Non Residents Tax Returns in Spain
If you own a Spanish home you must file an annual tax return. In Spain, 2nd homes are deemed to generate an income (even if the owner doesn’t receive a rental income from the property). This deemed rental income is subject to Spanish income tax at the non resident rate of 24%.
If you own a Spanish property on 31st December a non resident return must be filed before 31st December in the following year e.g. if you completed the purchase of a Spanish property in September 2008 your non resident return and the tax payable would be due between 1st January 2009 and 31st December 2009.
If you’d like us to calculate your tax liability and file your non resident tax return you can either arrange to visit our offices or use our non residents tax return online service.
If you live overseas and it’s difficult for you to visit Spain to make arrangements for your tax to be collected from your Spanish bank account you can remit your tax payment to our client account for payment. We will then forward your ‘tax paid’ receipt on to you by post.
Our current fee for this service is €100 per annum per property. Discounts are available for multiple properties.
Residents Tax Returns in Spain (IRPF)
Tax residents file an annual tax return between late Spring and the end of June. The return seeks to assess your Worldwide income and capital gains for the previous year e.g. returns due by the end of June 2009 will assess Worldwide income and gains made in the 2008 Calendar Year.
The assessed tax liability can either be paid all at once in June or in two instalments (60% in June and 40% in November).
Our current fee for preparing an annual tax return and giving general tax advice is €210 per annum or €250 per annum where a wealth tax return must be prepared as well. We can prepare your return and your tax assessment for you either following a private meeting at our office or alternatively, if this isn’t practical, you can use our residents tax return online service.
We also offer a fee based bespoke tax advice service. Our fee is quoted on a case by case basis and includes an initial meeting (or telephone meeting), a written report, a further meeting (either in person or by telephone) to discuss the report, and any questions you may have which relate to the report for a period of 6 months from the date of the report.
Probate in Spain
The death of a spouse, parent or any other close relative or friend is usually a very stressful time, and it’s difficult for many people to cope with the added stress of dealing with a bureaucratically complex and confusing probate application. We offer a sympathetic and highly focused probate service where we shoulder the burden of dealing with the red tape on your behalf.
At outset we will need the original death certificate, and the escritura of the property left by the deceased. We will also need either a copy of the Spanish will or the original foreign will (if there’s no Spanish will).
Our basic fee for this service is €1,200, although there may be further time related and/or translation costs in certain circumstances. However, if our fee will be higher than our standard we will give you a fixed price probate service quote at outset.
Writing a Spanish Will
If you are a foreigner living in Spain, providing the laws of succession in your home country allow you to freely choose your beneficiaries, by concession you will be allowed the same freedom in Spain.
If you are a Spanish national and you die without a will or if your home country’s succession laws are restrictive, you will not be able to freely choose your beneficiaries. In Spain, the law dictates that your children inherit the bulk of your estate with a smaller share passing to your spouse.
If you die without a will your beneficiaries are likely to fall victim to time-consuming and expensive legal procedures, and your estate may not be distributed as you wish. We therefore recommend you write a Spanish will, dealing only with the Spanish estate, and rely on a will in your home country to deal with the distribution of your non Spanish assets. In our experience this will save your beneficiaries both time and money when you die.
Our current fee to prepare a Spanish will is €100 per person.
Fiscal Identity Number (NIE – Número Identificación Extranjero)
If you live in Spain or if you plan to buy a property in Spain you will need a fiscal identity number known as NIE. Generally, any transactions which involve a title document (e.g. house purchase, purchase of a car) will require the NIE. The number is also required when you open an account with the local utility companies, if you apply for a Spanish driving license, if you set up a business in Spain and when you pay your taxes.
Our current fee for obtaining a NIE is €100.
Residencia & Registro Central de Extranjeros
If you are a European Economic Area national living in Spain you no longer need the old style residencia card.
If you are a European Economic Area national and you plan to live in Spain for longer than 3 months you now need to be registered in the Registro Central de Extranjeros.
If you have an existing residencia card you only need to register under the new system once their card runs out.
Our current fee for obtaining the certificate of registration is €100.
Double Taxation Relief
If you are tax resident in Spain and receive income from another country where tax is deducted at source you may qualify for tax relief in Spain on this foreign income. Where there’s a Double Tax Agreement (DTA) between Spain and the country in question we can handle your claim for double taxation relief, usually in both countries. Our fees depend on the work involved, but for guidance, if we handle a UK/Spain DTA claim our standard fee is €100.
Note that all prices above are quoted without IVA.