If you own property in Spain but are not a resident, you are required to declare income through Modulo 210, the non-resident income tax form. This applies whether or not you rent out your property. Here’s a detailed guide to the process and how Nookhomes can support you with compliance and maximizing your investment.
What is Modulo 210?
Modulo 210 is a tax form used by non-residents to report income linked to properties in Spain. Even if the property is not rented, non-residents are taxed on a deemed income based on their property’s valor catastral (taxable value).
Key Points about Modulo 210:
- Deemed Income Tax: Calculated as a percentage of the property’s cadastral value.
- Rental Income Tax: If you rent out the property, the income must be declared, and tax is applied accordingly.
- Filing Deadlines: Annual filings for non-rental properties, while rental income must be reported quarterly.
Applicable Tax Rates for Non-Residents
The tax rate depends on your residency:
- 19% for EU/EAA Residents.
- 24% for residents outside the EU/EAA.
Tax on rental income allows deductions for EU/EAA residents only, such as expenses related to property maintenance and utilities.
Why Declaring is Essential
Failing to file Modulo 210 can result in fines and penalties from Spanish tax authorities. Moreover, keeping your tax obligations in order is vital when selling your property, as unpaid taxes can delay transactions.
How Nookhomes Simplifies the Process
At Nookhomes, we understand that non-residents often face challenges navigating Spanish tax laws. Our services are designed to ease the process:
- Collaboration with Experts: We work with experienced tax advisors to ensure your Modulo 210 is completed accurately and on time.
Unlocking the Benefits of Property Ownership
Spain’s Costa del Sol, including hotspots like Marbella and Estepona, offers incredible potential for property owners. Compliance with tax regulations like Modulo 210 ensures you can enjoy these benefits stress-free.
Why Choose Nookhomes?
Whether you’re renting, selling, or simply enjoying your property, Nookhomes provides a comprehensive suite of services tailored to non-resident property owners. Let us guide you through Spain’s property market and ensure your investment is in safe hands.
For more information on buying property in Marbella and Costa del Sol, visit Nookhomes for expert guidance and listings that meet your criteria.
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