Tax representative for non-resident owners in Spain

What the law says

Article 10.1, in the version in force since 11 July 2021 (Ley 11/2021), provides that taxpayers “que no sean residentes en otro Estado miembro de la Unión Europea” must appoint, before the end of the period for declaring the income obtained in Spain, a person or company resident in Spain to represent them before the tax administration. It applies:

1. when they operate through a permanent establishment;
2. in the cases of articles 24.2 and 38 of the law (services and similar activity carried out in Spain without a permanent establishment, and foreign entities with a presence in Spain);
3. “o cuando, debido a la cuantía y características de la renta obtenida o a la posesión de un bien inmueble en territorio español, así lo requiera la Administración Tributaria” (when the tax administration requires it, because of the amount and nature of the income or the ownership of a Spanish property).

Two further rules matter:

• For states of the European Economic Area that are not EU members, the duty does not apply where there is mutual assistance on tax information and collection.
• The obligation is also demanded of persons or entities resident in countries or territories with which there is no effective exchange of tax information, “que sean titulares de bienes situados o de derechos que se cumplan o ejerciten en territorio español”, leaving aside securities traded on official secondary markets.

What this means for a Canadian, American or British owner

Reading the rule literally, a non-EU individual who owns a home is not obliged to appoint a representative automatically: the third case needs a request from the administration. The first two cases (permanent establishment, activities abroad of the type in articles 24.2 and 38) are not those of someone who simply holds a home and perhaps lets it. A resident of Canada, the United States or the United Kingdom is not described in the text read as a resident of a country without exchange of information. The list of those countries sits in another law (Ley 36/2006, additional provision 1), which was not read for this guide. Check with the AEAT or an adviser whether your country is on it before relying on this paragraph.

Some conclusions follow:

• Owning a flat or villa does not by itself trigger the duty; a request by the AEAT does.
• If the AEAT writes to you asking for a representative, the duty is live and the deadline of the law applies.
• Unless you have received a request, there is no automatic duty in the cases covered here.

The same issue in another tax: the temporary solidarity tax

The temporary tax on large fortunes (Impuesto Temporal de Solidaridad de las Grandes Fortunas), which charges net wealth above €3,000,000, has its own rule. Article 3.Seis of Ley 38/2022 says that taxpayers “que no sean residentes en otro Estado miembro de la Unión Europea estarán obligados a nombrar, antes del fin del plazo de declaración del impuesto” a representative resident in Spain, without any condition of a request. The EEA exception for states with mutual assistance is the same. This is relevant only to people whose net wealth passes the threshold. Wealth-tax questions are outside this guide.

How and when to appoint

Under article 10.1:

• the appointment must be made before the end of the period for filing the return for the income obtained in Spain;
• the taxpayer or representative must tell the administration of the appointment, duly accredited, within two months of its date;
• the designation is communicated to the AEAT delegation where the return is filed, with the representative’s express acceptance.

The text does not set a form. Ask the AEAT or your representative for the document they use.

What happens if you do not

Article 10.3 lets the administration treat as representative a person who appears as such in the Commercial Register, or the one authorised to contract for the taxpayer. For residents of countries without information exchange who own Spanish property, the administration can treat the depositary or manager of the property as the representative.

Article 10.4: failure to meet the duty “se considerará infracción tributaria grave, y la sanción consistirá en multa pecuniaria fija de 2.000 euros”. For residents of countries without effective exchange of tax information the fine rises to €6,000. The fine is reduced under article 188.3 of the General Tax Law (Ley General Tributaria) in the cases that article provides; the rate of reduction was not read.

What a representative is for

A representative acts before the tax authority for the obligations of the non-resident income tax: receiving notifications, filing the modelo 210 and answering requests. See the modelo 210 guide for the return itself. The law does not restrict the choice to a professional adviser: the text says a natural or legal person resident in Spain.

Which professional to consult

A tax adviser, or a lawyer registered with a Spanish bar association (colegio de abogados), often takes this role. A letter from the AEAT asking you to appoint one should be handed to the adviser at once, because the deadline runs from the return period. For how the annual taxes work, see non-resident property tax and renting out as a non-resident.