IberianTax

Frequently Asked Questions

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About IberianTax

IberianTax is an online service that helps non-resident property owners in Spain file and pay their taxes. We offer a simple, affordable solution to file the Modelo 210 form for non-resident income tax from anywhere in minutes. Based in Mallorca, Spain, IberianTax is a registered limited liability company fully approved by the Spanish tax authorities for the submission of taxes.
Owning property in Spain as a non-resident means you must file an annual tax return with the Agencia Tributaria. This process can be complex and time-consuming, especially if you're not familiar with the Spanish tax system or language. IberianTax simplifies it for you and helps you save money. With IberianTax, you can:
  • File and pay your non-resident tax return (Modelo 210) from anywhere in minutes
  • Save hundreds on lawyer’s or gestoria’s fees every year
  • Receive unlimited email support in your preferred language
  • We make filing your taxes straightforward and stress-free, even if you have no prior tax knowledge
    Yes, IberianTax is a trusted company fully recognised by the Spanish tax authorities. We have received numerous positive customer reviews on Google, maintaining an excellent rating of 5 out of 5 stars based on hundreds of reviews. Our clients appreciate our simple, secure, and reliable platform for filing and paying non-resident taxes.
    Definitely! We take data protection very seriously. Your personal data is stored securely, and we continuously update our cybersecurity systems to protect your information. We only collect the data needed to prepare your tax returns and will never sell your data or use it for any other purpose without your consent. If you decide to delete your account, all associated data will be permanently erased, except for the tax forms required by Spanish law.
    Yes, IberianTax can e-file your tax return with the Agencia Tributaria on your behalf. We are registered with the Spanish tax authority, which authorizes us to submit and pay taxes for our clients. You just need to authorize us by accepting our terms and conditions and paying our fees.
    No, IberianTax does not have access to your bank account. We only request your bank details if you choose to pay your tax by direct debit, as these details must be included in your tax return. The tax due will be charged directly from your account by the tax office.
    The charges depend on the type of income being declared and the number of property owners. Detailed pricing information is available on our website.

    General Questions

    Residents are individuals who spend more than 183 days per year in Spain and are liable to pay tax on their worldwide income and assets. Non-residents spend fewer days in Spain and are only subject to Spanish-sourced income or assets.
    In cases of joint property ownership, each owner is required to file an individual tax return. This means both of you are required to file separate tax returns, reflecting your respective 50% ownership. However, if you're using IberianTax for your filings, you have the convenience of filling out just one form for both owners. We'll take care of splitting it into two separate tax returns on your behalf, streamlining the process for you.
    Modelo 210 is the specific form used to declare non-resident tax in Spain.
    The cadastral value is a government-assigned value used for tax purposes, while the market value is the estimated price the property could be sold for on the open market.
    As a non-resident, you may have to pay income tax on rental income and capital gains tax on property sales. Additionally, you have to pay tax for the days during which the property was not rented, even if the property is for personal use or empty.
    Yes, IberianTax offers different payment options in order to pay and e-file your non-resident income tax return. No need to leave home to pay your Spanish taxes.
    Failing to comply with tax obligations may result in penalties, fines, and legal consequences. Penalties start at 50% on the unpaid tax due plus interest for late payment.
    The Spanish tax authorities (AEAT) do not send reminders or information about tax obligations. You need to act yourself! However, if you are registered with IberianTax, you will receive a reminder each tax period.
    Tax amounts vary based on factors such as the type of income, the cadastral value of your property, and tax rates. You can use our tax filing platform to calculate the tax due for free.

    The Spanish tax authorities typically notify you of a surcharge for late tax returns about 2 to 3 months after detecting the late submission. The process involves:

    First Notification - Propuesta (Proposal): This is the initial letter you'll receive, serving an informational purpose. It outlines the surcharge or fine attributed to the late filing of your tax return.

    Second Notification - Liquidación (Settlement): After the Propuesta, and usually within 1 to 2 months, a second letter named "Liquidación" is sent out. This letter will include the payment letters and detailed instructions on how to proceed with the payment of your surcharge.

