Non Resident Income Tax: New Spanish Tax Campaign

The Spanish Tax Authorities have recently launched a new campaign targeting non-resident property owners in Spain in relation to their Non Resident Income Tax obligations. Thousands of letters are being sent to individuals who own residential properties in Spain but are not tax residents in the country.

According to these letters, the Spanish Tax Authorities believe that, based on the information available in their databases, the recipients may have been required to file and pay Non Resident Income Tax for the years 2021, 2022 and 2023.

What is Non Resident Income Tax?

Many non-residents are surprised to learn that they may have to pay this Tax even when they have not received any rental income from their Spanish property.
Under Spanish tax rules, non-residents who own a property in Spain for their own use are generally required to declare a deemed income based on the cadastral value of the property. This means that Non Resident Income Tax may be payable even if the property has remained empty throughout the year and no actual income has been generated.
The obligation to file these tax returns applies separately for each tax year, each property and each property owner. Failure to file the corresponding returns may result in tax assessments, interest and penalties. For example, if a married couple jointly own a property and receive one of these letters in relation to the years 2021, 2022 and 2023, they will generally need to file a total of six returns, one return per owner for each year. Furthermore, if you still own the property, you should also ensure that your Non Resident Income Tax obligations for 2024 and 2025 are up to date, even if these years are not mentioned in the letter. While the deadline for filing the 2025 return has not yet expired, the 2024 return should be submitted as soon as possible in order to minimise surcharges and reduce the risk of penalties.
You can read more abou this tax here: https://bravolegal.es/210-nonresidents-tax/

Why Are These Letters Being Sent?

The current campaign appears to be aimed at identifying non-resident property owners who have not filed their Non Resident Income Tax returns for previous years.
The letters refer specifically to the years 2021, 2022 and 2023 and invite taxpayers to review their tax position and regularise their situation where necessary.

Receiving one of these letters does not automatically mean that tax is due, although this is, in most cases, the most likely outcome.However, it is important to review the circumstances carefully and determine whether Non Resident Income Tax returns should have been submitted.

How Bravo Legal Can Help

At Bravo Legal, we are specialists in Non Resident Income Tax matters and regularly assist non-resident property owners throughout Spain.

We can review your situation, prepare any outstanding Tax returns and help bring your tax affairs up to date with the Spanish Tax Authorities.

In cases such as these, where several years of Non Resident Income Tax returns need to be filed at the same time, we offer a reduction on our standard professional fees.

If you have received a letter from the Spanish Tax Authorities regarding tis or any other tax, please contact our team for assistance.

If you would like to receive a no-obligation quotation for our services in relation to these letters please fill out the following form, providing us with some information about your situation (number of properties, number of property owners, etc.) and we will get back to you immediately.