Non-resident property tax in Spain, what is it and what is the right way to do it?

Every owner of real estate in Spain who is not a fiscal resident is annually required to pay non-resident tax, which, unlike IBI, is calculated and paid independently. We emphasize that payment “Impuesto de No Residentes” depends entirely on whether the payer has submitted a completed declaration in form 210 or not, and failure to pay such tax entails both a fine and a penalty (75 Euros and 15%, respectively), as well as problems in extending a residence permit.

Property tax for non-residents in Spain

The most common category of taxation for non-residents is payment for the use of their real estate, whether for their own needs or when renting out. In this article we will look at both categories.

CATEGORY 1: USE OF THE ACCOMMODATION FOR YOURSELF

When using housing exclusively for one’s own needs (that is, without deriving additional profit from renting out), a tax rate is subject to payment, calculated as follows: 1.1% of the cadastral value is calculated (and if the last revision of the cadastral value took place more than 10 years ago, then 2%), and 24% is taken from this amount. If there are several owners, then declarations are submitted for each separately (with payment of their share of the total amount). Filing period: during the calendar year following the reporting year. Having generated the declaration, it must be printed and paid to the bank, which notifies the tax office of the fact of payment

CATEGORY 2: REAL ESTATE FOR RENT

When transferring housing for short-term rent (less than a calendar year), you must declare your income trimesterally (by the 20th day of January, April, July and October, respectively) with payment of 24% of the profit received for owners from outside the European Union and 19% for EU members. The latter also have the right to underestimate the tax base by the amount of expenses incurred for the maintenance of real estate.

I HAVE REAL ESTATE IN SPAIN, HOW IS IT LEGAL AND PROFITABLE TO RENT IT OUT?

The transfer of tourist housing for seasonal rental is associated with a complex process of fiscal reporting (from determining the tax representative to the timely and correct filing of declarations). Also, do not forget about the possible risks associated with the tenant of your property in Spain; control is necessary, both before and during the rental period. When carrying out this activity, we advise you to trust the professionals. “ARCODOM” - department for the sale and rental of real estate of the architectural and construction company “Arcostec Group” has a highly qualified team with many years of experience in the field of taxation and sale of real estate in Spain, and also cooperates with leading specialists in jurisprudence and Spanish legislation. Free consultations without an appointment - arcostec.es

TOURIST RENTAL LICENSE, WHAT IS IT?

In order to legally rent out your property in Spain, you must issue a “licencia de apartamento turístico” or a tourist license for a property for rent. To do this, you need to submit a certificate for re-occupancy (analogous to the Russian certificate of technical conformity), along with documentation confirming ownership, to the Ministry of Tourism of the relevant province. Separately, we would like to note that this procedure is not subject to any state tax.

We are engaged in the implementation of architectural and engineering projects. Our company is a specialist in construction, architectural design, interior and exterior design, design and installation of utility networks and installations, technical examinations, measurements, as well as certificates of technical compliance. We are located in Torrevieja, Punta Prima area. We work in Torrevieja, the coast of Orihuela as well as Guardamar, Alicante.

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