As a non-resident, you are required to submit an annual tax return.
This tax is not actually related to income, but is a tax that all non-resident homeowners must pay each year.
It is a percentage tax on the use of your own home or any rental income.
The tax is declared on the annual tax return for non-residents and paid to the national tax authorities.
The basis for calculation is the assessed value of the property, which is usually stated on the local property tax bill, IBI.
The tax is paid annually, and the deadline is 31 December. It can be reported at any time during the calendar year. If you have not owned the property for the entire year, or if the property has been rented out for part of the year, the tax is calculated based on the number of days.
If you rent out your property in Spain, you are obliged to pay tax on the rental income.
It is your own responsibility
There are no procedures for sending reminders to non-resident homeowners, and you will not necessarily receive a notice that you owe tax, as it is your own responsibility to ensure that all taxes are paid.
If you haven’t paid this tax, you may receive a claim from the tax office demanding the tax and penalty tax for overdue years.
Please note that all outstanding taxes must be settled before you sell property in Spain.
On the day of sale, 3% of the sale price must be paid to the tax office as capital gains tax. If you have sold at a loss, you can apply for a refund. Refunds are subject to you having fulfilled your tax obligations to Spain.
Filing your tax return in Spain does not have to be difficult. We do it for you and sign the tax return electronically. The tax will then be debited from your account automatically by the tax office (Hacienda) at the end of the year. You will receive a receipt and a copy by email.
We can help you with your taxes – contact us.
Simple and straightforward.
