Spanish Taxes for Non-Resident Property Owners
Tax calculated and returns prepared for just £34.95!
All non-resident owners of property in Spain are required by law to submit a non-residents' tax return each year whether or not they let out their property. Tax relating to 2022 is now overdue. Tax for 2023 can be paid at any time during 2024. However, you no longer need to waste money on fees to solicitors or fiscal Representatives in Spain to do this - especially as their charges are often more than the tax itself! Using our service, you can submit your own tax return or leave it to us to do it for you. It will take you just two minutes to complete our order form, and the job's done. For less than thirty five pounds.
What Is Your Service?
We calculate your tax liability, obtain and complete the appropriate tax form(s) and email or post the completed forms to you. You simply have to present the forms at the bank. Our inclusive charge for this service is £34.95 (per property, not per person).
For just £15 per person, we can also present the forms for you, pay the tax and send you the receipted copies, in other words, "do everything". Please indicate the service you require when completing our order form.
How Do I Find My "Cadastral Value"?
Your tax liability is calculated by reference to the cadastral value of your property. The cadastral value ("valor catastral") is equivalent to the UK rateable value. The total cadastral value ("valor catastral total") for the year in question is the figure we need. This is made up of two components: the land value ("valor catastral suelo") and the property value ("valor catastral construccion"). It does not relate directly to the purchase price or market value of your property. The cadastral value will be shown on your council tax bill or receipt (also known as IBI/SUMA/rates) normally as "valor catastral/base imponible". If these documents are not to hand, your local Town Hall (or the SUMA office) will be able to help or perhaps your bank if you've set up a direct debit. Alternatively, if you have previously used a fiscal rep, they may have the information. If the property is newly built and a cadastral value has not yet been determined, your non-residents tax liability is calculated based on a formula using half of the contract purchase price (exc IVA). If you reach a dead end please complete our order form below and ask us for further guidance.
Do You Have References?
We have thousands of satisfied customers of this and related services, and we're recommended by Banco Santander and IAG (ex-British Airways) in the UK. We've been involved in the completion of 210 forms for UK residents for more than 14 years. In that time we have processed more than 200,000 forms. Spanish Tax Forms Ltd is a UK company (incorporated in England no. 6523058). And, don't forget, there's no risk. You only pay when you've received your forms.
Why Do I Need to Submit a Tax Return?
Spanish law requires that if you own property in Spain, you must submit a non-residents' tax return for the previous tax (calendar) year. You must pay some tax - even if you do not let out the property or receive any income from it. [top]
When Must I Do It By?
You need to complete your return and pay by 31 December for the previous tax (calendar) year. If you miss the deadline, you can be fined and, if you ignore this altogether, the debt will attach to your property, and other enforcement action can be taken. [top]
I've Never Paid!
The Spanish authorities do not pursue tax due that is over four years' old. As the Spanish tax year is the same as the calendar year, and as this tax is paid a year in arrears, this means you would now need to submit forms for 2019 (or your year of purchase) 2020, 2021 and 2022 to bring the position up to date. If you wish to do this, please indicate on our order form. [top]
What happens if I do nothing?
If you do nothing, you are breaking the law. It is possible, of course, that you could get away with it for a time. However, the Spanish authorities retain records of all properties in Spain and will investigate cases where no returns are filed for an individual property. You may be aware that several thousand warning letters have been issued to holiday homeowners indicating the beginning of an enforcement initiative. These were followed by further letters and, in some cases, the sequestration of bank accounts. The authorities have various powers of prosecution and enforcement, including fines and the freezing of bank accounts, and have formally declared this as one of their priorities. In addition, the historical records are checked when and if you seek to sell your property. So any unpaid tax will also cause problems with prospective buyers and affect your ability to sell. It will also mean that you will not be able to claim back 3% of your sale proceeds from the Spanish authorities. Although 2023 tax is due currently, it is also possible to pay previous years' unpaid taxes now to avoid enforcement action. If you wish to do this, please indicate this on our order form. [top]
What taxes do I have to pay?
You pay non-residents' tax for days that you do not receive any income from your property. This is paid in the following year so, for instance, non-residents' tax for 2023 is payable this year (2024). You pay income tax on rental income. This is paid immediately at the end of any quarterly period so, for instance, income tax due for July - September must be paid by 20 October and so on or you can pay it annually every January for the previous year.. If you pay income tax for any period, this reduces your non-residents' tax in the following year - i.e. you only pay one tax, income tax or non-residents' tax, for any period. [top]
Our property is in joint names, does that mean two forms?
Yes, two forms are required splitting the tax 50/50. However, our charge is per property, not per form. [top]
How Much Will My Tax Be?
If the property is not let, non-residents' tax is based on the cadastral value and the date this was last reviewed in your municipal area. We calculate your exact liability for you as part of our service. Your tax bill will about 105 or 190 euros (depending where it is) for a full year for a property with a cadastral value of around 40,000 euros. The non-residents' tax liability is based on the cadastral value, not the market value. [top]
How Do I Pay My Tax?
Simply by taking the forms into your bank. There is no need to employ expensive fiscal representatives, gestors or lawyers in Spain to do this. We calculate your tax liability and prepare the form for you. You then just take the form to the bank to pay. If you prefer, we can also arrange payment of the tax for you for a fee of £15 pp (see below). [top]
I'm Not Going to Spain Again this Year, How Do I Pay?
We can present the forms for you, pay the tax and send you the receipts for a charge of £15 per person.
I Have Not Let Out My Spanish Property.
Unfortunately, you still have to pay non-residents' tax. However, if you do not need to declare rental income, we can calculate your tax liability and prepare your tax return for just £34.95. Please complete our order form now. [top]
I have Received Rental Income
If you receive rental income, you need to pay income tax on your gross income (unless you live in the EU). This is paid at the end of the quarterly period during the year in question or (from tax year 2024 onwards) can be paid at the end of the year. Income received between January - March can be declared on a tax return by 20 April, income received during April - June should be declared by 20 July, and so on. We can also prepare these returns for you (and pay the tax if required). Our fee to generate income tax forms is £39.95 per property. In the first instance, please complete our order form below, and we will then have an email exchange with you to collect the required information.
Shall I apply for “residencia”?
There is a lot of confusion about this. Residency in Spain, “residencia”, has no impact on your tax status. You tax status is determined solely by the number of days you spend in Spain in the year. It is not something you can choose. If you spend less than six months of the year in Spain, you are a non-resident for tax purposes. If you spend more than six months, you are a tax resident and would then need to declare your world-wide income and pay all your taxes in Spain. [top]
I Still Have Questions
If you have other enquiries, please contact us, and we'll see if we can help. [top]
