Non Resident income tax

This topic contains 9 replies, has 9 voices, and was last updated by  una 1 month, 3 weeks ago.

  • Author
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  • #217660

    beechwood
    Participant

    Hi All,
    Hope someone could possibly clear up a question for me, iknow you have to make an annual return(210) with payment in arrears I purchased a property in July do I have to file a return by the end of this year or can it be done for the end of next year, much appreciated

  • #217710

    mh
    Participant

    Good to see you are an honest property owner! Many Brits do not pay, hoping the Spanish Government will not catch up with them. (Would they do this back in Blighty?)

    You have until the end of the NEXT tax year to pay your imputed income tax. So, you have until 31 December 2018 to pay the imputed income tax for 2017. And in your case, having just bought the property, you pro rata the tax calculation for the number of days you actually owned the property in 2017.

    This is all clearly explained on the website of Agencia Tributaria (and in Spanish English!).

  • #217715

    Pazza
    Participant

    I have used http://www.spanishtaxforms.co.uk for the last 10 years. They will calculate and prepare the Modelo 210 forms for you, for just under 30 pounds (www.spanishtaxforms.co.uk/spanish-property.html).

    I find the owner John to be very helpful and if required they will even submit the forms for you in Spain for an additional payment if you are not going to be there.

    Saludos
    Paul

  • #217719

    mh
    Participant

    The system on the Agencia Tributaria website is so simple – and in English – that I would not pay anyone £30 to make the submission.

    https://www.agenciatributaria.gob.es/AEAT.sede/en_gb/procedimientoini/GF00.shtml

    Everything is here: process, online calculation etc. If it takes more than 5 minutes, I would be very surprised. These people are 20x more helpful than HMRC!!

     

    • #218166

      una
      Participant

      Yes but how to calculate? What expenses do we deduct? Getting someone to do it ie like an accountant or similiar, is better than getting into trouble for paying too little. Or paying too much, worse still. I do my tax returns in UK myself online but I know the UK rules. It is not so easy in Spain, you get told differnet things. Like one says do it every quarter and now it seems from reading on here we can add it all up and do the reuturen annually. I have just applied for my tourist licence – awaiting that at the moment. But once i get that and start renting out, I need to know when and how to pay the rental tax.

  • #217884

    Argyle3090
    Participant

    I appreciate the honesty that the Spanish politicians are being short sighted in discriminating against Non EU Residents by denying them the ability to offset expenses against Income as they are promoting Tourism!
    I wonder if I created a foreign company and transferred the property to this company would the Spanish Authorities would be allowed to deny this company the ability to deduct expenses in the same way they can with individual landlords?

  • #217890

    mscholder
    Participant

    I was interested in purchasing real estate in Spain to use a few months per year and then rent it out to help cover expenses. I was shocked to learn about the 24% gross rents tax for non-EU residents. I am an American and to my knowledge the Federal and state governments in the US only tax the profits, not the gross revenues, from real estate or other business investments whether you are a US citizen or foreign investor (there may be some withholding arrangements to ensure that foreigner do pay their taxes). Virtually no US real estate investment could be economically justified after applying a 24% gross rent tax. Based on an older book by a British law firm on Spanish tax laws I saw, it appeared that individual ownership by non-EU residents was the least costly arrangement and the use of corporations, trusts or other domestic or foreign legal structures actually added additional taxes or costs. I would also be very interested to learn whether there was some bona fide ownership arrangement for non-EU residents that could reduce or eliminate 24% gross rent tax.

  • #218112

    Rofa
    Participant

    This is a tax that continues to baffle me. There should be no difference between the treatment of EU citizens and Spanish ones, resident or not. I thought this was clearly established when it came to inheritance tax. Or am I missing something here?

  • #218116

    philocd
    Participant

    Rofa,

    The discussion seems to be about Spanish taxation as applied to Non-EU residents.

  • #218117

    Nuffy
    Participant

    I have submitted my first tax return for rental income and expenses. My Spanish accountant advised that i could do this at the end of each financial year. Therefore my first tax return was submitted before January 15th 2017 for tax year ending December 31 2016.

    This year i am doing it again and am providing the accountant with invoices and income figures for the year ending December 2017. I have more rental income and again he is advising that this is lumped into one sum and submitted with expenses in one tax return before January 15th (or is it 20th) 2018.

    However I have been reading stuff from SPI and other links and realise that i should be submitting tax returns each QUARTER in which i have received income.

    Ummm, any advice from anyone out there?

    Thanks

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