Fiscal Representation of a Foreigner in Spain

Updated on Monday 18th April 2016

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Non-resident owners of real estate assets in Spain have the obligation of paying taxes to the Spanish tax office ("agencia tributaria"). This particular fiscal duty is not the same as the IBI ("impuesto sobre bienes inmuebles"). Therefore, non-residents have to appoint a Spanish fiscal representative.

What does Spanish fiscal representation imply?

Those who are not Spanish residents, but own property in Spain, are liable for taxes every year. Fiscal representation is the process through which a company, for example one which is not established on Spanish territory, can be registered for VAT purposes in the country. The company, however, is subject to corporate tax only in its country of origin.

If the legal structure is fiscally-represented in Spain, then it can do the following:

- import goods;
- sell goods;
- file VAT forms (for compensating or recovering VAT).

Our lawyers in Spain can provide you with further information about fiscal representation in Spain and about the procedures involved in it.

Applying for Spanish fiscal representation

Companies that are registered in any European Union member state, as well as in other certain countries, can benefit from fiscal representation. The documents needed to apply for it include:

• a signed power of attorney;
• an agreement of fiscal representation;
• other legal papers.

This is normally completed in a couple of weeks. Our attorneys in Spain can make sure that you are fiscally-represented as soon as possible.

Services of fiscal representation in Spain

Services for non-residents in fiscal representation usually cover counselling and advice on the following:

- tax and cost planning for property operations;
- Spanish taxes for those who own property in Spain;
- taxes for foreign legal structures that own property in Spain;
- capital gains tax and VAT;
- receiving notifications from the tax authorities on behalf of the client's properties.

Furthermore, the fiscal representative in Spain can provide assistance on the identification number (NIE) which is mandatory in Spain in order to pay taxes. In case the property is owned by several persons, each of them is viewed as an independent taxpayer and thus must file a separate tax declaration.

Our Spanish law firm in Spain can take care of all matters concerning taxes that you are liable for in Spain and also of other legal issues that you may encounter, so feel free to contact us.