Four Tips for Non Resident Property Owners in Spain

FOR TAX YEARS 2021-2022

Please take note of the following information:

1.- FOR ALL TAX PAYERS, information is requested about your Nationality, your residential address for tax purposes, your address in the country of residence (if different from your tax residential address), your date of birth and whenever applicable, your Tax Identification Reference/Code in the country where you reside. If details have not been provided to us before, then please let us know in order to send you a special form for this purpose.

2.- If a non-resident property owner has a property (or has a proportional part of a property) and does not rent the property out, then the voluntary period for payment of taxes is in arrears, i.e. for the Tax Year 2021, the period for payment of taxes is between the 1st of January 2022 until the 31st of December 2022.

3.- For a non-resident property owner who RENTS OUT property(ies), privately, then please note:

3.1 Quarterly periods are established for the preparation of Tax Declarations and payment of tax and for 2022 and these are:

Period                                    Final date for payment of taxes

1T/2022 (1st ¼ 2022 = 01/01/2022 to 31/03/2022) 20/04/2022

2T/2022 (2nd ¼ 2022 = 01/04/2022 to 30/06/2022)  20/07/2022

3T/2022 (3rd ¼ 2022 = 01/07/2022 to 30/09/2022) 20/10/2022

4T/2022 (4th ¼ 2022 = 01/10/2022 to 31/12/2022) 20/01/2023

3.2 It is necessary to provide the full identification details of the RENTAL TENANT in each one of the Rental Tax Declarations as well as the exact date of occupancy of each tenant as well as the amount of rental received.

3.3 When the property is rented out through a Rental Agency the tax procedures are more complex and will require specific guidance and information as particular tax paperwork has to be controlled and particular periods of time observed, for the payment of taxes.  Please inform us if this is your case so that we can advise you accordingly thank you.

3.4 For citizens from the European Union (EU) and the European Economic Area (EEA), there is a possibility of deducting direct rental expenses from the income received from the rental of property always and when these expenses are duly certified by means of complete officially receipted invoices.  The expenses will accompany the corresponding Tax Declaration(s).  In order to make use of these deductions, it will be necessary for you to supply us with a “Resident Tax Certificate” from your country of residence. This point It´s not applicable to the Residents in United Kingdom from 1st January 2021, date on which the transitory period of Brexit finished.

4.- BREXIT – Tax information for Residents in UK

From the 1st of January 2021, the United Kingdom is considered a third country respect the European Union and, in consequence, there are some changes:

  • In relation with rental incomes there is not possibility to deduct any expenses.
  • The rate of income tax will pass from 19% to 24%.

If you need help or more information, please, contact us

The Font Serrat Asesores Team

Four Tips for Non Resident Property Owners in Spain
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