Do you know who must file Form 210 in Spain? Form 210 is the tax return that all individuals or entities who are not tax-resident in Spain must file when they receive income in Spain. It is a key requirement for complying with Non-Resident Income Tax (IRNR) and avoiding penalties from the Spanish tax authorities.
What does it mean to be a tax resident or non-resident?
Key differences between residents and non-residents
- Tax resident: lives in Spain for more than 183 days a year, has the centre of their economic activities here or has their immediate family here.
- Non-resident for tax purposes: lives outside Spain and does not meet the above conditions, but receives Spanish-source income.
If you are a non-resident and receive income in Spain, you must file Form 210.
Who must file Form 210 in Spain?
Foreign individuals
Any foreign individual who is not tax-resident in Spain and receives income in the country.
Example: a German citizen who lets a flat in Barcelona.
Spanish nationals living abroad
Spanish nationals who have moved their tax residence outside Spain must also file it if they retain property or investments in the country.
Example: a Spanish national living in the United Kingdom who owns a flat in Valencia.
Non-resident companies
Companies whose tax residence is outside Spain and which receive income here.
Example: a French company that lets commercial premises in Madrid.
Income that requires you to file Form 210
Income from letting property
- Residential properties.
- Holiday lets.
- Commercial premises.
Empty properties: imputed income
Even if the property is not let, the Spanish tax authorities assess imputed income, which requires Form 210 to be filed.
Capital gains on the sale of property
When a non-resident sells a property in Spain, they must declare the capital gain. In addition, the buyer withholds 3% of the sale price.
Investment income
- Dividends from Spanish companies.
- Interest on bank deposits.
- Royalties paid from Spain.
Common practical examples
- Let flat: a British person who lets their home in Alicante → They must file Form 210.
- Empty property: an Argentine national with an unlet flat in Seville → They must also declare it as imputed income.
- Spanish shares: a resident of Portugal who receives dividends from a Spanish company → They must file the form.
- Spanish national abroad with an inherited property: a Spanish national in Switzerland who owns a house in Madrid → They are required to file it.
Exceptions and double taxation treaties
In some cases, treaties signed between Spain and other countries make it possible to:
- Avoid double taxation.
- Apply reduced tax rates.
- Apply specific exemptions to certain types of income.
It is important to check the treaty applicable to each country.
Common mistakes when Form 210 is not filed
- Assuming that living outside Spain means there is no obligation to pay tax.
- Failing to declare empty properties.
- Forgetting dividends or interest from Spanish banks.
- Being unaware of international tax treaties.
Conclusion: who must file Form 210?
In summary:
- Foreign individuals with income in Spain.
- Spanish nationals living abroad with property or investments.
- Non-resident companies with income in Spain.
The most common cases involve rental income, empty properties, property sales and investment income.
Final thoughts
Form 210 is a filing requirement that many people are unaware of, but filing it is essential to avoid penalties. If you live outside Spain and receive income in the country, you will most likely need to file it.