Tax & Accounting
Services for Non-Residents
● Non-Resident Income Tax Return when you own a property in Spain.
● Non-Resident Income Tax Return when you own a property in Spain and you rent it out.
● Capital Gains Tax when you sell your property in Spain.
● Management of letters from the Tax Agency.
● Management of municipal taxes (IBI, waste management fee and IVTM).
Services for Residents
● Income Tax Return (Declaración de la Renta).
● Self-employed registration.
● Self-employed accounting & tax management.
● Management of letters from the Tax Agency.
● Informative declaration of assets and rights located abroad (Modelo 720).
Frequently asked questions
When am I considered a tax resident in Spain?
The Tax Agency considers a person to be a tax resident if they meet at least one of the following conditions:
If they reside in Spain for more than 183 days during the calendar year.
If their main source of income or economic activity, either directly or indirectly, is in Spain.
If their spouse or children habitually reside in Spain.
Article 9 of Law 35/2006
I'm not a tax resident but I own a property in Spain.
What taxes do I have to pay?
In addition to municipal taxes like IBI (property tax) or waste management fees, and in some cases, the fees for the Community of Owners of your urbanization, owning a property in Spain also means you are required to pay taxes to the Tax Agency through the Modelo 210.
The Modelo 210 is the Non-Resident Income Tax and it must be paid whether you rent out your property or not.
I'm not a tax resident and I want to sell my property in Spain.
What taxes will I have to pay?
If you're not a tax resident in Spain and decide to sell your property, you will be subject to Capital Gains Tax on the sale. The tax rate is generally 19% for EU residents and 24% for non-EU residents on the profit made from the sale.
The buyer is legally required to withhold 3% of the sale price and pay it directly to the Tax Agency. This amount acts as an advance payment on the potential Capital Gains Tax owed by you. The tax return to determine the actual capital gain has to be filled and either pay any outstanding amount or request a refund if the withheld amount exceeds the final liability.
Furthermore, you are responsible for paying the Plusvalía Municipal, a local tax levied by the town hall based on the increase in the value of the land (not the building) during the period of ownership. This tax varies depending on the municipality and the length of time the property was owned.
What is the Modelo 720?
The Modelo 720 is an informational declaration (no payment is required to the Tax Agency) for foreign assets, such as bank accounts, shares, or properties, with a combined value exceeding 50.000€. This form is mandatory for anyone who is a tax resident in Spain and holds such assets abroad.
I have received a letter from the Tax Agency.
What should I do?
If you have received a letter from the Tax Agency, it is important to act quickly. When the Tax Agency sends a letter with a request, it grants a period of time to respond, usually 10 business days. If you do not respond on time, the Tax Agency will impose a penalty.
If you do not know how to respond to the Tax Agency, contact professionals like AM Advisor who can assist you.
