Non-resident tax in Tenerife
As the owner of property in Tenerife, you must pay 2 taxes per year on your property:
The first is the Impuesto sobre los Bienes Inmuebles (IBI), which can be compared to your council tax. If you are advised by us during your purchase and we did your conveyancing, you do not have to do anything for this. We will make sure that it is automatically debited from your bank account so you are never late and can’t be imposed any fines. If you are not a client of ours, no worries, you can still read on and we can still order direct debits for you. Just contact us for this.
The second is the non-resident tax. It is popularly called the “Modelo 210”, after the document that is used for this purpose. This article is about this tax, the tax return for non-residents in Tenerife and Spain.
Non-resident tax: For whom?
You have to pay the non-resident tax if you meet the following conditions:
You don’t have the Spanish nationality
You are officially not permanently residing in the Spanish territory. This means that you do not officially live in Spain or the Canary Islands, you are registered somewhere else. Your legal address is not in Spain, for example the UK or Ireland.
You are not a tax resident in Spain. In other words, you do not file your annual personal income tax return in Spain but in another country.
In other words, subject to exceptions, as in the case of most people who buy a holiday home in Tenerife, you will have to file and pay this tax return. The official name is “Impuesto sobre la Renta de no Residentes (sin establecimiento permanente)”.
The tax return must be submitted by you voluntarily on an annual basis. You will not receive an invitation or message from the government that you have to submit and pay for this. In other words, you have to pay for it yourself voluntarily and the government will not notify you.
But NO WORRIES! For our clients we will automatically take care of this and you will be kept yearly informed by us of the result. After all, we will make the calculation and take the necessary steps for you so that you comply with all obligations and therefore you cannot incur any fines! Would you like us to take care of your obligations and taxes in Spain? Please contact us and we will be happy to help you, for less money than you probably think!
Non-resident tax: How to declare?
The Modelo 210 is the form used for this declaration. The good news is that actually you don’t have to do anything if you let us take care of this for you! You will need to give us some information for us to be able to do this, namely:
Details of the property owner. If there is only one owner, we only have to do one declaration for him/her. For example, if as a couple you are both owner for 50% (you bought it together), both have to submit a declaration. If you have the usufruct and your children the bare property, we’ll only have to do a declaration for you and not your children.
The land registry details of your property. The important factors are the land registry reference number, the land register value and the last revision. If this sounds like Chinese (or Spanish) to you, don’t worry, we’ll take care of this for you.
Copy of the owner’s passport and legal details.
NIE number owner(s).
The current tax rate (2020) is 19% for EU residents and 24% for all other nationals.
Non-resident tax: Summary
Annual declaration before 31 December
You have to declare it yourself, you will not receive an invitation from the government.
Mandatory if you are not a tax resident and you own property in Spain/Tenerife.
Please contact us to avoid fines and let us take care of these obligations for you