CASE STUDY Non- Resident Tax

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Posted and filed under Case Study, Taxes in Spain.

We recently received this question:

“Hi, What documentation is required to complete our non-resident tax returns? And what is it? Many thanks”

Our response:

If we have not done them before, we need your Spanish deeds of your property, your latest SUMA (IBI) bill, and copies of your passports and NIEs. You can scan and email these to us. Non-Resident tax is the commonly used term for the tax on Non-resident Spanish property owners. Many people do not realise that regardless of whether or not their property in Spain is rented out, they have to pay tax individually each year.

When a property is owned by a married couple or various different people, each person listed on the Title Deeds is defined as an independent taxpayer, which means that an individual tax return must be separately filed by each of the co-owners.

If the property is only used by the owner and not let, the tax is based on an estimated income of the property´s cadastral value.

The Return has to be presented and paid by 31st December each year, for the previous calendar year, so a year in arrears. If the property is rented out, this tax is payable, but also a separate tax based on rental income.

Our colleague Ana on office@spanishsolutions.net  can help with this.

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