As we do every end of the year, we wish to remind readers who are Non-Tax Residents in Spain and maybe they are in Spain just for holidays, that they are still obliged to pay Income Taxes in Spain for Non-Tax Residents, even if they do not have any income in Spain, just for the fact of owning a property here.

Wealth Tax. If you are non-tax resident in Spain, or even if you live in Spain and but are not registered with the taxman as a tax resident, or you do not submit taxes as tax residents, you could be legally considered as Non-Tax Resident, as no notice has been given to the Tax Authority. Non-Tax Residents could be liable to pay Wealth Tax, but only if the value of their assets in Spain (after deducting debts, i.e.: pending capital of the mortgage, etc.) is above 600.000€.

Income Tax. If you are Non Tax Resident in Spain (or you are not legally tax resident in Spain), you will need to pay tax for income in Spain (Income Tax for Non Residents, IRNR): i.e.: rents from a letting, interest on bank accounts, etc., If you do not have any income but you own a property or a share on a property, your tax bill will be based on a calculation as per the Cadastral Value (value that appears on your Spanish Local Rates receipt from the Town Hall, the SUMA office or the equivalent).

Even now it is quite common for people who are Non-Fiscal Residents in Spain (or not legally Tax Residents in Spain) to simply not pay this tax; usually due to ignorance or neglect, and especially when they have no income in Spain and only own a house.

Please notice that if you let your property in Spain, you have obligation to submit the taxes every 3 months and not only once a year.

If you are not sure if you are legally or officially tax resident or non-tax resident, or if you want to know what the most convenient course of action for you is, we can assist you and study your personal situation and circumstances.

If you are non-tax resident, do not forget to meet your tax obligation so that you avoid a possible tax inspection, penalties, etc. Contact us and check our website for more information, and we will help you.

The information provided in this article is not intended to be legal advice, but merely conveys general information related to legal issues.

Carlos Baos (Lawyer)

White & Baos.

Tel: +34 966 426 185


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Written by

Carlos Baos (Lawyer)

Lawyer Carlos Baos has been advising on variety of expat-related legal issues for years and weekly column offers free weekly insights.