You may be classed as a non-resident when you have spent less than 183 days (6 months) residing or holidaying in Spain during the previous year. Each owner of a property is required, by law, to pay a yearly tax amount for their home when it is not being rented out. This tax is only payable by non-resident property owners, nicknamed - “Sunshine Tax”.

For the whole of Spain, there are two types of taxes that Non-Residents must pay:
• The Non-Resident tax declaration.
• The IBI (SUMA) property tax.

The IBI tax, or the SUMA tax depending where you live in Spain, is similar to the local council tax.

Assuming that you reside in Spain for less than six months last year, or your preferred country of residency is outside of Spain, then you will have to present the non-resident tax declaration for privately used properties and payment before the end of the current year.

The yearly Non-Resident Tax payment is always a year behind, so these are the calculations based on your information, for example, 2020 which is to be paid at the end of 2021. Ensure that you have enough funds in your Spanish bank account to allow the payment to be correctly processed.

Additionally, due to the changes in how the taxes are now calculated, it’s very important that you maintain up-to-date resident changes with the relevant authorities during the previous year, this will allow for accurate calculations.

If your Spanish property is being rented, either long or short term, or you plan to rent it out during the current fiscal year, then these figures would not be valid because you are obligated to do this legally by declaring your rental income tax to the Spanish authorities.

There are a substantial number of requirements in order to be able to process Non-resident tax payments for your property in Spain, including:

The Property owner(s) NIE number, proof of country of residence, proof home address, the Spainish property details, the important bank account IBAN, the Catastral Value for the tax year, the required tax year.

Non-resident tax is composed of two conditions, the tax on wealth assets which is commonly applied to the properties' deed price multiplied by a gradual tax rate. Along with, the tax on the Imputed income of the Spanish property.

We calculate the tax by multiplying the Catastral Value of the property by a percentage and by the number of days the property is owned. Each property owners’ name that appears on the deed should be filed in separate forms. Taxes are to be divided based on the numbers of the owners on the deed.

There are specific tax forms that correlate to the number of non-residents who own two or more properties in Spain. The rental tax declarations will need to be discussed as each property is different in its rented conditions.

At PSI Consultants, we will maintain contact with non-resident Spanish property owners throughout the year, providing regular notifications & updates in regards to paying the non-resident tax and IBI (SUMA) tax.

We respect that the Spanish non-resident tax is unique and may be confusing. However, we help clients step-by-step with establishing their Spanish property details, calculating the tax value, along with organising simple yearly payments.

When a client decides to rent out their property in Spain, we will help in delegating all required actions for changing the property situation, while we will also advise you and organise your fiscal obligations as a non-resident rental property owner.

The PSI Consultants Non-resident tax service has evolved into a highly proficient & sleek product that enables short term residents of Spain to enjoy life with any concerns to their required yearly tax contributions.

Our team of consultants are on hand throughout the year to answer any queries about the Spanish tax system, but also in how clients can better prepare their property for renting.

Also, we maintain constant awareness with the latest news & informational updates in regards to Spain’s and most other European governments that better help our clients in making decisions with their future prospects about their Spanish residency & property.

The Impuesto sobre la Renta de Personas Físicas (IRPF), also known as 'Renta', is Spain's nearest equivalent to personal income tax. Every year, Spanish residents must declare their annual income from the previous calendar year from 1st April to 30th of June.

If you are a tax resident in Spain you will have to declare your global income every year. The Renta is used by the Tax Agency to calculate the total amount of the IRPF that you must pay, based on your total income for the past year and the tax allowances you are entitled to.

Are you in Spain for more than six months (183 days) of the calendar year, or are your core economic interests in Spain? If the answer is yes, then you are considered to be a tax resident in Spain.

As a fiscal resident, you will be liable to pay Spanish taxes on your worldwide income and assets and will need to file a Spanish tax return.

There are 5 types of income:
• Income from work (paid employment, pensions).
• Investment income (interest, dividends).
• Income from real estate (rentals, second homes).
• Income from economic activities.
• Capital gains (lottery, gambling winnings, sales of assets such as homes, stocks, and so on.).

