Non-resident owners of real estate assets in Spain have the obligation of paying taxes to the Spanish Tax Office (Agencia Tributaria). Provided that foreigners (non-residents) do not have fiscal representation in Spain, they need to appoint a Spanish fiscal representative.
Fiscal representation of a foreigner in Spain is also mandatory for foreigners who represent legal entities that are not tax residents of this country. The fiscal representative will handle tax registration formalities, customs duty obligations arising from the import of goods, maintain the connection with the tax authorities, etc.
The service of fiscal representation of a foreigner in Spain can be offered by our team of Spanish lawyers, who are specialized in tax law and procedures, therefore we invite to address our lawyers for advice.
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Fiscal representation services in Spain
Services for non-residents regarding fiscal representation usually cover counselling, advice and active engagement on the following:
- tax and cost planning for property operations (our real estate lawyers in Spain can also provide their professional advice);
- Spanish taxes for individuals and legal entities that own property in Spain;
- registering for and paying VAT;
- receiving notifications from the tax authorities on behalf of the client’s tax obligations (properties, VAT-taxable activities, etc.) and submitting the client’s tax-related documents.
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 a property is owned by several persons, each of them is viewed as an independent taxpayer and thus must file a separate tax declaration.
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, one which is not established on Spanish territory, must 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.
Legislation concerning fiscal representation for legal entities
Foreign legal entities that are registered outside the EU and which are liable for the payment of the value added tax (VAT) must abide by the Spanish legislation concerning fiscal representation of a foreigner in Spain. Some of the laws and regulations are mentioned below:
- the obligation to appoint a fiscal representative appears as per the rules of the Ley 37/1992 (VAT Law), Article 164.1.b, which states that a resident representative must conduct all tax-related obligations;
- the Royal Decree 1619/2012 stipulates that the fiscal representative is the entity that must maintain the compliance with the electronic invoicing of the foreign company;
- the obligation to register appears for legal entities that can claim VAT refunds in Spain (they must submit, through their fiscal representative, the Form 369 under the 13th Directive);
- all circumstances that regulates when fiscal representation of a foreigner in Spain is mandatory are stipulates under Law Income Tax for Non-Residents, Article 10, and Law 11/2021, Article 2, according to the Spanish Tax Agency.
Applying for Spanish fiscal representation
Non-EU based companies applying for fiscal representation in Spain need to prepare a set of documents in order to grant the right of being represented by a local entity. Some of these documents are:
- a signed power of attorney;
- an agreement of fiscal representation;
- other legal papers.
Please know that fiscal representation of a foreigner in Spain can be made by our team of Spanish lawyers only after signing a written agreement. It is also important to know that the fiscal representative must be appointed prior to engaging in any taxable operations in Spain.
The document must contain the corporate/personal details of the 2 parties involved (individuals can also be fiscal representatives, as per the rules of Act37/1992). The registration procedure is normally completed in a couple of weeks. Our attorneys in Spain can make sure that you are fiscally represented as soon as possible.
Our law firm in Spain can take care of all matters concerning taxes that you are liable to and also of other legal issues that you may encounter, so feel free to contact us. If you need legal/fiscal representation in the cities of Madrid or Barcelona, we can put you in contact with our local team of lawyers in Madrid and lawyers in Barcelona.