So what is Non resident tax and Modelo 210?!
It's a multi faceted form for use by non residents to pay tax in Spain on various income streams which includes:
- rental income,
- capital gains on property sales and
- imputed income.
Imputed income tax on property is commonly know as the “non resident” tax but in fact it is a tax on second homes and is payable by residents too if they have a second home in Spain or anywhere in the world, including the UK. Theoretically it is a tax on the benefit of owning a second home. The difference here is residents pay the tax through their annual income tax declaration. Non- residents must submit their return and payment in the calendar year following accrual. So in respect of 2018 it must be submitted by 31st December 2019.
There are 2 levels of tax paid - 19%, by residents of EU countries and 24% by non EU citizens. You need a certificate of fiscal residency each year if you are taxpayer in a European Country.
If the property is also owed by other people, such as a spouse, then each person has to submit a separate declaration and the figures, to be paid, are adjust accordingly.
The period of declaration is for the full calendar year, therefore if you have owned the property for less than a year the payment is proportionate. Don’t forget that if you have sold a property you must submit a return for the day’s in that year that you have owned the property.
There is an obligation to submit 210 imputed income tax on property for the empty days when rented (either short term or long term) as you'll see in the next section.
Properties rented out - short or long term
If you rent out your property then you are responsible for submitting a quarterly declaration, Modelo 210, of the rental income during the year you receive the income.
The income to be declared will be the whole amount received from the lessee’, without deducting any expenses. In addition, for the times the property is empty you have to submit an imputed income return in the following year. EU residents can deduct the following expenses, which are directly connected with the letting of the property:
electricity, water, gas or telephone
rubbish collection or local rates (IBI and Basura)
maintenance and repairs - which are not considered to be improvements,
cleaning services or expenses,
interest on mortgage (if applicable),
Depreciation of buildings or fixed assets
exactly in the same way as residents do.
Fixed Assets are classed as furniture and items that last for longer than one year and the corresponding depreciation is offset as a cost.
Improvements to the building such as new electrical installations, plumbing, reforms on the building etc. must be detailed separately and the depreciation will be calculated accordingly.
A full invoice (which includes both the property owner (full name, NIE, address of the property) and the Company issuing the invoice (full name, NIF/CIF, address), invoice number, date and description of service or item) must be provided in order so the expense to be deducted.
Capital gains derived from the sale of buildings.
The obtainment of a capital gain as a result of the sale of a property constitutes an income subject to tax. This income is understood to accrue when the capital change occurs.
In general, the gain will be determined as the difference between:
the transfer price (reduced by the amount of any expenses and taxes inherent to the transfer paid by the seller.)
and acquisition price - and the introduction of an additional modelo, 211 which is the modelo paid by the buyer (3% of the sale price). This 3% may be deducted from modelo 210
There are some exemptions to this which we can help you with.
Completing the Modelo 210
You can complete the form online yourself but there are several calculations required that the form does not complete for you and therefore many people find it much easier to employ the services of an Asesoria, such as ourselves.
In order for us to complete the tax returns for you we will need to following Information, which can be collected online via our secure and GDPR compliant site:
Spanish NIE number
Date of Birth,
Town of Birth (as per your passport)
Property ownership status - Sole/Joint (Married)/ Joint (partnership)
Country of Fiscal residence (probably UK but needs to be confirmed)
Address in your country of residence (probably but not necessarily the UK)
Full Address of the property or properties in Spain - including purchase date
Catastral reference number of Property in Spain (shown on the IBI bill)
An IBAN bank account number to include on the form so that you can pay from your bank.
Email and telephone number
Information on the status of the Spanish property:
Long term rent - we require the tenants full name and NIE number and rental income
Short term rent
How many days per quarter occupied
Current costs for maintenance: painting, cleaning, repairs, handling fee, replacing small items (bulbs, bed linen, curtains and etc.)
Assets purchase: tv, wardrobe, kitchen, sofa and etc.
Major repairs for the property: changing tiles, pipes, electric installation and etc.
It's a very simple process as you can see, you provide us with the above information via 3 easy to use forms via a link we send out. This obviously means you can complete the declaration without even being on the island and from the comfort of your home.
If you require our assistance with your non residents property tax return please contact us
Tel: +34 609290317 through the website or via the facebook page
you can pay online, via your bank or by credit or debit card