can we submit the Tax form 214 ourselves?

I am speaking from personal experience  I am not listening to other people.  I am not able to promote my own experiences on here as my posts will be deleted!!!  However enough to say that in the last week I have come across 10 people who were not registered with the tax office system and had they tried to complete their own modelo 210 they would not have been able to use the online system to obtain their stickers (pegatinas).  So just knowing how to complete their modelo 210 would not have been of much use to them - they still would need help on how to register and obtain the stickers as the bank will not accept payment without them attached to to the modelo 210.

if you do not show up as registered on the Spanish tax office database you cannot order your pegatinas online.  You need to complete a registration in this case.  As I previously said if you are registered and have some knowledge you can negotiate your way to complete the form and obtain the pegatinas.  Otherwise  you will need further help.  Just because you have purchased a property it does not guarantee that you have been registered by your legal rep - I have many people who can back this up.  As I said I am not listening to other people I am speaking from personal experience.  I seem to be limited by what I am allowed to say here though without getting deleted.

You do not have to actually have Pagatinas.................

If you cannot obtain them via the Tax website, it is enough to quote your NIE (NIF) on the 210 Form and the submitting envelope

I agree that in theory this should be possible, but again speaking from experience the banks themselves are not happy to do this and will insist in most cases that the stickers are attached.  The stickers contain a unique four character reference which along with your NIE number is your tax reference.

Another point which may be of interest to some people who have previously used fiscal reps to complete their modelo 214  and now considering completing their own form is that the online sticker request system will not  work for you as the fiscal rep address will have been submitted as your address for sending of correspondence by the tax office.  The online system merely allows you to submit your NIE number and name and then stickers are sent to the address held by the tax office.  In order to change this address to your own address the registration form needs to be submitted - by the way this is a modelo 030.  It is used to register for tax, and to notify the tax  office of any change in circumstance. 

I am merely giving the full story here - it is not simply a case of completing the modelo 210 - there is more to it than that and I hope some people will find this useful. 

 Normally, you need the stickers. You could ask for them at the tax office 030 form. But if you know the four letters as your identification code, it is enough to submit the 210 form.

Mar Durio
Calle Ancha 30, 2º
E-11201 Algeciras
(t) +34.956.092.687
(f) +34.956.092.697
m.durio@costaluzlawyers.es
www.costaluzlawyers.es

Hi! Thank you Fibby and Morerosado for your posts and comments :)

We're happy with our solicitors for the moment, so we'll keep hiring their services for the fiscal rep. We'll see in the future if we try again to fill the forms by ourselves (Hehe Bill doesn't seem very happy with the idea).

Mar Durio,

Good afternoon - very interesting forum.

I hope you have the time and can help with the following few questions. Assuming 4 owners of a villa (husband and wife and husband's mother and father):

1. do each of them fill in and submit modelo form 210? 

2. is the tax is effectively split equally between them as each of them presumably cites their 1/4 interest on the modelo 210?

3. I gather that many non resident Spanish property owners let their Spanish property regularly but may not be aware that they should be paying Spanish income tax on the gross rents and in addition (but taking into account any Spansih tax paid) UK income tax on foreign income from property (although unlike Spain, HMRC do allow a number of allowable deductions and allowances). Like the UK, the Spanish have a tax allowance - if your share of gross rentals from the one Spanish property you have and own with 3 other owners, is less than the personal allowance, as a non resident, do you have to pay income tax on your share of the gross rentals? 

4. following on from 3. above, would you have to complete a tax return (I think not given the income is below the personal allowance) ?

5. do you use modelo 210 to also set out your share of the rental income?

6. do you have the link to the Spanish tax office database?

7. if one of the 4 owners does not yet have an NIE, will they still be able to complete modelo 210 and if not, does that mean the tax is split 3 ways instead of 4?

Very many thanks

Chris

Hi Cag

1. Yes.

2. In practice, yes.

3. If you let the property you should pay non resident's income tax on the rental recieved. Note that as a non resident you can't claim allowances - neither basic personal minimums nor expenses. Hence  in your case the rental will be split 4 ways and taxed at 24%.

4. Not applicable.

5. You just put your individual share on your own 210 return - there's no need to make reference to the other 3 owners.

6. www.aeat.es

7. All of the owners will arleady have a NIE (assuming they're the registered owners) as you can't buy a home without your own NIE.

