During the month of January, the Special Tax on Real Estate located in Spain of Non-Resident Entities must be filed.

Those entities residing in a country or territory that is considered a tax haven and that are owners or possess, by any title, in Spain, real estate or real rights of enjoyment or enjoyment over them, will be subject to the Special Tax

What is this Special Tax?

This Special Tax consists of a fixed tax rate that amounts to 3% applicable on the tax base, consisting of the cadastral value of the real estate. If there is no cadastral value, the value determined for the purposes of the Wealth Tax must be used.

There are certain Exemptions in relation to this Lien that will affect the following entities:

  1. States and foreign public institutions and international organizations
  2. The entities that develop in Spain, in a continuous or habitual way, differentiable economic exploitations of the simple possession or lease of the property
  3. Companies listed on officially recognized secondary securities markets.

Deduction of the Special Tax

The amount of the Special Tax on Real Estate of non-resident entities paid will be a deductible expense for the purpose of determining the taxable base of the tax that may correspond. Therefore, the Special Tax on Real Estate may reduce the taxable income of the IRNR.

The Law does not establish limitations or terms to apply the deduction of the Special Tax, so it must be understood that the fee that is entered for this concept will be deductible from the taxable base of the Income Tax of Non-Residents as long as the tax has not prescribed. right to such deduction.

Tax Management

Entities resident in a country or territory that are considered a tax haven that are owners or possess in Spain, by any title, real estate or real rights of enjoyment over them, will be obliged to present this self-assessment. Exempt entities will not be obliged to present this self-assessment.

The declaration-liquidation Model is Model 213, and in general, one must be submitted for each property that has a differentiated cadastral reference assigned to the AEAT Delegation or Administration in whose territorial scope the property is located, being able to present a single settlement for all properties located in the territorial scope of the same Delegation

The submission deadline will be the month of January of each year in relation to the annual tax accrued as of December 31 of the previous year.

The lack of self-assessment and income in the previous term supposes the enforceability of the tax by the enforcement procedure, and the Administration may initiate this enforcement procedure on the property, whether it had been transmitted or not, when responding to these properties for the taxes accrued and not entered. that they had not prescribed.

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Marta Reguera

Marta Reguera
Director Tax Support

All information contained in this publication is up to date on 2021. This content has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this content, and, to the extent permitted by law, AUXADI does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.