Spanish Taxation on Non-Residents
All non-residents with property in Spain are obliged to submit annual tax returns. The deadline is 15th December following the end of each tax year. The return for 2017 must be submitted by 15th December 2018. the tax due will be direct debited from your Spanish bank account on the last working day of the year, so the tax payable for 2016 will be direct debited on 31/12/2017.
However, if you rent out your property quarterly tax returns are required.
If you do not make this tax declaration problems could arise at the time of sale. When you sell your property as a non resident, 3% of the sales price is automatically withheld from you and paid to the tax office. At this time the tax authorities may make a detailed review of the tax history of your property. If you have not submitted annual tax returns, this could result in penalties and other problems.
The taxable base is the cost of your property minus the mortgage on it. This figure is divided by the number of owners and the result is the net wealth of each owner. The rules vary between the different parts of Spain and for non-residents only apply to assets in Spain
Deemed Income Tax
This is the tax on the notional rental income on your property. It is calculated on the rateable value (Valor Catastral) of the property.
Please contact us if you require any further information or assistance.