If you buy a property in Spain and you are a non-resident, no matter if you are from the European Community or not, you have certain tax obligations with regard to the Spanish tax office, and if you do not comply with these obligations there can be serious economic repercussions on your property. If you are a resident you have the same tax obligations as any Spaniard.
First of all you have to apply for the so-called N.I.E. (identification number for foreigners). With this number you can identify yourself in front of the Spanish tax authority and thus pay all your taxes.
After having purchased the property and having paid all important costs and fees that go along with it, as the notary and registry fees, the I.T.P.A.J.D. (land transfer tax and stamp duty), etc., you have got important tax obligationsto comply with every year:
In the local tax agency or in the town hall you have to pay the I.B.I. (property tax) and the refuse collection every year. It is important to have a standing order for these payments with any bank institute in order to avoid trouble and not to forget the period for the payment of these taxes and fees.
In case the property is registered on someone else’s name, it is also important to have these taxes transferred to your name in the town hall.
Every year, you have to declare your wealth tax and your income tax for non-residents with the state tax agency (form 210). This is the most important tax regarding real-estate property of non-residents. If one does not declare and pay this tax, there might be large fines and surcharges of 24% plus interest on arrears for the non-resident tax payer who does not comply with these tax obligations.
Our office can take charge of all these matters in order for you to fulfill your tax obligations and always be up to date with your payments to the Spanish tax office.