Good News for Non-Resident Property Owners!

Important updates to non-resident taxes in Spain

If you’re a non-resident homeowner in Spain, you’re going to be thrilled with Spain’s latest legislative updates – a move that looks set to revolutionise your Spanish tax experience and put more money in the back of your pocket.

The process of filing your Modelo 210 for your non-resident property taxes is often a time-consuming and complicated process that leaves thousands of owners confused and worried, however, if you rent out your property in Spain, the process just got much easier.

As of February 2024, non-resident property holders in Spain must now report and submit their tax returns on rental income annually, instead of quarterly. Gone are the days of grappling with quarterly tax returns multiple times each year! Now, you’ll only need to file one annual return for rental income.

This streamlined approach means much less paperwork and fewer deadlines to juggle throughout the year, making it much easier to stay compliant with Spanish tax regulations. For rental income earned in 2024, the new filing period will now run from January 1 to January 20, 2025, with the tax due by January 15, 2025, for those who pay via direct debit.

No need for a Spanish bank account

The good news doesn’t stop there! From February 1, 2024, individuals are also now permitted to use their bank accounts from the SEPA area (Single European Payments Area) to pay their non-resident taxes in Spain. This decision is geared towards enhancing the accessibility and convenience of the tax payment process for non-resident property owners, eliminating the need for a Spanish bank account.

The inclusion of SEPA accounts signifies the authorities’ dedication to streamlining the tax system, especially for those property owners who live overseas. This initiative is geared towards minimising the complexities associated with property ownership in Spain, ultimately aiming to enhance the manageability of taxes for international property owners.

Property owners from the following countries may now use their local bank accounts to pay their taxes: Ireland, France, Belgium, The Netherlands, Germany, Sweden, Norway, Denmark, Poland and Italy, among others.

Calculate your non-resident taxes for free with IberianTax

To find out how much your non-resident taxes are going to be, you can register for free on the IberianTax website and use our tax calculator to find out how much you owe. Once registered, we’ll even send you a reminder of when your non-resident taxes are due to be filed each year!

If you have recently sold your property, you can also use our handy tool to calculate the potential taxes owed for your Capital Gains Tax.

Non-resident taxes in Spain – what is it all about?

If you’re new to non-resident taxes in Spain, you may or may not be aware that non-resident property owners in Spain must file an annual tax return, per owner to the Spanish tax authorities. Regardless of whether your property is for personal use and remains empty all year, or if you rent it out, you’re still required to file a Modelo 210 form to the Agencia Tributaria!

In a bid to make life in Spain easier, many second homeowners get help from their local accountants or a gestoría to submit these taxes on their behalf. However, doing it this way can cost hundreds of euros – potentially more than the tax that is actually owed.

Owning a home in Spain is a dream for thousands of people around the world, but the taxes, especially those less-publicised taxes, can take many people by surprise. The thought of having to navigate paying taxes in a foreign country can be overwhelming, or even enough to put them off from buying a property altogether. Many people are even simply unaware of their tax obligations and have never paid at all!

But with the authorities in Spain catching up on people and issuing hefty fines to those who fail to pay, it’s never been more important to prioritise your non-resident taxes in Spain. You might be surprised to learn that it doesn’t need to be difficult or taxing, especially when you have IberianTax on your side to help guide you through.

What types of taxes do I need to pay as a non-resident?

How you use your property in Spain affects the taxes you’re liable to pay. There are several different types of taxes you may be liable for as a non-resident property owner. Thanks to some recent legislative changes in Spain, some of these taxes have now been made much easier to pay

Imputed Income Tax

Non-Resident Imputed Income Tax (also known as Impuesto Sobre la Renta de No Residentes, or IRNR) applies to non-resident property owners who do not rent out their Spanish property. Even if your property remains empty all year, or if it is only for personal use, you’ll still need to file this tax return. This is done using the Modelo 210 form and is submitted annually on the 31^st of December for the previous year. All non-resident property owners in Spain will have to submit this return as a minimum.

Rental Income Tax

Non-Resident Rental Income Tax (also called the Impuesto Sobre la Renta de No Residents, or IRNR) applies to non-resident property owners to rent out their Spanish property. This tax is also submitted using the Modelo 210 form and includes days when the property wasn’t rented out. Previously, this tax was required to be submitted each quarter, but thanks to recent legislative changes, this is now done on an annual basis, making it much easier for those who wish to rent out their home in Spain.

Capital Gains Tax

If you’re selling your Spanish home, you’re required to pay Capital Gains Tax on any profit you have made from the sale. The tax rate is 19% for Capital Gains Tax, regardless of your residency status and must be paid within 4 months of the sale date. This tax is also submitted by using the Modelo 210 form.

What is IberianTax?

After our tax advisors spent years helping non-resident property owners in Spain, we decided to develop a dedicated online platform that’s specifically designed to help non-resident homeowners both reduce their costs and make the submission process much simpler.

Our platform has made the tax process so easy, that even if you’ve never submitted a Spanish tax return before, you can do so quickly and easily, from anywhere in the world, without paying extortionate accountancy fees!

You’ll be pleased to know that we are also approved and recognised by the Spanish tax authorities as an official collaborator, allowing you to file a range of non-resident taxes such as Imputed Income, Rental Income and even Capital Gains Tax, with up to 4 owners per property. You’re in great hands with IberianTax.

How does it work?

Visit our website and complete our straightforward questionnaire with clear step-by-step instructions, and our team of tax specialists will handle the calculations for you. Afterwards, make your payment through our secure online portal using your Spanish or SEPA payment area account, and we’ll take care of submitting your Modelo 210 to the Agencia Tributaria. It couldn’t be easier!

If you need a little extra help, our team of friendly English, German and French-speaking tax experts are on hand to help guide you through, should you need it.

Is it safe to use IberianTax?

With the prevalence of online scams nowadays, we recognise that your online security is of the utmost importance to you, so we offer payment options such as direct debit and bank transfer to help put your mind at ease.

Recent legislative updates now allow non-residents to use their home country’s bank account to pay for these taxes, if their bank is in the SEPA area, so you can file anywhere, anytime, at your own pace.

Make your non-resident taxes easier than ever

Every year, thousands of non-resident property owners across Spain turn to IberianTax for a seamless tax submission process. Our dedication to excellence has earned us an incredible 5-star rating on Google, a testament to the satisfaction of our countless customers. Their positive feedback highlights that navigating your tax obligations in Spain doesn’t have to be a burden!

The resounding praise from our satisfied clients extends beyond convenience – it translates into tangible savings. By choosing IberianTax, customers have unlocked significant financial benefits, reclaiming hundreds of euros that would have otherwise been spent on costly accountants.

And the best part? Our prices start from just €34.95! Get started today with IberianTax, absolutely free of charge, and wave farewell to tax-related anxiety!

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