SPANISH NON RESIDENT WEALTH TAX

Hi there everyone. Our solicitor has advised we need to pay about 140 euros in non rsident tax plus over 200 euros for the solicitor to make this payment. Is it me, or does a fee of 200 euros for this seem a bit high. Anyone made this payment yet? Any advice would be appreciated. Thanks  Jo and Steve

We paid our fiscal representative 110 euros to deal with both the income & wealth taxes.

If you want to PM me your email address, I can send you their information pack. They are based in Mojacar Pueblo.

Noreen

We were quoted the same price as Noreen, from the same solicitor in Mojacar Pueblo, so yes I think the price your solicitor quoted is a bit steep.

Hi all,

I have been told (maybe wrongly) that the wealth tax has just been abolished and only income tax needs to be paid on rental income or renta tax? You fill in form 210 and you can, if prepared to spend a little time, do it yourself. This info was given by a friend who has a property in Spain not from a solicitor though.

Wealth Tax has been abolished with effect from the tax year 2008.

However, many of us completed our purchase at some point in 2007 & therefore had a tax liability for that year which needed to be paid by the end of 2008.

Although the wealth tax has been abolished, I understand that you still need to complete the details on the tax form but you will get a 100% credit against it meaning that you pay nothing.

Income tax remains payable on any rental income that you receive & you cannot offset any of your costs against this. If you do not rent out your property & are non resident then you still have to pay non resident income tax.

Noreen

Apologies for some duplication of Ken's post. He obviously posted as I was typing!

Hi everyone,

The information on taxes is really useful

As the wealth tax is now abolished can anyone indicate the amount of income tax charged for non residents who do not rent and how this is assessed eg. value of property?

Many Thanks,

gerrys

In calculating the non residents income tax, you use the Catastral value (or rateable value) which you will find on the reverse of your IBI bill.

Our Catastral value for a 2Bed/2Bath Ground Floor apartment on Al Andalus Thalassa was 19,931.07 so I will use this to show the calculation.

19,931.07 x 2% = 398.62

398.62 x 24% = 95.67

If you are paying tax for the year in which you completed your purchase then this is pro rated. So if you completed on the 30th June you would continue the calculation:

95.67 / 365 = 0.2621 daily rate

0.2621 x 184 (remaining days in the year) = 48.22

Hope that helps

Noreen

Hi everyone,

Noreen, thanks for those details just trying to familiarize myself with the various issues I will need to deal with.

What's the IBI bill?

Many Thanks

The IBI bill is something equivelant to our council tax in the UK, only a lot less!!

The IBI bill may be posted to your Spanish address, then again, it might not. You can go to the Town Hall in Vera with your deeds & NIE number to pay it. (same applies for Basura) Bear in mind that if you go to the Town Hall, they will only accept cash for the first payment.

Also, if you do receive the IBI bill by post, it can only be paid at certain banks, again I believe in cash only. Once the first payment has been made, you can set up a D/D for future payments.

The bills that you need to be aware of IBI, Basura (rubbish collection), Income Tax & Wealth Tax (although the wealth tax may be abolished you still have to complete the forms & then you get a 100% credit to offset the total amount which means you pay nothing)

Hope that helps.

Noreen

Thanks again Noreen for the information.

Thats another two bills I was not aware of although the income tax is less than expected!!!

To give you a rough idea:

We have a 2bed 2 bath ground floor apartment with garden but not facing the pool - Our IBI bill was just under 122 euros.

The Basura is approximately 35 euros per quarter.

You may find that it takes a while for the bills to come through. We completed October 2007 & the IBI bill was put in our post box between May & August 2008. We still haven't received the Basura so a trip to the town hall is planned over Easter.

I have a useful information pack from a local Asesoria if you want to PM me your email address, I can send it to you. Sorry, edited to say that I notice you haven't made 10 posts yet so you may not be able to PM me but give it a try, it might work.

Noreen  

Noreen,

I have just sent you a PM with email address for the information pack, hope you receive ok.

Many Thanks,

gerrys