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Jim's Guide - Non-resident tax - Part 2 - Tax return, no rental income

Posted: Wed Oct 9, 2019 4:34pm
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jimtaylor

jimtaylor

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Posts: 4075

Location: Almoradí

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Introduction:

Most people will run a mile if you tell them to do their own tax return, even in the UK, as they wouldn't know where to start. The intention of this guide is to provide a set of instructions that anyone can follow, in the same way that I've written other guides, like the NIE and residency certificate.

However, I wouldn't try to stop you having the first return on a recently acquired property prepared for you, e.g. by:

Non-Resident tax returns for €20 inc payment

In subsequent years then you can use that return plus this guide to do it yourself.

The price for the above is €20, which covers preparing the return and arranging payment. If two people jointly own the property, then two returns will be needed, so the price would be €40. If however you both also own a garage space which is subject of a separate IBI bill, then four returns will be needed, bringing the cost up to €80, in which case you'd be better following this guide from the outset.

And although this part of the guide relates to non-residents without rental income, I'd point out that if you do have rental income in each quarter, then four quarterly returns will be required, plus an annual return for those days in which the property isn't let. That means a cost of €100 to have the returns done for you, or €200 if you jointly own a property.

Access to the tax return form:

The return is done by completing form Modelo 210. This used to be available as a paper form, but these days it has to be completed online.

It is a multi-purpose form for use by non-residents to declare not just 'imputed' tax, but also tax on rental income and capital gains tax on the sale of a property, plus several more.

One of the few complaints I have about the Agencia Tributaria website is that they frequently change web page addresses. In the case of the 210, there are several old web pages for preparing the 210 which, in my opinion, should have been deleted. For example, for a return without an electronic certificate, I have found four different working web pages, all of which appear equally valid. However, the links I give below are definitely topical at the time of writing this guide.

There are two options for completing the form:

If you have an electronic certificate, you can complete the form online, submit it, and pay the tax in one easy session, without leaving the comfort of your home:

https://www1.agenciatributaria.gob.es/wlpl/OV17-M210/index.zul

If you don't have an electronic certificate, you can complete the form online, but then have to print it and pay it:

https://www2.agenciatributaria.gob.es/wlpl/OV17-M210/index.zul

If you wish, you can change the language to English by clicking that option at the top right of the page.

I'm writing this and further parts of this guide on the basis that non-residents are unlikely to have an acceptable Spanish electronic certificate. Such a certificate would certainly make submission and payment of the return very easy, but in spite of what I've said repeatedly on the forum, the number of residents I know of who have followed my advice and got an electronic certificate can be counted on the fingers of one hand - and that assumes that three fingers have been amputated. Why? I don't know. Perhaps people like going along to government offices to do things, instead of doing them from the comfort of their own homes - or perhaps they just can't be bothered. There's nowt so queer as folks! I'm not trying to be offensive - I'm trying to encourage people to get electronic certificates.

Amount to declare on the tax return:

As I noted in part 1, tax due on second properties for residents is calculated automatically, but this isn't the case for non-residents, so you need to carefully calculate the amount to declare, as also explained in part 1.

To summarise:

Take the catastral value (valor catastral/base liquidable) from the IBI bill for the year for which you are declaring tax.

If the catastral value has been reviewed or changed within that year or within the ten previous tax periods, then calculate 1.1% of the catastral value; otherwise use 2%.

If two people own the property, then divide the result by two.

If you didn't own the property for the full year, then work out the proportion of the previous result for the period of time you owned it.

The final figure is what you need to enter on the return.

You also need to enter the rate of tax. For 2018 returns this is 19% for EU citizens and 24% for non-EU citizens.

Provided the rates remain unchanged, this means that Brexit will result in the tax you pay going up by 26%. Assuming that Brexit goes ahead, this introduces the question of the rate applicable to the exit year. Going by other examples relating to tax matters, I'd guess that it will be the rate on 31st December of the exit year, rather than 19% before the exit date and 24% after. There is in fact a precedent for this, as the rate changed in the middle of 2015, and it was the rate at the end of the year which was applicable.

Preparing the return:

Both versions of the form require the input of the same data, and they only differ at the ends when the options to print or pay appear. The online form looks nothing like the form that will be generated once you've completed the job, and in fact the form you finally save or print looks quite simple - that's because it is!

At first glance the completion appears a bit off-putting when doing it for the first time, but once you've done it for that first time then it should only take a few minutes for future returns, plus there's a really easy way to do future returns.

I'm just going to mention the fields you need to complete. If I don't mention a field, then just ignore it. I'll use the return for 2018 as an example.

I'll cover both the English and Spanish versions of the form.

