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Non-resident tax and rental income tax for non-residents

If you are not a resident in Spain (non-resident) and own urban property, you are subject to Personal Income Tax, Property Tax and local Real Estate Tax.

Fiscal representative

As a non-resident, you need to appoint a fiscal representative in Spain. Your fiscal representative will file the forms on your behalf and will receive any notifications for you from the tax office. The form to assign a fiscal representative is the number 030. Your fiscal representative can file it online, if he has a digital certificate from the FNMT (https://www.cert.fnmt.es/).

NIE Number

Before buying property in Spain, a non-resident has to apply for a NIE number (Numero Identificación de Extranjeros or Foreigners Identification Number). This number must be used on all tax returns and communications. You can obtain it from the Directorate General of Police. Nowadays the NIE number is only valid for 3 months. But you won’t have to renew it, unless you need to do a transfer of ownership or sign any other documents at the notary office. The NIE will stay the same, even if it expires.

All NIE numbers MUST be inscribed at the local tax office. The form to inscribe them is the 030. You will need to provide

  • a copy of the current NIE
  • passport, plus either
  • a power of attorney naming your fiscal representative or the representation form, which you can find on the tax office website.

Which income taxes must non-resident property owners pay?

When a married couple or various individuals owe a property, the tax office considers each owner as a different entity. That means each owner is an individual tax payer and must therefore file returns separately. Depending on the use of the property, the income tax for a non-resident is subject to the following:

1) Own used Urban Property/Rural property (plots of land are not taxed):

The taxable income is the amount resulting from the cadastral value of the property, as shown on the Real Estate Tax receipt (I.B.I . or Impuesto de Bienes inmuebles, sometimes called contribución), in the following percentages:

  • 2 per cent, in general,
  • 1.1 per cent in the case of a property of which the cadastral value was revised recently.

The non-resident property owners must pay the tax for this income once per year until 31st December. However, if you have not owned the property for the entire year or if you have rented it for a part of the year, you must declare the corresponding proportion.

  • Tax return form: Form 210, using general section 210 and indicating income type 02.
  • Place of filing: the branch of the State Tax Administration Agency corresponding to the property’s location.
  • Tax rate: 19%. Residents in EU, Island and Norway – residents in other countries tax rate: 24%.

If you have rented the property, you can deduct the number of days in order to calculate the payable tax.

2) Leased Urban Property:

In this case, the taxable income is the total amount collected from the tenant, after deducting expenses. This means, you only can deduct the expenses depending on the number of days that the tenant has used the property. For example: You must devide the electricity bill between 60 days, if the payment is done every 2 months, and multipled by the number of days that the booking had.

Tax rate:19% on rentals incomes for residents in the EU, Island and Norway – 24% for all other countries.

Each rent due is taxed separately. Therefore, you must file a return for each tenancy agreement, even if it was only for one day.

  • Tax return form: 210. Ordinary return, using general form 210 and indicating income type 01.
  • Filing period: for ordinary returns (form 210), within the first 20 calendar days of the months of April, July, October or January following the first, second, third or fourth calendar quarter, respectively.
  • Place of filing: the branch of the State Tax Administration Agency corresponding to the property’s location.