The deadlines for filing your Modelo 210 tax return are fast approaching.
As the end of 2024 approaches, non-resident property owners in Mallorca need to prepare for a crucial obligation: filing their tax returns. Whether it's the imputed income tax or rental income tax, meeting the upcoming deadlines is essential to avoid penalties and ensure compliance with the Spanish tax authorities. In this article, we’ll explore the taxes non-residents must file, the upcoming deadlines, and how IberianTax can simplify the process, helping property owners in Mallorca submit their returns quickly, easily, and more affordably than ever.
Understanding non-resident taxes in Spain
If you're a non-resident property owner in Spain, you're likely already aware that taxes apply even if you don't live in the property year-round. Spain requires non-residents who own property to declare and pay taxes on either imputed income (if you're not renting out the property) or rental income (if you're earning money from tenants).
Additionally, it’s important to remember that non-resident taxes must be paid on top of any other local taxes, such as council tax (IBI) or rubbish collection tax. These local taxes are separate obligations that property owners must settle with their local authorities, regardless of residency status.
Here's a quick summary of the key non-resident taxes in Spain:
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Imputed Income Tax: This applies to non-residents who own property in Spain that remains empty all year or is just for personal use. The Spanish government views this as potential income and levies a tax on the value of the property.
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Rental Income Tax: For non-residents who rent out their property, the rental income tax applies. You'll be taxed on the income generated from renting the property, regardless of whether it is rented full-time or just partially.
2023 Imputed Income Tax deadline: December 31st 2024
For non-residents who do not rent out their Spanish property, the imputed income tax must be filed annually by December 31st, for the previous year. This tax is based on the cadastral value of your property (a government-assigned value that’s used for tax purposes).
Why file now?
While December 31st may seem far off right now, filing early can save you from a last-minute rush at the end of the year. Avoiding the Christmas chaos ensures that your taxes are filed accurately and on time, leaving you free to enjoy the festive season. Additionally, the longer you wait, the higher the risk of facing penalties for late filing. By filing in good time, you'll avoid the stress of missing deadlines and possible fines that come with it.
Here’s what could happen if you miss the deadlines:
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Late Filing Penalties: Missing the deadline can result in fines starting at 100€ and increasing with further delays.
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Interest on Unpaid Tax: The longer you delay, the more interest accrues on your unpaid tax, which can lead to a higher financial burden.
So, why wait until the last minute? Take the stress out of the process by using IberianTax to file your taxes early.
2024 Rental Income Tax deadline: January 1st - 20th 2025
If you fully or partially rented out your Spanish property in 2024, the rental income tax must be filed between January 1st and January 20th, 2025. You’re responsible for declaring the income you’ve earned from your property throughout the year and paying the necessary tax on that income. This tax was previously required to be filed quarterly, but thanks to changes in the laws earlier this year, this is now paid annually.
Why register now?
Even though the filing window for Rental Income Tax isn’t open until January, it’s wise to get ahead and start preparing your documents and income records now. Registering with IberianTax ensures that you’ll have everything in place to submit your taxes as soon as the window opens. By preparing early, you can:
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Avoid Mistakes: Early preparation gives you plenty of time to review your records and ensure that everything is in order, with no nasty surprises.
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File on Time: The rental income tax deadline is shorter than the imputed income tax deadline, so ensuring that you’re ready to go reduces the risk of missing the deadline.
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Stay Compliant: Non-compliance with Spanish tax laws can lead to significant fines and penalties from the tax authorities.
Convenience of using IberianTax
Filing your taxes can seem daunting, especially when you're unfamiliar with Spanish tax laws. However, using IberianTax makes the process hassle-free, fast, and cost-effective. Here’s why:
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Fast and Simple Process: IberianTax’s online platform allows you to file your non-resident taxes quickly from the comfort of your home, no matter where you are in the world.
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Cost-Effective: Traditional tax advisors or lawyers can charge high fees for filing non-resident tax returns. IberianTax offers a much more affordable option, with prices starting as low as 34.95€.
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We Speak Your Language: The online tax software is available in English, German and French, so there’s no need to muddle your way through.
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Secure and Reliable: IberianTax ensures that all personal data is securely encrypted, ensuring the privacy and protection of its users. They’re also certified by the Spanish tax authorities (Agencia Tributaria), ensuring that your tax filings are accurate and compliant.
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No Need for an Accountant: With IberianTax’s intuitive platform, there’s no need to hire an accountant or lawyer, saving you both time and money. The step-by-step guide ensures that you can file your taxes without needing additional professional help.
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Personalised Support: Got a question? IberianTax’s customer support team is available to assist you through the process. Whether you need help calculating your taxes or ensuring your documents are correct, they’re just a click away.
Key deadlines for your diary:
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2023 Imputed Income Tax: December 31, 2024
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2024 Rental Income Tax: January 1-20, 2025
File with IberianTax for a Stress-Free Experience
There’s no need to stress over tax deadlines when IberianTax is here to make the process simple and secure. Whether you’re filing imputed income tax or rental income tax, IberianTax has everything you need to file on time, avoid penalties, and ensure your taxes are compliant with Spanish law.
Start preparing today and use IberianTax’s free tax calculator to see how much you owe, then sit back and relax while they take care of the rest!Bottom of Form