    Non-Resident Tax Questions

    The Non-Resident Tax, also known as the "Impuesto sobre la Renta de No Residentes" (IRNR), is a tax on individuals and companies who are not considered tax residents in Spain but who earn income within the country. This tax applies to various types of income, including rental income from Spanish properties, imputed income from owning vacant or personally used properties, capital gains from the sale of Spanish properties, dividends, and interest received from Spanish sources.
    Yes, as a non-resident property owner in Spain, you are required to pay tax on either the profit made from renting out the property or on the imputed income, which is calculated based on the cadastral value of the property, even if the property is not rented out.
    Yes, even if you have never rented out your property, you are still liable for imputed income tax. This tax is based on the cadastral value of your property and must be declared annually.
    Non-residents are subject to a general flat rate of 24%. However, tax residents in EU member states, Norway, Iceland, and Liechtenstein benefit from a reduced flat rate of 19%.
    The deadline for submitting the non-resident tax return (Modelo 210) depends on the type of income. For imputed income, the deadline is December 31st of the year following the tax year. For rental income, the reporting has shifted to an annual basis starting from the 2024 tax year, with the deadline being January 20th of the following year. Capital gains tax must be declared within 4 months from the sale date of the property.
    If you miss the deadline for submitting your tax return, you may be subject to penalties and interest for late payment. If you declare voluntarily, penalties for late payment are limited to 15% of the tax due. However, if the tax office requests the submission, penalties start at 50%. Therefore, it is important to file as soon as possible to minimize any potential fines. IberianTax can assist you in filing late returns and addressing any penalties.

    The IBI is a local tax levied by the town hall where your property is located. It is based on the rateable value of your property (cadastral value) and is paid annually. The IBI applies to both residents and non-residents and is used to fund local services and infrastructure, such as road maintenance, public facilities, and local administration.

    The non-resident tax, on the other hand, is a national tax levied by the Agencia Tributaria (Spanish tax authority). This tax is due even if the property is empty or used for personal purposes. Non-resident property owners must file and pay this tax annually through the Modelo 210 form. The non-resident tax covers various types of income generated from property in Spain, including imputed income for personal use, rental income, and capital gains from the sale of the property.

    Imputed Income

    The imputed income is the result of applying an imputed percentage of 1.1% or 2% on the cadastral value of the property (“Valor Catastral”). The final percentage depends on the last cadastral value revision that has taken place in the municipality where the property is located. The difference in the applicable percentage of the cadastral value for calculating the tax base depends on whether the property's municipality has undergone a cadastral revision within the last ten years as published by the Catastro.

    1.1% rate: applies to properties in municipalities where the cadastral values have been reviewed or updated as part of a general collective valuation procedure within the last ten years.

    2% rate: applies to properties in municipalities that have not undergone such a review within the last ten years. This rate is also applicable if the cadastral value has been individually updated but not as part of a general review.

    For instance, if your property is in a municipality where the last cadastral review occurred 11 years ago, the 2% rate applies, not the 1.1%. If the last review was in 2009, the 1.1% rate would only be applicable until the 2019 tax year.

    The tax rate is 19% for tax residents in the EU or EEA and 24% for tax residents in other countries.
    The cadastral value of a property doesn't typically change on an annual basis; updates are less frequent. The most reliable place to find the latest cadastral value of your property is on your IBI (local property tax) receipt. This document is issued annually and will reflect any updates to the cadastral value, ensuring you have the most current information for tax filing and other purposes.
    The deadline for filing the imputed income tax return is within the calendar year following the year for which the tax is due. This means you have until December 31st of the year after the tax year ends on December 31st to submit your return. For example, the 2023 tax year return must be filed by the deadline of December 31st, 2024. This gives you a full year to complete and submit your imputed income tax return.

    The cadastral value (Valor Catastral) and the cadastral reference (Referencia Catastral) are vital details for the non-resident tax and can be found in several documents related to your property. Here's where you can locate them:

    IBI Receipt (Local Property Tax): The IBI, or "Impuesto sobre Bienes Inmuebles," is a local tax that property owners are required to pay each year. It is issued by the local authority (Ayuntamiento) or a designated local entity such as Patronato de Recaudación, SUMA, etc., depending on your property's location. The IBI receipt clearly states the cadastral value and reference.

