Modelo 210: Non-resident income tax in Spain

Last updated on March 22nd, 2022 at 09:00 pm.

The form Modelo 210 is used to file the ordinary tax return for non-resident income tax (without permanent establishment).

In this article we will go through some relevant information regarding the non-resident taxes in Spain and how can you pay them. However, we would like to remind you that taxes in Spain can be complicated and you could be subject to fines or penalties if you miss a deadline or don’t do your taxes properly. Advisably, you should seek fiscal advice from an expert to avoid possible complications.

Non-resident tax in Spain

These are the taxes you need to pay in Spain as a non-resident:

• Council tax: It is a local tax and goes by the name of IBI (Impuesto Sobre Bienes Inmuebles). It is payable directly to the town hall or via a tax collection office, for example SUMA, in some regions.
• Rental income tax: If you choose to rent out your property for some or all of the year then you will need to pay rental tax as a non resident property tax in Spain. This is collected quarterly on the 20th April, 20th July, 20th October and 20th January.
• Imputed income tax: Additional government tax that is payable by non- residents if they do not rent out their property.

If you would like additional information regarding non-resident property tax in Spain, you can visit this article.

How do I pay them? – Modelo 210

The system here is different from what happens in most other countries. The Spanish Tax Authority (Agencia Tributaria) will not necessarily remind you that a tax hasn’t been paid. Instead you are expected to make your own enquiries and arrangements.

This doesn’t mean that they have forgotten that you haven’t paid the tax. There is an annual tax declaration in Spain (deadline December 31st) that non-residents must submit on form Modelo 210 (official link here).

There are different ways of presenting this payment. You can either:

• Submit the modelo 210 online
• Use a fiscal/tax representative

Submitting online is the cheaper option. If you do choose to use a fiscal representative they can give you advice about what you should and should not present. They are up-to- date with the latest tax law and will represent you at the Tax Authority if there should be any problems.

What happens if you don’t pay?

What can happen is that any tax that remains unpaid is held against the property until it is either sold or bequeathed. At that point the records will reveal that you owe money and this amount must be settled before names are changed on the Title Deed to the house.

This can sometimes lead to large amounts of tax debt accruing and there can be late payment interest and fines to settle as well as the tax itself. If you are in the process of selling your house it can lead to delays whilst debts are cleared. Not something that most people want to happen when they have a buyer.

Although the Spanish Tax Authority is not in the habit of regularly reminding people, they do increasingly run campaigns during which outstanding tax is rooted out. A campaign two years ago saw thousands of letters sent to non-resident Spanish property owners who were not up-to-date with their tax.

The letters warned them that if they didn’t provide some explanation of why the correct Spanish taxes weren’t paid an investigation would follow. This took many non-residents by surprise and much confusion and misinformation followed.

We have also occasionally come across instances where the council tax bill (in this case issued by the tax collection agency, SUMA) has been chased back to the UK and a non-resident has actually received a letter in English demanding payment. There are new developments all the time in the way that the government is striving to meet its tough financial targets.

More information

Ábaco Advisers have assisted our clients with all their Spanish legal and tax obligations for more than 20 years.

If you would like more information regarding Modelo 210 or non-resident property tax, you can fill out this form and we will offer a free consultation without obligation.