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

You need to appoint a fiscal representative to file the forms on your behalf and receive any notifications from the tax office. The form to assign a fiscal representative is the number 030, which can be filed online if your fiscal representative has a digital certificate from the fnmt. http://www.cert.fnmt.es/

Before buying property in Spain you have to apply for a NIE number (Numero Identificacion de Extranjeros or Foreigners Identification Number).  This number must be used on all tax returns and communications.  It can be obtained 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 expires.

All NIE numbers MUST be inscribed at the local tax office. Form to inscribe them 030. You will need to provide a copy of the current NIE and passport, plus either a power of attorney naming your fiscal representative or the representation form which you can find in the tax office website.

When a property is owned by a married couple or various individuals, each person is treated as different entity, hence an individual tax payer and must therefore file returns separately.

Depending on what the property is used for, the income tax is subject to the following:

1) Own use Urban Property/Rural property: (Plots of land are not tax).

The income to be declared 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 property whose cadastral value was revised recently (Almuñecar and Salobreña for example) or modified after 1 January 2005.

This income is chargeable once per year, on 31st December.

If you have not owned the property for the entire year or if it was leased for 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 place where the property is located.

Tax rate: 19,50%, as from 12.07.2015. Till 11.07.2015 tax rate was 20%. As from 2016 the rate will be 19%. (The taxes are paid in arrears so now we are filing year 2015 using 19,50% rate in most of the cases). Residents in EU, Iceland and Norway.

Residents in other countries tax rate in 2015 and 2016: 24%.

If the property has been leased, you can deduct the number of days in order to calculate the tax to be paid.

2) Leased Urban Property:

The income to be declared in this case is the total amount collected from the tenant, after deducting expenses. (You only can deduct the expenses depending on the number of days that the tenant has use the property). For example, the electricity bill has to be divided between 60 days if the payment is done every 2 months and multiple by the number of days that the booking is referred to.

Tax rate:19% in 2016 rentals. Residents in EU, Iceland and Norway and 24% for the rest of the countries.

Each rent due is taxed separately and, consequently, a return must be filed 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 month 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 place where the property is located.