Non-Resident Tax Spain 2023: Latest Changes and Insights

For non-resident property owners in Spain, managing the Modelo 210 tax return is an annual obligation. This guide not only offers a comprehensive overview of the essential aspects of the Spanish non-resident tax return for the 2023 tax year, to be filed in 2024, but also details the recent changes in rental income reporting and the new Direct Debit payment option.

Who Must File a Non-Resident Tax Return?

All non-resident property owners are required to file at least one Modelo 210 tax return annually for imputed or deemed income from their property, regardless of whether it is vacant or used occasionally by the owner.

With recent changes, from the 2024 tax year, rental income reporting shifts from quarterly to annual declarations. Therefore, income generated in 2023 requires quarterly filings, but from 2024, an annual declaration is needed.

Self-Assessment

The Modelo 210 is a self-assessment tax return, placing responsibility on taxpayers to accurately complete and pay any due taxes without reminder notices from the tax authorities.

Deadline for Submission

• Not Rented Properties: Filing is due by December 31st of the year following the reported tax year, meaning 2023 filings are due by December 31st, 2024.
• Rented Properties (until 2023): Rental income is declared quarterly within the first 20 days of April, July, October, and January for the prior quarter.
• Rented Properties (from 2024 onwards): Reflecting recent adjustments, rental income from 2024 must be declared annually, with filings due between January 1st and January 20th of the subsequent year.

Example: Property Rental in 2023 vs. 2024

2023 Tax Year:

If a property was rented from January to June in 2023 and unoccupied afterward:

• File quarterly Modelo 210 tax returns for rental income from January to June within the first 20 days of April and July 2023, respectively.
• Declare imputed income for the period of July to December 2023 in 2024, with the filing due by December 31st, 2024.

2024 Tax Year:

For the same rental period in 2024:

• Submit one Modelo 210 tax return for the entire rental income from January to June, due between January 1st and January 20th, 2025.
• File for imputed income during the unoccupied period (July to December 2024) in 2025, due by December 31st, 2025.

Direct Debit Payment from SEPA Accounts

As of February 1, 2024, a significant update has been implemented to facilitate tax payments: Direct Debit payments for tax returns can now be arranged from SEPA accounts. This expanded payment method includes accounts in both collaborating and non-collaborating entities within the SEPA zone, which encompasses 36 countries. These countries include all 27 European Union member states, as well as Iceland, Liechtenstein, Norway, Switzerland, Andorra, Monaco, San Marino, the United Kingdom, and the Vatican City State. This adjustment broadens the convenience and accessibility for international property owners, simplifying the process of making tax payments from abroad.

Online Submission

Our user-friendly online service allows property owners to file and pay their taxes easily, without needing prior tax knowledge or a Spanish digital certificate.

Late Submission Penalties

Failing to meet the filing deadline can result in a penalty of at least 50% of the tax due, in addition to possible interest charges. Proactive filing before contact by tax authorities can reduce penalties to a maximum of 15%.