Wealth Tax / Income Tax for Spanish Non-Residents

This is a copy of information on another part of EOS. 

Wealth tax HAS been abolished for non residents, according to THIS ! You should submit form 210 rather than the 214 & submit no later than 30th June, 2009 for 2008 (6 months earlier than before).
Saturday, January 17, 2009 @ 11:56 PM

Seen in another forum, email just sent to member by his lawyer.

CHANGES IN WEALTH TAX LAW
MESSAGE ONLY FOR CLIENTS WITH A PROPERTY IN SPAIN PURCHASED PRIOR TO 31-12-2008.

Over the course of this year, we have received numerous queries from our clients asking about the abolition of Wealth Tax (Impuesto del Patrimonio) in Spain. We promised to send further information to everyone as soon as this law was published.

This year, the Spanish government indeed studied the possibility of withdrawing its Wealth Tax. Subsequently and by means of Law 4/2008 of December 23, published in the OSG of 25/12/2008, the Spanish Wealth Tax was finally abolished.
Until now, non-residents have been required to present the Form 214, the so-called "wealth tax return". The official name of this Form 214 is "Impuesto sobre el Patrimonio y sobre la Renta de No Residentes" ("Wealth and Income Tax Return for Non-Residents").

As its name suggests, this form was used to tax non-residents in regards to Wealth Tax and Income Tax. The form itself is divided into two clearly separate sections.

Following approval of this law, those non-resident individuals who have one or more properties in Spain are no longer required to pay Wealth Tax. However, they are still required to pay the Income Tax for Non-Residents.

Therefore, the publication of this law means the following for non-residents with property in Spain:

1) They are no longer required to present Form 214 as of 01 January 2009.

2) They are required to present a new form: Form 210 regarding Income Tax for Non-Residents.

3) A reduction to taxes due: the amount to be paid to the Spanish Tax Authorities (Hacienda) by means of the new form will be less than the amount resulting from the previous Form 214 given that only the Income Tax for Non-Residents is now applicable and the Wealth Tax has been abolished.

4) Deadlines for presentation: the period for filing this tax return runs from 01 January to 30 June of the following year . In other words, the deadline for paying taxes corresponding to 2008 is 30 June 2009 (6 months prior to the previously applicable deadline).


-----Original Message-----
From: Spainsolicitors.com [mailto:enquiries@spainsolicitors.com]

Info according to Mark Stucklin of Spanish Property Insight .. read...
http://www.spanishpropertyinsight.com/buff/tax/non-residents/

Income tax for non-residents who do not rent out their property (standard declaration)

Spanish name: Impuesto de la renta de no residentes, declaración ordinaria (IRNR)

Description: You pay this version of income tax in Spain if the following conditions apply: 1) You do not reside in Spain, 2) You own property in Spain, 3) The property is exclusively for personal use and you do not rent it out, 4) You have no other source of taxable income in Spain. Although you do not earn an income from the property, in the eyes of the Spanish tax authorities you still derive a benefit from owning a property in Spain and therefore have to pay an imputed income tax.

Tax base and rate: Tax base: 2% of the cadastral value of the property (found on the IBI receipt), or 1.1% if the cadastral value has been revised since 1st January 1994. Tax rate: 24% (25% for 2006 and before)

Form: Use general section 210-A and indicating income type 02.

Dates: Presented before the 30th June each year. For example you have from 1st January to 30th June to declare tax on income during previous year.

Example: Cadastral value of property = 200,000 Euros. Base = 2,200 Euros. Tax = 24% x 2,200 Euros = 528 Euros

Hi everyone,

I have just noticed the following deduction from my "Solbank" bank account : Non residence authorisation charge 6.70 eur and Commissions/fees Peticion Certif no. residencia 29.00 eur. Has anyone else had the same deductions out of their accounts? is this an annual charge or a one off?

Regards Andy

Hi Andy

We have had the same charges taken from our account, twice, as its a joint account. I believe this is every 2 years. Someone correct me if I am wrong.

Can anyone answer this question. I have 2 accounts with different banks. How does one bank know the non res. charges have been taken from the other bank, will I get charged again with the other account.

Westport

In December we had 2 x 22€ taken for "obtention non resident certif" (joint account again). This account is with Lloyds TSB which I moved to because they offer free banking. We have not had anything charged by our old bank (Barclays).

A few people have been asking recently about "La Renta" or income tax which is charged on non resident foreign owners. We all owe this on our apartment, garage space and store if you own one. It is payable by 31st December for the previous year. Some people use their solicitors to pay this (the most expensive option). Others use specialist tax "Gestors" and some neighbours have successfully done it themselves. I paid just over 200€ this year.

Don't panic if you haven't paid. There is no penalty for late payment but interest is charged. To date the Tax Collectors have not pursued non payers but with Spanish government finances being only slightly better than the UK this may change in the future.

