Are you searching for reliable information about taxes attributed to properties in Spain for non-residents? You’ve come to the right place.
Owning property in Spain as a non-resident comes with specific tax obligations that are important to understand in order to stay compliant and avoid any legal complications. Here’s a comprehensive overview of the key tax aspects you need to be aware of:
1. Non-Resident Income Tax (IRNR)
If you own property in Spain as a non-resident, you are subject to the Non-Resident Income Tax (IRNR). This tax is applicable whether your property is rented out or not. Typically, the taxable base is determined by the property’s cadastral value (valor catastral), rather than the actual rental income.
2. Annual Tax Return (Modelo 210)
As a non-resident property owner, you must file an annual tax return using Modelo 210. This form is used to declare imputed income from your property, which is calculated as a percentage of its cadastral value. Even if you do not receive any rental income, submitting this tax return is mandatory.
3. Tax Rate
The current tax rate for IRNR is 24% of the imputed income. However, this rate may vary for EU and EEA residents depending on applicable tax treaties. Ensuring compliance with Spanish tax laws is crucial to avoid penalties.
4. Payment Deadline
IRNR must be paid annually, with the payment deadline typically falling on December 31st for the previous year’s income. Delays in payment can result in interest charges, so it’s advisable to file your taxes on time.
Additional Considerations
Besides filing Modelo 210, non-residents must also comply with withholding rules on rental income. This means that if you rent out your property, a percentage of the income must be withheld and paid directly to the State.
Non-residents can also benefit from certain tax incentives related to property rentals, such as deductions for rental expenses and reductions in Value Added Tax (VAT). These incentives can help optimize your tax efficiency.
Seek Professional Advice
Understanding and fulfilling these tax obligations is essential for non-resident property owners in Spain. Seeking professional advice can help ensure you remain compliant and take full advantage of any available tax benefits.
At VIProperties Costa del Sol, we are here to assist you with all aspects of property taxes. If you need help preparing your Modelo 210 or have any questions about your tax obligations as a non-resident, do not hesitate to contact us.