about this tax form check this <a class="color-secondary link-primary" href="https://www.iberiantax.com/blog/a-simple-guide-to-spanish-tax-form-210-modelo-210" target="_blank" rel="noopener">article</a> out.&nbsp;</p> <h2 class="h2-blog font-bold color-primary font-blog" style="text-align: justify;">Amount of tax payable on a second home</h2> <p style="text-align: justify;">How much non-resident tax you have to pay on your second home in Spain depends on:</p> <ul> <li style="text-align: justify;">The cadastral value (&ldquo;Valor Catastral&rdquo;) of your second home according to the last local tax receipt.</li> <li style="text-align: justify;">The municipality where the property is located as it defines the applicable imputed percentage as 2% or 1.1%.</li> <li style="text-align: justify;">The country of tax residency as it defines the applicable tax rate (24% or 19%).</li> </ul> <p style="text-align: justify;">Let&rsquo;s give a clear calculation example for the 2024 tax year:</p> <ul> <li style="text-align: justify;">Cadastral value: 45986.60&euro;</li> <li style="text-align: justify;">Municipality &gt; Mijas (Malaga): 2% imputed percentage as the last general revision from Catastro has not taken place within the past 10 years. Source: Agencia Tributaria website.</li> <li style="text-align: justify;">Tax Rate &gt; United Kingdom: 24% (non-EU)</li> <li style="text-align: justify;">The property was not rented in 2024.</li> </ul> <p style="text-align: justify;">Tax Liability = 45986.60 x 2% x 24% x 365/365 = 220.73&euro;</p> <p style="text-align: justify;">As detailed above, the final tax due would amount to 220.73&euro; which should be split among the number of owners considering the ownership stake.</p> <h2 class="h2-blog font-bold color-primary font-blog" style="text-align: justify;">Other taxes you must pay on your Spanish property</h2> <h3 class="h3-blog font-bold color-secondary font-blog" style="text-align: justify;">Local Property tax</h3> <p style="text-align: justify;">Besides the non-resident tax, property owners must also pay a local tax on their Spanish property usually known as IBI. The municipality where your second home is located will inform you of the property tax payable. This tax is levied by the Ayuntamiento or by the regional tax authority (Patronato, SUMA, etc.).</p> <h3 class="h3-blog font-bold color-secondary font-blog" style="text-align: justify;">Wealth Tax</h3> <p style="text-align: justify;">With the exception of some regions such as Andalusia and Madrid, non-residents may be liable to Wealth Tax when the acquisition value of the property exceeds a certain amount (usually &euro;700,000).</p> <p style="text-align: justify;">If you have any other questions or need further assistance, please do not hesitate to contact support@iberiantax.com.</p> <div>&nbsp;</div>

<p>If you recently sold or you are planning to <strong>sell a property in Spain</strong>, you may wonder whether you&rsquo;ll have to pay <strong>capital gains taxes</strong> on money earned from the sale. Today's article talks about the main <strong>tax implications of selling a property by non-residents in Spain</strong>.&nbsp;</p> <h2 class="h2-blog font-bold color-primary font-blog">1. The capital gain is subject to the Non-resident Income Tax</h2> <p><strong>Non-resident property owners in Spain</strong> must declare any capital gain or loss arising from the sale of their Spanish property through the <strong>Non-Resident Tax return</strong>&nbsp;(<a class="color-primary link-secondary" href="https://www.iberiantax.com/blog/a-simple-guide-to-spanish-tax-form-210-modelo-210" target="_blank" rel="noopener">Tax Form 210</a> &ldquo;Modelo 210&rdquo;).</p> <p>In this regard, all <strong>double tax treaties</strong> signed by Spain determine that income derived directly from the transfer of real estate located in the Spanish territory (and in most cases also indirectly through companies with a real estate substrate) is always taxable in Spain. Therefore, any potential capital gain derived from a disposal of a property within the Spanish territory will be subject to taxation in Spain.</p> <h2 class="h2-blog font-bold color-primary font-blog">2. How is the capital gain calculated?&nbsp;</h2> <p>The capital gain is usually the difference between what you paid for your property (acquisition cost) and the amount you got when you sold (selling price).</p> <p>As a general rule,&nbsp; to determine the capital gain, non-residents can deduct costs of buying, selling or improving their property from the capital gain. Among other costs, estate agents&rsquo; and lawyer&rsquo;s fees, &ldquo;Plusvalia Municipal&rdquo; local tax or cost of improvement works (only those that do not qualify as maintenance cost or as an ordinary reparation).</p> <h2 class="h2-blog font-bold color-primary font-blog">3. A flat rate of 19% is applied</h2> <p>Unlike what happens in the IRPF for resident taxpayers, capital gains are not subject to a progressive scale of 19 to 28% but to a<strong> flat rate of 19%</strong>. This tax rate is the same for residents in the EU and the European Economic Area as for those residing in non-EU countries.</p> <h2 class="h2-blog font-bold color-primary font-blog">4. No possibility of offsetting losses from other sales</h2> <p>As there is no tax period, <strong>non-residents are not able to offset gains obtained from the sale of property against losses </strong>generated by the transfer of another property or any other asset. This is the rule even though they are transferred in the same tax year or on the same day!</p> <h2 class="h2-blog font-bold color-primary font-blog">5. If the seller is a non-resident, the buyer must withhold 3% from the price.</h2> <p>When a non-resident sells a property located in Spain,<strong> the buyer is obliged to withhold 3% of the sale price</strong> as payment on account of the non-resident's tax return. The buyer must deposit this amount to the tax authorities within one month using Form 211.&nbsp;</p> <p>This withholding tax will be offset from the final tax liability to be paid by the seller via Form 210.</p> <p>If the non-resident taxpayer has made a loss or the tax liability is less than 3%, he/she will have to apply for a refund of the excess.&nbsp;</p> <h2 class="h2-blog font-bold color-primary font-blog">6. The deadline for filing the tax is 4 months.</h2> <p>The non-resident tax return is self-assessed using Form 210 within three months of the expiry of the period of one month from the sale date (date of accrual) of the real estate property. In other words, <strong>4 months from the sale date</strong>.</p> <h2 class="h2-blog font-bold color-primary font-blog">7. "Plusvalia Municipal", a local tax on the increase in urban land value.</h2> <p>In addition to the non-resident income tax, the sale of the property is subject to the local tax on the Increase in Urban Land Value, better known as "<strong>Plusvalia Municipal</strong>".&nbsp;</p> <p>Under article 106 of the Local Tax Law (Royal Legislative Decree 2/2004, of 5 March), the buyer is responsible for depositing the tax due for this local tax provided that the seller is an individual who is not resident in Spain for tax purposes. However, the buyer has the right to claim the amount of tax paid from the seller following article 36, paragraph 3, of the General Tax Law. In practice, this amount is usually withheld from the purchase price along with the 3% withholding tax.</p> <p>&nbsp;</p> <div>&nbsp;</div>

