Wealth Tax

Hi all,does anybody know any information regarding wealth tax.Read something about it the other day and it said that it must be paid by the end of September or else the spanish authorities will impose a fine on you,!!!!!!!!!Has any one paid ???? Think its related to the value of your property,any one with info,????????




     Regards,steve and anita

Steve & Anita,
Good afternoon.
I also have a property on Phase one, one of the bungalows. We bought ours through Masa and used Abeco Asesores as solicitors. Everything went very well with very few issues. We now use Abeco to do our accounts as well as preparing and completing our Spanish Will which i believe is quite important. Anyway when we started to use them one of the things they informed us about was the taxes we would be expected to pay as the Spanish goverment are clamping down on non payers. You are expecting to pay wealth tax and also income tax even if you do not rent your property out. We signed up for the bungalow in May 2007, and we have just paid the taxes for 2007. It came to 186.88 euros. It will be more next year as it will be for the full 12 months. Both the taxes are worked out using the value of the property as a starting point. The more the property is worth the more you pay. If you would like more info i will try and explain it in more depth, other than that i could give you the address of  Abeco.
Kind Regards
Phil.
3B Calle Nectarine.

WEALTH TAX ENDS

The big news for 2008 is that this is the last year that any property owner will have to pay spanish wealth tax. In early 2008 the newly elected government kept its campaign promise and ended the imposition of this tax on capital assets as of january 1,2008. This means that property owners must pay it in 2008 for the year 2007 tax year, but this is the last time.
Non resident property owners will be among the biggest beneficeries of the tax cut. this is because residents in Spain had large exemptions on the value of their homes, but non resident owners had to pay tax from the first euro of valuation......... etc etc fingers tired now

You and the law in spain by David Searl 2008, 2009

To Paul10brien,
We have just paid the wealth tax for the 2007. The wealth tax has been discussed at Parliament and they hope to make a decision soon. Everyone is expecting it to be done away with. This would mean we will only have to pay income tax on our properties. This has to be paid even though you may not rent out the property. If the decision is made to do away with the wealth tax, it will still have to be paid for this year. I hope this answers your question. Hopefully it will be decided before the end of the year, otherwise we will have to pay for another year.
Regards,
Phil. 

Thanks you very much phil that was very helpful.

Hi Folks,

Can anyone give an indication as to the amount of Income Tax payable on a property which is not rented out?

Also what was the amount of Wealth Tax payable on the property? (hopefully we don't have to pay this now)

Finally, is anyone paying Council Tax yet, if so how much?

Regards

Dave

Dave,

As I understand it the so-called Wealth tax is a basic income tax for non-residents. The only time non-residents are required to pay actual income tax is if you are renting out multiple properties, and making a business out of it (or any other business for that matter, I guess). This is according to information received from my solicitor. There was a separate thread about this a few months ago. I've paid the wealth tax this year but no income tax.

I don't know what effect the proposed changes will have on this.

Once you receive your LFO, you can expect to receive a SUMA (council tax) bill. I am expecting mine any day soon, but, being in England, will have difficulty knowing about it, as it is sent to the post office in San Javier for personal collection! Again, this is based on information from my solicitor.

Kevin

Thanks for the explanation Kevin, very helpful.

Fingers crossed that we will all be exempt from the tax from this year.

Dave