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Non-resident property owners in Spain: Don't miss these key deadlines in December!
There are important tax deadlines you should know about before the end of the year
As 2024 draws to a close, non-resident property owners in Spain must understand and meet their tax obligations that are approaching in December and January. If you own a holiday or second home in Spain and use it for personal use or rent it out, it’s crucial to file your Modelo 210 tax returns correctly and on time to stay compliant with the Spanish tax authorities and avoid unnecessary penalties.
This detailed guide covers the essential tax responsibilities for non-resident property owners, upcoming deadlines and how IberianTax can make the process easier from start to finish.
Tax obligations for non-resident property owners
If you're a non-resident with property in Spain, you’ll need to understand the various taxes you're required to pay. Spain imposes a range of property-related taxes on non-residents, and familiarising yourself with each one will help you stay informed and compliant.
- Imputed Income Tax: This tax applies to non-residents who own property in Spain and use it for personal enjoyment or leave it empty. The Spanish tax authorities view this as potential income, even if you’re not generating rental revenue. It is calculated and paid annually and is based on the property’s cadastral value (a value assigned by the local government for tax purposes).
- Rental Income Tax: If you’re renting out your property, whether short-term or long-term, you must declare this rental income to the Spanish tax authorities. The tax rate for non-EU residents is 24%, while EU residents benefit from a reduced rate of 19%. This tax was previously required to be filed quarterly, however, recent changes now allow it to be filed annually, streamlining the process for property owners.
- Capital Gains Tax on property sales: When you sell property in Spain, you may be subject to Capital Gains Tax (CGT). Non-resident property owners must declare any profit from the sale of their property by submitting a Modelo 210 within 4 months of the sale date. The tax is based on the difference between the property’s sale price and its acquisition price, after accounting for expenses and improvements.
In addition to this, when you sell property in Spain as a non-resident, 3% of the sale price is withheld by the buyer and paid to the Spanish tax authorities as a guarantee against the capital gains tax liability. If the actual tax liability is less than 3%, or if you sold the property at a loss, you can reclaim the difference by submitting a claim to the Spanish tax authorities.
Local taxes
On top of national taxes like the Imputed Income Tax and Rental Income Tax, property owners in Spain are also subject to local taxes, such as the IBI (Impuesto sobre Bienes Inmuebles or Property Tax). This is a council tax based on the cadastral value and is used to fund local services. Additionally, there’s also the Basura (waste collection tax), which covers the cost of your area’s waste management services. These local taxes can vary depending on the location of your property.
Important tax deadlines you shouldn’t miss
As we approach December, there are some important tax deadlines you need to be aware of:
2023 Imputed Income Tax Deadline: 31st December 2024
Non-residents who own property for personal use or leave it vacant must file the annual Imputed Income Tax return by the 31st December for the previous year. Even if you don’t earn any rental income, this tax is mandatory, and failing to file on time could result in a fine.
The 2023 Imputed Tax return can be filed now – simply register for your free account at iberiantax.com
fill out their simple questionnaire and they’ll calculate and submit your taxes for you. Then you simply choose how to pay and that’s it, you’re done!
2024 Rental Income Tax Deadline: 1st – 20th January 2025
If you’ve rented out your property in 2024 (partially or fully), the Rental Income Tax must be declared between January 1st and January 20th, 2025. This applies to rental income earned throughout 2024 for both short-term holiday rentals and long-term lets and thanks to recent legislative changes, it is now filed annually instead of quarterly, making it more straightforward, but no less crucial, to stay on top of.
If you need to file a 2024 Rental Income tax return, you can access and pre-fill your Rental Income form now, so it’s ready to send in January! Just register for your free account at iberiantax.com and follow the simple instructions. They will then remind you when it’s time to complete the process and file.
Why choose IberianTax?
Getting to grips with Spain’s tax system as a non-resident can be complicated, especially if you’re not familiar with the regulations, but that’s where IberianTax can help. With years of experience and a focus on simplifying non-resident taxes, IberianTax provides a hassle-free solution designed specifically for property owners in Spain.
- Free registration: By signing up for free with IberianTax, you’ll gain access to a range of useful tools and resources. Use the tax calculator to estimate your liabilities, consult the help desk for any questions you have, and receive guidance from tax experts.
- Quick, simple and affordable: The platform allows you to file your taxes quickly and efficiently. The intuitive interface means you can navigate the entire process in just a few clicks, making tax filing stress-free. Prices start as low as €34.95, making it an affordable alternative to potentially expensive accountants or tax advisors. They’ve managed to save customers hundreds of euros on their non-resident tax returns!
- User-friendly platform: Available in English, German, and French, IberianTax’s platform gets rid of language barriers and simplifies that ever-confusing tax jargon. This ensures that even if you’ve never filed a tax return before, you can do it without confusion or complications.
- Safety and privacy: All personal data is securely encrypted, ensuring the privacy and protection of your financial information. IberianTax is also fully certified and approved by the Spanish tax authorities (Agencia Tributaria), giving you peace of mind that your tax filings are correct and compliant.
- Customer satisfaction: See what other customers have to say – IberianTax clients are their greatest supporters! With over 400 positive Google reviews, many from those who previously relied on accountants or are new to filing, IberianTax proves just how easy tax filing can be. Check out the reviews for yourself here. SEE REVIEWS
Register for free and get started!
Starting with IberianTax is a breeze! Just head to iberiantax.com and set up your free account. Once you’re registered, you’ll have access to our tax calculator, help desk, and an easy path to filing your taxes. Our step-by-step instructions ensure your returns are accurate and submitted on time, with no room for mistakes.
Act now before it’s too late!
With Imputed Income Tax and Rental Income Tax deadlines just around the corner, there’s no better time to create your free account with IberianTax and stay ahead. Filing early means you can avoid the last-minute rush and enjoy a stress-free festive season!
