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What you need to know about Dec 31st tax deadline for second-home owners in Spain

There is a non-resident property tax that you need to know about if you have a second-home in Spain.

What you need to know about Dec 31st tax deadline for second-home owners in Spain
Photo by Ralph (Ravi) Kayden on Unsplash

Those who own a holiday home in Spain must pay an annual tax by December 31st even if they are a non-resident and don’t rent out their property.

The paperwork for the tax known in Spanish as Renta Imputada(Deemed rental income) must be filed by December 31 using the Modelo 210 and applies to all non-resident owners even those who don’t make money by renting out their properties.

The tax assumes that the property is an asset that could be rented out, even if it’s not, and comes on top of the annual property tax (or rates) known as Impuestos Sobre Bienes Inmuebles(IBI) that owners need to pay their local council.

The tax is calculated based on the cadastral value of the property which can be determined by looking at the latest IBI bill. You will also need to find out when the last cadastral revision was made by your municipality and that determines the percentage multiplier you will need to work out how much tax is owed.

If it was revalued within the last ten years then the coefficient is 1.1 percent or if prior to ten years then it is 2percent. That figure is multiplied by the cadastral value of the house and then taxed by either 19.5 percent for those whose country of residence is within the EU or Iceland or Norway. All other residents of countries outside of the EU (which will include the UK after the Brexit deadline) is 24 percent

So for example, the tax on a property valued at €76,381 on the cadastral would be around €207.

Failure to pay can lead to hefty fines and could cause problems when the time comes to sell your property on as unpaid taxes count as debts and need to be cleared before title deeds can legally be exchanged.

Required paperwork:

As usual with Spanish bureaucracy you will need certain paperwork in order and be able to provide evidence of the following:

  • National Insurance number in your country
  •  Spanish NIE number
  • Passport number
  • Date of Birth, Town of Birth
  •  Country of Fiscal residence (where you are legally registered to pay taxes)
  • Address in your country of residence
  • Full Address of the property or properties in Spain
  • Catastral Value and year revised Catastral reference number of Property in Spain (shown on the IBI bill)
  • An IBAN bank account number to include on the form if you want to pay from your bank.


How to I file this tax?

You can apply to pay the tax online at Spain’s tax agency using the  Modelo 210 which you can find HERE and complete online if you have an electronic ID. (Here's how to get one)

Otherwise you can still complete it online but will have to print it out and take it to a bank in order to process payment.

Spain’s tax office has helpfully produced a guide to filling out the form in English HERE.

December 31st deadline

The deadline for the submission of form Modelo 210 is the 31st December 2020 for income deemed or actually derived in 2019.

If you have previous years outstanding you can still pay for up to four years but will have to pay a penalty for late payment.

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Member comments

  1. if I purchased the home this year 2020 do I need to pay Renta Imputada and file Modelo 210 this year or next?

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TAX

The taxes in your region of Spain you probably didn’t know existed 

Madrid has just announced it wants to be the first region to scrap regional taxes, but what are these tariffs that apply to specific autonomous communities? And where in Spain do taxpayers pay the most?  

The taxes in your region of Spain you probably didn't know existed 
Which autonomous community in Spain has the most regional taxes? Photo: Javier Carro/Wikipedia

Spain’s 17 autonomous communities, with the exception of the Basque Country and Navarre, all have their own taxes which are applicable to people and companies in their territory. 

Known as impuestos propios (own taxes), these tariffs are applied by regional governments to address matters pertaining to their community which they’re looking to solve. 

On September 1st, Madrid’s regional president Isabel Díaz Ayuso made headlines by announcing she intended to scrap the remaining impuestos propios in the region (tax on slot and arcade machines in bars and restaurants and a tax on the storage of waste), amounting to €3.4 million annually for Madrid taxpayers.

This only accounts for 0.02 percent of taxes paid by the region’s 6.6 million inhabitants, but Ayuso’s announcement had made people across Spain more aware of the existence of these little-known regional taxes in their part of Spain.

Madrid’s leader has argued that some regional taxes are now becoming redundant or obsolete as other tariffs are introduced by Spain’s central government on a national level.

madrid scraps regional taxes impuestos propios

Ayuso has said her government will refuse to adapt its tax system to decisions made by Spain’s central government, especially when it comes to its very low taxes on inheritance and assets. Photo: Javier Soriano/AFP

Spain’s 17 regions are responsible for applying their own autonomous taxes, which depending on what they are, can make life more or less expensive for the average person in Spain depending on their location. 

