Why should I complete Modelo 210 and pay non-residents tax?
We’ve explained to you what the model and non residents tax is here but you may be asking yourself why should I bother?
You may have friends who have had property here for years, have never completed the obligation and have never had any issues. We have to tell you times are changing and quickly!
The Tax Agency (AEAT) are now catching up with people and this has been helped with the introduction of Modelo 179. This Modelo, as we have covered before (LINK) is completed by intermediaries, such as Airbnb, booking.com, Homeaway and Property Management Companies who take bookings on your behalf from holiday makers. They are obliged, every quarter, to inform AEAT of all bookings made through their platform, including how many days and how much was paid.
It is also worth noting the information gathered by AEAT from modelo 179 can be used against you if you try to under declare on your tax returns - for example Airbnb state in the modelo you rented your second home for 1000€ and 10 days in the quarter and on your tax return you state you received 500€ and only had 5 days booked, the AEAT will challenge why the information differs! We have evidence of this happening and also of the AEAT using facebook adverts and data from Unelco and Canal Gestion meters in a similar way. For example - your advert on facebook reads “grab it quick the last available dates for 2019…” then in your declarations you state the property has been empty for a large part of the year, it will be down to you to prove why there is this discrepancy.
So, back to Non residents tax and the associated modelos - The great news is here at Rosenov and Quintero we can collect all the information we need securely on line, including documents, using our specially designed easy to use forms. Giving us all the information we need for Modelo 210 and 400, 420 and 425 if required (details below). This means you can file the correct obligations without even being on the island. In addition, as part of our service we calendarise all the obligations each client has to ensure a modelo is never missed and they are all filed on time. For some clients this can be up to 22 Modelos a year, as you can see it’s no small task!
Currently the tax is 19% for all non residents living within the EU (currently the double taxation agreement in place with the UK means this will continue after Brexit but if this changes we will bring you the updates) and 24% for all non residents living outside the EU (with the exception of Iceland and Norway).
It is also worth nothing that if you haven’t previously declared your second home or rental income the tax agency can currently go back to 2015 to collect payments, late fees and fines, which could be up to 50% of any net income.
THE KEY FACTS
Modelo 179 - Completed quarterly by intermediaries such as Airbnb, Homeaway etc on what bookings have been taken through their platform, including amount paid and days occupied.
Modelo 210 - Annual obligation - Stating who owns the property - sole ownership, joint-married, joint-partnership. Each owner must make a submission.
- Catastral reference number from IBI and Catastral Value
Modelo 210 - Quarterly obligation - Rental status - empty, sole use, short term rental, long term rental (including tenants details)
Rental income for the quarter, the number of days the property was occupied (as a rental and for personal use), expenses incurred in the quarter and fixed assets. Rate of tax is 19% for EU residents and 24% for non-EU residents (except Iceland and Norway)
Modelo 400 - obligation for IGIC - only required when starting the renting activity or if there are any changes in the fiscal situation, for example going over the 30,000€ annual income.
Modelo 420 - Quarterly obligation for IGIC as follows:
Sole ownership and married joint owners with a rental income of <30,000€ have no requirement to pay IGIC
Joint owners who are not married must pay IGIC on all income and each owner must submit the declaration
At Rosenov and Quintero we pride ourselves on offering a great service and value for money therefore our charges are 60€ per person per modelo submitted.
Example - the cost for joint property of non married couple; per person: 1 x Modelo 400 (only once a year), 5 x modelo 210, 4 x modelo 420, 1 x modelo 425. Total per property per year: 22 modelos would be 1320€
If you would like to know more or start working with us please call Tel: 609290317 to make an appointment. You can also contact us via our Facebook page