Non resident tax Spain 2021. All you need to know
May 22, 2022
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 Spain's non-resident tax return for the 2021 tax year that must be filed and paid in 2022.
Who is required to file a non-resident tax return?
Every non-resident property owner must file at least one annual tax return (Modelo 210) 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.
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.
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.
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.
What is the non-resident tax return deadline?
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 31st December 2022. However, if you wish to set up a Direct Debit order for the payment of the tax, the deadline is 23rd December 2022.
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.
When will taxes be taken out of my account?
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 31st December.
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.
How is the non-resident tax calculated?
The non-resident tax on not rented properties is calculated as follows:
1. First of all, it should be calculated an imputed income 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.
This income is generated by legal imperative regardless of whether the property is empty or for personal use.
For the 2021 tax year, here you will find the list of the municipalities that can apply for the 1.1% imputed percentage.
The imputed income is proportionally divided among the owners.
2. The tax liability results from multiplying the imputed income by the applicable tax rate. The tax rate is 24% (19% for EU, Norway, Iceland and Liechtenstein tax residents). Important note: Due to Brexit, in the 2021 tax year the tax rate for UK residents increased from 19% to 24%.
The calculation formula is as follows:
Cadastral Value x Imputed Percentage (2% or 1.1%) x Tax Rate (24% or 19%).
How do I submit my tax return online?
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.
What happens if I miss the non-resident tax return deadline?
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.
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.
If you pay more than 12 months late, you’ll be subject to 15% of your tax bill plus interest for late payment.
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 “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.