SOME ASKED QUESTIONS ABOUT TAX OBLIGATIONS IN SPAIN
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WHICH TAX OBLIGATIONS DO I HAVE AS OWNER OF A PROPERTY IN SPAIN?
As owner of a Spanish property you have to fulfil the following obligations:
- To make the declaration of «WealthTax» every year (in case the value of your Spanish assets are higher than a minimum of average 400 – 600.000 EUR/person).
- To present/pay declarations of tax called “Income Tax” (similar to “Inland Revenue”) every year
- To present/pay declarations of tax for the incomes received from your property in Spain
- Also, in case you are Spanish Tax Resident:
- – To present the Spanish Income Tax every year (in case you are obliged to by normative) – Model 100 IRPF
- – To declare in Spain for all the assets and properties that you may have in other countries – Model 720
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ARE THERE ANY DIFFERENCES IN TAXES BETWEEN RESIDENTS AND NON-RESIDENTS?
Yes, there are:
NON TAX RESIDENT – If case are not living in Spain permanently, and/or you have not applied for the Spanish Fiscal Residence (You are paying your taxes in your country of origin)
Then, you must make all the declarations and payments for taxes in the country in which you have the residence.
In Spain you only have to make the proper declarations and payments for Income as NON-RESIDENT
For example: If you are coming from UK, and you are NOT living in Spain permanently, and you never applied for the Spanish Fiscal Residence, you have to make the declaration of taxes in UK, and in Spain only the taxes as SPANISH NON RESIDENT, because, although you are non-Spanish resident, you have a property in Spain.
SPANISH TAX RESIDENT – If you are living permanently in Spain and/or you have applied for the Spanish Fiscal Residence
So, you have to declare/pay in Spain all the assets on your name which are placed in Spain, and/or overseas.
For example: If you are coming from another country, and you are living in Spain for two years, and you applied for the Spanish Fiscal Residence, you have to make the declarations of taxes in Spain, as SPANISH RESIDENT. So, you should declare in Spain all earnings, pensions, assets, etc. that you could have in Spain, or which you receive from any other country in the world.
So, the concept of “Spanish tax residents” or “Spanish tax non-residents” is directly related to the time of permanence in Spain during a natural year, in a period of time higher or lower than 6 months:
More than 6 months – Spanish Tax Resident
Less than 6 months – Non Spanish Tax Resident
Usually owners of Spanish properties confuse the “Spanish Tax Residence”, with the “Spanish Residence”.
In other words, people think that the «Spanish Residence Card, or «Residence Certificate» obtained in the Spanish National Police, is enough to demonstrate that they are «Spanish Residents for Taxes», and, unfortunately, this is not the case.
The “Spanish Residence Card” (or “Spanish Residence Certification“), is not the valid document to change your Tax consideration as «Tax Resident».
The Spanish Residence Card (or Certificate) only serves to declare that you are “living” in Spain, in order to facilitate the Police to have a better control over the residents in a determinate area.
In order to become Spanish resident for taxes, and then start to pay your Taxes in Spain as a normal Spanish citizen, you must obtain the SPANISH RESIDENT TAX CERTIFICATION issued by the Spanish Tax Office or Spanish Customs, and then you will start to pay your taxes in Spain, and not in your country of origin.
And, also, once you need to declare to the Tax of office from your country that you are Spanish Tax Resident, and that you do not wish to continue as Tax Residence on your country-
So, please, check with your tax adviser the taxes that you are currently paying because, even if you are not Spanish Resident, you should be declaring and paying the INCOME TAX NON RESIDENTS.
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WHEN DO YOU HAVE TO MAKE THE TAXES DECLARATIONS AS RESIDENTS AND/OR NON-RESIDENTS?
In both cases, once every year.
- In case of Spanish Residence Tax (Model 100): Before the end of June from the following year
- In case of Spanish Non Residence Tax (Model 210): Before the end of December of the following year
For example: For the year 2021, Spanish Non Resident declarations must be presented before the 31/12/2022 is due the presentation of NON RESIDENT (Model 210) tax declarations for the year 2021, for owners of Spanish properties bought on, or before, 2021.
This tax is called “Income Tax for Non Residents”. And, it must be paid event if you have not any incomes in Spain. Only for the fact that you are owner of a Spanish property, and that you are not living in Spain permanently.
In case you have received some earnings/incomes from the property
For example: From renting the apartment, then, you need to present additional tax declarations for these incomes quarterly in the same quarter of the year when the income is produced. Click here to read more -
ARE THESE OBLIGATIONS FOR ALL THE SPANISH REAL ESTATE OWNERS?
Yes, independently of your condition as resident or nor resident, you have taxes obligations to fulfil every year, as in any other country.
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I AM SPANISH RESIDENT BECAUSE I HAVE THE SPANISH TAX RESIDENCE CERTIFICATION. DO I NEED TO PAY SPANISH TAXES?
Independently of your age, you have to pay Spanish Taxes in Spain, as Spanish Tax Resident, always that you are not in one of the following circumstances:
1.- You do not earn more than 22.000 EUR per year (approximately), if your incomes are coming from just one payer.
2.- If your incomes are coming a “private pension” or from 2 different payers (for example you have a public pension and a private one), then, even if you earn less than 11.200 EUR per year, you would need to present Spanish Residence Tax declaration.
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I HAVE SOME FRIENDS WHO ARE LIVING IN SPAIN FOR A LONG TIME AND THEY NEVER MADE ANY DECLARATION IN SPAIN…
This could be possible because maybe they could not be assisted in the right way by their legal or tax advisors, and they are now in risk to be inspected by the Spanish Tax office, and with high fines.
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WHICH ARE THE CONSEQUENCES TO DO NOT FULFILL THE TAX OBLIGATIONS?
After the new changes in the control from the Spanish Customs, Spanish Residents and Non-Residents with a property in Spain can be inspected by the Spanish Customs.
If they detect that, in the previous 4-5 years, even living in Spain permanently, you have not obtained the Spanish Tax Certificate or you never made the proper declarations, or these are not made in the proper way, an inspection case can be opened with eventual additional fines.
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WHICH ARE THE TAXES I HAVE TO PAY WHEN SELLING MY PROPERTY?
Click here to see which are the taxes that you have to pay when you are selling a property in Spain.
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OTHER TAXES TO PAY AS OWNERS OF SPANISH PROPERTIES?
Here are other taxes to pay when you are owner of Spanish assests:
1.- WEALTH TAX:
It taxes the assets that you may have on your name:
- If you are non-Spanish resident: Then, this tax taxes the assets that you may have in Spain
- If you are Spanish resident: Then this tax taxes ALL the assets that you may have in Spain, and in any other country of the world
In Valencia region, you only declare for this tax when:
- Being non Spanish resident: Your assets in Spain overpasses the amount of 600.000 EUR
- Beng resident in Spain: Your assets in all over the world overpasses the amount of 600.000 EUR
Paid yearly
2.- COUNCIL TAX/GARBAGE:
This is the tax which taxes the real estate on your name, and the garbage collection.
Paid yearly suorce www.spanishsolicitors.com
Click here to calculate your taxes in Spain:
– Spanish Income Tax calculator for residents – Pensions, salary and rentals
– Spanish Income Tax calculator for non residents
Click here to watch our tutorial about Spanish Income Tax for RESIDENTS – Expats and Pensioners