Fiscal Representation
in Spain
If you’re a non-resident who owns multiple properties in Spain, has an inheritance from Spain, or earns income from within Spain (such as rental income, capital gains, or dividends), Spanish law may require you to hire a local representative to manage your fiscal obligations in Spain.
Contact our English-speaking team for all your legal, property, and accounting needs.
Do you need an English-speaking fiscal representative in Spain?
A fiscal representative or representante fiscal serves as an official liaison between an individual or business and the Spanish tax agency, known as the Agencia Tributaria or AEAT (Agencia Estatal de Administración Tributaria). In some cases, it’s compulsory to have a Spanish tax representative.
By law, a non-resident owner of more than two Spanish properties must appoint a fiscal representative in Spain. Failure to do this may result in a fine of between 150€ and 6,000€, plus potentially losing the right to claim tax refunds.
Those who only own one property in Spain aren’t legally obligated by law to appoint a representative, but it’s in their best interest to do so.
It is legally mandatory to hire a tax representative in Spain if you own more than one Spanish property and your primary tax residency is outside the European Union (EU) or European Economic Area (EEA), especially if this is explicitly requested by the Spanish tax agency. Those with multiple Spanish properties who live within the EU or EEA are generally exempt, but hiring a fiscal representative is still beneficial when navigating foreign taxes with a language barrier.
If you need a local tax representative in Spain, Perez Legal Group offers English-speaking Spanish tax services you can rely on.
Which property taxes do non-residents have to pay in Spain?
For those who own properties in the country without living there, non-resident tax in Spain includes the standard annual property tax known as IBI (Impuesto Sobre Bienes lnmuebles), property-related income taxes, and potentially a wealth tax on all Spanish assets, including real estate.
Firstly, all property owners must pay IBI, the municipal property tax, to the local authority every year. This is around 0.4–1.3% of the property’s cadastral value.
Secondly, property owners must pay personal income tax on any earnings from their Spanish property. For example, if you earn rental income from your Spanish property, you must file and pay a return for non-resident income tax, known as IRNR (Impuesto sobre la Renta de No Residentes). The amount of tax you’ll owe depends on whether you’re an EU citizen and entitled to a 19% rate with expense deductions, or a non-EU citizen with a 24% rate and no deductions.
It’s important to note that even if you don’t rent out your property, any non-resident individual with a Spanish property in their name may still be subject to an annual “deemed income tax” of 2% (or 1.1%, if the cadastral value has been recently revised) of the value of the property.
In addition to property tax in Spain and related income tax, non-resident property owners may also be liable for the annual wealth tax in Spain, known as IP (Impuesto sobre el Patrimonio). This applies if the total value of all your assets in Spain exceeds 700.000€.
The tax rate will vary depending on the location of the assets within Spain. While some regions offer a 100% exemption, such as Andalucía and Madrid, a further Solidarity Tax on Large Fortunes (Impuesto de Solidaridad de las Grandes Fortunas) may apply to total asset values exceeding 3.000.000€.
How can our Spanish fiscal representation services help you?
Pérez Legal Group can file your non-resident tax declarations (including property tax, income tax, and wealth tax) on your behalf. We will also inform you of any taxes you will have to pay now and in the future, according to the details of your Spanish properties.
We can help you to obtain your Spanish tax number smoothly.
Once we have your information, we can provide tailored advice on your fiscal status and your accounting and tax filing requirements.
When you appoint us as your fiscal representative, we can handle all correspondence with the Spanish tax authorities for you.
Our team will take the hassle out of your Spanish tax communications, assisting with verifications and inspections if needed.
We can also help you with improving and maintaining your accounting procedures to make calculating, declaring, and paying taxes easier.
Plus, our experts have insight into legally minimising tax liabilities.
Contact Perez Legal Group for tax representation in Spain
As established accountants in Marbella, our range of fiscal and financial services includes bookkeeping and payroll services in Spain for businesses of all sizes, as well as self-employed bookkeeping in Spain for autónomos (self-employed workers).
