The form 210 of Income Tax for non-residents or residents without permanent establishment, is a model used in Spain to inform the Tax Agency about the rental of housing.
Whether you own a property or are looking to rent in the city of Barcelona, it is important that you are aware of the existence of the Non-Resident Income Tax (IRNR) and its corresponding model, the 210 non-resident tax form, because although this tax does not directly affect the rental of housing, it is a tax obligation that landlords must comply with to declare their rental income to the Treasury, and its compliance may have implications on the rental price.
If you want to make sure you comply with your tax obligations and avoid possible penalties from the Tax Agency, keep reading!
What taxes do I have to pay for owning a property in Barcelona?
Owning a property entails a series of unavoidable tax obligations. In Spain, the Real Estate Tax (IBI) is a local tax that applies to all persons owning real estate located in Spanish territory, regardless of their tax residence. Therefore, all persons who own a property in Barcelona or in any other city in Spain are obliged to pay the IBI corresponding to their property.
But, people who do not reside in Spain, but who have a property in Spanish territory, may also be obliged to pay tax on the income obtained from the rental of such property. However, there are some cases in which non-residents are exempt from paying this tax or in which reduced rates are applied.
As this obligation to pay IRNR will depend on the specific circumstances of each case, it is advisable that non-residents in Spain consult with experts in the field to determine whether they are obliged to pay this tax and to what extent.
In this sense, Loca Barcelona, a real estate company located in Barcelona and specialized in apartment rentals, can help you to know all the legal, fiscal and administrative conditions related to your rental.
Form 210: Who is obliged to file it? How is the tax calculated? When and how should it be paid?
Thus, the owners of a property in Barcelona, who do not have their tax residence in Spain, must file the 210 tax form, since this tax applies to people who spend less than 183 days per year in Spain, but obtain any type of income in the country.
Basically, whoever obtains income from renting one or more dwellings in Barcelona must file IRNR when they meet the following requirements:
- Live less than 6 months a year in Spain.
- Most of your professional activities are carried out outside Spain.
- Neither your children nor your spouse reside in Spain.
How is the non-resident income tax calculated?
The non-resident tax involves a tax rate ranging from 19% to 24% of the net or full income, depending on the country of tax residence of the lessor.
When and how should form 210 be filed?
It is important to highlight the legal obligation to file form 210, although many people may not be aware of it. Ignorance of this obligation does not exempt from the responsibility of its fulfillment, and in case of not filing it, it would be incurring in a tax fault that can lead to financial penalties, which can be substantial, with an additional surcharge that can range between 5% and 20% of the amount due.
Form 210 can be filed on paper, by downloading the non-resident form 210, which can be found on the Tax Agency’s website, or electronically.
In the case of rental income, tenants must file form 210 on a quarterly basis, from the 1st to the 20th of the months of January, April, July and October.
Therefore, it is important to know the most important aspects of form 210 and its possible repercussions on the rental price in order to comply with tax obligations and avoid possible penalties or surcharges. If you have any questions about this, do not hesitate to contact Loca Barcelona, they will be happy to help you with your rent in Barcelona!