Non- resident tax on a mortgaged property

I can't see that one flying with the tax man. You are the official owner in the Registry of Property. Non resident income tax is based on an imputed rental value of your property. You are not entitled to tax relief on your mortgage interest either. 

The Spanish tax authorities apply an imputed income for non residents owning a Spanish property for their personal use. Imputed income is based on 1.1% of the “valor catastral” (cadastral value of the property) or 2% of the “valor catastral” if no re-valuation has taken place in the last 10 taxable periods.

Bee

Thanks Bee

That's what I thought. Going to see the accountant next month get it all sorted 👌 

You don't need an accountant to do it for you. You can do it yourself by filling in the Modelo 210, print it off and take it to a Spanish Bank and pay it over the counter or a company like Spanish Tax Forms will do it at a fraction of the cost an accountant will charge you. https://spanishtaxforms.co.uk/  The tax is paid each year before 31st December. You pay it a year in arrears. You just need your NIF number and your IBI/rates bill to work out your tax. It won't be a whole lot.

From this Forum

Bee

Hi Bee thank you

I don't have an NIF, I have an NIE is that the same thing? 

Thanks 

Yes NIE and NIF are the same thing. I notice I left out the topic from this Forum on my last reply. It is old but will give you a few companies that come well recommended to do the Modelo 210

Non resident tax

Bee

Yes I've seen some and have emailed them. I know its probably easy to do, however with being a few years behind, and not great with numbers for £35 it's worth having it done properly and paying at the bank.

Thanks for your help

Remember the tax man in Spain only goes back 4 years. 

Bee

So you reckon to leave it until next yr and register and pay? Next yr will be the 5th year, or would we register and pay December 2024 for the year December 2023? 

My apologies I mixed my IBI with my non resident tax. 

Non Resident tax is charged from year of purchase. Say you bought in 2019 your first non resident tax is due in 2020  (a year in arrears)

Say 2019 is the year you buy 

2019 tax is due in 2020

2020 tax is paid in 2021

2021 tax is paid in 2022

2022 tax is paid in 2023

I better edit this in case people think if you register in year 5 you don't have to pay the previous 4 years. You will always owe the previou 4 years tax on the Spanish "look back " tax system

Bee