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Last Chance To Pay Non-Residents Property Tax !

Fri 10th Dec 2010

Owners of Spanish property are reminded that the end of the year marks the deadline for the payment of a compulsory property tax the the Agencia Tributaria.

You may or not be aware that even those who are non-resident for tax purposes here in Spain are subject to 'Income Tax for Non Residents' (IRNR) - even if without an income in Spain - simly by virtue of owning a property here.

As recently as 2008 it was required that all non-residents to pay Wealth Tax AND Income Tax, however since then the Wealth Tax has been abolished (as per the Law 4/2008, of December 23rd) making the last valid Wealth Tax submission being for the 2007/2008 period.

Unfortunately this is not the case with IRNR, and it is still an applicable tax for all non-resident property owners. The rate that this is applied for 2010 is 24% - recently reduced from 25% in 2009.

This means that if you are Non Tax Resident in Spain and you receive ANY income here in Spain, be it in the form of rentals, interest on bank accounts - even if you do not have any income but you have a property in Spain you are still obliged to pay Non Residents Income Tax (IRNR).

If you DO NOT take any income from your property your tax bill will be calculated from the Cadastral Value, as it appears on your latest municipal tax bill issued by your Town Hall. The Agencia Tributaria is clamping down on cases of Non Tax Residents NOT paying the IRNR and in many cases are reported to be demanding all taxes due plus a penalty to cover any late payments.

The deadline for making your declaration is 31-12-2010, however, many Asesors and Gestors who you may choose to asist you in doing this may also be closed for parts of December due to their Christmas break.

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