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 TAX IN SPAIN. NON RESIDENT TAXES. FAQS
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Non Resident Taxes |
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| Who is liable to pay the non resident tax? |
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This tax has to be paid by all people who are non-resident and own a home in Spain. It does not related to income generated in terms of for instance renting your property, but only to property ownership. |
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| Do all the owners have to submit the non resident tax? |
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Each owner is regarded as an independent taxpayer; therefore they each file separate returns.
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| When is the non resident tax due? |
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This tax is payable on the 31st of December of the next year since the purchase of the property. For example, if a non-resident bought a house on 12th July 2010, he or she will have until 31-12-2011 to pay this tax. Since in Spain the tax year is the same as the calendar year, in 2011 we pay tax on our income in 2010.
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| Do I pay taxes for all the year if i bought my property in september? |
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No, the tax is calculated pro rata the number of days between becoming the owner of the home and 31st December.
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| How is it calculated? |
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The non resident tax is calculated using the cadastral value of the property. In case the property does not have cadastral value, it will be calculated with the value in deeds. The tax rate is 24%.
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| Can we deduct any expense such as mortgage payments? |
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It is not possible to deduct any expense.
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| If a non resident company is the owner of a spanish property, does the company have to submit the form? |
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Yes, they have to submit the annual form 213. This is only for non residents entities which own assets in Spain. The tax rate is the 3% of the cadastral value. It has to be presented in January of the following year. Shall be exempt of tax those non resident entities that have Double Taxation Agreement with Spain and contains the information exchange clause. If that is the case the tax form has to be submitted at cero.
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