TAX ONLINE … HOW IT WORKS?
If you are interested in our Tax Online Service, please, pay attention to the following information:
◦ WHAT TAX OBLIGATIONS DO I HAVE AS OWNER OF A PROPERTY IN SPAIN IF I AM NON RESIDENT IN SPAIN?.-
As owners of a Spanish property you have to fulfil the following obligations:
- To make the declaration of Income Tax every year – This is the model 210.
- To pay the Income Tax every year
◦ ARE THERE ANY DIFFERENCES IN TAXES BETWEEN RESIDENTS AND NON-RESIDENTS?:-
Of course, there are.
□ If you have not applied for the Spanish Fiscal Residence (You are paying your taxes in your country of origin), you must make all the declarations and payments for taxes in the country in which you have the residence. In Spain you only have to make the proper declarations and payments for Income as NON-RESIDENTS.
And this, independently if you are living permanently in Spain or not.
For example: If you are coming from UK, and you are living in Spain for two years, and you never applied for the Spanish Fiscal Residence, you have to make the declaration of taxes in UK, and in Spain only the taxes as SPANISH NON RESIDENT, because, although you are non-Spanish resident, you have a property in Spain.
□ If you have applied for the Spanish Fiscal Residence, you must make all the declarations and payments of taxes in Spain. So, you have to make in Spain all the declarations and payments of taxes, for your worldwide wealth.
For example: If you are coming from another country, and you are living in Spain for two years, and you applied for the Spanish Fiscal Residence, you have to make the declarations of taxes in Spain, as SPANISH RESIDENT. So, you should declare in Spain all earnings, pensions, assets, etc. that you could have in Spain, or in any other country in the world.
◦ HOW COULD I OBTAIN THE SPANISH RESIDENCE FOR TAX PURPOSES?.-
Applying for the Spanish Fiscal Residence in the Spanish Customs. This is a document which is given to you, once you demonstrate that you are living in Spain for more than 6 months (usually presenting the Padron, or with the electric and water bills).
YOU ARE SPANISH RESIDENT, in the moment in which you get the SPANISH TAX RESIDENT CERTIFICATION issued by the Spanish Tax Office or Spanish Customs, and then you start to pay your taxes in Spain, and not in your country. It means that yor conttry leaves to tax your incomes, so is Spain who does it afterwards.
For this, you need:
- You spend more than 183 days in Spain in one calendar year. You become liable whether or not you take out a formal residency permit. These days do not have to be consecutive. (Temporary absences from Spain are ignored for the purposes of the 183-day rule unless it can be proved that the individual is habitually resident in another country for more than 183 days in a calendar year.)
- Or, your “centre of vital interests” is in Spain, e.g., the base for your economic or professional activities is in Spain.
- Or, your spouse lives in Spain and you are not legally separated even though you may spend less than 183 days per year in Spain
Note that the Spanish tax years is the same as the calendar year (1 January – 31 December), unlike other countries like UK, which is from 6 April to following 5 April.
Usually people confuse the “Spanish Tax Residence”, with the “Spanish Residence”. In better words, people think that the Spanish Residence Card, or Certification obtained in the Spanish National Police, is enough to demonstrate that they are Spanish Residents for Taxes, and, unfortunately, this is not enough. The Spanish Residence Card, or Certification, is not valid to change your Tax residence from your country to Spain. This document only declares that you are “living” in Spain, in order to facilitate the Police to have a better control over the residents in an area.
In order to become Spanish resident for taxes, and then start to pay your Taxes in Spain as a normal Spanish citizen, you must obtain the SPANISH RESIDENT TAX CERTIFICATION issued by the Spanish Tax Office or Spanish Customs, and then you will start to pay your taxes in Spain, and not in your country.
Another confusion “ Although I have not the Spanish Tax Certification, I am Spanish Resident because I have my Residence Card, and I am paying taxes in Spain: As explained above, just to have the Spanish Residence Card or Certification will not change your tax status.
And, please, check with your tax adviser the taxes that you are currently paying because, as you are not Spanish Resident, you should be paying the typical taxes for NON RESIDENTS, which are the famous model 214 (before 2008), and now the model 210 (after 2008).
