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FREQUENTLY ASKED QUESTIONS

We have gathered  information regarding the areas that often raise questions among our customers. Please take a moment to review the corresponding section below to find the answers you seek. If you find that the provided information does not fully address your query, please don't hesitate to reach out to us anytime for additional clarification. We are here to help.

Cadastral Reference

In Spain, cadastral reference refers to a unique identification number assigned to each property or land parcel in the national land registry known as the "Catastro." The Catastro is a comprehensive database maintained by the Spanish government, which contains detailed information about properties, their boundaries, and characteristics.

The cadastral reference is a crucial identifier used for administrative and legal purposes, and it provides essential information for property taxation, land management, urban planning, and other related activities. It typically consists of a combination of alphanumeric characters that uniquely identify a specific property within the Catastro database. You can visit the Catastro´s website at https://www.catastro.meh.es

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Cadastral Value and Construction Cadastral Value

The cadastral value, and in particular, the cadastral value of construction, are essential concepts in taxation because they are part of, among other things, the calculation of property depreciation (which counts as a deductible expense in the case of leased properties and also affects the final capital gain in the event of property sale), as well as the calculation of the tax on imputed rents in very specific cases where the cadastral value of the property is unknown.
The cadastral value, sometimes referred to as the total cadastral value, is essentially the sum of the cadastral value of the land and the cadastral value of the construction.
By way of example, for the calculation of depreciation of a property, current law generally provides that the depreciation is based on 3% of the higher value between the cadastral value of construction (excluding the land value) and the acquisition value (excluding the land value)."

Deadline to file your taxes  

Non-Resident tax (IRNR)  is declared by filing the 210 Tax Form. The deadline for submitting the 210 form depends on the kind of income:


Rental Income: for self assessment of positive results (amount to be paid by the taxpayer), the period for filing and making the relevant payments takes places quarterly, being the first twenty calendar days of April, July, October and January, the latter in relation to the last quarter of the previous year. In the event of online filing, the payment of the tax debt can be direct-debited from 1 to 15 April, July, October and January, respectively. In the case of self-assessments with a zero result, the filing period will be from 1 to 20 January of the year following the accrual of the declared incomes. In the case of self-assessments with a negative result( amount to be returned to the taxpayer by the tax office): They may be filed from 1 February of the year following the accrual of the declared incomes and within the term of four years from the end of the filing and withholding income period.


Imputed Rents Income: The deadline is the end of the calendar year following the accrual date (31 December of each year). In the event of online filing, the payment of the tax debt can be direct-debited from 1 January to 23 December.

Capital Gains: Form 210 is to be filed within 3 months, starting to count from one month after the property transfer has been completed.

Fiscal Residency 

An individual is understood to have his/her habitual residence in Spain when any of the following circumstances occur:
-Stay in Spain for more than 183 days during the calendar year. To determine this period of permanence, your sporadic absences are counted, unless you prove your tax residence in another country. In the case of countries or territories classified as tax havens(1), The Tax Administration may require you to prove your permanence in this tax haven for 183 days in the calendar year.
To determine the period of permanence, temporary stays in Spain will not be counted as a result of the obligations undertaken in cultural or humanitarian collaboration agreements, free of charge, with Spanish Public Administrations.
-That it shows the main core or the basis of its economic activities or interests in Spain, directly or indirectly.
Similarly, unless proven otherwise, a taxpayer has their habitual residence in Spain when, according to the above criteria, the spouse who is not legally separated and the dependent minor children live in Spain.


In addition, Spanish nationals who can prove their new residence in a tax haven, will continue to be considered as taxpayers for Personal Income Tax, both in the tax period in which they make the change of residence and in the following four tax periods.
An individual will be a resident or non-resident for the whole calendar year, since the change of residence does not mean the interruption of the tax period.
Regulations: Article 6 IRNR Act

Source https://sede.agenciatributaria.gob.es

Individual vs. Joint declarations

Under Spanish law, the filing of the 210 form is predominantly an individual process, where a tax declaration is submitted for each tax payer individually. However, there is an exception for capital gains declarations. In cases where both spouses are non-fiscal residents and jointly own the property, they have the option to make a joint declaration for this specific type of tax liability. This provision recognizes the unique circumstances of married couples who are both non-residents and co-own a property, allowing them to collectively report and settle their tax obligations related to capital gains, simplifying the process while complying with Spanish tax regulations.

Repair and Maintenance Costs vs. Improvements Costs

It is very important to establish the difference between what constitutes repair or conservation costs and what are expansion or improvement costs. This distinction is significant because, from a tax perspective, repair or conservation costs are considered deductible expenses in the rental income declaration, for those declarations that allow for the deduction of expenses.

On the other hand, expansion and improvement costs are taken into account at the time of sale, that is, in income declarations for property transfers. Expansion or improvement costs, properly documented, are added to the acquisition costs, thus reducing the final capital gain and, therefore, the tax liability itself.

But, how can we distinguish between repair costs and improvement costs? Repairs and maintenance are focused on preserving the useful life and productive or functional capacity of the property, while expansions or improvements are considered when they result in an increase in the property's capacity or habitability or an extension of its useful life. In this regard, plumbing, electrical work, or painting repairs would be considered repair or conservation costs, whereas, for example, tearing down a wall to merge two rooms would be considered an improvement cost. If you have any doubt about a specific cost, please feel free to consult with us.

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