Buying your Spanish property involves paying some taxes. But, what happens after you become the owner of a home in Spain? Are you wondering if there is any other tax to settle afterwards?
Here you have an outline of the main taxes that you should expect every year.
The Income Taxes are collected by the “Agencia Tributaria” (the Spanish equivalent to Inland Revenue). Depending on how much time you spend in Spain, you will have to file for:
- Resident Tax (“Impuesto sobre la Renta de las Personas Físicas”), or
- Non-Resident Tax (“Impuesto sobre la Renta de No Residentes”)
Citizens who reside in Spain for 183 days or more per year are considered “Resident for tax purposes”.
Those who spend here less than 6 months per year are considered “Non-Resident for tax purposes”.
What the Spanish Tax Agency considers is the total amount of days per year, whether this lapse of time is sequential or not doesn’t matter.
1. RESIDENT TAX (I.R.P.F.)
Residents in Spain must file for I.R.P.F. on a yearly basis, usually between April and the end of June. They have to submit a declaration about the income they received on the previous year, comprising: salaries, pensions, rental incomes, interests of bank accounts or deposits, etc.
Incomes perceived in other countries must also be included in this declaration. Besides the I.R.P.F. declaration, some people must also submit an “Assets Abroad Declaration” (Form 720) before the end of March.
For more information about this additional Declaration, you may also read:
2. NON-RESIDENT TAX (I.R.N.R.)
The Non-Resident Tax in Spain is quite confusing for foreigners. On the one hand, often there is no equivalent for this tax in their own countries. On the other hand, “Hacienda” does not send any notifications. Compliance is, however, quite important, since the tax inspectors are now carefully checking cross-data and requesting payment in arrears of the past-due Non-Resident Taxes.
Non-Residents who own a property in Spain must file for I.R.N.R. before 31st December every year. This Non-Resident Tax is paid a year in arrears. For example: by the end of 2019, you must submit “Form 210” for I.R.N.R. year 2018.
The amount of the tax and the requested information may vary, depending on whether you rent out your property (rental income) or not (imputed income). Also, there are additional quarterly declarations to submit by the owners who rent their Spanish property for short terms.
We know that this sounds very complicated, so we advise you to ask your fiscal representative to do it on your behalf.
COUNCIL TAX (I.B.I.)
Property owners in Spain must file for the “Impuesto de Bienes Inmuebles” (I.B.I.) on a yearly basis. Being a Resident or a Non-Resident is not relevant for this local tax: if you own a property (house, local, parking space, etc), you must file for I.B.I.
The amount of I.B.I. and the payment date may vary from one town to another, so you should check with your Town Hall. To keep you up to date about tax deadlines, we usually post information on Facebook
To comply with your fiscal duties in Spain, remember that you need to be registered with the Spanish Tax Authority and to have your N.I.E. (Foreigners ID Number).
LS Solicitors provides fiscal representation for national and international clients. Our dedicated team will be happy to assist you with the Spanish Taxes. Make sure that you comply in time with all your fiscal duties in Spain: contact us at firstname.lastname@example.org