◦ WHEN DO YOU HAVE TO MAKE THE TAXES DECLARATIONS AS RESIDENTS AND/OR NON-RESIDENTS.-
In both cases, once every year.
◦ ARE THESE OBLIGATIONS FOR ALL THE SPANISH REAL ESTATE OWNERS?.-
Yes, independently of your condition as resident or nor resident, you have taxes obligations to fulfil every year, as in any other country.
◦ I AM SPANISH RESIDENT BECAUSE I HAVE THE SPANISH TAX RESIDENT CERTIFICATION. DO I NEED TO PAY SPANISH TAXES?
Independently of your age, you have to pay Spanish Taxes in Spain, as Spanish Tax Resident, always that you are not in one of the following circumstances:
1.- You do not earn more than 22.000 EUR per year (approximately), if your incomes are coming from just one payer.
2.- If your incomes are coming from 2 different payers, then, if you earn less than 11.200 EUR per year, always than the other payer pays less than 1.500 EUR per year:
In this 2 cases, being Spanish residents, YOU WILL NOT PAY SPANISH TAXES, AND YOU WILL NTO BE FORCED TO MAKE THE YEARLY DECLARATIONS OF TAXES.
Example: You are receiving incomes from two payers: “Payer A” and “Payer B”.
Payer A pays you 11.000 EUR per year. Payer B 150 EUR. You do not have to pay Spanish Taxes in Spain that year because you do not pass the limit of 11.200 EUR as total, and the payer B does not pass the limit of 1.500 EUR per year.
Payer A pays you 7.000 EUR per year. Payer B 2.000 EUR. You have to pay Spanish Taxes in Spain that year because, although you do not overpass the limit of 11.200 EUR as total, the payer B pays you more than 1.500 EUR per year.
Payer A pays you 10.000 EUR per year. Payer B 2.000 EUR. You have to pay Spanish Taxes in Spain that year because, first, you overpass the limit of 11.200 EUR as total, and, second, the payer B pays you more than 1.500 EUR per year.
◦ “I HAVE SOME FRIENDS WHO ARE LIVING IN SPAIN FOR A LONG TIME AND THEY NEVER MADE ANY DECLARATION IN SPAIN”.-
This could be possible because maybe they could not be assisted in the right way by their legal or tax advisors.
◦ WHAT ARE THE CONSEQUENCES TO DO NOT FULLFIL THE TAX OBLIGATIONS?.-
After the new changes in the control from the Spanish Customs, Spanish Residents and No-Residents with a property in Spain can be inspected by the Spanish Customs.
If they detect that, in the previous 4-5 years they have not made the proper declarations, or these are not made in the following way, they will then force the inspected person to pay these taxes, together with additional fines.
◦ “HOW CAN I FULLFIL WITH ALL MY SPANISH TAX OBLIGATIONS?”
Contracting our ONLINE TAX SERVICES. We have specialist tax advisors and economists at your disposal, which will study your situation individually.
There are other companies and professionals in the market who are offering these type of services to Spanish owners. Some of them are not specialists in these matters, and not prepared to give legal and tax advice in a new, and more controlled system which is the new in Spain after January 2007.
◦ “IF I DECIDE TO CONTRACT TLA AS MY TAX ADVISOR, HOW WILL YOU DEAL WITH MY TAXES?”
We will request from you all the necessary paperwork to make the declarations directly by post, or by security courier.
With these documents we will elaborate all the declarations on your behalf, and, once they are ready, we will instruct you about the payments.
In this way, you will have a specialist tax advisor at your disposal to make your proper declarations of taxes in Spain, directly from home.
◦ THIS IS AN ONLINE SYSTEM.-
This service is created to give you the most comfortable solution to your tax obligations, without lost of time in visits to the tax advisor office, parkings, etc. Directly from home to the tax advisor.
◦ “WHAT SERVICES IN TAXES CAN TLA OFFER ME?”.-
This service includes:
- Elaboration of the Income Tax declarations for the User, and for the wife/husband, or partner who is currently living with the User.
- Payment of the taxes
- 10 queries per year by post, or e-mail regarding
- Obtaining of the best individualized solutions for tax purposes
- Inheritance Tax Advice
Contact with our staff and we will explain to you directly how to contract with our ONLINE Tax service.