<p>Do you qualify as a <strong>non-resident of Spain</strong> and are you looking for <strong>key dates for the 2022 calendar year</strong>? You have come to the right place. Below is a breakdown of the main deadlines and key dates for <strong>non-resident property owners</strong> in Spain for 2022.</p> <h2 class="h2-blog font-bold color-primary font-blog">Tax obligations in Spain</h2> <p>As a non-resident of Spain, you pay tax on income you receive from sources in Spain. The type of tax you pay and the requirement to<a class="color-primary link-secondary" href="http://www.iberiantax.com" target="_blank" rel="noopener"> file an income tax return</a>, depend on the type of income you receive. When it comes to property owners, there are mainly two types of income:</p> <ul> <li><strong>Imputed Income on not rented properties</strong>. This income is attributed to any non-resident property owner <strong>even though the property is empty throughout the year and there is no income</strong>. It must be declared the year after the tax year with Form 210.</li> <li><strong>Rental Income.</strong>&nbsp;Suppose you received income from renting real estate or other real property. In that case, you have to file a quarterly non-resident tax return to report rental income (and expenses if you&rsquo;re an EU/EEA resident). It must be declared quarterly with Form 210.</li> </ul> <h2 class="h2-blog font-bold color-primary font-blog">Annual non-resident tax return (imputed income)</h2> <p>Deadline for submission of the<strong> annual non-resident tax return</strong> (Spanish tax form Modelo 210) for the 2021 tax year:<strong> 31st December 2022</strong>. However, if you wish the Agencia Tributaria automatically collect your tax due from your Spanish bank account on the due date, you should submit your online return by 23rd December.</p> <h2 class="h2-blog font-bold color-primary font-blog">Quarterly tax return (rental income)</h2> <h3 class="h3-blog font-bold color-secondary font-blog">1st Quarter 2022</h3> <p>Deadline for submission of the non-resident tax return to declare any income from renting out the property during the 1st Quarter 2022 (January to March 2022): <strong>20th April 2022</strong>.&nbsp;</p> <p>For Direct Debit payment, the deadline is 15th April 2022.</p> <h3 class="h3-blog font-bold color-secondary font-blog">2nd Quarter 2022</h3> <p>Deadline for submission of the non-resident tax return to declare any income from renting out the property during the 2nd Quarter 2022 (April to June 2022): <strong>20th July 2022</strong>.</p> <p>For Direct Debit payment, the deadline is 15th July 2022.</p> <h3 class="h3-blog font-bold color-secondary font-blog">3rd Quarter 2022</h3> <p>Deadline for submission of the non-resident tax return to declare any income from renting out the property during the 3rd Quarter 2022 (July to September 2022): <strong>20th October 2022</strong>.</p> <p>For Direct Debit payment, the deadline is 15th October 2022.</p> <h3 class="h3-blog font-bold color-secondary font-blog">4th Quarter 2022</h3> <p>Deadline for submission of the non-resident tax return to declare any income from renting out the property during the 4th Quarter 2022 (October to December): <strong>20th January 2023</strong>.</p> <p>For Direct Debit payment, the deadline is 15th January 2023.</p> <p>&nbsp;</p> <p>If you have any other questions or want to make sure that the above deadlines apply to you, please do not hesitate to reach our tax team at support@iberiantax.com</p> <div>&nbsp;</div>

<h2 class="h2-blog font-bold color-primary font-blog">What taxes do non-residents with properties in Spain pay?</h2> <p>Non-resident taxpayers with properties located in the Spanish territory are subject to taxation in Spain regardless of whether the property is for personal use or rented out.</p> <p>The most relevant property taxes are Real Estate Tax (local tax known as "IBI"), Non-Resident Income Tax (IRNR) and, in some cases, Wealth Tax (IP). These taxes apply to any non-resident property owner including Spaniards who currently reside abroad.</p> <h2 class="h2-blog font-bold color-primary font-blog">Property taxes in Spain for non-residents</h2> <h3 class="h3-blog font-bold color-secondary font-blog">Real Estate Tax (IBI)&nbsp;</h3> <p>The Real Estate Tax is a local property tax, usually known as IBI, collected by the local tax authority where the property belongs (e.g. Ayuntamiento, Patronato, SUMA, Consorcio de Tributos, etc.).</p> <p>All properties are registered in a census and assigned an administrative value (cadastral value). Each council determines a local tax rate that ranges from 0.4 to 1.1% that, along with the cadastral value, is used for the calculation of the Real Estate Tax.</p> <p>The local tax must be paid annually and for each property included in the census. Deadline varies in each municipality, but usually between September to November.&nbsp;</p> <p>For the Real Estate Tax non-residents don&rsquo;t have to file a specific tax return but make sure that the payment is made within the deadline.&nbsp;</p> <h3 class="h3-blog font-bold color-secondary font-blog">Non-Resident Tax (IRNR).&nbsp;</h3> <p>Non-resident taxpayers are also liable to<strong> <a class="color-primary link-secondary" href="http://www.iberiantax.com" target="_blank" rel="noopener">non-resident tax</a></strong> (IRNR) if they have a property in Spain. This tax must be submitted to the <strong>Agencia Tributaria</strong> (national tax authority) through the<strong> Spanish Tax Form 210 </strong>known as "Modelo 210".&nbsp;</p> <p>What does the Spanish Form 210 tax? Among other types of income, the "non-resident tax" is a tax levied on the ownership, rental and transfer of property.</p> <p><strong>I. Own-use real estate</strong></p> <p>If you are a non-resident property owner who does not rent out your property, you must declare an <strong>imputed or deemed income</strong>.</p> <p>Imputed income is an income that the tax office "invents" for keeping a property empty or for personal use. It is a legal presumption that any property that is not your main residence allows you to obtain an income, a rent for it. If you do not do this, the tax authorities do not have to lose their share of this potential income that the property could be generating. That is why you must impute an income for owning urban property even if it is empty.</p> <p>The income to declare will be <strong>2% of the property cadastral value</strong> if this value has not been reviewed in your municipality within the last ten years. Otherwise, a 1.1% reduced rate applies. The same rule applies to Spanish residents.</p> <p>The tax rate is 24%. However, for residents of the European Union, Norway and Iceland 19% apply.</p> <p>Imputed income must be declared via form 210 within the following calendar year after the due date (31st December).</p> <p><u>Example of imputed income&nbsp;</u></p> <p>Klaus, a tax resident of Germany, owns a flat in Alcudia, Mallorca, where he spends two months of the year. For the rest of the year, the flat remains empty. The cadastral value in 2021 is 65000 euros.&nbsp;</p> <p>- Taxable base 2% x 65000 = 1300&euro; (Imputed Income)</p> <p>- Tax rate is 19%.</p> <p>- Tax liability: 1300&euro; x 19% = 247&euro;.</p> <p>The term to file form 210 for the 2021 tax year is from 1st January to 31st December 2022.&nbsp;</p> <p><strong>II. Rental property</strong></p> <p>All double tax treaties signed by Spain consider that income from real estate can be taxed in the State where the property is located. In the event of double taxation, it will be the other State that will have to eliminate it. Therefore, if non-residents obtain income from renting out their Spanish property, they will have to deal with the non-resident tax.</p> <p>The term to file and pay the non-resident tax is the first 20 days of April, July, October and January in relation to the income accrued in the previous calendar quarter.</p> <p><strong>Important note:</strong> Starting from the 2024 tax year, the declaration of rental income will shift to an annual basis, with the deadline for submission set between January 1st and January 20th of the following year.