PTIreturns.com Blog | Property Tax Information for Nonresidents

Tax information, hints and news. Exclusive for overseas property investors and owners.

Welcome to the official PTIreturns.com blog!

Spanish Property Tax

Selling property in Spain as a UK resident

Selling property in Spain as a UK resident

If you are a UK resident selling property in Spain, the allure of the market is often balanced by the need to navigate a complex web of tax rules and legal obligations.

Spain’s vibrant culture, stunning landscapes, and favorable climate make it an attractive destination for foreigners looking to buy or sell property.

If you’ve bought property in Spain as an investment, or spotted a promising selling opportunity in the market, there are several factors to weigh before selling as a non-resident.

We’ve compiled the following guide to provide you with all the essential information needed to make informed decisions if you are a UK resident selling property in Spain, ensuring you save on costs and minimize potential risks.

Please note: PTI Returns supports international investors with Spanish property tax filing services. Unfortunately, we do not offer services related to Spanish mortgages or the sale of property in Spain.

Continue reading →

Property Tax Tips / Spanish Property Tax

IBI Tax in Spain and Imputed Income Tax – Everything You Need to Know

IBI Tax in Spain and Imputed Income Tax – Everything You Need to Know

If you own property in Spain, you’re probably familiar with the IBI (Impuesto sobre Bienes Inmuebles) local property tax. This is the standard tax paid to local authorities, but many non-resident property owners mistakenly believe that once this is settled, their tax obligations are complete. However, if you’re a non-resident and own an urban property in Spain, there’s another crucial tax you must file: the imputed tax, also known as deemed annual tax. This tax applies to non-residents who own property in Spain, even if the property is unoccupied. While it might seem like a hassle, staying on top of your imputed income tax is crucial to avoid penalties and interest charges. The Deadline for 2023 is looming! In this guide, we will cover all the essential information you need to know about both taxes.

What is the IBI tax in Spain?

The Spanish IBI tax (Impuesto sobre Bienes Inmuebles) is a local property tax charged by your town hall, similar to council tax in the UK, but usually less expensive. In some regions of Spain, it’s also called the SUMA tax. Like council tax in the UK, the IBI tax helps fund local services such as road maintenance, street lighting, and schools. Paying the IBI tax is essential because it’s used to calculate other property-related taxes in Spain. The tax is due every year by the person who owns the property as of January 1st. So, if you buy a home on January 2nd, the previous owner will pay that year’s IBI tax, and you’ll begin paying it the following year. All property owners, whether residents or non-residents, are required to pay this tax. In some areas, the IBI tax may also cover garbage collection, but this isn’t always the case, so it’s something to check when purchasing property. For more details on waste disposal, check out our guide to utilities in Spain.

How is IBI Tax Calculated in Spain?

IBI tax in Spain is based on your property’s cadastral value, which is the value assigned by local tax authorities. You can find this value on your IBI tax documents, and it’s usually much lower than the property’s market value. The IBI tax typically ranges from 0.4% to 1.1% of the cadastral value. A visual representation of the concept of homeownership and financial planning, with a puzzle piece house symbolizing homeownership and a calculator symbolizing financial calculations.

When is IBI Tax Due?

The due date for IBI tax is set by your local town hall, so it can vary depending on where your property is located. When buying a new property, make sure to ask the town hall about the specific due date.

What Happens If I Don’t Pay My IBI Tax?

Not paying your IBI tax can lead to serious issues. In extreme cases, your property could even be seized.  Town halls are becoming stricter about collecting unpaid taxes, so it’s more important than ever to pay on time. If you don’t pay your IBI tax, you won’t be able to file your non-resident tax since you need proof of IBI payment to do so. Also, properties with unpaid IBI tax can’t be bought or sold until the debt is cleared. Keep in mind that you won’t receive a reminder to pay your IBI tax, so it’s up to you to know when and how much to pay. It’s a good idea to hire a lawyer or tax expert to help ensure everything is handled correctly and on time.

File your Spanish Tax Return online

A middle-aged woman with a worried expression on her face sitting at a table, surrounded by bills and financial documents.

What is the Non-Resident Imputed Income Tax in Spain?

If you’re a non-resident who owns property in Spain but doesn’t rent it out, you’ll need to pay the Non-Resident Imputed Income Tax (IRNR). It is also known as deemed income tax. This tax applies even if the property is just for personal use or stays vacant all year.

For Multiple Owners

If you own the property with others, each co-owner must file a separate tax return. The tax is divided based on each person’s share of the property, so you’ll need to report your specific ownership percentage.

How is it Calculated?