Finally, at the risk of annoying certain people, if you want to prepare the returns yourselves you don't need a guide....just see Moreosada's post earlier - or the seperate thread they started on the subject. Alternatively, if you want somebody to do it for you go to see an asesor such as ourselves or a lawyer, such as Mar Durio, but either way make sure they're local to your property as based on the questions you've posted I feel that your representative will probably have some extra work to do for you. Expect to pay €100 or so for the service (including stickers!).

Thanks and good luck

Neil

Good evening and many thanks Neil,

With the economic malaise facing all countries, I gather that the Spanish fiscal authorities are looking to boost revenue by paying closer attention to the many non residents who have a Spanish property and receive rental income from it but (through ignorance or otherwise) do not pay the income tax on the gross rentals and do not have an official license to rent (I understand that getting the license is nigh on impossible as very few applications are successful).

What is your understanding of the policy the Spanish authorities are taking - for example, are they not really interested in non residents who say have just the single property and who let it infrequently (say, 6 times in the year) and whose gross rent received is considered to be too low to bother about. Seems to be a bit of a catch 22 - you can't get the license but you need to get some income from the property (perhaps to help pay a mortgage secured on it) so you find yourself (and I guess unknowingly for many) doing the holiday lets illegally (ie because you do not have the license).

I'm not sure what its worth in extra revenue to the Spanish fiscal authorities but it must potentially be a very significant amount for not much effort in tracing offenders. Presumably many Spanish people who let second homes etc are in the same boat but I guess they (in the main?) at least pay income tax on the receipts.

Many thanks

CAG

 Dear Cag,

1. do each of them fill in and submit modelo form 210? Yes, as NeilinElche said

2. is the tax is effectively split equally between them as each of them presumably cites their 1/4 interest on the modelo 210? Yes all of them have to divide by four the instalments

3. I gather that many non resident Spanish property owners let their Spanish property regularly but may not be aware that they should be paying Spanish income tax on the gross rents and in addition (but taking into account any Spansih tax paid) UK income tax on foreign income from property (although unlike Spain, HMRC do allow a number of allowable deductions and allowances). Like the UK, the Spanish have a tax allowance - if your share of gross rentals from the one Spanish property you have and own with 3 other owners, is less than the personal allowance, as a non resident, do you have to pay income tax on your share of the gross rentals?  

LEASED URBAN PROPERTY

The income to be declared in this case is the total amount collect-ed from the tenant, without deducting any expenses.

This income is chargeable when it is claimable from the tenant or when it is collected (if earlier). Each rent due is taxed separately and, consequently, a return must be filed for each rent due.

Nevertheless, collective returns may be filed which may include various chargeable income of one or more taxpayers falling within a calendar quarter. If the collective return includes the income of several taxpayers, the person filing it must be a representative or one of the persons which the law regulating this tax defines as being jointly and severally liable (payer or administrator).

- Filing period: for ordinary returns (form 210), the deadline is one month after the date on which the rent is due. Collective returns (form 215) relating to a quarter must be filed within the first 20 calendar days of the month of April, July, October or January following the first, second, third or fourth calendar quarter, respectively.

- Tax rate: 24%.

Theses taxes could be deducted in your own country’s tax declaration.

4. following on from 3. above, would you have to complete a tax return (I think not given the income is below the personal allowance) ? Yes, in the same 210 form or 216 form (collective returns)

5. do you use modelo 210 to also set out your share of the rental income? Yes

6. do you have the link to the Spanish tax office database? www.aeat.com

7. if one of the 4 owners does not yet have an NIE, will they still be able to complete modelo 210 and if not, does that mean the tax is split 3 ways instead of 4? If one of them have not got a N.I.E. number, as long as he/she get it, he/she could share his/her tax return with his wife or husband.

Hi Cag

Gosh, everywhere I look on this forum there seems to be a plethora of extra large bold font....and with the addition of green highlight it's very hard on the eye!

The issue of a license may become a problem for you in the future, but only if your activities come to the attention of the local authorities. This usually only happens if somebody denounces you, so the best thing is to keep your neighbours happy and your head down.

The authorities have started to look more closely at foreign owned properties which are being let (holiday lets). I believe that their main focus has been on websites advertising holiday rentals. Best to declare the income you're receiving it, and pay the tax, then you'll take away the worry.

As you say, it's relatively easy for the Spanish tax man to track down property owners who evade taxes, and I can tell you from professional experience that the local tax offices have really tightened up procedures and practice. 

Thanks

Neil