Taxation of non-residents on urban buildings in Spain

Taxation of non-residents in Spain, regarding the ownership of a property in the country. They must pay Non-Resident Income Tax for two reasons:

namely, non-residents must pay taxes for rent income received
and also for the “attributed income” for the days when the property was empty during the year.

In order to submit the tax forms, non-residents need a Spanish Tax Code (NIF).

As a general rule, the Tax Code of persons of Spanish nationality will be their DNI (Spanish National ID), and for non-Spanish nationals, it will be the NIE (Foreign Identity Number). These identifications are processed with the Directorate-General of the Police.

Taxation of non-residents. Method and period to submit the respective tax forms

Tax form for rent revenues

The income to be declared to the Spanish Tax Office will be the whole amount received from the rental, without deducting any expenses. However, in the case of taxpayers with tax residence in another European Union member state and, from 1 January 2015, also in Iceland and Norway, the expenses incurred may be deducted for the determination of the tax base, provided that such expenses are directly related to the income obtained in Spain and have a direct link with the rental.
The tax form must be filed within the first twenty calendar days of the months of April, July, October, and January in relation to the income whose accrual date falls within the previous calendar quarter.
The tax rate will be 24% as a general rule, although the tax rate is reduced to 19 % for EU, Iceland and Norway residents.

Tax form for revenues attributed to empty properties

Empty properties are also subject to taxation, with the taxable base being the “attributed income” generated by those properties.
The “attributed income” to be declared will be the amount resulting from applying 1.1 or 2 % (depending on where the property is located) to the cadastral value of the property.
Tax rate applicable to the “attributed income” will be 24%, or 19 % for EU, Iceland and Norway residents.
The tax form must be filed throughout the calendar year following the year of accrual, (until December 31st).

If taxpayers file the tax form after the deadline mentioned, the Spanish Tax Office will require a surcharge from 5% to 20%. Depending on the delay between the legal deadline and the moment when the tax form is submitted.

5% if taxpayers file the tax form within three months after its legal deadline.
10% if taxpayers file the tax form within three to six months after its legal deadline.
15% if taxpayers file the tax form within six to twelve months after its legal deadline and,
20% if taxpayers file the tax form twelve months or more after its deadline.

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