Law in Spain

If you own a property in Spain and you are non resident at tax purposes here, you are obliged to present and pay the Non Resident Tax Return, which must be filed and presented before the 31^st of December each year.

The Spanish Tax Office has announced a campaign against all the non residents who are not declaring this tax. The process is quite simple for them due to the fact that the Tax Office has recorded all the Public Deeds and it is stated that the purchaser is non resident at tax purposes, so with a minor computer effort they will be able to recover a lot of money of the Spanish Government.

That will mean that if you haven´t presented and paid the tax return you could be asked for the corresponding payment, plus interest, plus a fine that could be until 300% of the initial tax. If you don´t receive the notifications from the Tax Office the consequencies are even worse because the process will finish with much more money to pay and an Embargo on the Land Registry on your property, and who knows, even with your property to be sold on a Public Auction…

So if you haven´t presented yet your Tax Return, contact urgently your tax advisor and have piece of mind because times are changing, and Spanish Tax Authorities will enforce harder the tax rules with non residents. We advise you to contact your Non Resident Tax Department or your tax advisor as soon as possible.