Spain Explained

More letters from the Spanish Tax Authority

Last updated on March 19th, 2020 at 10:12 am.

Who does it apply to?

Non-residents with a house in Spain who have not presented their imputed income tax.

Every non-resident must pay two annual property taxes:

  • Council tax (IBI)
  • Income tax (La Renta) payable even if you don’t rent out your property
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Are you at risk?

You are at risk if you have not been paying two property taxes from 2008 onwards. You should be particularly concerned if you have received any of the following letters:

The original letter sent out last year warning Spanish home owners that there is no record of taxes being declared on the propertyA second letter informing the property owner of the amount of tax to payA third letter which includes a payment method for settling outstanding taxes at the bank

If any of these letters have been sent to you then it is essential that you act now.

The Tax Authority will freeze your bank account and remove what you owe directly from it. This can then lead to problems with payment for utilities. Electricity and water will be cut off in Spain if bills are not paid.

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What can you do?

If you know you have not paid non-resident imputed income tax, you should correct this as soon as possible.

If you are out of the country, make sure someone can check your post box in case an official notification is posted to you. The Tax Authority will not send notifications to your home country.

If you have received either letter, act immediately to prevent closure of your bank account and further disruptions to your regular standing orders and direct debits. Abaco Advisers will be able to help you.

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