Our friendly, experienced team of English-speaking professionals is here to help individuals and businesses improve their fiscal position in Spain by strategically minimising tax liabilities and ensuring compliance with tax filing requirements and deadlines.
To learn more about what we can do for you, call 020 36 95 23 30 (UK) or +34 952 833 169 (Spain) or send us a message below.
CONTACT US
Frequently Asked Questions
What does a fiscal representative do?
A fiscal representative is a locally based tax representative who is authorised to act on a non-resident’s behalf in a foreign country.
While corporate representation would involve cross-border trade compliance, personal fiscal representation in Spain focuses on personal tax management, including Spanish taxes on income, property, and other assets in Spain.
When you hire an English-speaking Spanish fiscal representative, like Perez Legal Group, you can benefit from:
- Tax Filing – Calculating the taxes you owe and submitting your Spanish tax declarations for you.
- Official Liaison – Receiving mail from and corresponding with the local tax authority on your behalf.
- Prompt Payments – Ensuring your tax payments are processed on time to avoid late penalties.
While Pérez Legal Group can act as your fiscal representative, filing all the necessary forms and reminding you of payments due to the Spanish tax authorities, it is the responsibility of the client to pay the annual tax levied on their property.
The payment due should reach our clients’ accounts before the first week of December of each year; otherwise, we will not be responsible for tax payment within the time limit established by the tax authorities in order to avoid any penalty.
To learn more about what we can do for you as your fiscal representative in Spain, get in touch with our team today.
What is a fiscal resident in Spain?
A Spanish fiscal resident is someone who the Spanish tax agency considers a resident in Spain for tax purposes.
Even if you don’t live in the country full-time, or at all, you are a fiscal resident in Spain if:
- You stay in Spain for over 183 days in a Spanish fiscal year (1st January to 31st December)
- The main base of your economic interests (business, investments, or other professional interests) is in Spain
- Your spouse and/or dependant children live in Spain the majority of the time
Fiscal residency in Spain is a significant distinction because non-residents only pay taxes on Spanish assets within the country, but if your fiscal residence is in Spain, you must pay taxes on your worldwide assets.
This means a non-fiscal resident in Spain will likely pay fewer taxes at lower rates.
It’s also important to consider this for estate planning, whether you’re writing a Will in Spain and aiming to reduce Spanish inheritance tax or intending to sell property and hoping to minimise capital gains tax with the help of a Spanish fiscal agent.
How much do Spanish tax representation services cost?
The cost of fiscal representation in Spain depends on the complexity of the services you require.
Typically, there is an annual retainer fee to cover the administrative costs of managing your tax correspondence and filing, but there may be additional charges for more complex tax processing.
There may also be upfront costs for notarising a Power of Attorney agreement or your NIE application, if you require help with this.
Your Spanish tax representation fees will be higher if your fiscal representative has to take on joint legal liability for your taxes in Spain. Due to the increased risk, you may also have to provide a security deposit or bank guarantee.
To receive a quote for fiscal representation services in Spain, please contact Perez Legal Group and arrange a consultation.
Do foreign businesses need fiscal representation for VAT compliance?
If you’re a foreign seller trading within Spain, you must register with the Spanish tax agency to receive a VAT number, then submit tax documents for your business and pay the VAT you owe in Spain. As this can be complicated, it’s beneficial to secure VAT representation in Spain.
In this case, the fiscal representative for your business will act as your local contact, liaising with the tax authorities in Spanish, submitting your VAT returns and annual summaries, and handling the timely payment of import duties to avoid delays and penalties.
While hiring a Spanish tax representative is optional for EU companies that run distance-selling businesses or have a permanent establishment in Spain, it’s a legal requirement for foreign businesses that aren’t based in the EU.
Non-EU businesses are only exempt from requiring a local tax representative if they only operate in customs-free zones or if Spain has a mutual assistance agreement or tax information exchange with their country (such as Norway).
If you need corporate tax advice in Spain, Perez Legal Group can provide international tax representation for both EU and non-EU businesses.
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