To calculate the imputed income tax, use this formula: Cadastral Value x Imputed Percentage x Tax Rate You’ll need the cadastral value of your property, which you can find on your local tax receipt (IBI or SUMA), by contacting the local town hall, or visiting www.sedecatastro.gob.es. The imputed percentage ranges between 1.1% and 2%, depending on your property’s location. If there was a revision in the last 10 years our property tax advisors can use 1.1%, but this depends on the region. Will have to check with CIty Hall the information, if it is not listed in the IBI document. The tax rate is 19% for residents of the EU, Iceland, Norway, and Liechtenstein, while non-EU residents pay 24%. If multiple people own the property, each must file their own Modelo 210, with the tax split according to ownership.

CLAIM YOUR SPANISH PROPERTY TAX RETURN NOW

A person sitting at a desk, reviewing a bill while using a calculator. There is a laptop, a smartphone, and a pen also on the desk.

When is the Deadline?

Have you paid your IBI local tax and assumed all your tax obligations are complete? Think again! If you own an urban property in Spain, there’s an additional tax you must declare each year: Modelo 210, also known as the imputed or non-resident tax. In addition to your IBI tax, this annual declaration is required to stay compliant with Spanish tax laws. The deadline for the 2023 tax year is fast approaching—December 23, 2024. Don’t miss it!

Who can help me?

We understand that Spain’s imputed income tax can feel overwhelming, especially for non-residents. But don’t worry—we’re here to help! At Property Tax International (PTI Returns), we handle the entire process of preparing your tax forms for Spain’s imputed income tax. With years of experience in Spanish property tax services, we ensure our clients stay fully compliant with all necessary tax laws. Property Tax International will keep you informed every step of the way and handle all communication with the Spanish tax office on your behalf. If you have rental income, we can also help you file your rental income tax return. Got questions? Don’t hesitate to contact us for a no-obligation consultation.

Submit Your Non-Resident Property Tax Return Online
Spanish Property Tax

Key dates and deadlines for the Spanish tax year

Key dates and deadlines for the Spanish tax year

Do you want to know more about the Spanish tax deadlines? You are reading the right article.

Whether you’re a resident, a non-resident, or an investor, navigating the Spanish tax system requires careful planning and compliance.

The tax year follows the calendar year from 1 January to 31 December, unlike some other countries like the UK.

Remember, Spanish tax rules can be complex, and errors can lead to fines.

If you are a non-resident with property in Spain, our tax professionals can help you with your annual tax return responsibility in Spain.

This article highlights important Spanish tax deadlines and dates to help you stay compliant with the Spanish tax authorities and avoid any unpleasant late-filing penalties.

Spanish tax year deadlines

Below, you’ll find a convenient chart detailing the key Spanish tax deadlines you need to remember:

Continue reading →

Property Tax Tips / Spanish Property Tax

When do I need to file my tax return and pay the Spanish tax on rental income?

When do I need to file my tax return and pay the Spanish tax on rental income?

New Update! As of the 2024 tax year, if you pay tax on rental income in Spain as a non-resident, you can now file your rental income tax return annually. This marks a significant change from the previous requirement, where non-residents were obliged to file quarterly tax returns for rental income. However, if you do have rental income prior to 2024, you will need to still submit this as quarterly tax returns. In this article, we’ll cover the ins and outs of the new update and how it impacts property owners.

How will this impact property owners?

The new update for 2024 allows non-residents who pay tax on rental income in Spain to file their tax returns once a year instead of every three months. This means that property owners will no longer need to file their tax returns four times a year, but just once annually. This change will make things easier for property owners by reducing the amount of paperwork and time spent on taxes. Additionally, with only one filing deadline to meet, there’s less risk of missing deadlines and incurring penalties. Overall, this update simplifies the tax process, allowing property owners to focus more on managing their properties and less on administrative tasks.

File your Spanish Property Tax Return Online

Insurance brokers sitting in an office, pointing to an insurance contract and explaining details to a pair of attentive customers.

I am a non-resident with rental property in Spain. When do I need to file my tax return and pay the Spanish tax on rental income?

As a non-resident in Spain with rental property, you will need to file your tax return between January 1 and January 20, 2025.  Note that if you are paying your tax through direct debit, you need to file a bit earlier – by January 15, 2025

FILE YOUR NON-RESIDENT PROPERTY TAX RETURN ONLINE

What about income earned in the previous tax years?

For income earned in previous tax years (before 2024), the old rules still apply. This means that for any rental income you earned before 2024, you need to file your tax returns quarterly, not annually. Example: For income earned on your rental property in Spain, you would have had to file four separate tax returns throughout 2023—one for each quarter. The rental income tax in Spain deadline would have been in April, July, October, and January of the following year. The new rule for annual filing only applies to income earned from January 1, 2024, onwards. So, any rental income from previous years still follows the old quarterly filing system. Spanish-style villas with terracotta roofs and balconies, surrounded by palm trees and lush greenery

Should I file a tax return if I don’t have rental income?

