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Income tax for non-residents is levied directly on any income obtained on Spanish territory by individual persons or companies not residing in the country. It is not the same as the Property tax (I.B.I.) which is levied by the local municipality or County Council (Consejo comarcal).

According to law, any person residing in the country lesser than 183 days per year shall not be considered a taxable Resident and shall therefore be subject to the Non-resident’s tax. It is advisable you seek counsel about your particular case.

The non-resident’s tax is paid to the Spanish Income tax department using the Return form 201 (modelo 210). This form contains several ways to fil your return.

Our firm can assist you with:

RETURNS ON URBAN PROPERTIES USED BY INDIVIDUAL PERSONS FOR THEIR OWN USE

This Return form is used to declare properties or usufructs (or other taxable rights) of individual persons who do not have permanent residence in Spain.

Even though no expense can be deducted, the number of days the party did not have ownership of the property, or had let the property, serves to reduce the number of days in the return. 

 

Deadline to file returns

The delay to file the returns and to make the payment, is one year starting on the date it is filed (December 31). When the payment is domiciled, the deadline is December 23rd of the natural year following the date the return is filed.

For example, taxes for 2020 can be filed in the course of 2021; however, should you want to domicile the payment of the tax, the return must be filed by December 23rd

Check our blog for more information about the tax. The guides can be downloaded in the section “Download and print”, on the right margin of this page. We recommend you visit our frequent FAQs for more information related to recurring doubts.

INCOME TAX ON RENTAL OF URBAN PROPERTIES

This self assessment tax return is used to declare income on property by private persons who do not have resident status in Spain, i.e., declare the income on rent of properties they possess in Spain.

The return is filed every quarter in the course of the year the income is obtained on the rented property.

  • Deadline to file the return.
  • Returns with payment due: the delay to file a return and pay taxes if due, is during the first twenty natural days of April, July, October, and January for the rents that were charged the previous natural quarter. Should the returns be filed online, the payment of the tax can be domiciled to be payable between the 1st and 15th of the month it is filed.

For example: income obtained in July, August and September 2021 must be filed no later than October 20th, 2021

  • Returns with nothing to pay: the delay to file a return with nothing to pay is between the 1st and 20th of January of the year onwards from the year for which you are filing the return. 
  • Returns with right to repayment: this return is filed after February 1st the following year onwards from the year for which you are filing the return. You have a period of four years to file it, starting on the last day of the period for which the return is filed, and the advance payment you make. This period is applicable to all returns, irrelevant of whether the refund is due to an internal rule or an agreement to avoid dual taxation, even in cases when the order of the agreement sets a shorter period. The period will be deemed closed on the date the return is filed.

Consult our blog for more information about taxes: You can download the guides in the section “Download and print”. We also recommend you consult the FAQs section for more information related to frequent doubts.

INCOME OBTAINED FROM THE CONVEYANCE OF A PROPERTY

This tax is used to declare profits or losses related to the conveyance of a property in Spain.

When a non-resident transfers a property in Spain, 3% of the transfer price is withheld. If the seller can prove that he/she has suffered a loss in the transaction, said party can recover all or part of the 3% that was withheld by the notary public in the way of income tax on non-residents. To be able to claim and this recover this money, the party must have no taxes pending payment. This covers any/all taxes affecting non-residents.  

Should the transaction generate a profit to the seller, said profit must be declared and, if necessary, pay the difference between the full profit, and pay a 3% of the price that has already been withheld as Income tax return.

When should I file my return?

Returns related to the transfer of a property, irrelevant of the result of the return (whether positive or negative), must be filed no later than three months after the one-month period after the transaction has elapsed. Said in other words, you have four months starting on the date of the property transfer transaction.

Consult our blog for more information about taxes. You can download the guides in the section “Download and print” in the right margin of this page. We also recommend you consult the FAQs section for more information related to frequent doubts.

The services we provide include preparing your return for this tax, besides and independently of other services you may retain. Click here or contact us for an appointment.

DISCLAIMER: The information contained in the web site is purely for informational purposes and does not substitute or constitute legal counsel. Neither does it constitute any contractual relationship with our practice. Each particular case requires tailored counsel.

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