Non-Resident Income Tax

Raymundo Larraín Nesbitt, December, 1. 2017

By Raymundo Larraín Nesbitt
Director of Larraín Nesbitt Lawyers
1^st of December 2017

The festive season is almost upon us. Most people have their minds set in the holiday break and spending some quality time with family and friends.

Unfortunately, it is also the time of the year where Non-Resident Income Tax is due (NRIT, for short). I have written this short blog post as a gentle year-end reminder.

If you own property in Spain, and are non-resident, you are liable to pay NRIT even if you do NOT rent your property out. You have until the 31^st of December to file NRIT without attracting penalties and surcharges.

On selling your property, the Spanish Tax Office will verify you are up do date paying NRIT; otherwise they will simply pocket all or part of the 3% retention a property buyer is forced to withhold on buying your property and pay it into the tax office. Losing 3% of the sales proceeds is a large amount of money for most people. Why not pre-empt this following my advice?

In order to avoid losing money on selling your property in Spain, you should hire a law firm such as ours to file this annual tax on your behalf. This annual tax in itself is actually ultra-low and acts with a purpose of ‘control’. We offer the following legal service for a flat fee:

Non-Resident Income Tax (Fiscal Representation): €90

You can contact us until the 21^st of December 2017 to file and pay your Non-Resident Income Tax. Stragglers are welcome!

What happens if I rent my property out in Spain?

In addition to filing the above annual tax, you will also have to pay a quarterly tax on your Spanish rental income.

When you let your Spanish property, regardless if it is short-term (i.e. holiday home or seasonal let) or long term, you should be filing and paying a quarterly tax on your rental income to the Spanish Tax Office. This tax is collected quarterly, on the first 20 days of every January, April, July and October.

We offer the following legal service which is very competitively priced:

Holiday Rental Accounting Service (HRAS): 100 euros/tax quarter (plus VAT)

On average, we are able to reduce 30 to 40% of a landlord’s taxable base on applying for landlord tax relief (including non-residents, as long as you are EEA/EU-resident).

More details in my article: Renting in Spain: Non-Resident Landlord's Rental Tax Relief – 14th of January 2017

We welcome you to contact us and discuss your tax matters, so you are fully tax-compliant (and pay less taxes of course!).

Larraín Nesbitt Lawyers, small on fees, big on service.

Larraín Nesbitt Lawyers is a law firm specialized in taxation, conveyancing, litigation and inheritance. We will be very pleased to discuss your matter with you. Please contact us for a free initial consultation. You can contact us by e-mail at info@larrainnesbitt.com, by telephone on (+34) 952 19 22 88 or by completing our contact form.

Legal services Larraín Nesbitt Lawyers can offer you

Taxation-related articles

Spanish Wealth Tax (Patrimonio) – 8th November 2011
Taxes on Selling Spanish Property – 8th December 2014
Changes to Spain’s Inheritance and Gift Tax Law – 21st February 2015
La Complementaria or ‘Bargain-Hunter Tax’ – 8th May 2015
Taxes on Buying Spanish Property – 8th July 2015
Non-Resident Taxes in Spain – 8th December 2015
Spanish Inheritance Tax for Non-residents (Part I) – 8th February 2016
Spanish Inheritance Tax for Non-residents (Part II) – 8th March 2016
Holiday Home Taxation in Spain – 8th of July 2017
Non-Resident Income Tax – 1st December 2017
Non-Resident Income Tax – 8^th December 2017

Please note the information provided in this blog post is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. VOV.