In last few weeks the Spanish Inland Revenue (Agencia Tributaria) has been carrying out a new campaign to look for and identify those NON-RESIDENTS who own real estate properties in Spain but have not submitted the Tax returns
The Tax Returns that all Non-Resident Property owners should be submitting annually is called, Modelo210, and the period for submitting this declaration is the calendar year, (i.e. 1stJanuary to 31stDecember each year). The Annual Deem Income Tax due for the tax year 2018, must be paid before the 31stDecember 2019.
The Tax Office is sending amicable letters to those Non-resident property owners who, to date, have failed to present and pay this tax. This communication enables those who have never presented the “Modelo 210”, to be able to rectify the situation voluntarily, without paying any fines or interest.
Many NON-RESIDENT PROPERTY OWNERS have not paid these annual taxes, not because they wish to commit tax fraud, but due to mere ignorance of the existence of this tax. Usually because nobody has ever informed them.
Everyone should be aware that ignorance of the Law is not an excuse for not paying this tax, so we recommend any NON-RESIDENT who owns a real estate property in Spain seeks tax advice to make sure they know what their tax obligations in Spain are. The tax form 210 is operated on a self-assessed system. This means that Non-residents have the obligation to prepare, calculate and pay their own Deem Income Tax every year.
Nowadays, the Inland Revenue computers can easily check who is not paying these taxes, so it is important to ensure that the annual tax form 210 is paid and submitted on time every year.
As this is not an easy process, we recommend that non-resident property owners should get professional assistance to prepare these annual taxes.
If you are a NON-RESIDENT PROPERTY OWNER IN SPAIN, you still have plenty of time to comply with this Tax law. It’s better to do it before the Inland Revenue contacts you.
Jose M. Garzon
Head of Axarquia & Nerja offices.