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Getting Help To Submit Your Non-Resident Property Tax Declaration

- Updated: 30/06/2013
Getting Help To Submit Your Non-Resident Property Tax Declaration

Non-Resident owners of Spanish property are reminded that they are legally obliged to submit an Income Tax declaration - and now, after being reintroduced- a Property Wealth Tax declaration.

You should ensure that any Lawyer or Asesor you appoint can help you with the following :

* Calculating the amount of tax due on the basis of the ratable value and the number of days of ownership (if you bought or sold last year), ensuring you do not pay more than strictly required.

* Completing all the necessary forms with your personal and property information.

* Achieving recognition as being your legally recognized tax representative in Spain, thereby assuming the responsibility of receiving any formal communication and acting timely upon them.

* Representing you during the fiscal year with regards to any communications sent to you by the Tax Office.

However, before your Lawyer / Asesor can calculate the total tax liability due, they would need to know the following details about your property :

* Ratable Value according to your last IBI (Impuesto de Bienes Inmuebles) Bill , under the heading "valor catastral". Please note that new properties (less than 2 years) might not have a ratable value assigned yet.

* If you are a Landlord the total number of days you have rented out the property (if applicable, and only if such rental has been declared, an unlikely scenario, in our experience).

* If you purchased the property jointly and, if so, if your co-owner was a Spanish Resident or not. Each registered owner is liable for the payment of such taxes.

* Details of any other properties in Spain you may own, together with the ratable value and the number of days the property has been rented, where applicable (As above).


On providing all of the above information, your Lawyer / Asesor should be then able to advise you the full extent of you tax liabilities in Spain which should be filed before the 30th of May 2012.

You should also know that up until now, if a debt were contracted with the Spanish Treasury by a foreigner, the Spanish Tax Authorities had to meet many issues before they could act against foreigners residing outside of Spain.

However, since July 31st, 2010 the Ministry of Finance has been able to electronically monitor and inluence all foreclosures and repossessions of property situated in other states of the European Union in order to meet debts incurred in Spain.

The European Union tax system agreed that the Tax Authorities will facilitate information and will report about the state of any debtor and guarantors of a debt in order to make feasible the placement of an embargo on Spanish properties or properties located in England and other European Union country, taking the necessary legal measures to enable these debts are paid against the property, Bank accounts will also be considered.

This procedure will not be used to account for all different types of debts but those contracted with the IRS for non-payment of Value Added Tax (VAT), Income Tax of Individuals (income tax), Wealth Tax and other excise duties.

To facilitate this process, the Ministry of Finance will have the cooperation of other agencies such as the Labor Inspectorate and the General Treasury of Social Security (TGSS), guaranteeing the confidentiality and security of citizen data information.

Non residents looking for further information on calculating and submitting their tax returns may wish to contact Perez Legal Group for advise and assistance.

Click here for help on How to Submit your Tax Declaration as a Spanish Resident .