Non-residents who own property in Spain must submit a Property Imputed Income Tax declaration annually, due before the 31st of December for the prior fiscal year.
Wealth Tax (in all its different modes) was abolished in 2008 and therefore no longer payable. Following recent tax cuts implemented by Spanish Government, Property Imputed Income Tax is the only tax which remains an annual obligation.
As a non-resident owner, you should have an attorney appointed in Spain who normally is your lawyer or accountant.
Perez Legal Group can fulfil this obligation on your behalf by representing you fiscally. Upon appointment we will proceed with the following:
• Calculate the tax due on the basis of the rateable value and the number of days of ownership, ensuring you do not pay more than strictly is required.
• Filling out the forms with your personal and property information.
• Submitting our appointment as your representative in Spain to the tax office, thereby assuming the responsibility of receiving any formal communication and acting upon request.
• Representing you during the fiscal year in respect of any communications which we may receive from the Tax Office on your behalf.
It is important to note that each title holder has to file a tax declaration. If you own a separate garage or storage room, they will need an independent tax form too.
For every non-resident tax-payer we would need to know the full details of any other properties owned in Spain which might we are unaware of, together with the rateable value of the property (copy of the last Local Real Estate Tax). In case they are renting the property please note that you have the obligation to declare the rental income tax which will be a different procedure to the filing and payment of the annual Property Imputed Income Tax.

NOTE:You should know that until relatively recently the Spanish Tax Authorities had to pass many hurdles before they could act against foreigners residing outside of Spain to recover debt sowed to the Spanish Treasury.
However, a ministerial order of July 31, 2010 set out within European territory that any foreign debt will allow the Ministry of Finance, electronically, to make reports of foreclosures and repossessions of property situated in other states of the European Union in order to meet debts incurred in Spain.
The European Union agreed That tax system will facilitate the Tax Authorities and will report information about the state of any debtor and guarantors of a debt in order to make feasible the placement of an embargo on Spanish properties or properties located in England or other European Union country, taking the necessary measures to enable these debts are paid against the property. Bank accounts will also be considered.
This procedure will not be used to satisfy all different types of debts contracted by the IRS for non-payment of Value Added Tax (VAT); Income Tax of Individuals, Wealth Tax and other excise duties.
To facilitate this process, the Ministry of Finance will have the cooperation of other agencies: such as the Labor Inspectorate and the General Treasury of Social Security (TGSS) guaranteeing the confidentiality and security of citizen data information.
For further information, please contact one of our members of Perez Legal Group by clicking here