Non-Residents in Spain: Income from leased property

By: Josep Navarro

The income to be declared will be the whole amount received from the lessee, without deducting any expenses.

However, in the case of taxpayers resident in another European Union member state and, from 1 January 2015, also in Iceland and Norway, they may deduct the expenses provided for in the Personal Income Tax Act for the determination of the gross tax base, provided that it is certified that such expenses are directly related to the incomes obtained in Spain and have a direct and indissociable link with the activity performed in Spain.

This income is understood to accrue when it is requirable by the lessor or on the collection date, if earlier.

Tax rate
Year of return	2007-2011	2012-2014	2015			2016
Tax rate	24%	24.75%	Residents in the EU, Iceland and Norway		Other taxpayers	Residents in the EU, Iceland and Norway	Other taxpayers
Tax rate	24%	24.75%	Until 11-07-2015: 20%	From 12-07-2015: 19.50%	24%	19%	24%

Form: form 210, declaring income type 01.

This will be used both to declare separately each accrual of income and to declare jointly several incomes obtained in a determined period.

Several incomes obtained by the same taxpayer may be grouped together provided that they correspond to the same income type code, originate from the same payer, are subject to the same tax rate, and also, if deriving from an asset or right, they originate from the same asset or right.

The grouping period will be quarterly in the case of self-assessments with positive (payable) result, or annual for self-assessments with result nil or refund.

Filing methods:

· on paper, generated as a result of printing the PDF form contained in the web portal of the Tax Agency.

· online, via Internet.

Filing period: depends on the result of the self-assessment:

· With positive result: within the first twenty calendar days of the months of April, July, October and January in relation to the income whose accrual date falls within the previous calendar quarter.

Direct billing of the tax payment: in the case of online filing, payment can be direct-billed between the 1st and 15th days of the months of April, July, October and January.

· With result nil: from 1 to 20 January of the year following the accrual year for the declared income.

· With refund result: as of 1 February of the year following the accrual of the income declared and within a period of four years from the end of the period for filing the return and depositing the withholding. The deadline for filing the self-assessment will be understood to conclude on the date it is filed.

Expatriates in Spain