Taxpayers who are residents of another country or Spanish citizens living abroad, if they have a property or real estate in Spain in their name, are required to file a non-resident income tax return, known as Form 210 “IRNR”.
The deadline for this declaration depends on the use of the property:
- If the property is rented out, the income and expenses received must be declared quarterly. These should be paid on the 15th of the month following the quarter (15 April, 15 July, 15 October and 15 January) in case of direct debit, and until the 20th if paid by bank transfer. Expenses such as electricity, water, repair and maintenance costs can be deducted, but certain investment expenses such as kitchen renovations and similar work cannot be deducted.
- If the property is not rented out, you will also have to declare and pay an “imputación de renta”. This is a calculation based on the application of certain percentages to the cadastral value of the property. The deadline for this declaration is the whole year following the year in question. In other words, in the current year 2022, you have until 31 December to declare the non-resident tax without rent for 2021. This type of tax return does not allow any deduction.
Taxpayers living within the European Union are taxed at a rate of 19%; non-EU residents are taxed at a rate of 24%.
It is important to file these declarations and especially if you wish to sell your property. Indeed, if you suffer a loss on sale, it is essential that these declarations are processed correctly in order to reclaim the 3% profit tax withheld on the sale.
If you have any questions about these returns, we can help you at fiscal@lexforis.com.
Lucia Guillen Molina