Which tax obligations do I have as owner of a property in Spain?

If you’re a UK national living in or thinking about moving to Spain, it’s important to review your financial planning. This should look at tax efficiency and how your estate planning, investment strategies and pensions can work most favourably for you and your new life in Spain.

With personalised financial advice from Alicante Consulting, you can make the most of what you have while keeping up with the complex tax rules in both Spain and your country.

As owner of a Spanish property you have to fulfil the following obligations:

  • To make the declaration of Income Tax every year
  • To present/pay declarations of tax called “Income Tax” (similar to “Inland Revenue”)

Are there any differences in taxes between residents and non-residents?

  • More than 6 months — Spanish Tax Resident
  • Less than 6 months — Non Spanish Tax Resident

If you are not living in Spain permanently, and/or you have not applied for the Spanish Fiscal Residence (You are paying your taxes in your country of origin). Then, you must make all the declarations and payments for taxes in the country in which you have the residence. 

Fiscal representation in Spain and non-resident tax

Alicante Consulting Lawyers will represent you fiscally before the Inland Revenue upon completion of your purchase. We deal with the necessary tax payments due to be paid post Completion; whether it be the Transfer Tax, Stamp Duty or Value Added Tax. It is essential that these payments are made correctly and within the timescale permitted to avoid any fines accruing against your new home.

In the case of the sale of your property, AC Lawyers will calculate your tax return if you are not a tax resident of Spain: Capital Gains Tax or apply for the devolution of the 3% retention (Models 211 and 210).

When a Non-Resident individual or company purchases a property  in Spain, they assume the obligation to make an annual tax return. This is due to the fact that they are owners of a property in Spain, but not resident for taxation purposes. (Model 210) It is imperative that this tax is paid on time, every year. AC Lawyers will calculate this tax for you, complete the necessary forms and pay the required amount on your behalf. In this way you avoid any complications with the Inland Revenue and potential fines for late payment.

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