As a non-resident property owner in Spain, you are indeed required to file a tax return and pay certain taxes, even if you do not have rental income. Spain has a concept called “Deemed Rental Income” for non-resident property owners. Deemed rental income is basically an assumption by the Spanish tax authorities that even if you don’t rent out the property, you may still have income deriving from the property, so you have to file a tax return. Therefore, even if you don’t earn actual rental income from a property in Spain, you are likely required to file a tax return due to the deemed rental income assessment. Note that there can be exemptions for having to pay Deemed rental income, such as if the property is your principal residence (and you’re an EU/EEA resident) or if specific tax treaties apply.

Conclusion: Submitting Your Non-Resident Property Taxes in Spain

Who are we?

At Property Tax International, we have over 25 years of experience preparing international tax returns, having filed over a million tax returns so far! If you own property in the US, UK, France, Germany, Hungary, Poland, Spain, or Ireland, Property Tax International can assist you with filing your tax return. The red and yellow flag of Spain with the coat of arms, waving in the wind against a blue sky with white clouds.

Why choose us?

Our team can handle all the documentation and file your Spanish property tax return online. When you choose us to handle your property tax return, you can rest assured that:

  • Your Spanish tax return will be prepared by our experts at a fraction of the cost of a local accountant
  • Your international property tax-related questions will be answered by our specialists
  • We will apply every applicable international tax agreement, tax relief, and allowable expenses
  • We provide multilingual support via phone and email
  • You’ll receive updates throughout the process, and we’ll communicate directly with the Spanish tax office on your behalf

Submit Your Spanish Property Tax Return Online

Spanish Property Tax

A complete guide to managing your Spanish rental property

A complete guide to managing your Spanish rental property

It’s thrilling to find an overseas investment opportunity. However, dealing with the day-to-day responsibilities of managing your Spanish property can be complex. When there is a language barrier and you are thousands of kilometers away, tasks like sorting bills and maintenance of your Spanish property might be challenging. Add to that complicated rental laws and rental income tax in Spain, and it’s easy to see why so many investors enlist the services of a dependable property management company in Spain. In this blog, we’ve broken down everything a landlord needs to know about property management in Spain, and who can help you deal with your Spanish tax return / Form 210 obligation. Continue reading →

Property Tax Tips

New Brexit property tax information non-resident owners should know

New Brexit property tax information non-resident owners should know

British people with holiday homes abroad could face shockingly high tax bills, according to new claims.

Following the official departure of the United Kingdom from the EU on 31 December, many foreign homeowners were understandably anxious about how their property would be affected.

Not many people are aware of subtle changes around international property tax for UK residents. 

With that in mind, we will explore the facts that non-resident homeowners should know.

Continue reading →

French Property Tax

Êtes-vous propriétaire d’une maison de vacances en France? Nous avons créé l’ultime guide fiscal français uniquement pour vous!

Êtes-vous propriétaire d’une maison de vacances en France? Nous avons créé l’ultime guide fiscal français uniquement pour vous!

Environ 200 millions de personnes visitent la France chaque année (avant covid, bien sûr).

Wow… ça fait beaucoup de touristes!

Il est facile de comprendre pourquoi tant de voyageurs viennent en France, que ce soit en tant que vacanciers occasionnels ou en tant qu’investisseurs immobiliers internationaux. Après tout, la France est un endroit incroyable où vivre.

Ce pays a un bon climat, une culture de premier ordre, une histoire riche, des traditions colorées, des villes animées ainsi qu’une région campagnarde merveilleusement préservée. Sans parler des délicieux vins et fromages locaux!

Si vous êtes propriétaire d’une maison de vacances en France, il est primordial maîtriser vos exigences en matière d’impôt foncier français. Cela vous aidera à rester du bon côté des autorités fiscales françaises. De plus, cela vous aidera également à économiser sur votre facture de taxes foncières.

Continue reading →

Property Tax Tips

Renting property abroad to holidaymakers? Here’s everything you need to know about your tax requirements.

Renting property abroad to holidaymakers? Here’s everything you need to know about your tax requirements.

If you are fortunate enough to own a property in a popular holiday destination, then maybe you have considered the idea of letting it out while it’s vacant. This is an ideal way for many holiday homeowners to cover the costs of owning a property and perhaps earn some extra income on the side.

However, if you earn an income from property overseas – even from short-term holiday bookings – it is likely that you will have a tax filing requirement in that country.

Continue reading →