For all taxpayers who do not reside in Spain, having a non-resident tax representative is almost, almost an obligation. An obligation and a liberation, given that it is a legal insurance against the fiscal and tax requirements that we all have to comply with.
In the Spanish tax sphere, it is the figure who will ensure that all the obligations of taxpayers who are not resident in Spain are complied with without fail.
JDV Asesores for Expatx and Self-Employed reviews in detail the functions and responsibilities of a tax representative for non-residents and, of course, the regulations in force.
Non-resident fiscal representative: Relevance
Coming to another country brings with it a host of challenges and concerns that go hand in hand with the relevant fiscal and tax obligations. Whether or not you are resident in Spain or have economic activities in the country and reside in another state, few things are more necessary than having the help of a tax representative.
A tax representative acts on behalf of a non-resident taxpayer before the tax authorities in Spain. In other words, it is a figure that will facilitate the management of tax responsibilities, which will ultimately ensure that we as taxpayers comply with our obligations without the need to be present in the country.
Their roles and responsibilities
Our non-resident tax representative, beyond acting as an intermediary, has to advise us and act on our behalf for:
- Prepare and submit tax returns in accordance with the established deadlines.
- Manage the corresponding payments, ensuring that they are made correctly.
- Receive notifications from the tax administration on behalf of the taxpayer.
- Act appropriately in response to such notifications.
Of course, our non-resident tax representative will also offer advice on tax matters, although it is true that this is not his main duty.
Non-resident tax obligations
Non-residents in Spain have various tax obligations that they must comply with to ensure that they are properly taxed. These obligations are regulated by current legislation and mainly involve the payment of taxes on income obtained in the country.
Non-resident income tax (IRNR)
Non-resident income tax is levied on income generated by individuals or entities that are not resident in Spain. Our non-resident tax representative will take care of the procedure for the annual declaration of this tax according to Spanish tax law.
There are a number of circumstances that give rise to an obligation to pay tax in Spain. Some common situations include:
- Obtaining income through a permanent establishment.
- Carrying out economic activities in Spanish territory.
- Acquisition of property or rental income.
Types of income obtained in Spain
Non-residents can generate different types of income, each with its own tax characteristics and levels of taxation. These include:
Employment income
Remuneration received for work carried out in Spain is subject to IRNR. Generally, this income is taxed according to the relevant regulations and tax laws of the country.
Income from capital
Income generated by investments or savings, such as interest and dividends, is also considered income and must be declared in accordance with current Spanish legislation.
Capital gains
Gains derived from the sale of assets, such as property or shares, are also subject to IRNR taxation. The calculation of these gains must be carried out in accordance with the principles set out in the tax law.
Current non-resident legislation
The regulations in force in Spain on non-residents are constantly evolving, always with the aim of ensuring the correct taxation of those who generate income in the country without residing there.
We have the Non-Resident Income Tax Law (IRNR) which is the main regulatory framework governing the tax obligations of non-resident citizens in Spain who generate income in Spanish territory.
The most relevant aspects of the IRNR Law include the following:
- Definition of the income subject to taxation.
- Establishment of the applicable tax rates.
- Rules on the declaration of income and allowable deductions.
Recent modifications
Our non-resident tax representative should inform us that, in recent years, there have been modifications to be taken into account in this law. The aim has always been to improve the clarity of the regulations and to optimise the reaction to complex tax situations.
These have been changes related to how income is taxed and the reporting procedures.
Applicable regulations
There are several regulations that complement the IRNR Law and provide operational details on its application. These regulations set out specific procedures that non-residents must follow in order to comply with their tax obligations.
European Economic Area implications
Citizens of European Economic Area (EEA) countries enjoy certain tax benefits in relation to IRNR. This includes, for example, anti-fraud regulations designed to facilitate the exchange of tax information between member countries.
Non-cooperative jurisdictions
Non-residents from jurisdictions classified as non-cooperative face stricter conditions regarding their taxation in Spain. The aim is to prevent tax evasion and ensure greater transparency in international tax relations.
Non-resident tax representative appointment process
Please note the requirements for the appointment of a non-resident tax representative:
- Identification of the non-resident, such as a passport or identity card.
- Details of the tax representative, which may be a natural or legal person.
- Documentation accrediting the relationship between the non-resident and the tax representative.
The appointment must then be communicated to the tax authorities. In this way, we ensure that the agency is aware of the representative appointed to act on behalf of the non-resident. To do so, the procedures established by the regulations must be followed.
Deadlines and procedures
Deadlines must be met to avoid penalties or legal problems. Procedures may vary depending on the form of appointment chosen, and this is one of the most key factors in tax management.
Notarial deed
The appointment of the non-resident tax representative can be formalised by means of a notarial deed. This option provides a solid legal backing and formalises the relationship between the non-resident and the representative.
Digital procedure
Technological advances have made it possible to carry out the procedure digitally, facilitating compliance with regulations. Through online platforms, it is possible to manage the designation and notify the Tax Administration without having to go to the physical offices.
Benefits of having a fiscal representative
In particular, when it comes to facilitating the tax compliance required of non-residents in Spain. Thanks to an expert tax representative, clients who do not live in Spain are assured that all operations related to their tax obligations are carried out correctly and within the established deadlines.
If necessary, they will act as interlocutors with the administration, preventing the foreign taxpayer himself from having to make any contact with the tax administration.
Logically, having a specialised tax representative ensures that there is always a correct interpretation of the regulations in force, minimising errors and mistakes that could lead to non-compliance, i.e. financial penalties.
Finally, by having the management of tax obligations under the control of a non-resident tax representative, foreign taxpayers take a great deal of stress off their shoulders. In this way, they can focus solely and exclusively on the development of their business and private life.
Conclusions
At JDV Asesores for Expats and Self-Employed we have the best team of tax representatives for non-residents in Barcelona. We are social collaborators of the Tax Agency, and the satisfaction of dozens of clients guarantees our knowledge, commitment and good work.
You can contact the office at any time and arrange an appointment with a non-resident tax representative. We will provide you with a non-binding quotation.
