Hi
Most of you are probably aware of this tax, also known as a wealth and income tax. This is a property tax, paid by all non-residents and is paid one year in arrears.
Everyone who owns property in Spain (residents and nonresidents alike) has to pay an annual wealth tax based on the net value of their assets in Spain after permitted deductions, such as mortgages. This tax is collected by regional governments.
The tax is based on the net value of you property (less mortgage, if any) or another value deemed appropriate by the tax authorities. The tax rate works on a sliding scale with marginal rates starting at 0.2% and rising to 2.5% for assets worth over 10.7 million Euros.
Our scenario
We completed December 2006 and moved here permantely November 2007. We received our padron December 2007 and finally the residencia in June(Ricky) and July(myself).
This means that we have to pay for the Wealth & Income tax for the year 2007. This is payable this year as it is paid one year in arrears.
As of January 2008 Wealth Tax has been abolished for residents and non residents. As we have residencia this year, next year our solicitor will invite us to complete a tax return.
Residents pay this tax on their worldwide assets, less various exemptions. Non-residents pay the tax only on assets held in Spain, but there are no exemptions.
You may have already paid this tax this year as it is usually payable April/May. If you don't live here and don't have a fiscal rep, then arrange to get this sorted. Otherwise, you will be facing penalties and maybe an embargo on your property. Like the IBI, you could get bills backdated. We all have an NIE, once the tax man realises that you haven't paid anything, then you are likely to pay lump sums.
Apart from the IBI and the Wealth & Income tax, you will only have the fiscal fees to pay for. Although, I have read on the internet/forums, that there is also a tax for non-residents who rent out there property and for non-residents who don't rent out their property (IRNR). I haven't done much research on this, as it doesn't affect me, however, I thought it would be good to mention it anyway.
There is more info. on http://www.spanishpropertyinsight.com/tax-and-pensions/non-residents.htm
I hope my findings have been useful to most of you, I am not an expert on the taxes, but if you need to know anything, I am happy to help!