Spanish Non-Resident Tax Return
Our team of tax experts have years of experience helping expats in Spain with their non-resident tax returns. Dealing with the tax authorities can be difficult for anyone, especially with the added language barrier if you do not speak Spanish. No matter what your situation is, we have the experience to help you with your Spanish taxes.
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What is a Non-Resident Tax Return?
If you are a non-resident, but still have assets in Spain, then you will need to make a non-resident tax return.
If you live in Spain for less than 6 months, then you are classed as a non-resident and you will only be taxed on the income you earn in Spain. If you own a property then you are liable to pay property taxes and submit a tax return.
Assets liable for Spanish taxes include any income you make from a Spanish asset. This can be property in Spain, income from a rental property or income from royalties. All this income has to be declared on the tax return.
If you are a joint owner of a Spanish property, you must both make separate tax returns each year.
3% Retention Tax Back
If you do not pay your income taxes as a non-resident, and are selling a Spanish property, you will find it difficult to receive the full 3% retention tax back.
This tax is retained by the Spanish tax authorities when you sell a property in Spain. The purpose of which is to ensure that non-residents do not leave the country without paying all of their capital gains taxes – so, the tax office retains 3% of the total purchase price of your property.
If the amount of capital gains tax you owe is less than the 3% that was retained, you are able to request a refund.
However, if you have not submitted your non-resident tax return correctly – you may find it difficult to receive this money back. You can also expect to pay fines for late payment if the tax office discovers you have not paid.
Frequently Asked Questions
If you are a resident in Spain, you will be taxed on all of the income you make and must submit a tax return on all worldwide assets.
If you are a non-resident, you will be taxed only on the income and assets you have in Spain. Even if you do not rent out your property in Spain (i.e. make no income from the property) you must still pay the correct property taxes.
Resident tax returns must be filed from the 1st of April up to the 30th June.
Non-resident taxes are submitted from the 1st of January until the 31st of December.
The following tax deductions can be made:
- A personal tax-free allowance.
- Employment allowance.
- Childcare allowance.
- Private pension plan deductions.
- Income from annuity pensions.
- Married couples allowance.