Nonresident tax package

Anyone not resident in Spain who owns property is required to file a non-resident income tax return. This tax is filed retroactively; that is, this year you file the return for the previous year, and next year you file the return for this year. There are several ways to do this:

1.- If you do not have the property rented, an annual declaration is made and it is a proportional part of the cadastral value that appears in the IBI, the amount varies if you are a citizen of the European Union or not.

2. If you rent out your property year-round, you must file your tax return quarterly: in April (for January, February, and March), in July (for April, May, and June), in October (for July, August, and September), and in January (for October, November, and December). To do this, you must declare the income earned in each quarter minus deductible expenses (insurance, community fees, professional fees, repairs, and utilities, provided these are paid by the landlord).

3. If rented temporarily, two taxes must be filed. One for the rental period and another for the remainder of the year.

It should be mentioned in this procedure that, if the declarations for previous years have not been submitted, two situations may occur:

• If you file voluntarily, the Tax Agency only charges interest from the last day of the year in which the return was due until the date of filing. 
• If you file after being requested to do so by the Tax Agency, in addition to the above, you will be charged between 25% and 50% of the amount due.