FORM 210. NON-RESIDENT TAX ORDINARY DECLARATION.
This is the star tax for non-tax residents. To put it colloquially, it is the equivalent to the yearly tax declaration of tax residents.
It is used for several different operations, and here we are going to list the most important ones.
FORM 210 FOR BEING THE OWNER OF A HOUSE OR PROPERTY. This tax, surprisingly, is quite unknown to many International clients who buy a holiday home in Spain or a property to use for short periods, and they are unaware that they have to pay this tax annually.
Be careful: no one is going to do it for you, and no one is going to send you a reminder or bill for you to pay it. You have to put it into motion annually.
This tax is levied, for the simple fact of having a home in Spain, even if you do not rent it out or do anything with it, you have to pay it.
In other words, it is understood that this asset produces theoretical returns that have to be taxed (the correct name would be implicit returns).
These returns are based on the RATEABLE VALUE (value assigned to your property for the calculation of various taxes) and it is not usually a high tax.
It is a declaration that must be filed during the following year. Therefore, the tax for the year 2019 is carried out during the following year. And every year after that.
NOTE: It is not always the same amount. There are years that can be the same, but it can vary depending on several percentage factors.
It is a declaration that must be filed by each owner of the property. Therefore, if you are a couple or several owners, each one will have to present it for their proportional part.
PLEASE NOTE. If during the period for which you are going to file the tax return, you rented out the property, you will have to deduct those days when calculating the tax payable.
“BE CAREFUL: no one is going to do it for you, and no one is going to send you a reminder or bill for you to pay it. You have tu put it into motion annually.”
FORM 210. WHEN YOU RENT OUT A HOUSE (FILED QUARTERLY).
When you rent out a property as a holiday home or even for a long term let, you will have the obligation to file a quarterly declaration, that is to say declaring the rental corresponding to those three months, calculated by subtracting the legally deductible expenses from the income figure.
Therefore, it is presented QUARTERLY, normally it results in having to pay tax (obviously, it would be strange if the expenses exceeded the income).
As we have said in the previous 210 Forms (tax levied for the sole fact of being the owner of a property), the days that are declared as having been rented out will be taken into account when the 210 Tax Form is being calculated, because those days of rental have already been taxed.
FORM 210. WHEN YOU HAVE SOLD A PROPERTY (ONE OFF PAYMENT). As we have already mentioned in Form 211, when a property is sold, the buyer is obliged to retain an amount from the seller.
Well, this amount is a payment on account that is paid into the Tax Office on your behalf, waiting for you to calculate whether or not a PROFIT has been made, that would result in there being a CAPITAL GAIN on the sale of your property.
That means, after finalising the sale, it will be necessary to calculate whether there is a difference (profit or loss) with respect to the total costs from when you bought the property.
Therefore, if a PROFIT has been made, it will be necessary to see if the amount retained by the buyer is enough to pay the tax.
If it is not enough, you will have to pay the difference. But if it is the other way around, that is to say, the retained tax exceeds the result of this calculation, you will be able to request a refund.
It is presented only once, and must be done filed between the second and fourth month from the date of the sale.
The tax will be due to be paid, or refunded, based on the calculations already mentioned.