&nbsp;</p> <p>Form 210 must be filed for each type of income and each payer. However, in the case of income from rented or sublet property not subject to withholding tax (e.g. rental of a house), it may be grouped quarterly in a single form 210 for each property, even when there are several payers (tenants).</p> <p>Taxation on rental income varies depending on the country of residence.&nbsp;</p> <p><em>Residents of the European Union, Norway, Iceland and Liechtenstein.</em></p> <p>The main difference is that, in order to calculate the tax liability, expenses can be offset from rental income.&nbsp;</p> <p>The Non-resident tax law considers the expenses foreseen in the Income Tax Law (IRPF) are deductible provided that they are directly related to the income obtained in Spain.</p> <p>Residents of the European Union, Norway, Iceland and Liechtenstein are taxed at a flat rate of 19%.</p> <p><u>Example: Rental Income from a property of an EU resident.</u></p> <p>Louise, a resident of Belgium, rented his flat in Manilva (Malaga) for April and May 2022 for a total of 3000&euro;. During that period, the expenses related to the rent have been 1000&euro;. For the rest of the year, the property remains empty.</p> <p>- Taxable amount: 3.000 &ndash; 1000&euro; = 2000&euro;.</p> <p>- Tax rate: 19%.</p> <p>- Tax payable: 19% x 2000 = 380&euro;.</p> <p>The deadline to file Form 210 and pay 380&euro; is from 1st July to 20th July 2022.&nbsp;</p> <p>In addition, in 2023, he will have to file Form 210 declaring an imputed income for the days during which the property was empty or not rented in 2022.</p> <p><em>Residents of other countries</em></p> <p>These taxpayers cannot deduct any expenses from rental income and the tax rate is 24%.</p> <p>Therefore, the taxation of non-resident property owners who are not residents in an EU country, Iceland, Norway or Liechtenstein is much higher.</p> <p><u>Example: Rental income from a property of a non-EU resident</u></p> <p>Michael, a UK resident, rented his flat in Mijas for April and May 2022 for 3000&euro;. During this period, the expenses related to the rent were 1000&euro;. For the rest of the year, the property remains empty.</p> <p>- Taxable base: 3000&euro;</p> <p>- Tax rate: 24%.</p> <p>- Tax payable: 24% x 3.000 = 720&euro;.</p> <p>From 1 to 20 July 2022 Michael will have to file form 210 and pay 720&euro;. 340&euro; more than Louise although she has obtained the same income.</p> <p><strong>III. Sale of a property&nbsp;</strong></p> <p>When a non-resident sells a property located in Spain, <strong>the purchaser is obliged to withhold 3%</strong> of the value of the sale and pay it to the tax authorities within 1 month from the date of the sale, using form 211. This withholding tax is considered a payment on account of the tax payable by the non-resident for the capital gain obtained from the transfer.</p> <p>The gain or loss is calculated as the difference between the transfer value and the acquisition value (including expenses and taxes for both transactions). If the property has been rented, the acquisition value must be reduced by the amount of the depreciation corresponding to the rented period.</p> <p>The tax rate is a <strong>flat rate of 19%</strong> and it applies to any non-resident regardless of the country of residence.</p> <p>The purchaser must provide the non-resident seller with a copy of Form 211 so that he can deduct the amount withheld from the resulting tax liability. If the amount withheld exceeds the tax payable, a refund of the excess may be requested.</p> <p>The deadline for filing Form 210 in the case of the sale of property by non-residents is 3 months. This period is counted from the end of the period of 1 month that the buyer has to file Form 211.</p> <p>If the result is negative, the seller is entitled to request a refund of the 3% withholding.</p> <h3 class="h3-blog font-bold color-secondary font-blog">Wealth Tax</h3> <p>Non-resident individuals are also subject to <strong>Wealth Tax </strong>but only for the <strong>assets and rights located in the Spanish territory</strong>.</p> <p>Generally, there is an <strong>exemption threshold of 700000 euros</strong>, which is also applicable to non-residents.</p> <p>The tax is due on 31st December and must be declared through <strong>Form 714</strong>.&nbsp;</p> <p>The filing term is the same that applies to residents in the income tax campaign (between April and June of each year).&nbsp;</p> <p>They must only file a tax return when the tax liability is payable or if the value of the assets and rights located in Spain is greater than 2 million euros, even if the tax liability is null.</p> <p>&nbsp;</p>

<p class="MsoNormal" style="text-align: justify;"><span lang="EN-US">Non-resident property owners in Spain must deal every year with the non-resident tax return known as Modelo 210. Here you will find a summary of the main aspects of <strong>Spain's non-resident tax return for the 2021 tax year</strong> that must be filed and paid in 2022.</span></p> <p class="MsoNormal" style="text-align: justify;"><span style="color: #1363b2; font-family: 'Montserrat Bold', serif; font-size: 1.125rem; text-indent: 35.4pt;">Who is required to file a non-resident tax return?</span></p> <p class="MsoNormal" style="text-align: justify;"><span lang="EN-US">Every non-resident property owner must file at least one <strong>annual tax return</strong> (<a class="color-primary link-secondary" href="https://www.iberiantax.com/fr" target="_blank" rel="noopener">Modelo 210</a>) on which their need to report an imputed or deemed income on the property. This applies to any property regardless it is empty or used by the owner.</span></p> <p class="MsoNormal" style="text-align: justify;"><span lang="EN-US">If the property is rented out, non-resident property owners must also file a quarterly tax return (via Modelo 210) to report the rental income obtained during the prior quarter.</span></p> <p class="MsoNormal" style="text-align: justify;"><span lang="EN-US">In the event that the property is partially rented during the tax year, non-resident taxpayers are required to file both the annual and quarterly tax returns.</span></p> <p class="MsoNormal" style="text-align: justify;"><span style="color: #1363b2; font-family: 'Montserrat Bold', serif; font-size: 1.125rem; text-indent: 35.4pt;">Self-Assessment</span></p> <p class="MsoNormal" style="text-align: justify;"><span lang="EN-US">The non-resident tax return (Modelo 210) is a Self-Assessment tax return. Consequently, non-resident taxpayers are responsible for completing the non-resident tax return and paying any tax due on their own. The tax office does not send any reminders.</span></p> <p class="MsoNormal" style="text-align: justify;"><span style="color: #1363b2; font-family: 'Montserrat Bold', serif; font-size: 1.125rem; text-indent: 35.4pt;">What is the non-resident tax return deadline?</span></p> <p class="MsoNormal" style="text-align: justify;"><span lang="EN-US">When it comes to not rented properties, the deadline for your tax return is December 31st of the year following the tax year. The deadline for submitting the non-resident tax return (Modelo 210) for the 2021 tax year is <strong><u>31st December 2022</u></strong>. However, if you wish to set up a Direct Debit order for the payment of the tax, the deadline is 23^rd December 2022.</span></p> <p class="MsoNormal" style="text-align: justify;"><span lang="EN-US">Regarding rented properties, non-resident taxpayers must declare rental income within the first 20 days of April, July, October and January concerning the prior quarter. For example, rental income obtained within the second quarter of 2022 (April - June 2022), must be reported within the first 20 days of July.