The purpose of this post is to clarify the tax obligations that natural or legal persons NOT residing in Spanish territory have in Spain who own a property located in Spain.
CASE 1: I am the owner of a property in Spain and I use it for my own use and enjoyment
In this case, you would be obliged to pay taxes in Spain. Said taxation would be carried out through the presentation of an annual model 210 (each year) in which the taxable base would be 2% of the property's cadastral value or 1.1% in the case of properties with a revised cadastral value in the last 10 years. To said tax base, 19% or 24% will be applied depending on whether you are a resident of the European Union or not.
The deadline to present the model 210 for the imputation of real estate income expires on December 31 of each year, with the expiration date for domiciliation (bank account) being December 23, in relation to the tax period of the previous year.
CASE 2: I am the owner of a property in Spain and I rent it throughout the year
In this case, you would be obliged to pay taxes in Spain. Said taxation would be carried out through the presentation of 210 quarterly models (every quarter).
- Residents in the EU. The tax base will be calculated taking into account income and deducting deductible expenses. 19% will be applied to said tax base.
- Non-EU residents. The tax base will be calculated taking into account only income. 24% will be applied to tax base.
The deadline to present this quarterly model 210 of real estate returns will be April 20, July 20, October 20 and January 20.
CASE 3: I own a property in Spain and I rent it for part of the year and use it for my own use and enjoyment for a few months
In this case, YES you would be obliged to pay taxes in Spain. Said taxation would be a combination of the two previous ones, having to present quarterly 210 models in those quarters in which you have leased the property and an annual 210 model of imputation of real estate income for the days that said property was not rented.
The maturities would be the same as in the two previous points.
What if my expenses are more than my rental income?
In this case, you will not be able to file the 210 quarterly return, but you will have to wait to file it in January of the following year (from January 1 to 20), as it results in a self-assessment with zero result.
What expenses can I deduct in the rent?
The expenses provided for in Law 35/2006, of November 28, on Personal Income Tax, provided that you can prove that they are directly related to the income obtained in Spain and that they have a direct and inseparable economic link with the renting of property. It should be noted that annual expenses such as IBI, garbage, home insurance, etc. must be deducted proportionally for the days of occupation of the property.
How can I make sure that I comply with all my tax obligations in Spain?
At Vega Asesores we are experts in the tax management of non-residents, do not hesitate to contact us and we will solve all your doubts.