Disclosure of assets (720 forms ): ANOTHER GOOD REASON TO PAY YOUR NON-RESIDENT TAX.
Due to the new asset disclosure obligation (the infamous 720 form to be presented before the end of April 2013) a lot of property owners are asking the question: Are we tax residents in Spain or not?
The way of finding this out is to ask the tax office to certify if they consider you a resident or non-resident.
Remember though that if you are indeed a non resident you have the obligation of presenting a a non resident hypothetical income tax return . If you are not paying this tax it is necessary that you take control of the situation by contacting your solicitor or tax advisor.
More than ever it is important that if you own a property in Spain and are a non-resident you present the non resident tax return correctly to avoid the Spanish tax authorities claiming that you are in fact a resident and therefore asking you why you have not presented a 720 form. (disclosure of assets forms)
If you have doubts regarding if you are already paying this tax it is probably because you are not, as it requires the presentation of a tax form etc.
The good news is that by law they cannot demand payment of more than four years back taxes.
Our advice:
Start paying the tax because if you do not they will be contacting you with the risk of you not actually being hear to receive their letter etc. Not paying it may also instigate them to start considering you a tax resident.
