Calling all Spanish property owners – non residents income tax returns due soon!
Anyone who purchased a Spanish property in 2021 or before will be due to submit their annual non residents income tax return before 31.12.2022.
What is the Non residents income tax?
Known in Spanish as the Impuesto sobre la renta de no Residentes. In effect it is a tax on owning a property in Spain and is payable even though there is no income!
How is this tax calculated?
This tax is based on the estimated income of 1.1% of the properties cadastral value (or 2% if the cadastral value has not been subject to revision or modification since 01.01.1994) and the applicable tax rate is 19%. The tax payable varies on whether or not the property is rented and an income is being obtained. If you have rented your property then you will be obliged to submit quarterly returns and pay tax on the income less the proportional costs involved in the rental such as professional management services, water, electric, insurance and community fees.
We can assist you with this tax return and require the following documents:
- Copy of owner(s) passport(s)
- Copy of owner(s) nies
- Copy of escritura
- Copy of Town Hall Rates (known as IBI)
- If rented, details of income and rental costs incurred
Contact My Lawyer in Spain to help you complete your non residents income tax return.