If you spend too much time without inputting data, the system will time you out, and you'll have to close your browser and reopen it before you can start again. Clearing the cache might do the same, but I find it easier to close and reopen the browser. Older versions of the form had the option to save data you'd input in part, but unfortunately this option isn't available now - hopefully it will be reintroduced for future years.

I pre-prepared some of the data required, so I was ready to copy and paste it into the form - i.e. the amount on which tax was to be based and the catastral number. I could have done the same with NIE, name, address, etc, but didn't bother. After umpteen goes at filling in the form, resolving error messages on each iteration, the final run through when I knew what to do, and was told there were no errors, and I saved the return, took only five minutes. That is your target to beat!

Person performing the self-assessment (Persona que realiza la autoliquidación):

NIF - enter your NIE number.

Surname(s) and first name or company name (Apellidos y nombre, razón social o denominación) - enter your surname, followed by your first name. I suggest you put a comma after your surname otherwise, being used to Spanish citizens having two surnames, they might think you've forgotten to include your first name.

In your capacity as (En su condición de) - put a tick in the Taxpayer (Contribuyente) box.

Accrual (Devengo):

Accrual in this context means imputed income.

Period (Período) - click the down arrow and select Annual (Anual).

Accrual year (Ejercicio de devengo) - enter 2018.

Accrual date (Fecha de devengo) - select or enter 31/12/2018.

Income obtained (Renta obtenida):

Income type (Tipo renta) - click the down arrow and select 02 INCOME FROM URBAN PROPERTY (02 RENTAS IMPUTADAS DE INMUEBLES URBANOS).

Currency keys (Claves de divisas) - click the down arrow and select 954 Euro if you'll be paying from a euro account, or 826 British pound (826 Libra esterlina) if you'll be paying from a sterling account.

Taxpayer (Contribuyente):

In this section you enter personal details, including details of your permanent residence in the UK.

F/J - select F, which identifies you as an individual.

NIF in the country of residence (N.I.F. en el país de residencia) - because the UK don't have dedicated tax reference numbers for most people, enter your National Insurance number. If however you're self-employed, you can enter your Unique Taxpayer Reference (UTR).

Date of birth (Fecha de nacimiento) - enter your date of birth in the format dd/mm/yyyy.

Place of birth: City (Lugar nacimiento: Ciudad) - enter the name of the town where you were born.

Country (País) - This is for country of birth. Select REINO UNIDO. I would have expected this to appear as United Kingdom in the English version, but that wasn't the case when I looked at it. If you're from Eire, select IRLANDA, and if you're from the Isle of Man select ISLA DE MAN.

Tax residence (Residencia fiscal) - as with the above, select REINO UNIDO etc.

Address in country of residence (Dirección en el país de residencia) - enter house number and street name.

Additional residence information (Datos complementarios del domicilio) - enter address qualifier, e.g name of suburb.

Town/City (Población/Ciudad) - enter the name of your municipal town.

E-mail (Correo electrónico) - enter your email address.

Post Code (ZIP) (Código postal (ZIP) - enter your post code.

Province/Region/State (Provincia/Región/Estado) - enter the name of the county in which you live.

Country (País) - enter REINO UNIDO as in previous fields.

When entering telephone numbers, I suggest that you enter the full international dialling numbers.

Location of the property... (Situación del inmueble...):

This section is for details of your property in Spain.

Type of street (Tipo de vía) - click the down arrow and select whatever type of street you live on, e.g. avenida is avenue, C/ or Calle is calle, etc.

Street name (Nombre de la vía pública) - name of the street.

Type of number (Tipo de numeración) - again click the down arrow and make the appropriate selection, which for most people will be NUM for number.

No. House (Número) - house number.

Block (Bloque), Doorway (Portal), Stairway (Escalera), Floor (Planta), Door (Puerta) - these need to be completed as appropriate by those who live in an apartment block, to define exactly which apartment they live in.

Additional data on residence (Datos complementarios del domicilio) - enter e.g. suburb or urbanisation. For example, we belong to Orihuela but I'd enter Mudamiento to define the area of Orihuela in which I live.

Town/City (if different from the Municipality) (Localidad/Población (si es distinta del municipio) - you don't need to complete this unless it's applicable, but in my case I'd enter Rafal, as that is where our post comes from.

Province (Provincia) - click the down arrow and select your province.

Municipality name (Nombre del Municipio) - click the down arrow and select your municipal town.

Post Code (Código Postal) - click the down arrow and select your post code.

Property Register Reference (Referencia catastral) - enter your catastral number.

