Must I declare income in Spain if I am a non-resident?

This taxation operates according to its own rules, different from those applicable to residents, and may create complex interactions with French taxation.
This page sets out the situations concerned, the filing procedures and the points requiring attention.

Who is subject to non-resident tax

The following are particularly concerned:

• owners of property located in Spain
• heirs who have become holders of a dwelling
• investors receiving income from Spanish sources
• any person who does not meet the criteria for Spanish tax residence

The classification as a non-resident therefore presupposes that the country of tax residence has first been determined.

See: Tax residence between France and Spain

Non-rented property

Even where the property is not rented out, holding real estate in Spain may generate a notional taxation. This rule frequently surprises owners who believe that in the absence of income, no return is required. It is nevertheless an annual obligation.

Rented property

Where the property is rented, the rent received constitutes a taxable base.

Specific rules then apply concerning:

• the determination of taxable income
• potentially deductible expenses
• periodic reporting obligations

The situation may become more complex where the taxpayer must also declare this income in France.

Frequency of filings

The frequency of filings depends in particular on the nature of the income. It may be:

• annual in certain situations
• quarterly in other cases

Incorrect identification of the applicable regime may lead to delays and penalties.

Risks in the event of error or omission

Failure to file or an incorrect return may produce several consequences:

• financial penalties
• late payment interest
• blockages during a sale or an inheritance
• difficulties in dealings with banking institutions

These issues often arise at a late stage, during an audit or in the course of an asset transaction.

Interaction with French taxation

The taxpayer may remain required to declare certain income in France. It is then necessary to analyse:

• the existence of a tax treaty
• the mechanisms for eliminating double taxation
• the reporting obligations in each of the States

Link with an inheritance or a real estate investment

This obligation frequently concerns:

• heirs who became owners following a death
• purchasers who have invested in Spanish real estate

To understand the tax framework applicable to a transfer, see: Inheritance taxation in Spain

For purchase or holding operations, see: Real estate investment in Spain

Why a personalised assessment is recommended

Obligations vary depending on:

• the length of presence in Spain
• the use of the property
• the family situation
• returns already filed in France

A prior review helps avoid subsequent adjustments that may sometimes be costly.

You own property in Spain and wish to secure your tax obligations ?