Telefonica Sim - i phone

Hi All
           If anyone is unaware taxes are now due, both municipal and wealth (wealth only if you are a none resident) i only found out when i found a letter in my mailbox just before we left to come back to England that we have to pay this tax before October 30th.

                                                           Col / Bev 

Hi

thanks for the info. How much is it ....will we need a 2nd mortgage? Any idea how we can pay or who we can contact if we are in UK and not going to Spain prior to the deadline ?

I understand that there is a reciprocal taxation agreement between the UK and Spain such that property owners who live in England and who do not rent out their property in Spain should not have to pay any wealth tax. This would be more apparent, one would hope, if the Spanish property was mortgaged and any incomings were outweighed by the outgoings, i.e. zero or negative profit.

Can someone explain if it is an easy process to convince Spanish Authorities of such a situation & thereby waive the wealth tax accordingly?

I assume that appointing a Spanish solicitor to fight the case may be the only option but is it possible to visit the town hall and voice your case individually, or would this be inconceivable in Spain?  I can understand how difficult it could be to discuss with Spanish officialdom .... am I being over optimistic here (please don't hurt yourself when you fall over laughing).

Do we get any time to renegotiate (i.e. counter) a wealth tax claim or would we be fined for late payment, assuming that it takes ages to re-evaluate the tax claim?

Regards Steve

Hi Steve, I have an apartment opposite and since 2003 I have always had to pay wealth tax each year, I do not rent my apartment, but my solicitors in spain informed me that I would still need to pay a tax, the tax is calculated by the value increase of your property each year (I believe for non residence) its not very much each year, if you take a look on this web site, you can purchase, for a small fee (which goes to charity), the tax guide, it is available from FibbyUK (User name).  
However, would be interested to see something in black and white re the agreement between the UK and Spain, would then save a few more euros each year.
Thanks

Lesley

  Hi All
 Apparently you give your municipal tax bill (suma) to your solicitor they then use this to calculate your wealth tax and you have to fork out the cash for them both. But wealth tax is supposed to be 0.2% the value of your property mine is way over that so questions have been asked.
          
                                                         Col

Hi, yes my solicitor pays my suma each year, plus wealth tax both taken by DD, I then pay him a yearly fee for completing both also by DD.

Lesley

  Yes but at least you are in sunny Spain Lesley and not stuck in this ever declining country called Great Britain, can’t understand what is great about it.

I wish!  I'm here in the UK working, not in Spain until the 27th for 10 days - gave our monthly Spainish fix a miss in August due to work load, roll on 27th.

Lesley

Hi everyone

I have recently read an article by BlevinFranks (a company which try and provide financial advice to people in Spain) stating that from 2008 there should be no wealth tax to pay due to a recent change in the law, this may be what Steve (Banjo) is referring to. It stated that tax would be due on properties owned up to Dec 2007 but not beyond that, maybe someone else may have info on this, I will look into this further and post my findings as soon as possible.

Muy interesante Scrufty, keep us posted on any findings i will have a dig myselfe to see what comes up.

                                             col 

Hi All,
    just got back from sunny Spain this week.

I found out that you do not receive a tax bill through the post and that all taxes are managed by your solicitor (in Spain). We paid our solicitor 145 € admin costs and then taxes on top. The wealth tax was 0.2% of the capital paid off your property, then there was an income tax (based on your property rateable value) and a Suma tax (to be paid by our solicitor when the builder gets round to declaring my wife & I as owners of the property for tax payment purposes.... it should be completed with a block sign off of multiple owners). We are identified as the property owner in the title deeds ... no worries there (hopefully).

Oh ... and yes, I can confirm that there are plans to eliminate the wealth tax for next year (2008) but the Spanish will probably find something else to tax us on .... so let's not get too excited.

All the best, Steve