Q. I have received a letter from the tax office demanding I pay non resident income tax, and that I must pay up for the last four years. I have never made any income from my property.
What is this all about?
A. Our government needs to collect to correct it’s deficit. If you are a NON RESIDENT of Spain and own a property you MUST FILE a non-resident income tax return even if you do not rent out your property. Do not confuse with rates (IBI), which is generally paid by direct debit.
Towards the end of 2011 the Spanish tax authorities decided to clamp down on non-resident property owners who have not been paying this tax. Since then most non-residents are paying correctly.
Every year normally using s fiscal representative you should be filing a non-resident hypothetical income tax return (shortly wealth tax also). If you are not paying this tax it is necessary that you take control of the situation by contacting the tax authorities, your solicitor or your tax advisor.
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:
1. The tax is not generally a very high amount.
2. If you have not been paying, by law they cannot demand payment for 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.
