Did you know that if you are a foreigner and you own property in Spain but don’t live there, you might be on the hook for something called “non-resident tax in Spain”?
Do you rent out your property? Then, you must pay rental income tax in Spain.
Surprisingly, many property owners are unaware of their tax obligations and go years without paying them.
However, things have changed recently, and understanding the nuances of international property tax is crucial for global real estate investors.
The tax authorities have become more active in pursuing unpaid non-resident taxes in Spain. They’re now sending out tax demands to those who haven’t paid their dues for the past four years.
If you receive one of these demands, you’ll have just 10 days to make the payment.
And be prepared for some additional fines too, like interest on the unpaid amount and potential penalties down the line.
It’s better to stay on top of your non-resident tax responsibilities to avoid any surprises!
In this guide, you will find everything a non-resident landlord needs to know about property tax, rental income tax in Spain, and the tax filing deadlines.
Please note: PTI Returns provides tax return filing services to investors with property in Spain. We do not provide support services for mortgage applications or Spanish property purchases.
