Cristina Domínguez Sánchez
Cristina Domínguez Sánchez

Office

ETM MARBELLA TAX S.L.
Cristina Domínguez Sánchez
Centro Comercial Diana, Local Cental C1
Ctra. A7, Km 168,5
29688 Estepona (Malaga)

Tel. (+34) 952 799281
Fax (+34) 952 799282
E-mail




Attention!! Non-resident property owners target of a renewed Non-Residents Tax Campaign

Steuerberater - Asesores Fiscales - Tax Advisors

In previous occasions we have informed our readers and clients that all Non-Resident owners of Spanish properties are liable for paying Spanish income taxes, regardless of whether they actually have any earnings in Spain, or let their property out for a small income.

Still it is quite common for Non-Fiscal Residents in Spain not to pay the Non-Residents Income Tax (Form 210), usually due to ignorance or neglect.

However, in the last few months and probably due to the financial crisis, the Spanish Tax Office is investigating property owners in Spain, who do not pay taxes as either tax residents or non tax residents, urging them to update their status and pay the applicable tax.

They seem to have been going through land registry records, but they could equally have been using their access to utility company computer systems or local tax records held by municipal authorities. It is then easy enough to cross-check against their own records of who files a tax return and send out a letter to those who have not.

Not every property owner who does not pay taxes has received one of these letters but it seems to be across Spain. Perhaps in time they will get to everyone who has avoided paying taxes so far.
If you have been sent one of these letters headed “Requerimiento” (literally “requirement”), that is a formal request for you to explain yourself and submit certain documents and proofs within a certain deadline. That is a more advanced stage of Tax Office attention and demands an urgent response. 
Non-Resident Tax letter being sent by the Spanish Tax Office:
(>>>>>>>>>>>>> “Requerimiento”, click here to see a sample)

Non-Resident property owners in Spain who fail to pay on time their Non-resident Income Tax (Form 210 - this tax payment must be lodged with the tax office prior to the 31st of December of any fiscal year for payment of the previous fiscal year) are subject to firstly a late payment fine of between 5%-15% and further to which a 5% interest rate of the total amount. In cases where non-payment has been identified, legal court action can be raised against the non-payer meaning further fines. Finally, if the taxpayer does not pay when required, owners could face seizure of their bank accounts in Spain. However, they seem to have all the information owners were hoping would not be picked up by the Spanish Tax Officr, not until the property was sold (time when it would have had to be disclosed, and taxes paid up, if one wants to claim the 3% Capital Gains Tax retention back successfully).

Therefore it is very important, that if you are Non-resident property owner in Spain, you should be aware that even if you have not received this type of notification from the Spanish tax authorities, you may receive it in the near future. Thus, we recommend you to address this situation as soon as possible by submitting every Income Tax return for Non-Residents for the last 4 years in which you have owned a property in Spain.

ETM MARBELLA TAX, S.L. can assist you in this obligation by providing you with the Fiscal Representation Service, consisting on the following:

  • Calculating the tax due on the basis of the rateable value and the number of days of ownership (if you bought or sold last year), ensuring you do not pay more than strictly required
  • Assessment of your situation and advice on the most convenient procedure in each case.
  • Filling out the forms with your personal and property information.
  • Tax payment through our client bank account if required or online submission of the return and order for the payment of the tax due, by direct debit to your Spanish bank account.
  • Follow up on further notifications or correspondence received for our clients from the Tax Office and replying within the required time to avoid costly surcharges and fines
  • English-speakingadvice onSpanish tax

Special Fee
Our special fee for this type of tax return, covering the services mentioned, are as follows:
           
90,00 EUR / per year

We can deal with this type of tax return by mail, email or personally in our office if you are in the area. Please contact us for individual advice and information at the office listed below:

Cristina Domínguez Sánchez
ETM MARBELLA TAX S.L.
Asesores Fiscales - Steuerberater - Tax Consultants
Centro Comercial Diana, Local Cental C1
Ctra. A7, Km 168,5
29680 Estepona

Tel:  0034 952 799 281
Fax: 0034 952 799 282

If you would like to schedule an appointment, please email us your name, telephone or email address, date and time of requested appointment, and brief explanation of type of appointment requested.