Do I have to file the NR tax in Spain despite the fact I pay my taxes in my country, and even I do not regularly live nor work in Spain?
You are to file the NR tax in Spain since the moment you own or co-own a property in Spain, even though you may be duly paying your taxes in your country and living mostly there ( over 183 days a year ).
What can we do for you regarding NR Tax?
We calculate your tax liability, obtain and complete the appropriate tax form and email or post the completed forms to you.
How is this NR tax calculate?
When you do not rent your property, nor you actively work in Spain or get other incomes, your tax liability is calculated on the cadastral value of your property. You can find the cadastral value of your property in the IBI receipt that you pay each year.
When is the deadline?
You need to complete your return and pay it by 30th December. Still you would probably like to direct debit your returns, you should file it by the 23rd December. If you miss the deadline you can be fined and, if you ignore this altogether, the debt could be attach to your property and seizures to your bank account could be done by the tax office.
What happens if I do nothing?
If you do nothing, you are breaking the law. It is possible, of course that you could get away with it for a time. However the Spanish authorities retain records of all properties in Spain and are able to investigate cases where no returns are filed for individuals properties. You may be aware that several thousand warning letters have been issued to holiday home owners indicating the beginning of an enforcement initiative.
Our property is in joint names does that mean two forms?
Yes, two forms are required splitting the cadastral value between two. Still we only charge a reduced fee per a couple of individuals.
How do I pay for my NR tax?
Simply by taking the forms into your bank or settings a direct debit from your bank account if you are up to date with your taxes.
I’m not going to Spain again this year, how can I pay?
We can file the forms for you, pay the tax and send you the receipts to you.
I have received rental income.
If you receive rental income you need to pay income tax on your net income (i.e. income after expenses). This is paid at the end of the quarter period during the year in question. Income received between January – March should be declared on a tax return by 20 April, income received during April – June should be declared by 20 July and so on. We can also prepare these returns for you (and pay the tax if required).
I still have questions
I never paid for my NR tax and have been holding a property for years in Spain. How can I regularize my tax position?
We can help you reduce any penalties you might have incur so far, by filing old NR tax voluntarily prior to any summons from tax office is notified to you. That way you may get your tax records cleaned.
I have been living in Spain and filing my returns in my country.
In your case you should be talking to us immediately to regularize your tax position, most probably involving tax repayments by your country´s tax authorities to you, and your tax returns payment to the correct authorities in Spain. Most countries do have a DTT (Double Taxation avoidance Treaty) signed with Spain, so that you do not end up paying in both countries!
Moreover, if you own assets over 50.000 Euros abroad it is mandatory to file format 720 to Hacienda by the end of March. This must be reviewed every year. Penalties for this particular infringement are especially outrageous. Do contact us if you are in this plight as we could reduce your tax liabilities.