All non-resident homeowners have to pay tax on their Spanish property by December 31st for the previous year. The payment is for properties left empty or not used by the owners.
All non-residents who own a property in Spain need to pay Modelo 210 Non-Letting Tax. As the name suggests, this is for properties which do not generate income for the owners and is left empty.
This tax is calculated in arrears. However, the impact of Brexit and Covid in 2020, may mean higher payments for homeowners. Empty rental calendars were the norm during 2020 so many owners may find themselves liable for the ‘Deemed (Rental) Income.
In addition, British homeowners are also hit with an increase in the tax rate 19% to 24%, as they became non-EU citizens.
The onus is on the owner
The Spanish tax office does not send out any reminders, so it is up to the homeowner to complete the form by 31st December.
Non-payment can have consequences with fines and complications should the owner wish to sell. The authorities also have the ability to place an embargo and withdraw payments directly from associated non-resident bank accounts.
The form can only be completed online at the Tribunal Agency’s website. Instructions are available in English. There are currently (2021) two versions, one for the tax years 2011 to 2017 and another for 2018 onwards.
Amount due calculated on rateable value
The amount due is calculated using the “Valor Catastral” (Rateable Value) of the. This is shown on your IBI “Impuestos Sobre Bienes Inmuebles” receipt, (Rates as English speakers know them).
Remember: British non-resident homeowners will have to pay 24% tax this year as a result of Brexit.
Associated article: Income Tax due 30th June
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