</span></p> <p class="MsoNormal" style="text-align: justify;"><span style="color: #1363b2; font-family: 'Montserrat Bold', serif; font-size: 1.125rem; text-indent: 35.4pt;">When will taxes be taken out of my account?</span></p> <p class="MsoNormal" style="text-align: justify;"><span lang="EN-US">If you are filing the annual tax return and choose Direct Debit as the payment method, the tax due will be collected by the Agencia Tributaria from your Spanish bank account on 31^st December. </span></p> <p class="MsoNormal" style="text-align: justify;"><span lang="EN-US">If you wish to pay earlier, you can make a transfer to IberianTax, and we will handle the payment of the tax simultaneously with the submission of the tax return to the Agencia Tributaria.</span></p> <p class="MsoNormal" style="text-align: justify;"><span style="color: #1363b2; font-family: 'Montserrat Bold', serif; font-size: 1.125rem; text-indent: 35.4pt;">How is the non-resident tax calculated?</span></p> <p class="MsoNormal" style="text-align: justify;"><span lang="EN-US">The non-resident tax on not rented properties is calculated as follows:</span></p> <p class="MsoListParagraphCxSpFirst" style="text-align: justify; text-indent: -18.0pt; mso-list: l0 level1 lfo1;"><!-- [if !supportLists]--><span lang="EN-US">1.<span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">&nbsp; &nbsp;</span></span><span lang="EN-US">First of all, it should be calculated an <strong>imputed income</strong> on not rented properties which is the result of multiplying 2% or 1.1% by the property cadastral value (Valor Catastral). As a general rule, the 2% percentage applies unless there has been a General Cadastral Revision in the municipality in the previous 10 tax years.</span></p> <p class="MsoListParagraphCxSpMiddle" style="text-align: justify;">This income is generated by legal imperative regardless of whether the property is empty or for personal use.</p> <p class="MsoListParagraphCxSpMiddle" style="text-align: justify;"><span lang="EN-US">For the 2021 tax year, </span><a class="color-secondary link-primary" style="background-color: #ffffff;" href="https://sede.agenciatributaria.gob.es/Sede/ayuda/manuales-videos-folletos/manuales-ayuda-presentacion/irpf-2021/7-cumplimentacion-irpf/7_3-rendimientos-derivados-inmuebles/7_3_4-municipios-valor-catastral-revisado-2021.html"><span lang="EN-US">here</span></a><span lang="EN-US"> you will find the list of the municipalities that can apply for the 1.1% imputed percentage.</span></p> <p class="MsoListParagraphCxSpMiddle" style="text-align: justify;">The imputed income is proportionally divided among the owners.</p> <p class="MsoListParagraph" style="text-align: justify; text-indent: -18.0pt; mso-list: l0 level1 lfo1;"><!-- [if !supportLists]--><span lang="EN-US">2.<span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">&nbsp; </span></span><span lang="EN-US">The <strong>tax liability</strong>&nbsp;results from multiplying the imputed income by the applicable tax rate. The tax rate is <strong>24%</strong> (19% for EU, Norway, Iceland and Liechtenstein tax residents).&nbsp;</span><strong><span lang="EN-US">Important note:</span></strong><span lang="EN-US"> Due to Brexit, in the 2021 tax year the tax rate for UK residents increased from 19% to 24%.</span></p> <p class="MsoNormal" style="text-align: justify;"><span lang="EN-US">The calculation formula is as follows:</span></p> <p class="MsoNormal" style="text-align: justify;"><em><span lang="EN-US">Cadastral Value x Imputed Percentage (2% or 1.1%) x Tax Rate (24% or 19%).</span></em></p> <p class="MsoNormal" style="text-align: justify;"><span style="color: #1363b2; font-family: 'Montserrat Bold', serif; font-size: 1.125rem; text-indent: 35.4pt;">How do I submit my tax return online?</span></p> <p class="MsoNormal" style="text-align: justify;"><span style="text-indent: 35.4pt;">You can use our simple online service which does not require previous tax knowledge and allows you to file and pay your tax online from your home country. You can also send your tax return to the Agencia Tributaria online if you have a Spanish digital certificate and you are brave enough to deal with the Spanish tax system.</span></p> <p class="MsoNormal" style="text-align: justify;"><span style="color: #1363b2; font-family: 'Montserrat Bold', serif; font-size: 1.125rem; text-indent: 35.4pt;">What happens if I miss the non-resident tax return deadline?</span></p> <p class="MsoNormal" style="text-align: justify;"><span lang="EN-US">If you fail to submit your tax return on time, you can be fined at least 50% of the tax you owe on top of your original tax bill. Additionally, you may have to pay interest for late payment.</span></p> <p class="MsoNormal" style="text-align: justify;"><span lang="EN-US">You can avoid the penalty if you file voluntarily before the Spanish tax authorities reach you. If you pay your tax bill between 1 to 12 months late, you only must pay a surcharge from 1% to 12% of the tax you owe. </span></p> <p class="MsoNormal" style="text-align: justify;"><span lang="EN-US">If you pay more than 12 months late, you&rsquo;ll be subject to 15% of your tax bill plus interest for late payment. </span></p> <p class="MsoNormal" style="text-align: justify;"><span lang="EN-US">For example, if you file your Spanish non-resident tax return for the 2020 year in May 2022 (as a late tax return), you will have to pay a surcharge of 5%. That is notified directly by the tax office which usually issued two letters. The first one is known as &ldquo;Propuesta de Liquidaci&oacute;n&rdquo; where the Agencia Tributaria informs you about the surcharge and, one or two months later, another letter known as &ldquo;Liquidaci&oacute;n&rdquo; that includes a payment letter that would allow you to make the payment of the surcharge or penalty.</span></p>

<p style="text-align: justify;">The <strong>cadastral value</strong> (Valor Catastral in Spanish) is an administrative value assigned to all Spanish properties. It is used to determine the amount of local tax rates that each property owner must pay and to calculate the<a class="color-primary link-secondary" style="background-color: #ffffff;" href="https://www.iberiantax.com" target="_blank" rel="noopener"> tax liability for non-residents</a> when it comes to non-rented properties.</p> <div style="text-align: justify;">The Spanish government&rsquo;s definition of cadastral value which applies to all properties is:</div> <div style="text-align: justify;">&nbsp;</div> <p style="text-align: justify;">The cadastral value is an objectively determined administrative value for each property resulting from the application of the valuation criteria established in the valuation of the municipality concerned.</p> <h2 class="h2-blog font-bold color-primary font-blog" style="text-align: justify; color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';"><span style="font-weight: 600; color: #1363b2; font-family: 'Montserrat Bold', serif; font-size: 1.125rem;">How is the Cadastral value calculated?&nbsp;</span></h2> <p style="text-align: justify;">To determine the cadastral value of a property, the following components are essentially taken into account:</p> <ul> <li style="text-align: justify;">The location of the property, the urban planning conditions affecting the land and its suitability for production.</li> <li style="text-align: justify;">The execution costs of the construction, the quality and age of the building and the historical-artistic character or other conditions of the buildings.</li> <li style="text-align: justify;">The conditions and values of the market, the value of the land, the value of the construction and the production costs and profits of the construction activity.