The Spanish Tax Agency is sending letters to residents and non-resident companies alike, which it believes may hold Spanish residential property.
The letters are ostensibly about the property ownership and structure, including asking for several details in relation with the aim to identify the identity of the occupiers of such properties. Their main intention is to claim all taxes which should have been paid in the previous 4 years for the mere fact of enjoying the properties. These taxes will depend on who´s the occupier (a company director, a shareholder, a third party…).
Ignoring the letters may lead to further questions or a formal tax inspection. We recommend that recipients of such letters seek professional advice in how to respond.
We also recommend that owners of such companies who have not taken Spanish tax advice on them in the past years consider doing so now, even if they have not received one of these letters. Tax relating to Spanish property has been changing rapidly, on an annual basis, in recent years.
Without advice, the owners of such properties, or companies holding them, risk incurring Spanish tax liabilities of which they were not aware.