    Bank Receipt for the IBI Payment: If you pay the IBI through a bank, the receipt usually contains a specific code that allows you to download the official IBI receipt from the regional tax office's website, where the cadastral value and reference are listed.

    Purchase Deed (Escritura): Typically, towards the end of the purchase deed document, there's a section dedicated to Catastro information. Here, you'll find the Cadastral Value and Reference listed.

    Catastro Website: Additionally, you can find the cadastral value and reference directly from the Catastro website, provided you hold a Spanish electronic certificate.

    The applicable percentage depends on whether the property's municipality has undergone a cadastral revision within the last ten years. If the last general revision occurred more than ten years ago, the applicable percentage for imputed income is 2%. If the revision was within the last ten years, the rate is 1.1%.
    Yes, you have to pay tax on imputed income for the days the property was not rented out. You need to file an imputed income tax return for the portion of the year the property was available for personal use or vacant.
    Yes, you are liable for imputed income tax for the portion of the year you owned the property before the sale. You need to declare the imputed income up to the date of the sale.
    No, if your property is rented out for the entire year, you do not have to pay tax on imputed income. Imputed income tax is only applicable for the periods when the property is not rented out.

    Rental Income

    Yes, non-resident property owners must declare and pay tax on any income earned from renting out their property in Spain.
    The applicable tax rate on rental income for non-resident property owners in Spain is 19% for residents of EU countries, Norway, Iceland, and Liechtenstein. For non-residents from other countries, the tax rate is 24%.
    Starting in 2024, the deadline for filing the rental income tax return is within the first 20 days of January following the year the income is generated. For instance, for rental income earned during the 2024 tax year, you are required to declare and pay any due taxes by January 20th, 2025.
    The deductibility of operating expenses from rental income in Spain depends on your residence status. For residents of the EU, Norway, Iceland, or Liechtenstein, the answer is yes; you are allowed to subtract expenses related to the rental activity, including utilities and community charges, from your gross rental income. On the other hand, if you're a resident outside these regions, you unfortunately won't have the option to deduct these expenses.
    While you're not required to submit the invoices directly to the tax office, it's important to keep them on file for 4 years. This is just a precaution in case the tax office asks for them later on. It's all about being prepared and having your documentation in order should any questions arise regarding your deductions.
    Yes, besides the rental income form, you'll also need to file an imputed income tax return for the days your property wasn’t rented out. For instance, if you rent your property for 300 days of the year, the remaining 65 days need to be accounted for in the imputed income tax return, which you'll file in the following year. The only exception to this rule is if your property is rented out for the entire year, covering all 365 days. In such a scenario, only the rental income form is required, as there would be no days of non-rental to account for in the imputed income tax return.
    The tax liability for jointly owned property is divided in accordance with each owner's share in the property. So, if you and your partner own the property equally (50/50), the tax due will also be split equally between the two of you.

    Here is a list of the most common deductible expenses recognized by the tax office. Please note that the majority of these expenses are generally deductible in proportion to the rented days. Our platform calculates automatically the deductible amount for you.

    Property-related expenses: This includes local property taxes (like IBI or rubbish collection fees), community fees, and house insurance premiums.

    Utility bills: Costs for water, gas, electricity, and other utilities can be deducted, provided you, the property owner, are responsible for them.

    Maintenance costs: Expenses for maintaining the property, such as repairs and cleaning, are deductible. Note, the purchase of furniture can be deducted through depreciation at a rate of 10% per year.

    Mortgage interest: If you have a mortgage on your Spanish property, the interest portion of your mortgage payments can be deducted from your rental income.

    Property management fees: Fees for services related to the management of your rental property are deductible.

    Advertising and marketing expenses: Costs incurred in advertising your property to potential tenants are deductible. Legal and accounting fees: Fees for legal and accounting services associated with the rental of your property can be deducted. Depreciation costs: You're allowed to deduct depreciation of the property, calculated as 3% of the higher amount between the purchase price or the cadastral value, excluding the value of the land.