Determination of the taxable base amount (Determinación de la base imponible):

210 I Income from immovable property (210 I Renta inmobiliaria imputada) - enter the figure you calculated before you started filling in this form. You need to use a comma and not a full stop to separate euros and cents figures.

Settlement (Liquidación):

Tax rate Law IRNR (%) (Tipo de gravamen Ley IRNR (%) - in box 21 enter the rate of tax - 19% at present.

Full amount due (Cuota íntegra) - when you click on this, the amount of tax due should appear in box 22, and also in boxes 24, 28 and 31.

Type of tax return (Tipo de declaración):

This relates to whether or not you will be paying the tax in Spain or from a Spanish account, or in the UK.

To deposit (A ingresar) - if you select this, you have the option to enter the IBAN for your Spanish bank account, so you can pay by bank transfer from that account. You can also leave the IBAN field blank if you're going to pay the tax here in cash. Filling in the IBAN field doesn't trigger payment - you have to arrange that yourself.

Payment by transfer from abroad (Ingreso por transferencia desde el extranjero) - select this if you intend to pay from a UK account, and in the European Union/SEPA (Unión Europea/SEPA) section, you need to enter the IBAN and SWIFT-BIC code for that account. When you select and complete this option, you'll have to approve one or two advisory pop-ups. When you come to print or save the PDF, you'll see that it has a section for Transferencia, a favor del Tesoro Público, a la Cuenta del Banco de España Nº, and gives the bank account details to which you have to make the transfer.

Post-Brexit, for transfer from abroad, you'll need to enter details in the Other countries (Resto países) section.

Error check:

Having now completed the return, you need to next check that it's OK. To do that, click on Validate tax record (Validar declaración). If there are any errors, you see them listed, with a description of what the error is. If you click on Ir al Error, you're taken to the section you need to complete or correct. Do that until you've made any necessary corrections and click on Validate tax record (Validar declaración) again.

You should then see No errors found (No existen errores), and you're good to go.

Note:

If you want to delete what you've done then click Delete tax record (Borrar declaración) and click Yes (Sí).

However, do not delete the file once you've printed the pdf, as that might delete all the details held by Agencia Tributaria, and they might not be able to collate your subsequent payment to the tax return details.

Final steps:

I very strongly recommend that you then click on Export (Exportar), which downloads a file to your downloads folder. The file will have the default name " NIF _ejercicio_periodo.210". If you have two or more properties for which you are doing returns, you need to change the file name, otherwise a subsequent download will over-write the first one. Also alter the first file name if you have to do two returns for one property - e.g. a flat and a garage.

The next time you go to the web page you can scroll down to the bottom and import it. You're warned that this will delete any information entered on the web page, but just click Yes (Sí) and import it. This gives you the option to easily redo the return if you suddenly realise you've made an error.

If you jointly own a property and need to do two returns, you can just import your return and change the personal details to those of your partner, so you don't have to repeat the process completely.

And for the next year's tax, provided the system isn't changed, you can just import the file, change the dates and anything else that has altered, and you've then got a new return ready for submission.

If you're one of the rare people with an electronic certificate, you don't need the downloaded file, and can generate a draft return in future years from your data already in the system.

Finally, click on Generate preliminary tax return (Generar predeclaración), then on Continue (Continuar). This opens a PDF of the 210. Right click on it and save.

The next part of this guide will deal with how to pay the tax.


Moldy1

Thu Oct 10, 2019 6:29pm

Posts: 6

Location: La Marina

4 helpful posts

Posted: Thu Oct 10, 2019 6:29pm

Hi Jim

Firstly thanks again for your very informative and useful guides. 

I have a question about this guide. 

Some town halls increase the Valor Catastral (VC) for their properties every year (e.g. Daya Nueva close to you). Some town halls keep their VC constant year on year (e.g. Elche).  I know there is a web page which shows which local authorities increase year on year and which do not and what the increase will be. 

My question is if your town hall increases the VC every year do you apply the 1.1% rate or do you still use the 2% rate because the yearly increase is not actually a revaluation?

jimtaylor

jimtaylor

Original Poster

Legendary helpful member

Fri Oct 11, 2019 4:23am

Posts: 4075

Location: Almoradí

5511 helpful posts

Posted: Fri Oct 11, 2019 4:23am

It's a good question. AEAT have an information guide:

https://www.agenciatributaria.es/static_files/AEAT/Contenidos_Comunes/La_Agencia_Tributaria/Modelos_y_formularios/Declaraciones/Modelos_200_al_299/210/Instrucciones/OrdenIRNR2010instrucciones210_en_gb.pdf

This says:

Accruals from 1 January 2015 

 Buildings whose rateable value has been reviewed or changed and has come into effect within the tax period or the within the ten previous tax periods: 1.1% 

 Other buildings: 2% 

As your valuation has been changed, then it's 1.1%.

