The OP needs to see a specialist and soon.
Our neighbours did what alot of people did in the early 2000;s and listened to people in a bar or only purchased through one of these 'holiday homes in the sun' exhibitions.
They were told that they didnt need to do a tax return as she was on a UK OAP, fast forward to last year and they went to sell up and move away. The estate agent asked for their fiscal cert and the fines and repayments for the previous four years was considerably more than the 3% retention the estate agent told them they would have to pay as they couldnt prove tax residency.

I dont actually believe for one minute the Op has NEVER had any bill or notification.
But it doesnt matter they will be liable for the IBI, non resident tax and any tax earned on the rental.

They most certainly will have had both Ayuntamiento quarterly bill and IBI sent through the post to their Spanish address. To then expect those bills to be somehow forwarded to them in the UK without some prior arrangement with someone in Spain is just beyond belief. Certainly Spanish tax department are not going to accept that as an excuse for not paying.. Taxes are individual responsibilities yes you can make easier by setting up Direct Debits but the onus is on the individual.

They couldn't prove they were resident in the UK?

I get the point that everything adds up to a whole lot more than doing it right in the first place.

No because they never did a tax return here they were shocked when told about the 3% retention.
It doesn't matter if you have a TIE it's a fiscal cert that is needed.

I still don't get it. They wanted a fiscal cert that they were resident in Spain or a fiscal cert that they were resident ANYWHERE in the world outside of Spain?

Apart from the IBI and ayuntamiento/council taxes would they still need to file local tax returns in Spain if they owned a property but never made any income from it, keeping it only for their personal use?

I was always under the impression one should submit at least one tax return , even with no income that would be taxed . That way you are registered on the Spanish tax system and able to obtain a fiscal certificate?

Yes. But many didn't bother or were advised not to.
The problem is that in the UK and poissibly many other countries there is no need for personal returns as tax is an automatic thing under PAYE and then pensions. Unless self employed.
Here as those of us have bothered to find out, requires an annual return that you have to do.
Having a fiscal cert proves residency and is different to physical residency.

Slight deviation here. I know a couple with a large savings pot in the UK and they were unaware of model 720. We were talking about savings and they refuse to inform as they think the money will be taxed or stolen by the spanish government as someone told them that's what spain does to foreigners everytime it's in trouble.

Anyway, for my 2c the Op needs help and it's going to cost a few euros to sort this out.

In the circumstances Barriej described, ie someone wanting to sell their house as a tax resident in Spain and not have 3% of the sale price retained against a possible CGT liability, they need to obtain a certificate of fiscal residence in Spain - nothing else will do, and if they haven't submitted Spanish tax returns they won't get one. I know someone who was in the same situation. They had been living in Spain for nearly 20 years, without having registered as residents, went back to the UK for medical checks and treatment on the NHS and never submitted any tax returns. Before the end of the Brexit transition period they reluctantly felt forced to get Spanish residency and moaned like hell about it, had to employ the services of a gestor to help them. Then they decided to sell their Spanish house and rent instead, were highly indignant when they found out they'd have the 3% retained as they wouldn't be able to get a fiscal residence certificate.

Any non resident owner of a property in Spain is obliged to submit a Modelo 210 (imputed income tax) return by 31st December each year, whether they ever rent the property out or not. I did it for my old house for the first 3 years I owned it, before we moved over here permanently.

https://blog.abacoadvisers.com/all-y...-tax-in-spain/

Note the comment in this link that property owners will not receive bills or any reminders about paying this tax - it is their responsibility to be aware of their obligations and meet them. Every website about buying property in Spain includes information about this non resident tax - if people can be bothered to read it.

I guess in Spain much like the UK its citizens automatically get put on the tax system through work or benefits. Being non citizens and non resident incomers to Spain need to physically put themselves on to the tax system in order if needed to physically show not just residency but fiscal residency. The easiest way is to submit a tax return even if it is a negative one re tax. There may be other ways of being fiscal registered in Spain but easiest way is the tax submission. Once registered if one has electronic ID it is very easy to get a certificate online. It would seem going back to the OPs situation that they have been oblivious to any of the required responsibilities and fiscal obligations and responsibilities that go along with property ownership in Spain. As Lynn mentions one only has to look at any information re property purchase in Spain and these taxes are outlined. I think re the non residents tax and 720 for many because they dont get a letter saying these need to be submitted they can ignore them. Spanish authorities will not accept ignorance as an excuse. Tax questions including non residents tax have been discussed on this forum many times including information on how to submit non residents tax oneself. The situation now for the OP needs urgently resolving with proper legal advice and be prepared to pay what they owe the authorities.

Hi
it will be very interesting to see how the OP goes on with this, as a lesson to us all on how it works on the ground.

i have had issues as i have owned in Spain for 21 years and in all honesty i was thoroughly ignorant of the non residents tax (no excuse), and i was following my parents who had a house down the road and they were thoroughly ignorant of it too. They sold up and as they paid the ibi and local taxes yearly and the plus valia on exit and left the 3% cgt as they left Spain, the non residents tax was not an issue. Bear in mind they had the place for 20 years!