    Repair and maintenance expenses, like regular painting or fixing installations, are fully deductible when incurred to keep the property in its normal use. This includes replacing items such as heating systems or security doors. However, expenses for extensions or improvements, like adding a lift or installing security doors where they didn't exist before, are not directly deductible. These are seen as investments that increase the property's value and are considered part of the property's acquisition cost. They're accounted for when determining any capital gain or loss upon transfer.

    Capital Gains Tax

    Non-resident capital gains tax in Spain is the tax paid by individuals or companies who are not tax residents in Spain when they sell property located in the country. It's applicable to the gain realized from the sale. It is declared via Modelo 210 form.
    Yes, Spain levies capital gains tax on the profit made from the sale of assets, including real estate. Capital gain is the difference between the buying price and the selling price. Additional expenses can also be taken into account for the computation of the capital gain tax (for example, notary, lawyer fees, or real estate agent commissions).
    As a non-resident, you are subject to capital gains tax on the sale of property in Spain. All tax treaties signed by Spain establish that capital gains derived from the disposal of Spanish real estate are subject to taxation in Spain. The tax office regularly monitors these transactions as notaries report all sales to the tax authorities.
    To calculate capital gains tax, subtract the property's purchase price and any qualifying expenses from the selling price (such as notary fees, legal fees, and real estate agent commissions). The resulting profit is subject to a flat rate of 19% regardless of the tax residency of the seller.
    The 3% Withholding Tax is the mechanism by which the Spanish tax authorities get an advance payment of the capital gain tax that is then self-assessed by the non-resident taxpayer via Modelo 210. The 3% must be withheld by the buyer of the property from the selling price provided that the seller qualifies as a non-resident of Spain. The buyer must deposit this amount to the Treasury via Modelo 211 and must send you a copy.
    Modelo 211 is used for the 3% withholding tax that buyers must withhold and pay to the tax authorities when purchasing a property from a non-resident. This withholding tax is a prepayment of the seller's potential capital gains tax liability resulting from the property sale.
    If you have made a loss on the sale of your property, or the tax due is lower than the 3% withholding tax, you are entitled to claim a refund for the overpaid tax.
    Non-resident property owners are required to report the sale to the Spanish tax authorities within 4 months from the sale date.

    To file your capital gains tax, you will need the following documents:

    Modelo 211: The 3% withholding tax document provided by the buyer.

    Transaction Details: Dates and prices of both the purchase and sale transactions.

    Additional Costs: Expenses related to both the purchase (property transfer tax, notary fees, land registry fees, lawyer fees) and sale (real estate agent fees, plusvalía municipal, and any other sale expenses).

    Regarding Refunds: If the final tax liability determined by the sale is lower than the 3% withholding tax already paid, you are eligible to apply for a refund for the difference. For the refund process, a certificate proving ownership of the bank account where the refund is to be made is also necessary. Payment and Tax Filing.

    Payment And Tax Filling

    The tax due can be paid via:

    Cash Payment: We will send form 210 duly completed so you only have to print it out and take it to your Spanish bank to pay.

    Bank Transfer: You can transfer the tax due to us, and we will handle both the submission and payment with the Spanish tax authorities on your behalf.

    Direct Debit: The tax due will be debited from your bank account. Since 1st February 2024, it is not mandatory to have a Spanish bank account for this payment method. As long as your bank operates within the SEPA Zone, you can use direct debit.

    To file your tax returns, we don't require any physical documents—just the essential information needed for each tax return's preparation. This can be conveniently provided through our online form. For imputed income and rental income, no additional documents are needed. However, for other types of income, such as capital gains or specific deductions, supporting documents may be requested by the tax authorities. If you need assistance or have any doubts about the information required, feel free to share any relevant documents with our support team. We're here to help and ensure the process is as smooth and straightforward as possible for you.

    Yes, changing the payment method after form submission is possible under certain conditions.

    If your initial payment method was cash: You can switch to direct debit up until December 23rd for imputed income tax and until January 13th of the following year for rental income tax. Should you prefer to pay by bank transfer instead, simply email us to indicate your preference. We'll provide the necessary details for you to make the transfer. Once we've received your payment, we'll handle the tax payment to the authorities on your behalf.

