Calling property owners in Spain: Non residents income tax returns due soon

Anyone who purchased a property in 2023 or before and is not a Spanish tax resident will be due to submit their annual non residents income tax return before 31 December 2024. Patricia Ruiz from My Lawyer in Spain explains more...

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Malaga

Thursday, 21 November 2024, 21:04

Anyone who purchased a Spanish property in 2023 or before and is not a Spanish tax resident will be due to submit their annual non residents income tax return before 31.12.2024.

What is the non residents income tax?

Known in Spanish as the Impuesto sobre la renta de no Residentes. In effect it is a tax on individuals who own a property in Spain and is payable even though there is no income!

If you spend more than 183 days a year in Spain between 1 January and 31 December then you are generally considered a Spanish tax resident and this tax does not apply to you.

How is this tax calculated?

This tax is based on the estimated income of 1.1% of the properties cadastral value (or 2% if the cadastral value has not been subject to revision or modification since 01.01.1994) and the applicable tax rate is 19% for EU citizens and 24% for non EU citizens. You can see the catastral values from your invoice from the Town Hall for annual rates.

The tax payable varies on whether or not the property is rented and an income is being obtained. If you have rented your property then you will be obliged to submit annual returns and pay tax on the income. EU tax residents can deduct the proportional costs involved in the rental such as professional management services, water, electric, insurance and community fees, whereas non EU tax residents cannot deduct these costs.

We can assist you with the annual Non Residents Income tax return and require the following documents in order to submit it:

• Copy of owner(s) passport(s)

• Copy of owner(s) NIEs

• Copy of escritura (deeds) or a land search

• Copy of town hall rates (known as IBI)

• If rented, details of income and rental costs incurred

If you would like assistance with the non residents income tax return, please email enquiries@mylawyerinspain.com or call us on 00 34 951 203 094

MORE INFORMATION

Urb. Pueblo Evita, Avenida de las Palmeras s/n Local 7, 29630 Benalmádena Costa (Málaga).

Website: www.mylawyerinspain.com

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