Many of our readers are people who are not resident in Spain, but with properties or businesses that they carry out in this country. And there are often doubts or lack of information as to whether or not to file the income tax return, and under what terms. That is why we have asked Bufete Mercadal, whose lawyers specialize in real estate law and family office in Mallorca, to clarify this matter.
Should non-residents file the income tax return?
The answer is yes, but with certain differences as compared to residents. If you are a resident, you have the obligation to annually declare any income, gain and profit obtained throughout the year.
In the other hand, non-residents must file the income tax return in each of the accruals through the reverse charge system. It is mandatory to declare any type of income or gain obtained by non-residents.
What do I need to declare?
Income from urban properties
Non-residents are required to make a declaration for all the properties they own in Spain, simply because these properties are in Spanish territory. Income derived from this concept is obtained from the cadastral value of properties and tax rates published by the Tax Agency.
Equity gains from transfers of properties
Non-residents are required to file the income tax return as soon as they transfer their property, since obtaining a gain from the transfer represents a taxable income. In turn, the gain shall be determined by the difference between the transfer value and the acquisition value.
Income from leased or subleased properties
Only the income received from the lease or sublease of the property must be declared.
From April 5, 2017 to June 30, 2017,
we will be able to request and submit online the draft of the 2016 income tax return
(IRPF campaign year 2017).