Information (PDF File)) on Form 210 on obtaining and filling in, and submitting the form, on Home page www.carvajal-spain.com

Hello neighbours,

We've heard it's not longer possible to pay through form 210A La Renta for non-residents.

Can anybody tell us how to pay our tax for 2011?

Or is it allowed to use for 2011 again the form 210A ?

Thx..

Kind regards,

Corrie

According to the current information document on the Agencia Tributaria web site regarding Non-Resident Income Tax from 1/1/2011, there are 2 ways of filing the tax return using Form 210:

1. Online Filing

2. Filing on paper

Re 1; To successfully file the return online you must obtain an electronic or digital signature certificate - these certificates are issued by certain authorities and when authenticated are downloaded and stored on the particular computer you wish to use when filing the return. The certificate satisfies the tax authority that the return being submitted is in fact emanating from you the named taxpayer. I have yet to research the procedures for obtaining the digital certificate but I suspect that one must present oneself with passport and id documentation to one of the validating authorities who will supply the necessary code to submit to the tax authority. Please understand this latter point is speculation until I obtain more information.

Re 2: The paper return can be filed by filling in and printing the form available at the Tax Agency website (www.agenciatributaria.es); This will give a self assessment form, which does not need to be submitted and examples of the deposit/refund document. The copy for the collaborating organisation/administration of the deposit/refund document will be the one used for filing the return, together with the corresponding documentation.

Depending on the result of the self-assessment, the form and documentation which has to be attached can be filed at the following places:

Tax to Pay - at a collaborating Bank in Spain

Refund Due or Zero tax - in person at appropriate tax office or by registered post.

If the taxpayer carries out the self-assessment and is assigned an identification code on filling in the form at the Tax Agency website, this will be filed in person or by registered post.

The information above I have obtained from the Tax Agency website as recently as yesterday, so it is clear that you can still use the "paper return" system - I have not completed the return myself yet so I have not gone through all the hoops  necessary to complete the process and print out a completed form, however on first look I did notice that there are a few small changes on the form 210 compared to last year's one.

Hopefully this is of help.

This message was last edited by gericom99 on 18/06/2012.

This message was last edited by gericom99 on 18/06/2012.

This message was last edited by gericom99 on 18/06/2012.

Taxation on Urban Buildings Owned by Non-resident Individuals

GENERAL CONSIDERATIONS

If you are classified as a non-resident in Spain for tax purposes but you own urban real estate in this country then you are obliged to pay non-resident income tax and a local property tax.

Furthermore, Wealth Tax has been temporarily re-established for the 2011 and 2012 financial years.

REPRESENTATIVE

Except in cases of residents in countries or territories with which an effective exchange of tax information does not exist, there is no obligation to appoint an agent to act before the Tax Authorities. Nevertheless, should you choose to do so, you may appoint whoever you wish, and should communicate this appointment to the Branch or Administration of the Tax Agency corresponding to the location of the property.

In Spain everybody is assigned a Tax Identification Number, which must appear on all tax returns and in all communications with the Tax Authorities.

In general, for people with Spanish nationality, the NIF is the number of their National Identity Card (DNI) and, in the case of foreign nationals, the NIF is the Foreign Nationals' Identification Number (NIE). This identification is processed by the Police General Directorate. However, those foreign citizens who do not have a NIE, either temporarily or permanently, since they are not required to have one, should request a NIF be assigned to them by the tax authorities in order to complete tax operations.

NON-RESIDENT INCOME TAX

When the property belongs to a married couple, or to more than one person, each person is an independent taxpayer, and must file an individual tax return.

Depending on the use of the property, the taxes to which it is liable are:

INCOME CALCULATED ON URBAN PROPERTY FOR PERSONAL USE.

The amount to declare will be that resulting from applying the following percentages to the assessed value of the property as shown on the Property Tax bill (IBI):

This yield is calculated once per year, on 31 December.

If you have not been the owner of the property during the whole year, or if it has been rented for any period, only the proportional part of this amount is declared.

Tax rate:

Tax rate 24% 24,75%

Form: form 210, recording income type 02.

Means of filing:

- on paper, generated by printing a form completed on the Tax Agency website.

Electronically, via the Internet.

Filing deadline: during the whole calendar year following the accrual date.

Direct debit payment of the tax debt: In the case of electronic filing, payment can be made by direct debit until 23 December.

This tax has been temporarily re-established for the 2011 and 2012 financial years and is due on 31 December of each of these years.

Net tax base: The net tax base will be reduced, in concept of exemption, in €700,000.

