Tax need not be taxing …………….

Non-residents tax – what do I need to know?

What is it?

A sometimes little-known, annual tax based on your rateable (“catastral”) value which is stated on your SUMA bill and the amount you pay depends on when the property value was last revised. It is a tax paid to the State and is completely separate from the IBI (SUMA).

When is it payable?

By the 31st December in each year

Do I have to do anything about it?

Yes, it is a legal obligation to pay it, and if you sell a property and you have not been paying it, the tax office will claim back for the past 4 years plus interest and surcharges so it is advisable to “get your house in order”.

Who is classed as a non-resident?

People who are genuine non-residents (spending less than 183 days a year in Spain being the main indicator of this).

What happens if I also rent out the property?

You need to file quarterly returns of the rental income in the year in which the income is received. Allowance against the tax will be given for expenditure incurred (for electricity and cleaning services etc) provided these are backed up by a proper invoice (“factura”). For any quarters which are not let out, the corresponding proportion of the non-residents tax will be payable in addition. Remember that you are now also obliged to register with the authorities any property you rent out for tourist lets and any advertising must carry the registration number.

Is there anything else I should do?

It is also important, if you are a non-resident, to ensure that the Spanish tax office has a correct and up to date address in Spain for you. That way, there can be no missed deadlines, unwanted fines and interest charges.

Where can I get help with all of this?

Right here! Please ask for an appointment and one of our consultants will guide you through the process.

Express Legal Solicitors can help with all tax matters, in your language.

September 2018