    If you initially chose direct debit: You have the flexibility to switch before December 20th to ensure timely processing. Upon receiving the tax amount via bank transfer from you, we'll cancel the direct debit arrangement and ensure the tax is paid directly to the authorities, ensuring a smooth transition between payment methods.

    No, you do not need a Spanish bank account to pay taxes through IberianTax. You can transfer the tax amount from your regular bank account, and we will forward the payment to the tax office at no extra charge. Additionally, you can pay by direct debit from any EU/SEPA account.
    If your bank refuses the direct debit payment for taxes, it could be due to discrepancies, such as a mismatch between the account holder's name and the name on the tax return, or because the NIE (Número de Identificación de Extranjero) is not properly registered with your Spanish bank account. To resolve this and ensure your tax payment is processed, IberianTax can assist you. Please contact us directly, and our team will guide you through the necessary steps to resolve the issue and ensure your tax payment is successfully processed.
    Yes, if your apartment and parking space have separate cadastral references, Spanish law requires separate forms and payments for each property. This means you'll need to complete and file two different forms: one for the apartment and another for the parking space. Correspondingly, separate fees apply to each form submission.

    Once we've filed your Modelo 210 form, you'll receive an email from us with official proof of submission and the submitted form attached for your records.

    Additionally, you can view or download any of your previously submitted forms anytime through your IberianTax account. Simply navigate to the "Forms" section of our platform, where all your submissions are conveniently stored and accessible. This feature ensures you have full access to your filing history and documentation whenever you need it.

    Digital Certificate

    A Digital Certificate is a secure electronic ID that lets you legally sign documents and complete official procedures online in Spain, saving you time and trips to government offices. It’s essential for residents and non-residents, especially for managing legal and property-related matters remotely.
    To apply for a Digital Certificate through IberianTax, you'll need:
    • NIE (Número de Identidad de Extranjero): A clear copy of both sides of your NIE card or certificate
    • Passport or ID: A clear copy of the main page of your passport or national identity document
    All documents must be valid (not expired) and clearly legible. Poor quality scans or photos may result in delays or rejection of your application.
    No, when you apply through IberianTax, the entire process is 100% online. You do not need to visit any office in person.

    This is one of the main advantages of our service. Traditionally, obtaining a Digital Certificate required an in-person visit to an official registration office (Oficina de Registro) to verify your identity. However, our service handles this verification process remotely, saving you time and eliminating the need to travel.

    The application process through IberianTax typically takes 2-3 business days from submission to receiving your Digital Certificate. This includes the time needed for document verification, application processing, and certificate issuance. Once your application is approved, you'll receive emails with instructions to download and install your certificate.
    After submitting your application, the process follows these steps:
    1. You'll receive an immediate confirmation email from IberianTax acknowledging receipt of your application
    2. Our team will review your application and documents (typically within 1-2 business days)
    3. We'll process your application with the certificate authority and handle all download procedures on your behalf
    4. We'll send you the ready-to-install certificate file (.p12), the installation PIN, and a simple installation guide
    If there are any issues with your application or documents, our team will contact you by email with instructions on how to resolve them.
    Installing your Digital Certificate is simple with our service. You'll receive:
    • The certificate file (.p12) ready to install
    • The installation PIN
    • A step-by-step installation guide with screenshots
    The installation process typically involves double-clicking the .p12 file, entering the PIN we provide, and following the installation wizard. Our guide includes detailed instructions for each step to make it as easy as possible.
    The Digital Certificate is valid for 2 years from the date of issue. After this period, you will need to renew it. We recommend starting the renewal process at least one month before the expiration date to ensure continuity of service.

    To renew an expired Digital Certificate, you'll need to apply for a new one. Unfortunately, there is no direct renewal process - you must go through the application process again.

    We recommend starting the new application process at least one month before your current certificate expires to ensure continuity. The process for obtaining a new certificate is the same as your original application.

    Yes, through IberianTax you can apply for your Digital Certificate 100% online without visiting any office, even if you are outside Spain. No in-person visits are needed, and as long as you have a valid NIE and documents, the whole process is done remotely.

    The installation process typically involves double-clicking the .p12 file, entering the PIN we provide, and following the installation wizard. Our guide includes detailed instructions for each step to make it as easy as possible.