Tax Issues For Owners of Spanish Property for Non Spanish Residents
We can all dream of a place in the sun but there is another side to owning villas overseas which is altogether less pleasant and that is the responsibility of paying tax in Spain.
The tax infrastructure in Spain revolves around self assessment and it can be complicated for people who don't reside in Spain.
Mistakes in working out Spain tax can be expensive leaving property owners liable to fines and other issues when you come to try and get rid of your domicile in the future.
Tax in Spain can make HMRC look easy as tax is charged by three different levels of Government in Spain, at a state regional and town level.
Non residents must ensure that they pay the correct amount of tax to these Government institutions.
Property residents have to obtain the right tax document, calculate the correct amount of tax due, complete the form, submit the documentation to the Spanish tax inspector, pay the tax and deal with any questions from the Spanish tax office.
This can be a nightmare to some non resident Brits as it is not always obvious the amount due to be paid, where to get the right paperwork nor how to make the payments.
Interpretation is also a big issue to non Spanish speakers as translations are often necessary.
It is often advisable to seek out a specialist on Spanish tax law and get their professional support through the process.
Although there is a price attached to this it is likely to be money well spent to avoid fines and sleepless nights.
The tax infrastructure in Spain revolves around self assessment and it can be complicated for people who don't reside in Spain.
Mistakes in working out Spain tax can be expensive leaving property owners liable to fines and other issues when you come to try and get rid of your domicile in the future.
Tax in Spain can make HMRC look easy as tax is charged by three different levels of Government in Spain, at a state regional and town level.
Non residents must ensure that they pay the correct amount of tax to these Government institutions.
Property residents have to obtain the right tax document, calculate the correct amount of tax due, complete the form, submit the documentation to the Spanish tax inspector, pay the tax and deal with any questions from the Spanish tax office.
This can be a nightmare to some non resident Brits as it is not always obvious the amount due to be paid, where to get the right paperwork nor how to make the payments.
Interpretation is also a big issue to non Spanish speakers as translations are often necessary.
It is often advisable to seek out a specialist on Spanish tax law and get their professional support through the process.
Although there is a price attached to this it is likely to be money well spent to avoid fines and sleepless nights.
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