7 Common Tax Mistakes Non-Residents Make in Torrevieja

1. Thinking IBI (Council Tax) is the only tax:

Many believe paying the annual SUMA bill is enough.

The reality: You must also file the Non-Resident Income Tax (Form 210) for “imputed income” on your property, even if it is not rented out.

2. Not declaring holiday rentals quarterly:

If you rent out your property via Airbnb or Booking, you cannot wait until the end of the year.

The reality: Tax returns for rentals must be filed quarterly.

3. Forgetting that the Tax Office “watches” your electricity meter:

The AEAT now cross-references data with utility companies.

The reality: Low or high electricity consumption without a tax return can trigger an automatic audit.

4. Failure to apply Double Taxation Treaties: 

Many pay twice for the same income.

The reality: Without a Tax Residency Certificate and expert advice, you are losing money.

5. Neglecting Wealth Tax (Impuesto sobre el Patrimonio):

In the Valencian Community, there are high exemptions, but for high-value properties, it is mandatory to file.

6. Rlying on “unqualified helpers”:

Torrevieja is full of “consultants” who are not qualified tax advisors.

The reality: Only 25 years of experience can protect you from real inspections.

7. Poor planning for future sales (3% Withholding):

When a non-resident sells, the buyer must withhold 3% by law.

The reality: If the client’s taxes from previous years are not up to date, Hacienda will keep that 3% and demand full payment of all outstanding debts before even considering any tax refund.

Need help with your taxes in Spain? Don’t put your property at risk. Get a professional consultation from experts with 25 years of experience. We will review your situation and help you avoid penalties.

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