Obligation to file: All taxpayers with a tax charge to pay are obliged to file a return. Also, those with assets and rights valued at over €2,000,000 are obliged to file a return, even if they have no tax charge to pay.

 hi ken

how are you keeping.thanks for that info,can you still go to the bank and pay your taxes.

dermot

Hi there,

The answer to your question is in my post of 18th June - if you have tax to pay then you can do it at a (collaborating) bank just like before.  The difference is that the copy of Form 210 that the Bank keeps is now the one used by the tax authority also, so in this particular case (tax due to be paid) you do not need to send a stamped duplicate to the tax office.

Well, we should have got a grip on this sooner!

Having seen that this is going to catch up on all of us sooner or later we decided to get our solicitor (who has done other things for us) to calculate this for us. He came up with the following:-

Year 2007  –      78,54 Euros

Year 2008  –    217,12 Euros

Year 2009  –    221,14 Euros

Year 2010  –    223,36 Euros

Year 2011  –    223,36 Euros

Year 2012  –    223,36 Euros

-----------------------------------

Total taxes =  1.186,88 Euros  plus interest.

Also, am I right in thinking that the wealth tax was set to zero for a couple of years?

Not only that but he has charged 1628.00 for doing it.  So if anyone hasn't yet sorted it now is the time!

 Welll I have to say you pay far to much and would advise you to do it yourself from this year......

Ken thought us how to fill in the form and we succeeded thanks to him.

It's not that difficult, so maybe you should do it yourself .

I have to tell you the tax for 2012 (to be paid in 2013) is wrong, because the amount raised 0,75 % in stead of 24 it is for 2012 and 2013 raised to  24,75%, so the same amount as a year before is always wrong???? (found it on the internet!)

Regarding the other amounts, if you have a 3 room apartment I think it's reasonable, we paid 240 for 2011. (Don Juan II)

Look at www.carvajal-spain.com where Ken explains how to fill in the tax yourself.

You can also get a form at the agencia tributaria, Calle Cruz 18, Torremolinos, they have an english description how to fill in the form by computer.

Hope this helps,

Kind regards,

Corrie

p.s. the difference for 2011 and next years  is, you have to fill in the forms at the computer and when you push the last button the forms arrive, which you can give at the bank for payment.

 p.s. I heard rumours about wealth tax, but we don't have to pay this yet according to me?

Correct me if I am wrong, but I'm pretty certain....

Hi SRS,

I would hope that you have not yet completed the payments listed as due by your solicitor. 

I say this because I consulted my own Spanish solicitor on behalf of a friend only last week on this question of unpaid tax.

The solicitor advised that the Tax Authorities can only go back 4 years - there is a proscription on going back any further.  That means that in the case of arrears the max to pay is for 4 years only. The interest due was quoted at 20%  each year - is this the same as you were quoted?

The solicitor was initially charging €120 per year but was willing to reduce this to less on negotiation. This fee was for a single owner.

Subsequent to this my friend was recommended to go to a reliable English financial consultant who practices in this area and was willing to complete all forms for a fee of just €60!  Naturally my friend decided to dispense with the solicitor.....

With regard to Wealth Tax, yes it was suspended for a few years but has been re-introduced by the Spanish Government.  However I believe it only applies to those with total assets valued over €2,000,000! 

This message was last edited by Gericom99 on 19/02/2013.

Many thanks all for your helpful replies.

Gericom -

I have emailed him today to ask him not to submit these until I have had a chance to study them

I have not been told what the rate of  interest is, he said that the tax office would inform me of this after submission.

I will mention the 4 year issue to my solicitor.

Maybe he is so expensive because my wife and I are joint owners and I was told that seperate declartions need to be made.

Am I getting mixed up here, because I thought that this was the wealth tax.  Are what I am paying and the wealth tax two different things?

Cheers

Hi SRS,

I am glad to hear that you have not yet committed to pay the amounts outlined by your solicitor. 

Yes I think you are right that the solicitor would double the fee for completing and submitting the forms in the case of joint owners as 2 returns are required for each year in such a case. 

However the work involved is minimal and consists simply of inputting some details on a pre-configured form 4 times for 2 people.  I feel this should take less than, say, 2 hours so perhaps €250/350 in total is a reasonable fee in my opinion for a solicitor to do the work. 

Yes, unfortunately the Wealth Tax and Impuesto sobre la Renta de no Residentes are two different taxes.  The latter is a tax on rental income from Urban Real Estate owned in Spain and is payable whether or not one actually rents out the property.  If the property is not rented out then a simple formula is used to calculate the tax due and I presume this is the situation in your case.  Where there is rental income the calculation is different and some expenses may or may not be allowed as deductions.

 Hi SRS,

To fill in the form La Renta 210  is just a very small job to do.

For 2 persons you have to fill in 2 forms, but that is also little work.

I think the solicitors are profiting of the foreign people and writing bills far to high!

I would advise you for the future to fill in the forms by yourself, it's easy earned.....

Regards,

Corrie