</li> </ul> <p style="text-align: justify;">In general, the cadastral values may not exceed the market value of the real estate. To this end, a ministerial decree established a market reference coefficient of 0.5 at the time of approval and entry into force of the cadastral valuation. In the case of real estate with an administratively limited sale price, the cadastral value may not exceed this price under any circumstances.</p> <p style="text-align: justify;">Cadastral values are calculated by the Catastro (https://www.catastro.meh.es/), an administrative register under the Ministry of Finance. The cadastral values may be updated from time to time through the application of coefficients authorised by the relevant general budget laws.</p> <p style="text-align: justify;">Once the cadastral values are established, they are passed on to the local authorities, which use them to calculate local tax rates.</p> <h2 class="h2-blog font-bold color-primary font-blog" style="text-align: justify; color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">How can I find out the cadastral value of my Spanish property?</h2> <div style="text-align: justify;">&nbsp;</div> <div style="text-align: justify;">You can find the cadastral value on the local tax receipt, usually known as IBI or SUMA depending on the region, or by contacting the Ayuntamiento (local council) where the property is located.</div> <div style="text-align: justify;"> <div>&nbsp;</div> <div>The cadastral value may also be attached to the deed of sale/purchase, but in this case, it may be outdated.</div> <div>&nbsp;</div> <div>Finally, cadastral values can also be accessed online via the Catastro website, provided the owner has a valid Spanish digital certificate or the NIE number and the "n&uacute;mero de soporte".</div> <div>&nbsp;</div> <div>According to the non-resident tax law, the Agencia Tributaria should provide a draft non-resident tax return with all relevant data. Unfortunately, the Agencia Tributaria has never complied with these legal requirements.</div> <div>&nbsp;</div> <div> <h2 class="h2-blog font-bold color-primary font-blog" style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">How is the non-resident tax (Modelo 210) calculated?</h2> </div> <div>&nbsp;</div> </div> <div style="text-align: justify;"> <div>For the non-resident tax return, the cadastral values are used to calculate the imputed income for non-rented properties by multiplying this value by the corresponding imputed percentage (1.1% or 2% depending on the municipality and tax year).</div> <div>&nbsp;</div> <div>For example, if a UK tax resident has a property in Torrevieja and the Cadastral value is &euro;100,000.00 %, the tax calculation for 2021 would be as follows:</div> <div>For example, if a UK resident taxpayer owns a property in Torrevieja and the cadastral value is &euro;100,000.00, the tax calculation for 2022 would be as follows:</div> <div>&nbsp;</div> <div>100,000.00 (Cadastral value)</div> <div>x</div> <div>2% (imputed percentage Torrevieja 2022)&nbsp;</div> <div>--------------------------------------</div> <div>&euro;2,000 (Tax Base)</div> <div>x</div> <div>24% (Tax Rate for UK tax residents in 2022).</div> <div>---------------------------------------</div> <p class="MsoNormal"><span lang="EN-US">&euro;480 (Tax Liability)</span></p> <div>&nbsp;</div> </div> <p style="text-align: justify;"><a class="color-primary link-secondary" style="background-color: #ffffff;" href="https://www.iberiantax.com/" target="_blank" rel="noopener">www.iberiantax.com</a>&nbsp;is always up-to-date and in line with Spanish tax legislation. Therefore, by using our online tax filing service you can be sure that your non-resident tax return is done right and that the calculation is 100% accurate. If you want to calculate your non-resident tax online, do not hesitate and use our free and up-to-date calculation tool.</p> <p style="text-align: justify;">If you have any doubts, you can also contact our Support team (support@iberiantax.com) who will be happy to answer any questions to help you get your Modelo 210 done right.</p>

<h2 class="h2-blog font-bold color-primary font-blog" style="text-align: justify;">How the non-resident tax in Spain is calculated</h2> <p style="text-align: justify;">When it comes to the <strong>non-resident tax return (Modelo 210)</strong> for not rented properties, non-resident property owners must declare an imputed income&nbsp;for the days during which the property was at their disposal in the last calendar year. In order to calculate this deemed income, the relevant data are the Cadastral value ("Valor Catastral") and the imputed percentage attributed to the municipality where the property is located.</p> <h2 class="h2-blog font-bold color-primary font-blog" style="text-align: justify;">Cadastral value</h2> <p style="text-align: justify;">The<strong> <a class="color-primary link-secondary" href="https://www.iberiantax.com/blog/what-is-the-cadastral-value-and-how-to-find-it">cadastral value</a> </strong>is a valuation of the property carried out by the General Directorate of Cadastre ("<strong><a class="color-primary link-secondary" href="https://www.catastro.meh.es/" target="_blank" rel="noopener">Direcci&oacute;n General del Catastro</a></strong>"), which is part of the Spanish Ministry of Finance. This valuation is only used for tax purposes and does not correspond to the market value.</p> <p style="text-align: justify;">The cadastral value can be found on the local or council tax, commonly referred to as IBI or SUMA, which is issued by the local council where the Spanish property is located. In Spanish, it is known as "Valor catastral total" or &ldquo;Valor Catastral&rdquo;.</p> <h2 class="h2-blog font-bold color-primary font-blog" style="text-align: justify;">Imputed percentage (Modelo 210)</h2> <p style="text-align: justify;">The imputed income is calculated by applying the following imputed percentages:</p> <ul> <li style="text-align: justify;">As a general rule,&nbsp;the applicable percentage is<strong> 2%</strong>&nbsp;on the cadastral value.&nbsp;</li> <li style="text-align: justify;">However, a <strong>1.1%</strong> can be applied for those properties whose cadastral value has been under a collective valuation procedure that has come into force in the current tax period or within the ten previous tax periods.&nbsp;</li> </ul> <p style="text-align: justify;">Most non-residents are confused about what percentage is applicable and automatically apply the reduced imputed percentage (1.1%). The reason is usually that before January 1st 2015 the legislation stated that any municipality where the cadastral value was reviewed from 1994 could apply the 1.1% reduced percentage. However, <strong>the legislation changed in 2015</strong> and <strong>only the municipalities where Cadastral values have been reviewed in the last 10 years could apply the 1.1%</strong> imputed percentage.</p> <p style="text-align: justify;"><strong>How do I know if the reduced rate is applicable in my municipality?</strong> Fortunately, this information is available on the Agencia Tributaria website for each tax year. It could be easily found in the section for Modelo 100, as the Spanish tax residents have also to declare an imputed income on second homes, and it is 100% applicable to the non-resident tax return.&nbsp;</p> <p style="text-align: justify;">Click <strong><a class="color-primary link-secondary" href="https://sede.agenciatributaria.gob.es/Sede/ayuda/manuales-videos-folletos/manuales-ayuda-presentacion/irpf-2021/7-cumplimentacion-irpf/7_3-rendimientos-derivados-inmuebles/7_3_4-municipios-valor-catastral-revisado-2021.html" target="_blank" rel="noopener">here</a></strong> to see the list of the municipalities (per region) that can use the 1.1% so as to calculate the imputed income in 2021. The rest of the municipalities (not included in the list) must apply a 2% imputed percentage.&nbsp;</p> <p style="text-align: justify;">The information is also available from the Catastro website:&nbsp;<a class="color-primary link-secondary" href="https://www.catastro.meh.es/esp/ponencia_valores.asp" target="_blank" rel="noopener">https://www.catastro.meh.es/esp/ponencia_valores.asp</a></p> <p style="text-align: justify;"><a class="color-primary link-secondary" style="background-color: #ffffff;" href="https://www.iberiantax.com" target="_blank" rel="noopener">www.iberiantax.com</a> is always up-to-date and in accordance with the Spanish tax legislation. Therefore, by using our tax filing service you can feel confident that your non-resident taxes are done right and the imputed percentage used for the calculation of the tax is correct.&nbsp;</p> <p style="text-align: justify;">In case of doubt, you can also reach our Support team (support@iberiantax.com) who will be happy to clarify any questions to help you get your Modelo 210 done online.</p>

