Frequently asked questions about Golden Visa and tax obligations in Spain

Tax description Article

AGM Abogados

Judit Merchán Pascual, Tax area. AGM Abogados

This article aims to inform non-residents of Spain who have obtained a Golden Visa about the tax obligations that can be acquired when purchasing a property in Spain.

During the validity period of the Golden Visa, can I expect any tax obligations in Spain?

Yes, it is probable that you will be liable for taxation in Spain, particularly for Non-resident Income Tax and, in certain circumstances, for Wealth Tax.

Non-Resident Income Tax (IRNR)

What are the main characteristics required to be an IRNR taxpayer?

  • Non-residence in Spanish territory.
  • The existence of certain income considered as obtained in Spain.

What is Form 210?

Form 210 is a tax declaration form for non-residents in Spain, used to report income in Spain to comply with the obligation to contribute to the Non-Resident Income Tax (IRNR).

In the case of Golden Visa beneficiaries, what is the most common situation that requires filing Form 210?

The most common scenario involves the ownership of a property in Spain.
Even if the property is not rented and generates no income from its ownership, this situation must be declared using Form 210 for the ‘imputed’ income associated with the property.

When do I have to pay IRNR?

  • Owners of properties not currently leased are required to declare taxes for the period spanning from January 1st to December 31st of the subsequent year following the acquisition of these properties. For instance, if you owned a home in 2022, it is imperative to submit the tax return for that year no later than December 2023.
  • On the other hand, for owners with leased properties, the deadline for filing and payment is set for the initial 20 calendar days of April, July, October, and January, regarding income whose accrual date falls within the previous natural quarter.

Wealth Tax (Non-residents)

What is levied by the Wealth Tax (Non-residents)?

  • The wealth tax is levied on the net wealth of individuals. Net worth is the total value of assets and rights, with certain deductions.
  • In the case of non-residents, the taxable net assets and rights are exclusively those which are located or can be executed in Spanish territory.

When does the Wealth Tax levied?

  • The tax is levied on the assets held by the taxpayer as of 31 December (accrual date).

When am I required to file the Wealth Tax (non-resident) return?

The following are obliged to file a Wealth Tax return:

  • Those who, in accordance with the regulations for this tax and once the appropriate deductions or rebates have been applied, owe money. If the taxable base, determined in accordance with the tax rules, is equal to or less than the exempt minimum established, there will be no obligation to file a tax return.
  • There is a minimum exemption of €700,000, which can be applied to non-residents subject to a real obligation to contribute.
  • When the above does not apply, the value of their assets or rights, determined in accordance with the tax regulations, is greater than 2,000,000 euros.

For the purposes of the application of this second limit, it includes all owned property and rights, whether or not they are exempt from the tax and calculated without considering any burdens or encumbrances that reduce their value or the personal obligations or debts for which the taxpayer is answerable.

How and when is Wealth Tax (Non-resident) to be declared?

  • The tax return form is D-714.
  • The filing of this form takes place between April and June 31st of the subsequent year following the accrual of the taxable amount.

If I have met the criteria to qualify as an IRNR taxpayer in preceding years but failed to submit Form 210 or neglected to file a Wealth Tax return when required, could the Tax Authorities impose penalties on me?

  • The tax authorities can request payment for any overdue amounts that have not been settled promptly.
  • Moreover, this sum may be augmented by applicable late payment interest, and financial penalties may be levied based on the severity and magnitude of the infractions.

What to do in this situation?

In the event of non-payment, it is advisable to regularise the situation to prevent the imposition of penalties.

Should you have any questions or would like to receive more information, please contact us.