December 31st Tax Deadline For Second Home Owners In Spain

If you are non-resident in Spain but own a second home here which you do not rent out, you are still liable to pay tax on your property.

The deadline for these Modelo 210 submissions is now looming – as returns and payments must be completed by December 31st.

An estimated 600,000 Brits have invested in holiday homes across both the Iberian Peninsula and popular Spanish holiday islands such as Ibiza and Tenerife. However, many overseas owners remain unaware of their annual liability.

Even though these non-resident owners don’t receive any rental income from their second home in Spain they still have to pay an annual tax on the property – the Modelo 210. As the Spanish tax authorities deem the property to be an asset which could always be rented out in the future.

Save Money - Pay Your Modelo 210 Taxes Online

Spanish Taxes Online is a new service that has been created by professional accountants to solve this very problem and save property owners time, money and all of the hassle of interacting with the Spanish tax authorities.

Their service is quick and easy to use and they take care of the whole process for you by calculating your tax, filling out and then filing the return on your behalf – before providing you with an official receipt. All for the low cost of just €59 plus VAT – which is much cheaper than using a lawyer or accountancy service.

What Happens If I Don’t Pay?

Failure to pay can lead to complications when you come to sell your property in Spain. For example, the unpaid tax accrues, along with fines for late payment and this amount is then levied against the property – leaving a substantial sum that has to be cleared before title deeds can be exchanged and the property sale completed.

The Spanish tax authorities have also been known to contact non-resident owners direct and in extreme cases extract monies owed from non-resident bank accounts.

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Spanish Taxes Online is a new service which has been launched to provide a valuable service to non-resident owners of property in Spain which they do not let out, enabling them to file their annual Modelo 210 tax returns with the minimum of fuss and expense.

Spanish Taxes Online The Modelo 210 tax is basically an annual levy on “imputed income” from residential property. Non-resident-owned properties are automatically deemed to be a form of income by the Spanish tax authorities, regardless of whether they are rented out or not, and this is a tax on the hypothetical income.

The non-letting tax is levied retrospectively, and the deadline on 31^st December 2020 relates to the year 2019. But next year it is expected that many more people will be liable to pay the tax as so many holiday rental properties in Spain have sat idle in 2020 due to the pandemic – and it goes without saying that failure to file the appropriate documents and to pay the tax can lead to complications with the Spanish authorities, especially when owners come to sell their properties.

The Spanish Taxes Online website (www.spanishtaxesonline.com) is an easy-to-use, one-stop service which enables overseas property owners to file and pay their Modelo 210 non-letting taxes direct online in just minutes for a fee of only 59 euros (plus 7% VAT).

This means that the potential savings for owners who are currently using a lawyer or accountant to do the job for them could easily amount to hundreds of euros!

On the other hand, those who have been filling in the paperwork themselves can take advantage of an easy way to bypass the hassle of dealing with the Spanish tax authorities in filing and paying their Modelo 210 non-letting taxes.

Spanish Taxes Online has been launched by Ben Einar Simkins, a specialist in the field of non-resident taxation who set up his tax consultancy in Spain in 1993. After gaining a degree in Economics he became a fully-qualified tax consultant and adviser, as well as a member of leading Spanish trade bodies such as the CFE (Association of European Tax Advisers) and the REAF (Association of Economists and Fiscal Assessors).