All owners of a property in Spain who are tax residence outside of Spain are obliged to present and pay for the Declaration Income Tax for Non-Residents (Form 210) on an annual basis. (Please don’t confuse with the Wealth Tax).
The obligation stems from being an owner of a property and a non-resident, as the law considers from these facts, that you are getting a deemed income. It doesn’t matter whether you rent your property out or not, even if you don’t receive any real income as such, you are still obliged to present this tax declaration.
If the property is in the name of a number of people, each person must present his/her own form 210, according to the proportion they own.
The general flat income tax rate for non-residents is 24%, or 19% if you are a citizen of an EU/EEA state. Other income is subject to Spanish non-resident taxes at the following rates: Capital gains resulting from transferred assets are taxed at a rate of 19%
It is calculated to the rateable value of the property, and the IRPF regulations.
The result is the % on the cadastral value, specified on the IBI, if you have had the property over 10 years and its not be revalued then you could pay 2%, if it is under 10 years, you've recently bought it or had it valued then the % is 1.1 and to top it off if you are not a resident of the EU as most Uk residents are now NON EU, then this will be higher too, of course you could have resident status in another EU country and be liable for the lower rate on your Spanish holiday home
For an example of how it is worked out;
The tax is calculated on the cadastral value of the property (valor catasral), the equivalent to the UK rateable value. You can find your cadastral value on your council tax invoice (IBI/Suma).
Currently, the tax is calculated at 1% of the cadastral value and then 24% of this figure. For example, a property with a cadastral value of 100,000€, tax is calculated at 1% of 100,000€ (being 1,000€), then 24% of 1,000€ = 240€ the tax payable. If the property is jointly owned, two separate returns must be submitted for each owner and who are responsible for 50% of the total tax due.
The deadline to present the Income Tax declaration (form 210) corresponding to the year 2021, is the 31st of December 2022 but obviously, it is not advisable leaving it until the last minute as this period coincides with the Christmas holiday period, so be aware of this.
Incomes obtained from renting out a property in Spain,
These must be declared and taxes must be paid in Spain, this is nothing new, renting out properties in Spain without declaring rental incomes seems to be a common practice. The Tax Office is aware of that and a clear message has been sent by the fiscal authorities advising that this situation is going to change.
In fact, in the current Annual Tax return campaign, one of the “slogans” of the Tax Office has been “You had better declare your rental incomes, because we can find out if you are renting out your property” in explicit reference to the properties advertised on the internet, although they do have other ways to find out if you have tenants in your property, i.e. electricity bills, etc.
The difference on this, is that they must be declared quarterly and then yearly imputed return on non rental quarters.
I can assist with the preparation of this if needed
In order to prepare the declaration, I will need the following documentation from you:
A copy of your purchase Title Deeds ( escritura ).First 3 to 4 pages for the details on the form
Copy of your digital certificate(s). One for each person named on the Deeds, these i can obtain for you for a fee *See the link on the DC
The rates bill (IBI) of all your properties in Spain (including garages and storage rooms), which is what you pay to the Town Hall yearly, ideally for YEAR 2021, or the latest available.
In the case of Rentals tax please get in touch to discuss.
Prices Start at €45+Iva.
Digital Certificate
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