When you are thinking of setting up your own business in Spain, it is important to find out exactly what it involves and what the do's and don'ts are. We can help you through the whole process, whether you want to set up as self-employed or setting up a Spanish company. We can take care of your three monthly tax and IVA returns and solve all legal problems that come your way. Our house accountant is a registered Spanish professional with 25 years of experience.

2. Taxes

Anyone owning property on Spanish territory is responsible for the completion of a Spanish tax declaration each year. The type of declaration depends on whether they are officially resident or non-resident.

Non-Resident “Wealth Tax”

A non-resident is any non-Spaniard who has not completed the process of becoming officially resident in Spain. For further explanation, please see [ Other Services / Residencia ]

As a property owning non-resident, you are required to provide a completed declaration form 214 annually. This deals with the tax levied on all properties not considered by the Spanish government to be primary residences. It is based on the property's theoretical rental value according to the local land registry, and is adjusted in line with inflation. The rates of tax will vary from region to region due to the varying rates of tax imposed by the regional and local governments, but is normally around 0.2% of the base value. Unlike most taxes, there is no personal allowance to be deducted; but, in real terms, unless you own a very expensive property, it will not be a huge amount.

The tax is payable in arrears so that the tax due, for example, in the year 2004 should be paid no later than December 2005. As with all taxes, a fine will be levied in the event of late payment.

We calculate the tax payable on your behalf, arrange payment and present the documents in the appropriate Hacienda office on time.

Resident Tax Returns

As a resident of Spain you should make an income tax return to the Spanish tax authorities each year, just as you would to the British tax office were you still resident in Great Britain.

Even if your sole income is a state pension, it is advisable to fill in a zero tax return rather than no tax return at all.

Resident tax returns should be completed and presented before the end of June for the preceding year. We can help you with their completion, payment and present the documents on time in the appropriate office.

Dual-Taxation

Because of the tax years of the UK and Spain not coinciding, there is always an overlapping period if the proper rules are not followed or the proper offices notified. We can take care of all the paperwork and legwork that involves, to make sure you are not taxed twice on the same income.