<h2 class="h2-blog font-bold color-primary" style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">What is Modelo 210 in Spain?</h2> <p class="text-post">Modelo 210 is the official tax form for filing the <a class="color-primary link-secondary" title="IberianTax" href="http://www.iberiantax.com" target="_blank" rel="noopener">Spanish Non-Resident Income Tax</a>, commonly referred to as &ldquo;IRNR&rdquo; or &ldquo;non-resident property tax&rdquo;.</p> <h2 class="h2-blog font-bold color-primary" style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Who needs to file Modelo 210?</h2> <p class="text-post">Among other taxpayers, any non-resident property owner in Spain must submit Form 210 to the Agencia Tributaria whether the property is rented out or not.</p> <h2 class="h2-blog font-bold color-primary" style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Am I a tax resident in Spain?</h2> <p class="text-post">An individual is classified as a tax resident in Spain when any one of the following circumstances applies. Otherwise, an individual is considered a non-resident in Spain for tax purposes.</p> <p class="text-post">To stay longer than 183 days in Spanish territory over the calendar year. In order to determine the permanence in Spanish territory, occasional absences are included, except if the taxpayer accredits their residency in another country. In the case of countries or territories labelled as tax havens, the Spanish tax authorities can demand proof of stay in that tax haven over a period of 183 days within the calendar year.</p> <p class="text-post">To situate the main base or centre of their activities or economic activities, directly or indirectly, in Spain.</p> <p class="text-post">To have dependent not legally separated spouse and/or underage children who are resident in Spain. The latter accept evidence to the contrary.</p> <p class="text-post">Additionally, individuals of Spanish nationality who accredit their new tax residence in a country or territory labelled as a tax haven will not lose their status as tax residents.</p> <h2 class="h2-blog font-bold color-primary" style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Where can I find Modelo 210 tax form?</h2> <p class="text-post"><span style="font-family: Poppins, Helvetica, sans-serif;">You can find Modelo 210 tax form on the official website of the Spanish tax authorities (AEAT): https://www.agenciatributaria.gob.es</span></p> <p class="text-post"><span style="font-family: Poppins, Helvetica, sans-serif;">You can decide whether you would like to submit your Form 210 by paper or online. However, filling in the form is only available online. Online is by far, the easiest way to file your Spanish non-resident tax return, especially if you choose to use IberianTax.</span></p> <h2 class="h2-blog font-bold color-primary" style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">How can I file and pay Form 210 in Spain?</h2> <h3 class="text-post" style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Online</h3> <p class="text-post"><span style="font-family: Poppins, Helvetica, sans-serif;">Filing and paying your non-resident taxes online is much easier, and beats printing the form and going physically to your Spanish bank office to pay your tax. All you need to do is create an account with IberianTax, add your personal and property details and file with confidence. Our easy-to-use software will guide you through the filing process, whilst instantly updating all tax calculations.&nbsp;</span></p> <p class="text-post"><span style="font-family: Poppins, Helvetica, sans-serif;">Online tax filing is not available through the AEAT&rsquo;s website unless you have an electronic certificate in force issued by the Spanish authorities. In Spanish is known as Certificado Electr&oacute;nico de Persona F&iacute;sica.&nbsp;</span></p> <h3 class="text-post" style="color: #51c8b8; font-size: 16px; font-family: 'Montserrat Bold';">Paper&nbsp;</h3> <p class="text-post"><span style="font-family: Poppins, Helvetica, sans-serif;">If you prefer to file your Form 210 by paper, you can complete the tax form via AEAT&rsquo;s website or using our tax tool, but remember you have to print the form out and go to Spain in order to pay the tax through your Spanish bank office before the tax deadline. Otherwise, you may incur penalties and interest.</span></p> <p class="text-post"><span style="font-family: Poppins, Helvetica, sans-serif;">If you&rsquo;re unsure about how to fill in your Modelo 210 tax form, you can file your Form 210 in minutes with confidence using our simple tax tool. You won&rsquo;t believe how easy we make it! Click <strong><a class="color-secondary link-primary" href="https://www.iberiantax.com/register" target="_blank" rel="noopener">here</a></strong> and submit your non-resident tax return today!</span></p> <h2 class="h2-blog font-bold color-primary" style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">When must I submit Form 210? What is the deadline?</h2> <p class="text-post"><span style="font-family: Poppins, Helvetica, sans-serif;">The deadline depends on the type of income you must declare.</span></p> <ul style="font-family: Poppins, Helvetica, sans-serif;"> <li><span style="font-family: Poppins, Helvetica, sans-serif;">The tax deadline for declaring imputed income from non-rented properties is 31st December each year with respect to the previous calendar year. The tax deadline for online submission is 23rd December each year.</span></li> <li><span style="font-family: Poppins, Helvetica, sans-serif;">Rental income must be declared within the first twenty calendar days of the months of April, July, October, and January, in relation to the income accrued within the immediately preceding quarter. The tax deadline for Online submission is the 15th of April, July, October, and January. <strong>Important note:</strong> Starting from the 2024 tax year, the declaration of rental income will shift to an annual basis, with the deadline for submission set between January 1st and January 20th of the following year.&nbsp;</span></li> <li>Capital gains and losses from a property sale must be declared within four months after the sale date.</li> </ul> <p>If you&rsquo;re unsure how to fill in your Modelo 210 tax form, you can file your Form 210 in minutes with confidence using our<strong> </strong>simple tax tool. <strong><a class="color-primary link-secondary" href="iberiantax.com">Click here</a></strong> and submit your non-resident tax return today!</p> <p>&nbsp;</p>

