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Must I Still Pay Tax On An Empty Property In Spain?

Must I Still Pay Tax On An Empty Property In Spain?

Do you still have to pay tax on your holiday home property in Spain, even when you have been unable to rent it out or visit it?

Hundreds of thousands of holiday rental homes have sat idle during the course of the last 18 months.  But non-resident owners of Spanish property are still expected to pay an imputed tax, even if they have been generating no income.

The Coronavirus pandemic and resulting travel restrictions have obviously played havoc with many holiday homeowner’s rental calendars over the last year and a half, whilst also preventing people from even being able to visit their properties in Spain.

Non-Resident Owners Property Tax Obligations

As a result, many non-resident owners (who spend less than 183 days per year in Spain) have been unable to generate any rental income or enjoy time in their holiday home for prolonged periods since the onset of the crisis back in March 2020.

However, owners should not be lulled into a false sense of security and simply assume that they do not have any tax liability in Spain as a result.  As the Spanish authorities still levy tax on second homes which are owned by non-residents – even when they have been sitting idle and have generated no rental income whatsoever.

Most non-resident owners of second homes in Spain who purchased their property as a holiday rental investment will already be familiar with the Modelo 210 Letting Tax, which is filed and paid quarterly.

But the Spanish authorities also levy a Modelo 210 Non-Letting Tax – which is applied to properties which haven’t been rented out for any period of 90 days plus during the course of the tax year, running from January 1st to December 31st.

This tax is applied retrospectively – so if for example you had any gaps in your rental calendar of more than 90 days during the course of 2020 you will almost certainly need to pay the Modelo 210 Non-Letting tax before the end of 2021. 

Many owners are unaware of this obligation though as the concept of paying tax when zero rental income has been generated has no real equivalent in the UK.  And the Spanish tax authority does not send out any form of reminder to owners – it is simply their fiscal responsibility to pay.

What Happens If I Don’t Pay?

Failure to pay can have serious repercussions too – especially when you come to sell your property in Spain.  And as well as attracting fines, late payment can also result in the Spanish tax authority embargoing and extracting the amount owed direct from the bank accounts of non-residents.

So if you own a holiday home in Spain that has been sitting idle and you are unclear about your tax obligations do not hesitate to contact us.

Confused? Contact Us….

Our easy-to-use online service takes all of the hassle out of the process for you as we calculate your tax and fill out and file your return on your behalf, all for a low fee.  Saving you time, money and all the bother of having to interact with the Spanish tax authorities.

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