SPECIAL TAX ON PROPERTIES OWNED BY NON-RESIDENT COMPANIES IN TAX HEAVENS COUNTRIES

• What are the basic characteristics of the special tax on real estate owned by non-resident entities?

Entities residing in a country or territory considered a tax haven that own or possess real estate in Spain are subject to Non-Resident Income Tax through a special tax that is due on December 31 of each year and must be paid in the following January. It is declared through the form 213.

The tax base is made up of the cadastral value of the real estate and a 3% tax rate.

• Is there any exemption?

The following entities are not liable to pay this special tax:

• States, foreign public institutions and international organisations
• Entities that carry out economic exploitations different from the simple possession or lease of real estate
• Companies listed on officially recognized secondary stock markets

• Why should I pay this special tax?

The Spanish Tax office (AEAT) is sending notifications to all those entities that own real estate in Spain that have not submitted this tax.

The payment and submission of the last 4 years which has not prescribed is being claimed along with penalties and interests.

• How can I pay this tax? Can the entity tax situation be changed?

In Andalucia Lawyer we can assess the pros and cons of continuing with an opaque structure that perhaps made sense years ago, but that can be questioned today. Get in touch!