<h2 class="h2-blog font-bold color-primary" style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold';">Non-resident taxes in Spain</h2> <p class="text-post font-blog" style="font-size: 13px;"><span style="font-size: 12pt;">If you own a property in Spain but you do not qualify as a Spanish tax resident, here are 10 things you should know about non-resident taxes in Spain:</span></p> <ol style="color: #3f4254; font-size: 13px; font-family: Poppins, Helvetica, sans-serif;"> <li class="mb-5" style="font-family: Montserrat, serif; color: #494949; margin-bottom: 1.5rem !important;"><span style="font-size: 12pt;"><span style="font-weight: 600;">Non-resident property owners</span> must file at least&nbsp;one <a class="color-primary link-secondary" href="http://www.iberiantax.com/" target="_blank" rel="noopener">Form 210</a> (&ldquo;Modelo 210&rdquo;) per year whether they let their property out or not.</span></li> <li class="mb-5" style="font-family: Montserrat, serif; color: #494949; margin-bottom: 1.5rem !important;"><span style="font-size: 12pt;">Each owner is considered a separated taxpayer and, thus, must submit a separate Form 210 per property.</span></li> <li class="mb-5" style="font-family: Montserrat, serif; color: #494949; margin-bottom: 1.5rem !important;"><span style="font-size: 12pt;">The days during which the property is not rented out generate imputed or deemed income.<span style="font-weight: 600;">&nbsp;Imputed income is the result of applying&nbsp;<a class="color-primary link-secondary" href="https://www.iberiantax.com/blog/2-or-11-how-to-calculate-the-imputed-income-tax-modelo-210-in-spain" target="_blank" rel="noopener">1.1% or 2% to the cadastral value</a></span>&nbsp;of the property that appears on the Property Tax bill (&ldquo;IBI&rdquo;). The applicable percentage depends on when the last revision of the rateable value (&ldquo;cadastral value&rdquo;) in the municipality took place.</span></li> <li class="mb-5" style="font-family: Montserrat, serif; color: #494949; margin-bottom: 1.5rem !important;"><span style="font-size: 12pt;">Parking spaces and storage rooms must be declared in a separate Form 210 if they have a unique cadastral reference.</span></li> <li class="mb-5" style="font-family: Montserrat, serif; color: #494949; margin-bottom: 1.5rem !important;"><span style="font-size: 12pt;">The&nbsp;<span style="font-weight: 600;">non-resident tax rate</span>&nbsp;depends on the country of tax residency. Tax residents in EU countries, Norway and Iceland are subject to the non-resident income tax at a 19% flat rate. All other tax residents are subject to a 24% flat rate.</span></li> <li class="mb-5" style="font-family: Montserrat, serif; color: #494949; margin-bottom: 1.5rem !important;"><span style="font-size: 12pt;"><span style="font-weight: 600;">Income from property rental</span> is declared quarterly while imputed or deemed income is declared annually. If the property is rented part of the year, imputed income should be prorated. <strong>Important note:</strong> starting from the 2024 tax year, the declaration of rental income will shift to an annual basis. This change moves away from the former requirement of quarterly declarations, simplifying the reporting process for property owners.</span></li> <li class="mb-5" style="font-family: Montserrat, serif; color: #494949; margin-bottom: 1.5rem !important;"><span style="font-size: 12pt;">Expenses connected with rental income are only deductible if the owner is a tax resident of an EU country, Norway, or Iceland.</span></li> <li class="mb-5" style="font-family: Montserrat, serif; color: #494949; margin-bottom: 1.5rem !important;"><span style="font-size: 12pt;">The<span style="font-weight: 600;">&nbsp;cadastral reference</span>&nbsp;(&ldquo;referencia catastral&rdquo;) is a unique 20-digit number provided by the Cadaster (&ldquo;Catastro&rdquo;) for each property in Spain. The Cadaster is a real estate registry that contains descriptive and graphic information on Spanish properties.</span><br /><span style="font-size: 12pt;">You may need this reference almost for any transaction in Spain related to the property. You can find this number either on your IBI tax bill or in the purchase deed.</span></li> <li class="mb-5" style="font-family: Montserrat, serif; color: #494949; margin-bottom: 1.5rem !important;"><span style="font-size: 12pt;">Most taxpayers may deduct non-resident taxes paid in Spain against their home country tax return. The majority of double tax treaties signed by Spain allow non-resident taxpayers to deduct totally or partially the taxes paid in Spain.</span></li> <li style="font-family: Montserrat, serif; color: #494949;"><span style="font-size: 12pt;">You could file late tax returns if you failed to file your Spanish taxes. However, the tax office will impose surcharges and interest for late payment.</span></li> </ol>

<p class="text-post font-blog" style="text-align: justify;">If you own a property in Spain, how to file your non-resident taxes probably isn&rsquo;t the first question on your mind when thinking about your finances. It is, however, a question that you must deal with if you do not want the Spanish tax office on your back.&nbsp;</p> <div style="text-align: justify;"> <div>Even if you live and pay your taxes in another country, if you&rsquo;re a non-resident property owner, you must file at least one <a class="color-primary link-secondary" href="http://www.iberiantax.com" target="_blank" rel="noopener">Spanish tax return</a> (<strong>Form 210</strong>) each year per property and owner whether the property is rented out or not.&nbsp;</div> <div>&nbsp;</div> <div>Regardless of where in the world you live, <strong>IberianTax can make filing your own Spanish tax returns easy peasy</strong> without the need of spending hundreds every year on fees for staying compliant with your Spanish tax obligations. Besides, IberianTax allows you to <strong>pay your Spanish non-resident tax online</strong>.</div> <div>&nbsp;</div> <div>Below, we'll explain step-by-step how to file taxes as a non-resident in Spain with our online process, designed for the convenience of non-resident property owners.</div> <div>&nbsp;</div> </div> <h2 class="h2-blog font-bold color-primary font-blog" style="color: #1363b2; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;">How to file Spanish non-resident taxes from home</h2> <p style="text-align: justify;">If you got here, you may need to complete our online tax service designed specifically for non-resident property owners in mind. Here&rsquo;s how to do it:</p> <h2 style="color: #51c8b8; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;">1. Register your account.&nbsp;</h2> <p style="text-align: justify;">Our simple process makes filing your Spanish non-resident tax as easy as ABC. After you decide to join IberianTax, you&rsquo;ll be able to register an account and get started on your tax questionnaire. Here we ask you basic questions about you and the property. Your answers will be reflected on your completed return.&nbsp;</p> <h2 style="color: #51c8b8; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;">2. Start a new Form 210</h2> <p style="text-align: justify;">Once you click on "Start Form 210", you will be asked to choose what type of income you would like to declare, the tax year/quarter and the number of property owners who wish to file their Form 210. Currently, we support the following two declarations:</p> <p style="text-align: justify;"><strong>Imputed Income (Annual Tax Return)</strong></p> <p style="text-align: justify;">"Imputed income" should be filled in by property owners who qualify as non-residents in Spain for the days when the property is available to them and not rented out. Therefore, even though you may not generate income from your Spanish property, you must declare an "imputed" income for the days when it was not rented.