In the complex world of Spanish taxation, model 210 is a crucial document for those individuals and entities that, being non-resident taxpayers in the country, obtain income subject to taxation in Spain.
What is Model 210?
Model 210 is a tax document used in Spain for the quarterly declaration and payment of IRNR. This tax applies to income obtained in Spanish territory by individuals or legal entities that are not considered tax residents in the country. Its scope covers a wide range of income sources, including property rentals, dividends, interest, capital gains, among others.
The tax return is a crucial process in any tax system, and in the case of Spain, model 210 is an essential tool for non-resident taxpayers who earn income in the country. Recently, changes have been made to the filing deadlines for Form 210, which are important to know and understand in order to properly comply with tax obligations. Below, we detail the new filing deadlines according to the type of income taxed
Deadlines for submission
Imputed income from urban property:
Imputed income from urban property must be declared during the calendar year following the date of accrual. This means that the deadline for filing model 210 in 2024 will run from 1 January to 31 December of the year following the year in which the property has been enjoyed. It is important to note that this deadline applies regardless of whether or not the property has been used by the owner. For example, non-residents who have not been able to move to enjoy their second home due to the pandemic must still file the corresponding tax return.
Income derived from the sale of real estate:
The deadline for declaring income derived from the sale of real estate is 3 months from the first month after the sale of the property. In this case, a Form 210 must be filed for each property sold. However, in exceptional situations, such as when the property is owned by a non-resident married couple, a single declaration is allowed.
Income derived from the rental of real estate not subject to withholding tax:
From 1 January 2024, the annual grouping of this income is allowed. Therefore, income earned in the year 2024 can be submitted in the period from 1 January to 20 January 2025.
Other income:
For the rest of the income, the filing period is quarterly, during the first 20 calendar days of the months of January, April, July and October. Each quarter includes the income accrued in the previous quarter, similar to the VAT return system. If the tax liability is zero, Form 210 must be filed from 1 to 20 January of the following year.
Return deadlines
In cases where there is a right to a refund, the deadlines for submission are as follows:
Income deriving from the transfer of real estate:
4 months from the month elapsing from the date of the transfer of the property. This situation can occur when there is no capital gain on the transfer, such as in the case of a sale for a price lower than the original cost.
Other income:
From 1 February of the year following the year in which the income declared was accrued and within the period of 4 years from the end of the period of the declaration and payment of the withholding tax. For practical purposes, the Tax Agency is always considering 1 February, even if the regulations establish another criterion. It is important to take these deadlines into account in order to avoid penalties and to comply properly with tax obligations.
Consequences of not complying with Form 210
Failure to file and pay Form 210 can have a number of consequences for non-resident taxpayers, including financial penalties, late payment surcharges and the application of late payment interest. In addition, non-compliance can lead to inspection procedures by the Tax Agency, which can result in costly legal proceedings and additional fines.
Conclusions
In summary, Form 210 is a fundamental part of the Spanish tax system, especially for non-resident taxpayers who obtain income in the country. Its correct filing and payment ensure compliance with tax obligations and contribute to the proper functioning of the tax system. It is therefore crucial that non-resident taxpayers are familiar with this form and comply with the established deadlines to avoid possible complications with the Tax Agency.
