Non-Resident Tax Returns
TIBC SL have over 7,000 clients for who we do their Resident or Non Resident Tax Returns for. We will ensure your tax returns are made accurately and on time so you stay legal while living in Tenerife.
Declaring your Liabilities to the Spanish Authorities as a Non-Resident living in Tenerife or Fuerteventura
Taxes: As a non resident property owner in the Canary Islands, you are required to pay annual tax and income tax on your property, but you should consider the circumstances first.
If you do not let your property out, then you are only required to pay your taxes on an annual basis. In order to do this we need to see a copy of your last rates bill (IBI), and your escritura (title deeds). We should also hold on file, all your personal details, copies of passports and NIE numbers.
In January of each year, we write to all our clients to inform them of their tax liabilities and use the Direct Debit system to make a debit to our clients bank accounts on the 24th February annually. Because of the new banking laws (SEPA) we then have to wait 56 days to make sure that the clients funds have cleared before we can present your tax return. Copies are then available here in our office. We will only give the originals to you personally or to your legal representative.
IMPORTANT: Many people think that as UK citizens they should make their annual and income tax declarations to the British authorities.
This is not correct, as the property physically sits on Spanish soil. They can, however, ask for copies of your Spanish tax returns.
If you let your property, and you receive an income you must then make quarterly income tax declarations. You should advise us of the income, and the expenditure, but only costs that have been paid to maintain the apartment for letting, such as electricity, water etc. are deductable.
By forwarding these figures on to us, we will then prepare your quarterly return and after debiting your bank account, proceed to present and pay the bill in your name.
It is impossible for us to quote percentages of taxes due, as they can change every year. Suffice to say that this year (2016) the tax rate is 24.75%.
Fines are issued by the tax office for late payments. Tax inspectors have been known to visit properties and in one extreme case that we know about, a lady had a British bailiff knock on her door in the UK demanding that she pay the Spanish tax authorities or lose her house.
Document Healthcheck
For your information, we offer a FREE, no obligation Document Healthcheck where we can arrange a meeting to go over all your paperwork with you and advise you on the best route to take. We have over 30 years dealing with keeping residents and non-residents compliant with Spanish Law and we deal with tax returns, banking, insurance and more... So the chances are, we can help you get on the straight and narrow and remove any headaches you have caused by the good old Spanish paper trail!