Time is closing in for non-tax residents in Spain to declare declare their Modelo 210 tax
The tax declaration must be made by 31st December.
Like many forms and modelos it can be a daunting prospect to fill out correctly so we have asked tax specialist Antonio Rodriguez to guide our readers through the process.
” The only thing that counts is that, if you have some type of income originating in Spain, you must file Modelo 210 and pay the corresponding taxes. If you are a resident in an EU country, you will be paying 19% taxes and if you are not resident of the EU you will pay 24% tax over the gross income”.
There are three different situations in which the Modelo 210 is applied:
1. You have worked in Spain under 183 day threshold
In general, this is the case of people who come to Spain and their stay in the calendar year does not reach 183 days: The typical case of teachers who join in September to teach at a school; until December they are considered non-tax residents and therefore have a payroll withholding of 19% or 24% on gross income. Of course, from the month of January, it is normal that more than 183 days will pass in that calendar year and therefore they are considered tax residents in Spain and will have a payroll with withholdings corresponding to their annual salary, and then they have to file the traditional personal income tax return to pay taxes like any other tax resident.
The deadline for filing the 210 is the entire following calendar year from January to December.
2.You have rental income in Spain
In this case, Modelo 210 must be submitted quarterly and the tax data of the tenant and even the property’s “referencia catastral” cannot be missing. As in the previous case, 19/24% of the gross rental income must be paid, without the possibility of deducting any expenses.
2. You are a property owner but do not rent.
The Tax Agency (AEAT) considers that, being a resident in another country, this will be your second home and therefore you have to pay taxes such as “Imputación de rentas” and it will be 19/24% of the 1.1% of the value “valor catastral”. This tax return must be submitted during the following year, from January to December.
Penalties for non filing Modelo 210
The fine for not filing Modelo 210, either quarterly or annually, is € 175 for filing after the deadline, plus 20% of the amount of debt and plus interest on late payment since the official filing period ended. If you don’t pay, the AEAT seizes your property, or whatever you have in Spain under your name, even if the debt is € 175!
If you have any doubt about this or other queries about passive income, such as bank interests, dividends, capital gains, etc please do not hesitate to call us for further information.