In Spain every person with either a large income or assets on Spain is to submit their tax return declaration. The tax return states all of the assets, such as properties, as well as any income, this can mean investments like bonds, a salary or rentals. There is usually a tax threshold that allows for a certain amount of income to remain under the high tax percentages. However with non-residents regulation states that they must declare all their activity in Spain even though they do not maintain residence in Spain with a physical presence.

When you do not have a physical presence in Spain, you simply have a fiscal one, which means that you are to activate an allocated Spanish tax code or NIF so that you may be correctly taxed within Spain; it also allows you to conduct financial transactions in Spain without being a resident.

If you own a property in Spain you must by law pay income tax on that asset, whether for personal use or not, where not then in addition you are to declare the income generated. In order to be assessed as to how much you will need to pay in addition to paying all other local tax like the IBI –council tax, you will need to submit a form to the tax offices. The form to present to the tax office is the 210. While filling in this form it is important to do it with care as if you make a mistake it could cost you a lot of money, or a fine down the road for the declaration not being correct. Do not confuse the resident’s tax return forms, as they are not the same and cannot be submitted by a non-resident.

Abad Lawyers and Accountants can help you on the process of dealing with all your tax affairs and give you advice and preparing all the formalities in order to keep you updated on all your fiscal obligations.