Legal and tax information to reside in Spain
Tax procedures
WHEN IT IS CONSIDERED THAT YOU ARE A RESIDENT IN SPAIN?
- When you live more than 183 days in Spain.
- When you work and have economic interests here.
WHO IS OBLIGATED TO PAY THE NON RESIDENT TAX IN SPAIN?
- All those people who have a property in Spain and are non residents.
NON RESIDENTS WITH A PROPERTY IN SPAIN HAVE TO PAY FOLLOWING TAXES:
- NON RESIDENT TAX.
- GROUND TAX
WHAT IS THE NECESSARY DOCUMENTATION FOR THE NON RESIDENT DECLARATION?
- The receipt of the ground tax (TOWNHALL-SUMA OFFICE)
- Title deeds
- The NIE number from the owner (if there are several owners, from all of them)
WHAT IS THE GROUND TAX RECEIPT?
- It is a local tax.
- The amount is set by the city council.
- The receipt will be sent by post to the house.
- The payment is yearly.
- The payment period is from SEPTEMBER – OCTOBER. Sometimes until NOVEMBER, it depends from the Town Hall.
- In the province of Alicante the receipt is sent by SUMA.
- This receipt is necessary to calculate the amount for the non resident tax.
WHAT IS THE DEADLINE TO PAY THE NON RESIDENT TAX?
- You can pay it all year round.
- For example: The declaration from the year 2018 can be paid from 1st of Januray until the 31st of december 2019. Throughout the year 2019.
- Non resident owners are required to have a tax representative .
- For this reason, it is necessary to deliver the documents to an expert, who will verify what you are required to declare. He will be also the internediary between you and the Inland Revenue Office for any problem.
Purchase and sale procedures
WHAT HAPPENS WHEN A NON RESIDENT SELLS HIS HOUSE IN SPAIN?
1.- The person who purchases should retain a 3% from the price. This will be done with the form 211. There is a term of 1 month from the signature of title deeds on to pay and present the form.
2.- The person who sells the house must declare, if there is a benefit, with the form 212. There is a term of 4 months from the signature of title deeds on. Both forms, 212 and 211 must be presented together, to discount the retention. And so return the difference of money if the house were sold for the same first purchase price or less. If there is a profit, less or nothing is returned. In cases where the benefit is very high, you have to pay an additional amount to the 3 %. But that will be seen at the time. Because there are exceptions that do not pay this tax if they meet certain conditions.
ENERGY EFFICIENCY CERTIFICATE: According royal decree 235/2013
In the purchases of real estate, the seller must present to the buyer the original energy certification and, in the rentals of houses, this certificate must be attached to the rental contract.
Therefore, the energy certificate is mandatory for all owners who want to rent or sell their house before signing title deeds or rental contract.
Other support services
WHAT IS THE “NIE”: WHY IT IS NECESSARY AND HOW YOU CAN GET IT.
What is the N.I.E.Number?
N.I.E. is an abbreviation for Foreigners Identity Number.
The NIE Number is multifunctional and mandatory in Spain.
The NIE Number is permanent, personal and non transferable. The Nie serves people who are not Spanish Citizens for two things: as an identification number and at the same time as a fiscal number. (Tax Identification Number – NIF).
The NIE must always be indicated in any communication or writing to the Spanish authorities.
For example, you will need a NIE Number when you buy a house or a car, want to get a contract with the water, telephone or electricity company and have to pay taxes, especially in relation to the Inland Revenue Office. Without a NIE Number the Spanish tax authorities can not set or process annual tax payments such as property transfer tax at the moment of purchase or non resident tax later.
Who needs a NIE in Spain?
- Any foreigner who lives in Spain will need a NIE Number for tax purposes.
- Any Non Resident who purchases a property in Spain.
- Anyone who wants to study, work or start a business in Spain.
When do you need a NIE Number during the purchase of a property?
If you buy a property in Spain you will need a NIE Number at the latest when signing the purchase contract. This notarial sales contract is called “escritura”.
- To obtain your NIE Number in time for the signature at the notary, you must book an appointment at the corresponding office. Usually there will be not short term available date possible. Request it as soon as possible.
- If you wish to apply through the Spanish Consulate in your country, you must do so at least 3-4 weeks in advance, since the duration of the application is at least 10-14 days.
The spanish NIE Number can be applied by three ways:
- Personal apply alone in Spain or with intermediary/lawyer.
- Personal apply through a Spanish Consulate abroad.
- Apply through a representative with power of attorney in Spain.
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