Frequently Asked Questions :-

Will I have to pay any taxes in Spain if I only own a holiday home there? Unfortunately yes. You are deemed a non-resident in Spain if you spend less than 183 days a year there. As a non-resident you will be liable for income tax (impuestos sobre la renta). Income tax is charged on the rental income from your holiday home and is charged at 25%. However, if your property is not let out then you will be taxed on a deemed income of 2% of the value of the property.

Do I need a Fiscal Representative?
Until comparatively recently it was necessary for a non-resident who owned a property in Spain to appoint a Fiscal Representative, resident in Spain to deal with his tax affairs. This rule has now been relaxed where the only asset in Spain is a holiday home. However, it is a good idea to employ one as you will find that they are not expensive in general. Without one you will have to attend to completion of the tax returns yourself, and any assessments will be sent to your Spanish address. If they arrive at a time when you are absent from Spain, you may well find that you are out of time to appeal against them if incorrect.

When and where do you pay tax?
As a non-resident owner of property in Spain you are obliged under Spanish tax legislation to declare the ownership of your Spanish property in the tax area where the property is situated and submit an annual tax return. The amount due to be paid must be lodged with the tax authorities before 31st December of the year subsequent to purchase of the Spanish property. In order to assist you we can act as your fiscal representative in Spain notifying you annually of the Spanish taxes for non-residents and arranging payment of these on your behalf on receipt of funds. We would require a copy of your Escritura, the IVA receipt showing the catastral value and a copy of your N.I.E. certificate.  

What is the NIE?
NIE (Numero de Identidad de Extranjero): This is your identification number in Spain. You apply to the police for this number. It’s needed to file taxes, establish a business, open a bank account and for just about any formal, official forms you’ll need to fill out.

Why does my Solicitor Charge over €300.00 and you charge £95.00? Your solicitor runs a very expensive office and usually in Spain fees are fixed by the local law society. Doing tax returns is only a (very profitable) sideline for them. We specialise in tax returns and in fact we don’t do anything else. We make use of the latest technology with links to the tax office. We prefer to deal with your returns on the internet (which is secure) and update you by e-mail. However it is our policy for our initial contact to be face to face should you wish.

Do you employ qualified people?
Yes, the people who will complete your tax returns are Spanish qualified University trained accountants, who speak English and Spanish.

What details do you need from me?
In order to assist you we can act as your fiscal representative in Spain notifying you annually of the Spanish taxes for non-residents and arranging payment of these on your behalf on receipt of funds. We would require a copy of your Escritura, the IVA receipt showing the catastral value and a copy of your N.I.E. certificate.