How to Claim a Refund on Overpaid Non-Resident Taxes in Spain

The deadlines established under Spanish tax law and the regulations governing the calculation of taxes can sometimes be confusing. This confusion often results in taxpayers either paying the same tax twice or paying more than they owe.

Procedure for Requesting a Refund

 When a taxpayer pays more taxes than required, it is crucial to understand that Spanish law provides a mechanism to obtain a refund of these amounts. The procedure for refunding improper payments is regulated by the General Tax Law and is a special procedure that recognizes the right to a refund in the following cases:

• Double Payment of Tax Debts or Penalties:

Example: Paying the imputed income tax for the 2022 tax year twice.

• Payment Exceeding the Amount Due:

Example: Purchasing a property in June 2022 but paying imputed income tax for the entire 2022 tax year.

• Payment of Debts or Penalties after the Prescription Period:

Example: Submit the 2018 tax year, which is already prescribed.

Real Cases

For instance, the imputed income tax often causes confusion regarding the period that must be declared. If a property in Spain was purchased on June 1st, 2022, the 2022 tax year should be declared only from the acquisition date, not for the entire year. Therefore, if the tax return was initially filed for 365 days instead of the correct 213 days, a refund can be requested for the excess payment. This reduces the tax amount significantly.

Similarly, if two returns are filed for the same fiscal year due to an inadvertent error, a full refund of the second payment can be requested. If taxes were declared for a period that is already prescribed, such as the 2018 tax year, a refund can be claimed since the payment is no longer legally required.

How do we solve this?

To request a refund for improperly paid taxes, the taxpayer must submit a written request to the Spanish Tax Office. The request should justify the reason for the refund and include supporting documents proving that the tax should not have been paid. For example, to prove that tax was incorrectly paid for the entire tax year, the following must be provided:

• Purchase deed of the property to show the acquisition date.
• Previously submitted Model 210 to show tax payment.
• Bank account ownership certificate to confirm the account holder.

For duplicate returns, both Model 210 forms must be provided. For prescribed tax years, the Model 210 justifying the payment. In both cases, a certificate of ownership of the indicated bank account is required in order for the refund to be issued.

Procedure Steps

1. Refund Request: The taxpayer submits a refund request to the Tax Office with documentation justifying the improper payment.
2. Request Review: The Tax Office reviews the request and verifies the improper payment.
3. Resolution: Upon confirming the improper payment, the Tax Office issues a resolution recognizing the right to a refund.
4. Refund Payment: They refund the appropriate amount to the taxpayer, typically via bank transfer.

Important Considerations

• Deadlines: Refund requests must be made within the statutory period, generally four years from the date of improper payment.
• Interest on Delays: In some cases, the Tax Office must pay interest on the refunded amounts to compensate the taxpayer for the time the money was held by the state.

This procedure ensures taxpayers can recover overpayments and protects their rights against potential errors in fulfilling their tax obligations.

Process Duration

The Tax Office has six months to resolve the case and approve or deny the refund. Communications regarding the procedure will be sent by postal mail to the taxpayer's address in Spain.

Manage Your Requests with IberianTax

At IberianTax, we ensure your refund requests are processed promptly. We provide detailed explanations of each step in the process and communications from the Tax Office.