Nonresidents services

 

Initial Report

•Study of your fiscal situation, in relation to your activity and/or assets in Spain

•We calculate your taxes for this year

Main Services

•Professional advice regarding your fiscal obligations

•Filing of income tax returns

Key advantages

•You have a 100% online access to our services

•You will be seen to by experts

Wherever you are

•You can book an online meeting straight away

The way in which natural or legal persons must pay income tax in Spain is determined by whether they are resident or not of the country. Residents pay through Personal Income Tax (IRPF) or Corporation Tax (IS); however, non-residents, both natural and legal persons, pay tax through Non-resident Income Tax (IRNR).

Who is a resident?

Natural persons (private individuals) are considered to have their usual place of residence in Spain when any of the following circumstances apply:

•They remain in Spain for more than 183 days of the calendar year.

•The centre of their family/ economic activities is located, directly or indirectly, in Spain.

Non-resident natural and legal persons will be considered non-resident income taxpayers insofar as they obtain income in Spanish territory

The most common income types obtained in  Spain by Nonresident Tax payers is the income obtained from “Urban Real Estate Assets”

According to Spanish law, natural persons that are non-residents who own urban buildings in Spanish territory, used for their own use rather than for economic activity, or vacant, are subject to non-resident income tax for the income obtained from these buildings.

The taxable base corresponding to the income obtained from urban property assets in Spanish territory will be determined according to Personal Income Tax regulations. For these purposes, income must be calculated as 1.1% of the rateable value of the building (2% if the rateable value has not been revised or changed since 1 January 1994).

The Taxable base will be calculated without deducting expenses of any kind. The tax rate is 24% (24.75% from 1 January 2012 until 1 December 2014, inclusive).

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Personal Tax in Spain

Wealth Tax

 Impuesto sobre la renta de las personas físicas/IRPF is a direct tax levied on the income of individuals.

The individual’s income may come either from work as an employee or by means of self-employment — development of a business or professional activities.

Taxable income is determined as the difference between the income earned and the expenses that are deductible according with the Spanish law.

At the moment, only those individuals earning more than EUR 21,035.42 a year in Spain are obliged to make the income tax declaration. Declarations above this amount carry a progressive tax structure.

The tax period coincides with the calendar year.

This tax is assessed differently for residents and non-residents in Spain

Non resident income Tax

For property for own use, the estimated yield for this tax is established as follows:

  • In general, 2% of the building’s assessed value (Valor Catastral), which appears on Property Tax (Impuesto sobre Bienes Inmuebles, IBI) receipt.
  • In the case of properties for which the assessed value has been revised or modified after 1 January 1994, the percentage will be 1.1%.

This yield is calculated once per year, on 31 December.

  • Tax rate: 24%.
  • The tax sum, therefore, will be the result of applying the corresponding rate to the estimated income

  The amount to declare is the entire amount received from the tenant, without deducting any costs.

This amount is understood to have become liable for taxation at the moment that it is demandable by the lessor or on the date that it is collected, if this is earlier. Tax is charged separately on each amount accumulated and, therefore, a tax return must be made for each amount accumulated.

 When to file the tax return: If it is an ordinary tax return (form 210) the period is one month from the date of accrual of the income. If it is a joint return (form 215) for a quarter, within the first 20 days of the months April, July, October and January, for the quarter immediately prior to this month.

Where to file the return: With the Branch of the Tax Agency or Administration belonging to the Tax Agency responsible for the area where the property is located.

Tax rate: 24%.

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