Non Residents tax obligation

It is a common case that a person from outside Spain is acquiring a property in Spain maybe as an investment or just a holiday house for spending in Spain few months during the year. From the moment that the house is bought, several taxes obligations start within.

One of these is the IBI TAX, most known as SUMA bill.

·       This fee is due to the tax that every owner of a property in Spain has to paid to the town hall where the property is located.

• ·         The amount to pay varies depending on the city or town.
• ·         It has to be paid once a year on the period of September and earlier in October. The payment can be made by cash, direct debit or by card.

The other big tax obligation is the  NON RESIDENT TAX.

This fee is due to the tax that every owner of a property in Spain has to paid to the Spanish Tax Office. The updated payment of this tax is required when you want to sell a property.

• ·         Obliges to a taxpayer who is fiscally non-resident in Spain to submit this tax because of owning a property.
• ·         By general it has to be paid once a year if the property was not for rent in any moment of the year.
• ·         Again, by general, for the same reason it has to be paid on the following year.

The Non-resident tax is not only attached to owning a property in Spain but for many other concepts. Being fiscally non-resident in Spain and getting any job income for an unique and/or specific job or having capital gains in Spain are just some of the obligations related to this.

What it is going to be basic is to know if a person is or not fiscal resident in Spain. You could be fiscal resident:

• ·         Spending more than 183 days in Spain in the whole year (January-December).
• ·         The main source of incomes or economic activity is located in Spain.

There is important to bear in mind that a person can be granted a residence permit in a country  and at the same time being considered fiscally non-resident in that country.

In case that a Non fiscal Resident owner is renting a house for a tenant to live on those months that is not being available for private use, then the obligation to submit this tax is by the end of each fiscal quarter.