Form 210: Non-Spanish Residents Renting Out Property in Spain
What is Form 210?
Form 210 is the compulsory declaration for people who are not registered as tax residents in Spain, but still receive income there.
What is the Process for Submitting Form 210
If you are not a permanent Spanish resident living in Spain and you have properties rented in Spanish territory, you need to pay for the income received by submitting Form 210.
A periodic payment should be made each quarter and will need to be made from a Spanish bank account.
If you don’t have a spanish bank account, the payment can still be made through an approved 3rd party agent on your behalf, such as a legal or tax advisor.
The payable amount for tax can vary a lot depending on whether you are a resident in the European Union, Iceland and Norway or in other States.
Tax for EU, Iceland and Norway Residents Renting Property
The tax rate will be charged at 19% from the net return of income received from the property. This is the total amount received less the properties expenses.
(gross property income received – property related expensenses only)
Expenses related to rental properties can include:
Agent or owner community expenses.
Expenses related to repairs or general upkeep and maintenance.
Fees and taxes related to “Impuesto sobre Bienes Inmuebles” (IBI).
Amortizations and other expenses related to the property.
Tax for Non-EU Residents, Iceland and Norway Renting Property
The tax rate for Non-European residents, Iceland and Norway is 24% of the total income received. No expenses can be deducted in this case.
Declaring a tax return as a Non-EU tax Resident
As a Non-EU tax resident renting a property in Spain, It is essential to obtain and submit a certificate of residence in the corresponding country you are residing in. As you can see, this is because of the big difference in the required tax payable depending on your situation.
The recipients of the rental income must verify their rental agreements to avoid double tax risks. This is between their registered resident country for tax and Spain’s tax regulations.
The general process is to declare a tax return in the country of residence with the income received from Spain clearly identified in the declaration.
Due to the governing rules of taxation by international or “universal” income, tax is paid from the total amount received in the country of tax residence, and in other countries, with the ability to deduct all or part of the taxes paid in Spain during the taxable year.
This can depend on what is established by the Spanish regulations and the international agreement with the Non-Spanish country.
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