Regional governments are also responsible for setting tax levels on inheritance and assets, which can vary enormously between territories.

EXPLAINED: How choosing the right region in Spain can save you thousands in inheritance tax

So which region of Spain has the most regional taxes? And what are the impuestos propios that you have to pay in your part of the country?

Catalonia

Catalonia has the most regional taxes of all of Spain’s 17 regions, with 13 impuestos propios adding €137.3 million to public coffers in 2020. 

The latest to be added is the tax on C02 emissions for vehicles, along with other tariffs on large commercial establishments, empty homes, tax on tourism stays, sugary drinks, a tax on luxury goods and several other environmental levies relating to water, waste and emissions. 

Andalucia

Spain’s largest region has the second highest number of regional taxes in the country with eight impuestos, although some of these are currently not applied. 

Taxes on unused land, credit agency customers, single-use plastic bags and a number of other environmental taxes added €145 million in tax revenue to Andalusian authorities in 2020. 

Murcia 

Murcia has six regional taxes in place in 2021: three environmental ones, one on bingo prizes, another on economic activities and a water treatment tax, all of which accounted for €55.9 million in taxes in 2020.

Galicia 

The northwestern region has six autonomous taxes which added €80 million to public coffers last year, including a fee on derelict or abandoned homes and a number of environmental taxes relating to mining, pollution, wind energy and water treatment.

Asturias 

Galicia’s northern neighbour also has six regional tariffs which added €118 million paid to Asturias’s tax office in 2020. They include a tax on bingo prizes, water treatment, unused rural land, large shopping centres, economic activities as well as environmental levies. 

Economists in Asturias are calling for regional authorities to lower levies for inheritance and asset taxes as well as regional taxes, suggesting higher-than-average tariffs are dissuading investors.

Canary Islands 

The Atlantic archipelago has five individual taxes, three of which belong to the Canaries’ unique IGIC tax regime (no VAT): General Indirect Tax, AIEM consumer tax and registration tax. The other regional levies are on tobacco, waste spills and petrol-based products.

Aragón 

Aragón in northeast Spain has five regional taxes, all of them environmental. In 2020 Aragonese authorities collected around €100 million from taxes on water pollution, atmospheric damage, environmental impact of large shopping malls, electricity installation and transport as well as on the use of stored reservoir water.

Extremadura

The western region also has five regional taxes which added €115 million to public coffers last year. Active tariffs in Extremadura are on landfill processes, water treatment and hunting.

Valencia region 

The eastern region has four regional taxes in total: a tax on empty homes for those with more than ten properties, tax on waste processes, activities that have an impact on the environment and water treatment. 

The Valencia region’s tax head Vicent Soler has referred to Ayuso’s words as a “smokescreen” that accounts for an insignificant amount for Madrid taxpayers and that slashing regional taxes “will mean those who need it most get fewer services”. 

The Balearic Islands 

The Balearic Islands also have four regional taxes, of which only two are currently applied: the tax on tourist stays (€36.8 million collected in 2020), which is based on overnight holiday stays on the islands, and the wastewater treatment fee (€78 million collected in 2020).

La Rioja

Spain’s famed wine-producing region has four regional taxes, with which in 2020 it added €12 million to its public coffers. These are a tax on cell towers that have a negative visual impact,  water treatment, waste management and a levy on economic activities.

Cantabria

Cantabrian authorities collected €27 million in 2020 from their regional taxes on water treatment, waste deposit in landfills and a levy on economic activities. 

Castilla-La Mancha

In the central Spanish region there are regional taxes on wind energy and economic activities that have an environmental impact.

Castilla y León

Authorities in Castilla y León have said they don’t plan to follow in Madrid’s footsteps and eliminate its own current environmental taxes, which are mainly paid by electricity companies.

Castilla y León currently receives almost €63 million with its tax on the environmental impact caused by certain uses of stored reservoir water, a tax on wind farms and another on high voltage electric power transmission facilities, as well as a further €7.6 million from landfill waste management taxes.

You can read more about impuestos propios on Spain’s Hacienda website (information in Spanish). 

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