</p> <p style="text-align: justify;">This type of income is calculated once a year, on December 31. Tax returns for imputed income must be filed during the following year and no later than December 31 of the following year. For example, imputed income due on December 31, 2021, should be declared in 2022.</p> <p style="text-align: justify;">Here are a few<strong> examples </strong>of the most common situations where non-residents must declare "imputed income":</p> <table class="table table-bordered"> <tbody> <tr> <td> <ul style="font-family: Poppins, Helvetica, sans-serif;"> <li>John has a property in Lanzarote that he only used for two months. The rest of the time he did not rent the house. John must declare the imputed income for the entire year 2020 because he had the property at his disposal for the entire year, regardless of whether the property was used or not.</li> <li>In 2020, Petra and Marcus spent 30 days in their summer home in Mallorca and for the rest of the year the property was rented. In 2021, they must declare imputed income for these 30 days, i.e., for the time when the house was not rented out and thus available to them. In addition, in 2020 they must declare rental income quarterly.</li> <li>Mats bought a property in Marbella on November 15, 2020. He did not rent or use the property until the end of the year. Mats must declare imputed income in 2021 for the period between the date of purchase and December 31.</li> <li>Paul sold his property on March 5, 2020. Does he have to declare imputed income? Yes. In 2021, he must declare imputed income for the days the property was available to him in 2020, i.e., the days between January 1, 2020, and March 5, 2020, if the property was not rented.</li> </ul> </td> </tr> </tbody> </table> <p style="text-align: justify;"><strong style="font-family: Poppins, Helvetica, sans-serif;">Rental Income (quarterly tax return)</strong></p> <p style="text-align: justify;">&ldquo;Rental income&rdquo; should be completed by non-resident property owners who rented out their properties in Spain.</p> <p style="text-align: justify;">Rental income is accrued every quarter and must be filed within the first 20 days of April, July, October, and January. In each filing period, the owner should declare the income generated in the immediate previous quarter. For example, within the first 20 days of April 2021, you should declare rental income generated between 1st January and 31st March 2021; in July 2021 you have to declare rental income generated between 1st April and 30th June 2021 and so on.</p> <p style="text-align: justify;"><strong>Important note</strong>: Starting from the 2024 tax year, the declaration of rental income will shift to an annual basis, with the deadline for submission set between January 1st and January 20th of the following year.&nbsp;</p> <table class="table table-bordered"> <tbody> <tr> <td> <p style="font-family: Poppins, Helvetica, sans-serif;"><strong>Example:&nbsp;</strong></p> <p style="font-family: Poppins, Helvetica, sans-serif;">In 2021, Stuart rented out his property from July to September. He should declare rental income corresponding to July, August and September within the first 20 days of October 2021. Finally, in 2022, he must also declare imputed income for the portion of the year during which the property was not rented (from January to June and from October to December).</p> </td> </tr> </tbody> </table> <h2 style="color: #51c8b8; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;">3. Fill in our simple questionnaire with the help of our Support team (if needed)</h2> <p style="text-align: justify;">In the following sections, you will be required to input basic personal information of each owner as well as some property details. You will have to fill in the requested information in their respective fields. Mandatory fields are marked with an asterisk * and you will not be able to proceed to the next step without completing them.&nbsp;</p> <p style="text-align: justify;">You will have to fill in the personal details of as many owners as you selected. According to the Spanish Tax Law, each owner is considered a separate taxpayer and therefore it must be filed one Form 210 per owner. Therefore, if you choose 2 or more owners, we will prepare one Form 210 per owner. Fortunately, IberianTax allows you to create several 210 forms by filling in a single wizard.</p> <p style="text-align: justify;">The majority of the data required is easy to find. However, other fields like the cadastral reference or value will require getting your local tax receipt close. In any case, you count on our Support Team who will be behind your back in case you need help.</p> <p>The cadastral reference is the official and obligatory identification number for tax purposes of each Spanish property. It consists of an alphanumeric code that is assigned by the Cadastre so that every property must have a unique cadastral reference that allows it to be located unequivocally in the cadastral cartography.&nbsp;<span style="font-family: Poppins, Helvetica, sans-serif;">The cadastral reference must be 20 characters long. For example 9372023VH5797S0001WX.</span></p> <p style="text-align: justify;">On the other hand, the<a class="color-primary link-secondary" href="https://www.iberiantax.com/blog/what-is-the-cadastral-value-and-how-to-find-it" target="_blank" rel="noopener"> cadastral value</a> (&ldquo;valor catastral&rdquo;) is a valuation of the property carried out by the General Directorate of Cadastre, which is part of the Ministry of Finance. This valuation is only used for tax purposes and does not correspond to the market value.&nbsp;</p> <p style="text-align: justify;">You can find this figure on your council tax bill, usually known as IBI, which is issued by the local council where your Spanish property is located. In Spanish it is known as "Valor catastral total" or &ldquo;Valor Catastral&rdquo; and it is sum of "valor catastral construcci&oacute;n" plus "Valor catratral del suelo".</p> <p style="text-align: justify;">When it comes to rental income, you will also be provided with a detailed checklist of deductible expenses that will help to reduce your non-resident tax to the minimum.&nbsp;</p> <h2 style="color: #51c8b8; font-size: 18px; font-family: 'Montserrat Bold'; text-align: justify;">4. Choose the payment method, review and file your Form 210 with IberianTax.&nbsp;</h2> <p style="text-align: justify;">The information that you have provided along the process will allow our software to calculate your taxes considering the legislation in force and the latest criteria of the Spanish tax office.</p> <p class="text-post font-blog" style="text-align: justify;">Before entering into any obligation, you will be provided with a summary of the tax due as well as a summary of the data provided. You can change any data before filing or come back later to finish your tax return.</p> <p class="text-post font-blog" style="text-align: justify;">At this point, you'll be required to choose what payment method will be used to pay the tax. We offer up to three different payment methods for the same price (including dealing with the payment of the tax on your behalf).</p> <p class="text-post font-blog" style="text-align: justify;">Once you file and pay our fees, we'll file your completed return directly to the AEAT. After filing, your tax return will be stored in your secure client account, where it will be safe and easy to access, whenever you need it.</p> <p class="text-post font-blog" style="text-align: justify;">The whole process will take no longer than 10 minutes and without the need for any specific tax knowledge.</p> <p class="text-post font-blog" style="text-align: justify;">However, if your situation is a bit more complicated or you want the guidance of one of our registered tax advisors, you can always reach us at contact@iberiantax.com.</p>