Non-resident income

  1. How do I know if I’m a tax resident in Spain or not?

    Generally, if you are in Spain for less than 183 days per year, you are not considered a resident for tax purposes. However, there are exceptions. For instance, if your spouse and children live in Spain. Or if the Spanish tax office believes that your core economic interests are in Spain, although this is difficult to determine. If you are unsure of your tax liabilities you can also arrange a personalised report with our tax advisors. This is a separate service. We will offer it to you once you complete the form.

  2. Do I have to pay taxes if I don’t intend on renting out my property? What about if I only use it for holidays?

    That’s right. Even if you aren’t renting out your property, you’ll still have to pay what is known as allocated property income. By owning an empty or unused property, other than your ‘primary residence’, and deciding to not rent it out, the Spanish tax authorities consider that you could rent it out and generate income. Therefore they quantify this option for a certain amount and require you to pay tax on it. If your property has been empty or used by you, a friend, or a relative for free, this would lead to an income allocation and you’ll have to pay tax.

  3. I haven’t been able to go on holiday to my property this year. Do I have to pay taxes?

    Yes. The Spanish tax office makes no distinction on this matter. You have to pay taxes for allocated income.

  4. How is non-resident tax calculated?

    If the taxpayer is a citizen of a European Economic Area (EEA) country the rate is 19%. If not, it will be 24%. This rate is applied on the taxable base and will vary depending on whether you are declaring income obtained from renting out the property or for the income allocation.

  5. If a property has more than one owner, do I have to file more than one tax return?

    Yes, each owner must file their own tax return. Even if they are married.

  6. I own multiple properties, how many tax returns do I have to submit?

    You’ll have to file a tax return for each property you own in Spain.

  7. How can I pay my taxes?

    By contracting our services you will not have to worry about anything. We will arrange the direct debit for your tax payment. We’ll let you know in advance so you can make sure you have the necessary funds in your bank account. On the other hand, if you decide to file your taxes on your own you can make the payment through one of the banks that work with with the Spanish tax office.

  8. I’ve sold my property, do I still have to pay non-resident tax?

    Yes, you’re required to pay tax for allocated property income. This would amount to the number of days the property was in your name without being rented out, up until the date it was sold. Regardless of any other taxes that you’ll have to submit, such as those related to the sale itself.

  9. What happens if I don’t pay my taxes?

    If you don’t pay your taxes you would be breaking the law. Even if you live in a different country. It is likely the Spanish Tax Office will begin a verification process and you’ll face surcharges and penalties. These will accumulate until you settle your tax situation.

  10. Other than non-resident tax, do I have to pay any other taxes?

    Depending on your situation, it’s likely you’re liable to pay other taxes. After filling in the form, you can also request a tailored report from a tax consultant. This report includes a list of the taxes you may be liable to pay.