This non-resident tax issue can be confusing. Why should owning a holiday home entail paying income tax? There is no equivalent in the UK, and no one from the tax office informs non-residents of their obligation to pay the tax and submit the form. In fact, a lot of holiday home owners are oblivious to the requirement or think they have already paid.
This is because they have paid local property taxes: Impuestos sobre Bienes Inmuebles (“IBI”). But IBI is another tax that has to be paid by all property owners, residents and non-residents alike.
So if you are a typical holiday home owner, the question to ask yourself is have I paid both my local (IBI) taxes to the town hall and my tax to the national government (Form 210)?
Another thing to keep in mind is tax for rental income. Are you Non-Resident in Spain and earning an income from renting your property?
Did you know that you should be declaring and paying tax on that rental income on a quarterly basis?
A new legislation has come into order for your rental agents, they are obliged to inform the authorities that the property is being rented and of the tenants details. This means that the Tax Office will be able to trace any Non-Residents that aren’t declaring and paying tax on their rental income.
We offer a fiscal contract to take care of the preparation of your annual or quarterly non-Residents taxes.
Come and see us for more information.