Tax Advice
Taxation for foreign property owners in Spain combines national, regional and local taxes, and incorrect application can lead to penalties and surcharges from the Tax Agency (AEAT). Fau & Loustau Abogados offers comprehensive tax advice to British and European residents who own property in Mojacar, whether they are simply non-resident property owners or have established their habitual residence in Spain.
We file the Form 210 (IRNR, non-resident income tax) for non-residents, both for imputed property income and for holiday or long-term rental income. We calculate and settle the IBI (council tax equivalent), waste collection charge, Wealth Tax where applicable and the municipal capital gains tax (plusvalia) on sales. We also act as tax representatives in Spain for non-resident property owners, simplifying their tax obligations.
For British residents we apply the Spain-UK Double Taxation Convention, optimising the tax treatment of pensions, employment income and investment returns. We advise on the obligation to declare overseas assets through Form 720 and manage IRPF (income tax) returns for those who have transferred their tax residence to Spain.
How we help
- Filing of Form 210 (IRNR) for imputed property income
- Declaration of holiday rental and long-term rental income
- Tax representation in Spain for non-resident property owners
- IRPF (income tax) returns for Spanish tax residents
- Application of the Spain-UK Double Taxation Convention
- Wealth Tax advice
- Settlement of municipal capital gains tax (plusvalia) on sales
- Filing of Form 720 for overseas assets
- Appeals and claims before the Tax Agency (AEAT)
- Tax planning prior to relocating tax residence to Spain
Our process
Tax diagnosis
We analyse your personal circumstances, property types and tax residence to define the applicable obligations.
Data gathering
We request supporting documents for income, deductible expenses, IBI and the documentation needed for each form.
Calculation and review
We calculate the tax liability and present a proposal for your approval before filing.
Electronic filing
We file the forms with the AEAT and send you the stamped receipt for your records.
Annual follow-up
We remind you of deadlines and assist you with any tax enquiry or inspection by the authorities.
Frequently asked questions
Must I file Form 210 if I do not let my property?
Yes. Every non-resident property owner must file Form 210 annually for imputed property income, even without letting the property. The general deadline is 31 December of the year following the tax year and the base is calculated on the cadastral value.
What tax rate do I pay on holiday rental income as a non-resident from the EU?
Residents of the EU, Iceland and Norway are taxed at 19% on net income and may deduct expenses associated with the letting. Residents outside those countries, including British nationals post-Brexit, are taxed at 24% on gross income with no right to deduct expenses.
Is there double taxation between Spain and the United Kingdom?
The current convention between Spain and the UK avoids double taxation by allocating taxing rights to each country depending on the type of income. State pensions are taxed in the paying country and private pensions in the country of residence. Our firm applies the convention to optimise your position.
What is Form 720 and when does it affect me?
It is a mandatory information return for Spanish tax residents with overseas assets exceeding 50,000 euros in bank accounts, securities or property. It does not generate a direct tax charge, but failure to file has led to significant penalties, which the CJEU has recently limited.
What is tax representation and when do I need it?
It is the appointment of a Spanish tax resident who acts as your point of contact with the Tax Agency. It is mandatory in certain circumstances for non-residents and highly recommended in all cases to receive notifications and avoid penalties for non-appearance.
Need help with Tax Advice?
Contact us for an initial consultation with no obligation.