non resident tax

A person who does not have fiscal residence in Spain but owns urban real estate in this country is obliged to pay non-resident income tax, local tax and property tax.

Except in cases of residents in countries or territories with which an effective exchange of tax information does not exist, there is no obligation to appoint an agent to act before the Tax Authorities. Nevertheless, should you choose to do so, you may appoint whoever you wish, and should communicate this appointment to the Branch or Administration of the Tax Agency corresponding to the location of the property.

In Spain everybody is assigned a Tax Identification Number (Número de Identificación Fiscal, NIF), which must appear on all tax returns and in all communications with the Tax Authorities. In general, for people with Spanish nationality, the NIF is the number of their National Identity Card (Documento Nacional de Identidad, DNI) and for non-Spaniards, the NIF is their Foreign National's Identity Number (Número personal de Identificación de Extranjeros, NIE), which is obtained from the Police Department (Dirección General de la Policía). However, those foreign citizens who do not have a NIE, either temporarily or permanently, since they are not required to have one, should request a NIF be assigned to them by the tax authorities in order to complete tax operations.

When the property belongs to a married couple or to more than one person, each person is an independent taxpayer, and must file an individual tax return.

For property for own use, the estimated yield for this tax is established as follows:

• In general, 2% of the building's assessed value (Valor Catastral), which appears on Property Tax (Impuesto sobre Bienes Inmuebles, IBI) receipt.

• In the case of properties for which the assessed value has been revised or modified after 1 January 1994, the percentage will be 1.1%.

This yield is calculated once per year, on 31 December.

• Tax rate: 24%.

• The tax sum, therefore, will be the result of applying the corresponding rate to the estimated income.

Form: form 210, recording the type of income 02.

• Income accrued on 31 December 2010: Form 210, ordinary tax return, approved by Order HAC/3626/2003 of 23 December.

  Filing method:

  - Printed (pre-printed or downloaded from the Tax Agency's website).

  - Electronically, via the Internet.

• Income accrued on 31 December 2011: Form 210, approved by Order EHA/3316/2010 of 17 December.

  Filing method:

  - On paper, generated by printing a form completed on the Tax Agency's internet portal.

  - Electronically, via the Internet.

   

  Filing deadline: during the whole calendar year following the accrual date.

  Direct debit payment of the tax debt: In the case of electronic filing, payment can be made by direct debit until 23 December.

3. Wealth Tax

This tax has been eliminated since the 2008 tax year.

This is a tax charged by local Councils and paid by property owners.

All property within the Council's area is included on a census and is given an Assessed Value (Valor Catastral). The amount of tax to be paid shall be calculated by applying the tax rate set by the City Council to this Assessed Value. 

• Form of payment: A bill is sent out for payment of this tax every year for every property on the census.

• Payment deadline: The payment deadline depends on the Council, although it is normally around the months of September, October or November each year.