Non-resident Taxes in Spain

The mystery holiday home tax! Don't put your assets at risk

Urgent tax update! November 2011

The Spanish Tax Authority have sent out letters to over 300,000 owners of Spanish property who have not made a Spanish tax declaration in 2007, 2008 and 2009.

The letter is notification that non-residents who do not make the annual declaration should rectify this in order to avoid further investigation taking place.

Non-residents should be aware that letters will be delivered to their property in Spain and that the deadline for non-resident tax declarations is December 31^st.

Click here for more information about the Spanish Tax Authority’s Anti Fiscal Fraud Plan.

What must I pay?

You must pay for each property:

• Local Taxes (Council Tax, IBI)
• Government Taxes (Income Tax)

Local Taxes

These taxes are paid directly to your Town Hall or via the SUMA offices. They are a form of Council Tax.

Government taxes

These taxes are paid to the Agencia Tributaria (Tax Authority). They are an income tax on your property. You must pay income tax whether you rent out your property or not.

This means that all Spanish holiday home owners should be paying at least 2 taxes. Do not try to avoid these, they may be lower than you think.

What happens if I don’t pay?

Tax evaders have:

• Fines to pay
• Bank accounts embargoed
• Property embargoed

The Spanish Tax Authority sends notification of any outstanding taxes to your house in Spain. If you do not act upon this notification then it can lead to embargoes being applied.

It is a different system and it can be confusing. That’s why we have developed two solutions to help you:

Want to speak to someone? Request a call back from our Customer Care department to receive advice from someone who speaks your native language.