Annual
Tax Return for Non-Residents
With
regard to one’s annual tax return, it must be remembered that the onus is on
the tax payer to ensure that they submit their return and pay the amount due
within the set timescales, to avoid being fined. Rest assured that if tax due
is not paid, it will continue to accrue, along with penalty interest and fines,
and will have to be paid eventually. There is no escaping the tax man!
Individuals
who are deemed to be non-residents of Spain for tax purposes should ascertain
into which category they fall, to ensure the submission of the correct form(s)
to the authorities. Forms may be obtained from the local tax office, details of
which can be found in the business directory, under ‘Government Offices’.
One
other important point to note is that you need to obtain a sheet of stickers,
known as ‘etiquetas’, from your local tax office. These have your personal
details on them, along with a bar code, and are affixed to the tax returns,
thus identifying you to the tax authorities. To obtain them, a simple
application form is completed, along with providing proof of your NIE number.
Occasionally, sight of your passport may be requested, so it is a good idea to
take it along with you just in case.
NOTE: Spanish wealth tax has been abolished with effect from 1st January 2008, meaning that declarations made in 2008 relating to the tax year 2007 will be the last ones to include the Spanish wealth tax liability.
Which
form do I need?
1) I own 1 property, which I do not rent out. Form
214, presented before 31st December for the previous calendar year.
2) I own more than 1 property, which I do not rent
out. Forms 210 and 714, presented before 30th June for the
previous calendar year.
3) I own 1 or more properties that are rented out on a
monthly basis. Form 210, presented each month and Form 714,
presented during June for the previous calendar year.
4) I own 1 or more properties that are rented out on a
quarterly basis. Form 215, presented each quarter and Form 714,
presented during June for the previous calendar year.
Further explanation of these forms can be found below.
|
Type
of Tax
|
Description
|
Spanish
Name
|
Form
No.
|
Rate
|
Date
Due
|
|
Income tax for non-residents who do not
rent out their property (standard declaration)
|
You pay this version of
income tax in Spain if:-
1) You own property in
Spain, but are non-resident.
2) The property is
exclusively for personal use and you do not rent it out.
3) You have no other
source of taxable income in Spain.
|
Impuesto de la renta de no
residentes, declaración ordinaria (INRN)
|
210
|
Tax base: 1.1% of the
cadastral value (or 2% if the cadastral value has not been subject to revision
or modification since 1st January 1994).
Tax rate: 25% of the
above figure, e.g.
Cadastral value of €150k x 1.1% = €1650 x 25% = €412.50 to pay.
|
Presented anytime before
the 30th June each year for the previous calendar year.
|
|
Wealth tax
|
A tax on property owners based on the net value of all assets in Spain. The tax is calculated on the
value of your property or properties, less any mortgage or another value
deemed appropriate by the tax authorities.
|
Impuesto sobre el Patrimonio (Patrimonio)
|
714
|
The
tax rate works on a sliding scale with rates starting at 0.2% and rising to
2.5% for assets worth over €10.7m.
|
Presented
during June for previous calendar year.
|
|
Income tax for non-residents who do not
rent out their properties, combined with the Wealth tax-single
declaration.
|
This
is a combination of forms 210 and 714 and can be used if one meets the following
criteria:-
1)
You do not reside in Spain.
2)
You only own one property in Spain and it is exclusively for personal use and
not rented out.
3)
You have no other source of taxable income in Spain.
|
Impuesto de la renta de no residentes y Patrimonio (INRN y Patrimonio)
|
214
|
The combined amounts of
the above two taxes.
|
Presented at any time before
31st December each year for the previous calendar year.
|
|
Income tax for non-residents who rent out
their property.
|
A tax on
the rental income derived from your property rather than the Income tax
described above.
|
Impuesto de la renta de no residentes, declaración ordinaria (INRN)
|
210
or 215
|
25% of the gross rent,
with no deductions allowed.
|
210 is submitted monthly,
one month after rent is due.
215 is quarterly, in the
first 3 weeks following the end of the quarter.
|
Annual
Tax Return for Residents
This is a
much more complex area, largely due to differing individual circumstances and tax
being due on world-wide assets, coupled with a variety of deductible
allowances. For this reason, it is imperative that specialist advice is sought.
Please refer to the business directory for details of solicitors, accountants
and tax advisors, in the Province of Granada, to assist you in managing your
tax affairs in Spain.
|
