Spanish Tax Glossary

AEAT (Agencia Estatal de Administración Tributaria)

The Spanish State Tax Administration Agency, responsible for tax collection and enforcement in Spain, including managing taxes like IRNR and overseeing the filing of Modelo 210 for non-residents.

ATIB (Agencia Tributaria de las Islas Baleares)

The Balearic Islands Tax Agency, managing local tax collection in the Balearic Islands, including local property taxes for non-resident owners in these islands.

Capital Gains

Profits from the sale of assets, such as property in Spain. For non-residents, capital gains tax is applied on the profit made from selling Spanish property.

Cadastral Value (Valor Catastral)

The assessed value of a property in Spain, used as a basis for calculating taxes like IBI and imputed income tax. It is a notional value often lower than the market value and is assigned by the cadastral office.

DNI (Documento Nacional de Identidad)

National Identity Document for Spanish citizens, used in various legal and administrative processes.

Modelo 720 (Declaration of Overseas Assets)

A tax form used by residents in Spain, including non-residents deemed tax residents due to their stay in the country, to declare any overseas assets worth over €50,000. This includes property, bank accounts, and investments.

Gastos Deducibles (Deductible Expenses)

Costs in Spain that can be subtracted from taxable income, reducing tax liability. For non-residents, this includes certain expenses related to property rental income.

Hacienda

Common term for Spain's tax authority (AEAT), handling the administration and collection of taxes, including those relevant to non-residents owning property in Spain.

IBI (Impuesto sobre Bienes Inmuebles)

Real Estate Tax, a local property tax in Spain based on the property's cadastral value. Non-residents owning property in Spain must pay this tax annually.

Impuesto sobre Sucesiones y Donaciones

Inheritance and Gift Tax (Impuesto sobre Sucesiones y Donaciones) in Spain, applicable to non-residents who inherit or receive gifts of Spanish property.

Imputed Income

Income attributed to non-residents who own property in Spain but do not rent it out, calculated based on a percentage (2% or 1.1%) of the property’s cadastral value and declared via Modelo 210 annually.

IRNR (Impuesto sobre la Renta de No Residentes)

Income Tax for Non-Residents in Spain, applied to income earned within Spain by non-residents, including rental and imputed income from property.

IRPF (Impuesto sobre la Renta de las Personas Físicas)

Personal Income Tax in Spain for residents. Non-residents typically deal with IRNR instead.

ITPAJD (Impuesto sobre Transmisiones Patrimoniales y Actos Jurídicos Documentados)

Tax on Property Transfers and Documented Legal Acts in Spain, which may apply to non-residents in transactions like property acquisition.

IVA (Impuesto sobre el Valor Añadido)

Value Added Tax in Spain, a consumption tax applied to goods and services. Non-residents may encounter IVA in the context of services used in Spain.

Liquidación de Recargo (Surcharge Settlement)

The final calculation and payment of surcharges on overdue taxes.

Modelo 210

A tax form used by non-residents in Spain to declare income such as rental or imputed income from Spanish properties. It's a key form for non-resident property owners.

Modelo 211

Tax form for declaring and paying withholding tax on the sale of property in Spain by non-residents.

NIE (Número de Identificación de Extranjero)

Identification number for foreigners in Spain, essential for all tax-related activities, including property ownership and filing taxes like Modelo 210.

NIF (Número de Identificación Fiscal)

Tax Identification Number in Spain for both individuals and entities, used in all tax and legal transactions.

Patronato de Recaudación

A local tax collection agency in the Malaga region of Spain, responsible for collecting taxes like IBI for non-residents with property in this area.

Propuesta de Liquidación de Recargo (Proposal for Surcharge Settlement)

A preliminary tax assessment in Spain, notifying taxpayers of additional taxes or surcharges due, affecting non-residents in cases of late tax payments.

Plusvalía Municipal (Municipal Capital Gains Tax)

A local tax applied on the increase in the value of urban land at the time of its sale. This tax is calculated based on the cadastral value and the number of years the property was owned.

Quarter

A three-month period used in financial and tax reporting in Spain. Non-residents may need to consider this when filing periodic tax returns like rental income on Modelo 210. The year is divided into four quarters: Q1 (Jan-Mar), Q2 (Apr-Jun), Q3 (Jul-Sep), Q4 (Oct-Dec).

Recargo Ejecutivo (Executive Surcharge)

An additional charge of 5% applied to overdue tax payments in Spain, relevant to non-residents who miss tax deadlines.

Referencia Catastral (Cadastral Reference)

A unique identifier for each property in Spain's cadastral registry. It consists of an alphanumeric code assigned by the Cadastre. Non-residents need this reference when filing taxes like Modelo 210, as it's crucial for identifying the property in tax documents.

Rental Income

Income earned from leasing out a property. In Spain, non-resident property owners are required to report and pay taxes on rental income on a quarterly basis through Modelo 210.

SUMA

Tax collection agency in the Alicante region of Spain, handling local taxes like IBI, waste collection tax and vehicle tax for non-residents owning property in this region.

Tasa de Basura (Waste Collection Tax)

A municipal tax in Spain for garbage and waste services. Property owners, including non-residents, are typically responsible for this tax.

Tax Residency

A status determining where an individual is subject to tax in Spain. For non-residents, this status affects the applicability and rate of taxes like IRNR (Non-Resident Income Tax).

Tax Year

The period for which tax is calculated in Spain, typically the calendar year.