Pbp

Pbp

Fri Oct 11, 2019 12:28pm

Posted: Fri Oct 11, 2019 12:28pm

Thank you for such a helpful response, one question re a small property we bought last year for 42,000 e  would that be the amount we calculate our figures by.

jimtaylor

jimtaylor

Original Poster

Legendary helpful member

Fri Oct 11, 2019 2:14pm

Posts: 4075

Location: Almoradí

5511 helpful posts

Posted: Fri Oct 11, 2019 2:14pm

No - it's catastral value, as I said in part 1 of the guide. I'd guess the official catastral value will be less than the purchase price. You should have this year's IBI bill, and the value will be on that.

Moldy1

Sat Oct 12, 2019 10:19am

Posts: 6

Location: La Marina

4 helpful posts

Posted: Sat Oct 12, 2019 10:19am

Thanks for replying to my question Jim.

I had guessed that would be the answer but I couldn't  find the confirmation anywhere myself.

This however raises a further question.

A family member has owned an apartment in Torremendo for about 10 years and has used a solicitor to calculate and pay the non-resident tax every year. Since 2014 the VC on the apartment has increased year on year but the solicitor has used 2% to calculate the tax due and not 1.1%. This means for the tax years 2014-2018 my relative has paid the AEAT nearly double the actual tax due.

The question is - can this overpayment of tax be reclaimed and, if yes, how do you do it yourself?

N.B. Because of other mistakes (previous to this 2% issue) the services of the solicitor in question have since been dispensed with. The solicitor will not now respond to calls and emails so it isn't possible to reclaim the overpayments through them.

jimtaylor

jimtaylor

Original Poster

Legendary helpful member

Sat Oct 12, 2019 12:16pm

Posts: 4075

Location: Almoradí

5511 helpful posts

Posted: Sat Oct 12, 2019 12:16pm

You're the second person who has told me that San Fulgencio increase the catastral value every year.

Both English and Spanish versions about the applicable percentage are quite clear - if it's been changed then 1.1% applies.

Prior to 2015 the wording was: 

 Buildings whose property register value has been reviewed or changed with effect from 1 January 1994: 1.1%

 Other buildings: 2% 

For 2015 and later, the wording is as I stated earlier.

I'm not a lawyer or a tax specialist, but I can't envisage anyone persuading me that 2% is the correct figure in your case.

It is always possible to claim a refund for tax overpaid, subject to a limit on how far you can go back, but I haven't got time to suss it out. Have a look at the 210 instructions:

https://www.agenciatributaria.es/static_files/AEAT/Contenidos_Comunes/La_Agencia_Tributaria/Modelos_y_formularios/Declaraciones/Modelos_200_al_299/210/Instrucciones/OrdenIRNR2010instrucciones210_en_gb.pdf

Moldy1

Sat Oct 12, 2019 12:51pm

Posts: 6

Location: La Marina

4 helpful posts

Posted: Sat Oct 12, 2019 12:51pm

Jim - For info you can look up your municipality on this page http://www.catastro.meh.es/esp/coeficientes_ponencias.asp to see if your VC goes up every year or not and by what percentage. You just choose your Provincia and then your Municipio.

You multiply the previous year's VC by the number in the "Coeficiente de actualización de inmuebles urbanos tras la última ponencia de valores" field. A dash means no change from the previous year. From my reading of it, a 1 in the field, means the year of revaluation. I could be wrong on this though.

Apologies if you already know this but it may help others.

I'll investigate claiming overpaid tax and report back if I find anything out.

Regards - Moldy

NB Its interesting to see the VC for Almoradi has substantially decreased since 2011.

jimtaylor

jimtaylor

Original Poster

Legendary helpful member

Sat Oct 12, 2019 1:31pm

Posts: 4075

Location: Almoradí

5511 helpful posts

Posted: Sat Oct 12, 2019 1:31pm

Thanks Moldy. I did explore the link when I was doing my guide to Catastro, but just gave an overview rather than any details. I'm sure some members will find your information useful.

I know that catastral value has no real relation to actual property value, but rather the cost of construction, but I'd have thought they would both trend the same way. In the case of Orihuela, since 1990 there have only been three years when the valuation didn't increase, and there's never been a decrease. 

I find it strange that some towns like Almoradí levy smaller increases than Orihuela. Cross the municipal border and building costs suddenly change - or am I missing something?

I think if you click on (consulta de la ponencia de valores ), then that gives the date of the last full-blown revaluation.

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