Left hand does not communicate with right hand” Spanish Government speaking, and everyone applying for Spanish Residence through the Spanish inmigration department should ALWAYS be aware of this rule #1.
Applying for Residencia should always be considered a dual process to be done both at the Inmigration desk, and at the IRS desk (AEAT).
TAX FORM 130 / 131 (INCOME TAX)
It is quite simple and easy to get business registered in Spain, but it also means quite a lot of tax, and employment liabilities with the Spanish authorities. Consequently, it is highly important to understand them all, and assume that you will have payment obligations, as well as formal obligations to comply.
Spanish Notary Public is a Public Lawyer and a professional who guarantees that every time that a document is to sign in his/her presence, document itself becomes a public document which becomes accessible to be registered in any relevant public registry house (Company House, Civil Court House in the event of marriage or separation, Land Registry House, ..).
The tax on the increase in the value of urban land (IIVTNU), known as the municipal capital gains tax, is a direct tax managed by City Councils. It is payable when a taxpayer sells, donates, or inherits a home or urban land. This tax applies to the revaluation of urban land from its acquisition to its transfer, whether through sale, inheritance, or donation. It is a local tax enforced across Spain, due when a property or land is sold at a positive capital gain. The tax is based on the increase in land value, which reflects improvements in public services and infrastructure. The longer the ownership period (up to a maximum of 20 years), the higher the tax. However, if there is no gain from the sale, no tax is owed, as established by rulings from the Spanish Supreme Court and Constitutional Court.
Depending your tax residence consideration in Spain, you will be liable to submit your tax declarations in different times in the year; both resident tax payers, and non-resident tax payers are liable to submit their tax declarations one year in arrears.
Non-resident individuals will have property tax declarations to submit during the following year (Jan to Dec) to the year being declared (2025 is declared and paid in 2026), and income tax resident payers will have to do the same, but only within the time April to the end of June of the following year depending their personal and employment, and income circumstances (Mod. 100).
Most Spanish international double taxation agreements with most of Western countries set that property taxes must always be paid in the country where properties are located, and separately from the owners being or not being tax resident in such country. Always remember that you will yearly liable to submit, and pay a holiday-residence property tax to Spanish IRS (Inland Revenue Service) if property is not rented out, and a rental income tax every year if it is; depending your country of permanent residence living, most cases you will be allowed to offset housing costs during the time the property was rented.