Why do we strongly advise that you present your non resident income tax assessment for the use of your own property on time? Deadline Income Tax 2012: 30th December, 2013.

If you are non resident and own a property in Spain you must present annually the income tax assessment for the use of your own property.  This is sometimes difficult to understand by the non resident who is normally aware that income tax has to be paid if the property is let but cannot understand that tax has to be paid if no rent is received.

However, for your peace of mind the same rule is applicable to the Spanish residents. They have to pay income tax for the use of their own properties with the exception of their permanent residence. In case of a non resident the property in Spain would be always a second residence.

Nowadays, a lot of official bodies have the data computerised and the tax office is updating the information relating to non resident owners of properties. Also when you come to sell the property the tax office will be given details of your purchase. The purchaser in case of a sale by a non resident has to retain 3 % of the purchase price to be paid directly to the tax office on account of the capital gains tax of the vendor  and when presenting the assessment and effecting payment has to  provide information about the transaction.  At this stage the tax office will revise your tax situation as vendor and will claim payment of any tax due with surcharges, interests and penalties.

In the present economical circumstances most transactions generate no capital gains but a loss and when you present your capital gains tax declaration  you will apply for the refund of the 3% of the sales price paid on account of the Capital Gains by the purchaser. However, if you have not presented the income tax assessment for past years, the refund will be stopped until you regularise your tax situation.

For your information in 2013 the tax office can still enforce payment of the income tax declarations for the years 2008-2011 and if these have not been paid they can render assessments with fines, interests and surcharges.

Therefore in order to avoid payment of extra money in surcharges, interests and penalties and effect payment of the tax for various years in one lump sum of money, we strongly advise that you arrange for the payment of the tax annually in the due date.

At present you are still in time to present the income tax declaration for 2012. Deadline for this is the 30^th of December 2013.

For more information or an appointment please contact us on (0034) 952 822 321 or admin@nonresidenttaxesinspain.com. 
Web: www.nonresidenttaxesinspain.com