Changes to Spanish tax form 210

Changes to Spanish tax form modelo 210 from 1 April 2011


Tax form 210 (modelo 210 in Spanish) is used for declaring non-resident income tax.  The general rules about the declaration and payment of non-resident taxes are described elsewhere on the site (Spanish tax form 210) but essentially they are payable by non-residents who have Spanish property or assets AND who earn some income from them (e.g. rent or dividends) OR who have fixed property, like a home, which is assumed to have some taxable value.  The most common situation is that a foreigner has bought a holiday home in Spain which they visit during the year but don't rent out - they have no income in Spain as such but are still obliged to do a tax return and pay some tax (see guide here - Spanish tax form 210)

Changes to modelo 210 from 1st April 2011

- the physical forms have been abolished so you can't pick one up at the tax office.  You either have to declare online at the tax office website (see "presentacion de declaraciones" here) or enter the information online and then print off the completed return to pay at the bank here)

- if you print off the modelo 210 and the result is zero tax to pay or a repayment to the taxpayer then you must present these at the tax office, either in person or by registered ("certificado") post.

- if there are funds to claim back these can now be paid to a foreign bank account

- in the more likely event of a form with tax to pay these must be presented to a "collaborating entity", essentially meaning any bank in Spain (although some foreign banks with Spanish branches are not official entities for this purpose).

- supporting documents such as certificates of residency should be presented in digitized form in the case of online declarations and, in the case of declarations at banks, in an orange envelope of the kind that can be obtained from the tax office.

Changes relating to rental income in Spain 2011

Although not part of this batch of changes, there have also been two changes to the treatment of rental income earned by non-residents in Spain.  Previously this was reported on a modelo 215 every quarter but now it is modelo 210.  Also there are certain expenses which can be deducted from the rental income whereas previously it was the gross rental without expenses that was taxed. Examples of allowable expenses are community fees and rates.  Note that non-residents from outside the EU cannot deduct expenses from rental income.

Next steps

If you have queries about the changes or wish to find out about your potential liability to non-resident taxes you can contact us and ask without obligation. You can do the returns yourself with a little research and persistence but we offer a cheap and convenient service which allows you to settle the whole obligation from your computer (though it does involve you providing some information and documents which may have to be scanned into your computer and emailed to us) - this is described here Spanish Tax Form 210.