How do I declare my Spanish income in Belgium?

Newsletter May 2020|Since this week, tax-on-web is back online. This means that we can complete our tax return for income year 2019. However, you have property in Spain. So how do you fill in the tax return correctly?

Belgium does not tax Spanish income acquired from real estate in principle. But there is a declaration requirement. After all, this Spanish income counts towards the calculation of the progressive personal income tax rate. 

If you do not rent out, you will be taxed based on Spanish 'cadastral income'. If your do rent out, the calculation will be based on the actual rental income.

Note: forget your Spanish bank account not to indicate either!

Here you will find detailed explanations on calculation of Belgian taxes.

What about Spanish taxes?

You live in Belgium and you do not rent out your residence in Spain? You have time for the declaration of income year 2019 until 31 December 2020. If you bought this year, the next declaration requirement is not until 31 December 2021.

The tax on unlet property is calculated based on the 'cadastral income'. To calculate this, take 1.10% or 2.00% of the valor catastral. You will find this amount on the sheet of the IBI or, for Alicante, the SUMA. To the cadastral income, apply the rate of 19% to calculate the final tax.

If you rent out property, there is a quarterly tax return. The tax is then calculated based on the actual rental income. The rate is also 19%.

Read more about non-resident tax in Spain.

Corona: Do you need to sign a deed in Spain soon?

It looks like we will at the earliest be allowed to travel back by the end of June. After all, the opening of the borders is not yet clear. But what if you need to sign a deed in Spain in early June, for example? 

Two possibilities. Either you work with a notarised power of attorney with a Belgian notary. Either you work with a mandato verbal. This allows your counsel to represent you based on a presumption of power of attorney. Afterwards, you will then have to ratify the deed in person or by notarised power of attorney. 

Find out more about these two options.

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