A tax return becomes obligatory in certain circumstances no matter how low your earnings are, such as:
• If you have a claim for double taxation.
• If you are due a refund.
• If you have made pension contributions.
• If you are claiming deductions for cost of buying your main residence.
• If you have capital gains or income above certain limits.

If you are a tax resident in Spain you will have to declare your global income every year. This is done through a process known in Spanish as Declaración de la Renta. Every year, from 1 April until 30 June, tax residents in Spain can declare their global income for the previous tax year (the Spanish tax year is from 1 January to 31 December) to the Spanish Tax Agency or AEAT.

The Declaración de la Renta is used by the Tax Agency to calculate the total amount of the IRPF (Personal Income tax) that you must pay, based on your total income for the past year and the tax allowances you are entitled to. If you have paid less tax than you owe, you will have to pay the difference and if you have overpaid, you will receive a refund.

At PSI Consultants, we will maintain contact with resident Spanish property owners throughout the year, providing regular notifications & updates in regards to paying the income tax.

We respect that the Spanish income tax may be confusing. However, we help clients step-by-step with establishing their Spanish property details, calculating the tax, along with organising simple yearly payments.

Utilising PSI Consultants to assist in maintaining control of Spanish income tax will be an effective solution for you, as we use the vast experiences and practices that we have developed since 2002.

Our team of consultants are on hand throughout the year to answer any queries about the Spanish tax system.

Also, we maintain constant awareness with the latest news & informational updates in regards to Spain's taxes that better help our clients in making decisions with their future prospects about their tax payments.

Both Spanish residents and non-residents have to pay the Spanish tax on rental income. The rental income statement and the rental tax are an obligation. The only differences between residents and non-residents are the Spanish tax rates, rental property tax deductions and The frequency of declaring rental income. However, residents and non-residents must perform the tax declaration in Spain of all the income from rent.

The rental income tax rate is the same for Spanish residents, although this is different for non-residents, as it depends on nationality. Spanish residents and non-residents who reside in a European (EU) country (including Norway and Iceland) will incur the income rate of 19%. Residents of a non-European country will have to pay 24%.

The frequency of declaring your rental depends on residential status, being a Spanish resident or non-resident. For residents, the rental tax declaration occurs on an annual basis. However, non-residents will have to declare rental profits and pay rental tax every three months based on a set calendar, as follows:
• April 20th: Declaration for incomes obtained in January, February and March.
• July 20th: Declaration for incomes obtained in April, May and June.
• October 20th: Declaration for incomes obtained in July, August and September.
• January 20th: Declaration for incomes obtained in October, November and December.

It is important to maintain control of your tax records. Each year you need to declare your information from sales from the previous year.

When renting a Spanish property, you will need to keep track of tax records.

Residents of an EU member country, including Norway and Iceland, can deduct the following expenses:
• Council Taxes.
• Insurance.
• Water.
• Electricity.
• Mortgage interests.
• Real estate agent fee or Key Holder.
• Cleaning & laundry.
• Primary maintenance and reparation costs.

The deduction is subject to the number of days the flat is rented.

Deduction of expenses from the above mentioned, are valid only if you have the invoice (Factura).

Overdue payments can involve a 'late fine' that will need to be paid according to the Tax office.

The percentage of the fine for overdue payments will depend on the time that has passed between the closing date of the window and the date the tax was filed and payed.

Fine percentages include:
• Until 3 months: 5%.
• Until 6 months: 10%.
• Until 12 months: 15%.
• Over 12 months: 20% plus interest.

At PSI Consultants, we will maintain contact with resident and non-resident Spanish property owners throughout the year when their property is being rented, providing regular notifications & updates.

We respect that the Spanish rental tax may be confusing. However, we help clients step-by-step with establishing their Spanish property details, calculating the tax, along with organising simple yearly/quarterly payments.

Utilising PSI Consultants to assist in maintaining control of Spanish rental tax will be an effective solution for you, as we use the vast experiences and practices that we have developed since 2002.

Our team of consultants are on hand throughout the year to answer any queries about the Spanish tax system.

Also, we maintain constant awareness with the latest news & informational updates in regards to Spain's taxes that better help our clients in making decisions with their future prospects about their tax payments.