For me personally I only heard of it when my neighbour told me in passing they were going to “pay their non residents tax tomorrow” I said what’s that? She looked at me horrified and I felt stupid. I researched it and I went to a gestor and paid the five years that they go back on and now I’m fully paid up and legal I hope.

With regard to IBI etc although I can honestly say after going in to the town hall to try and get a bill sent to my flat or even an email it has proved very difficult, I now just go in twice a year with my details which are from an early bill and pay it there and then.

i think I may have never been chased as the OP says but if you went in with your details the bill would be waiting for you, or if you sold up it would rear its ugly head. The only question that arises is can they go back 20 years or are they restricted to five like national taxes?

regards
Al

I think there will be others like yourself who inherit rather than physically purchase a property who are unaware of non resident tax. The IBI and ayuntamiento charges should be set up by the solicitor certainly that was done by our solicitor and Direct Debit put in place. I dont think our solicitor told us about the non resident tax until it was due the year after we bought and they were looking for business. I was aware of the need to pay it as i had researched all such things prior to buying. I had decided i would try and tackle it myself which with help from this forum i was able to do. I had a friend who had bought a holiday home some years before ourselves and he was unaware of the need to pay non resident tax. I gave him the details of a place that i had researched and could sort it out for them. They sorted the whole thing out and like yourself he paid the last 4 or 5 years the years before that he didnt pay. I am not sure if IBI is the same or whether they can go back further plus i would guess impose penalties. The thing for the OP is ok they were unaware but know now so get professional advice and sort it out

while it is probably different brackets etc, may i ask, out of interest how much is it? is it based on you, or the property?

I´ve been resident for 20+ years so it doesnt apply to me, but im always interested to find these things out.

i know the ibi on our place is about 200€. on my dads townhouse its about 150€... on the MIL´s townhouse overlooking the sea.. its touching on a grand.

I hope the OP has deep pockets. even 5 years at say.. 500 euros, plus fines.. 3k? then what about rubbish, entrances, sewage?

You calculate 1.1% of the catastral value of the property, and then residents of EU/EEA countries pay tax of 19% of that amount, and non EU (including the UK since Brexit) residents pay 24%. If a property is jointly owned then each of the owners has to make a separate return for the proportion of the property they own.

My IBI on a 2 bed ático in the centre of Vélez is now €409 (it was €447 when we bought 8 years ago, but was reduced by a small amount over each of the last 3 years). On our old townhouse in Vélez it was raised to €570 following a revision of catastral values, but we could then claim a discount from the Ayuntamiento (for as long as we owned that particular property) which reduced it to €260. That automatically showed up on my tax return as a grant, though, so partly got clawed back. We've never had separate basura charges here (although they are imminent after the new EU directive) but in addition to the IBI have to pay a tasa de caruajes in respect of the entrance to the basement parking garage, of €44 per year.

I have been resident 7 years now but when I was paying non residents tax it was just over 60 euros. There are a couple of ways of determinng the tax easiest way is the Valor catastoral from the IBI receipt couple of % calculations which escape me and you arrive at the amount due. It wasn't difficult there,s an online system to use print it off and pay at bank. We had an interesting thing happened the first year ours was due. I had done research much of it on this forum and found out how to do it. However there was an issue with the IBI and Valor catastoral I can't remember the details. We spoke near enough zero Spanish but myself and my wife went off to the local tax office with our Spanish phrasebook as pre Google translate. Back then you had to purchase some stickers to stick on the form obtained at the tax office. We got all those and asked about this issue we had with the IBI they indicated a different office over the road we went there sorted our issue out and left with correct IBI bill showing correct Valor catastoral, it turned out our house and one nearby had been renovated at same time and addresses had somehow got confused. Anyway having sorted everything out and got correct paperwork we got back home . I heard my wife on the phone , she said it's the solicitor? Ok so I spoke with him he said your non residents tax is due soon? Yes I know , strange I thought I make enquiries at tax office and within an hour you ring me ? Anyway he said they could do it for 350, given I had calculated it at 60 euros I asked so how much of that is tax and how much your fee? Oh we can't go into details but that's the cost. I said mmm I have worked it out at 60 euros and intend doing it myself, oh no it's very complicated? No it's not it's quite straightforward I've researched it. Then he said well your calculations may be wrong and that will cause problems? Ok I said tell me are my calculations wrong near or correct? Oh I can't discuss that . Ok well I tell you what I will submit myself I'm sure if I am wrong they will tell me. He then said we are your tax representative to submit taxes for you? Mmmm I don't remember that being part of the deal but I will send an e mail to cancel that will that suffice, a begrudging yes , end of call. I submitted the forms paid no issue. The following year for peace of mind I paid for them to be submitted by an online site I found for around 25 euros to submit per property not person, . Couple of days later I received the forms in the post to submit the calculations were identical to mine from previous year. That confirmed to me my method of calculating the tax and that solicitor was going to charge me 290 euros to pay a 60 euro bill. There after until moving full time I always submitted my own non residents tax. Our house is a small village property with a low valor catastoral hence not a lot to pay tax .

thankyou for the reply - Sorry Lynn, do you mean that the ibi on the property is different if you are a resident or not?

so we are paying 1.1% of 19% of the catastral value of our property?