Completing and Presenting the
Non Resident Income Tax Return (210 form) for Uk Residents with a property in Spain
PSP LAWYERS, with over 15 years’ experience, specialises in completing and submitting the Spanish tax form (‘modelo 210’) to the Spanish tax agency on behalf of UK residents and those who are under a dual taxation agreement with Spain. In order to fill it out on your behalf, pay the fees and send you the receipts, you merely need to complete our form indicating the service that you require.
Who does this service cater to?
Companies wishing to offer this service directly to their customers on a business-to-business basis
Spanish property owners, who are required to file a return on assumed or actual rental income
Shareholders profiting from the sale or disposal of Spanish shares
Shareholders wishing to reclaim Spanish withholding tax on dividends, in part or whole.
If you are a non-resident, you are subject to personal income tax (including capital gains tax), property tax, plus an additional non-resident property tax. Personal income tax for non-residents solely represents income from the property; income from salary is declared in your country of residence. If the property is for your own use, you must pay a certain percentage on the value of your property; if the property is rented out, you must declare the rental amount received.
All non-resident property owners in Spain are required by law to submit a non-residents’ tax return each year whether they rent out their property or not. The filing period is from January 1st to December 31st of the following year.
What can we do for you?
We offer personalised and exclusive tax advice by top professionals. We calculate your tax liability, obtain and complete the appropriate tax form(s) and email or post the completed forms to you. You then simply have to present the forms at the bank, or we can submit the forms for you, pay the required tax and send you the stamped copies. Please indicate the service you require when completing our form.
How do I find my rateable value?
Your tax liability is calculated by reference to the rateable or property tax value of your property. This “valor catastral” is equivalent to the UK rateable value. The total rateable value (“valor catastral total”) for the year in question is the figure we require. This is made up of two elements: the land value (“valor catastral suelo”) and the built property value (“valor catastral construccion”). It does not relate directly to the purchase price or market value of your property. The rateable value will be shown on your council tax bill or receipt (known as “IBI”, and it will normally appear on it as “valor catastral/base imponible”. If you do not have this document, your local Town Hall (“Ayuntamiento”) will be able to help, as can your bank if you have set up a direct debit. Alternatively, if you have previously used a fiscal representative, they may have the information. If the property is newly built, and a rateable value has not yet been determined, your income tax liability is calculated based on a formula using half of the purchase price (deed value) excluding VAT.
Why do I need to submit a tax return?
Spanish law requires that, if you own a property in Spain, you must submit an income tax return for the previous tax (calendar) year. You must pay a certain amount of tax – even if you do not rent out the property or receive any income from it.
I have never paid
The Spanish authorities do not pursue tax beyond four years. As the Spanish tax year coincides with the calendar year, and as this tax is paid a year in arrears, this means you would now need to submit forms for 2012 (or your year of purchase), 2013, 2014 and 2015 to bring yourself fully up to date. If you wish to do this, please indicate so on our form.
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. 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, historical records are checked if and when you seek to sell your property. So any unpaid tax will also cause problems with prospective buyers and affect your ability to sell. In addition, it will mean that you will be unable to claim back 3% of your sale proceeds from the Spanish authorities. Although tax for 2015 is currently due, it is also possible to pay previous years’ unpaid taxes now to avoid enforcement action. If you wish to do this please indicate so on our form.
What taxes do I have to pay?
You pay non-residents’ tax if you do not receive any income from your property. This is paid in the following year so, for instance, non-residents’ tax for 2015 is payable this year (2016). You pay income tax on net rental income (i.e. income after expenses). This is paid immediately at the end of any quarterly period so, for instance, income tax due for April – June 2016 must be paid by 20 July 2016 and so on. 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 given period.
Our property is jointly owned, does that require two forms?
Yes, one form is required for each owner.
How much will my tax be?
If the property is not rented out, non-residents’ tax is based on the rateable value and the date this was last reviewed. We calculate your exact liability for you as part of our service.
How do I pay my taxes?
Simply by taking the forms into your bank. We calculate your tax liability and prepare the form for you, which you then just have to take to the bank. If you are not in Spain, we can present the forms for you, pay the tax and send you the receipt. Prior to this, we will provide all necessary advice.
My Spanish property is not rented out
Nevertheless, you still need to pay non-residents’ tax, even if you do not need to declare rental income from your property. We can calculate your tax liability and prepare your tax return. You merely need to fill out the form.
I have received rental income
If you receive rental income you need to pay income tax on your net income (i.e. income after expenses). This is paid at the end of each quarterly period during the year in question. Income received between January – March should 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).