Advice

Hi Neighbours.

Can anyone tell me. If as a non resident who does not rent out there property and one who pays non resident taxes, community fees and local taxes. Do i have to complete an annual tax return? Any advice would be grateful.

John.

Yes you do.  They have to be submitted for each year you have owned the property. Normally submiited in arrears.

We have submitted ours up to date and used website www.spanishtaxforms.co.uk.

They done all the work and sent fully completed forms which we took to the bank and paid there. Very easy.

You will need the Valor castral value of the property for each year you have owned it and you can obtain that by calling at council office in Al Kasar and they will print them out for you.

If I recall we paid about 70 euro each. Thats per year give or take. 

 more advice please

just to refresh me i pay fees do not rent the property and pay to alhama by direct debit a tax correct me if i am wrong this islike council tax each year.

as for non resident tax were do you get the forms from and is this something different as i have never been approached about this or was never mentioned during setting up all the other direct debits ie electric, water, community fees, alhama council tax.

thanks and regards nIck 

As far as I know you need to pay the equivalent to our council tax (SUMA bill) to Alhama council which can be done at the council office in the Al Kazar.  If you do not rent out your property a 'non resident' income tax or IBI tax (Impuesto Sobre Bienes Inmuebles). If you rent out your property you will also need to pay tax on your rental profits (Rendimientos deal Capital Inmobiliario). You can pay these income taxes by filling in the appropriate forms yourself and pay at a bank, get a company to do it for you or as I do use your Spanish solicitor. If the property is jointly owned each person will need to complete a tax return. You should also declare any rental profits on your UK tax return. I am not aware of any other taxes which need to be paid at the moment, although there is talk about re-introducing a 'property tax'.

Regards,

David

Your non residents tax should be paid by 31st December every year and you pay it for the previous year.  Last year I used my own solicitor to do it for me, never again I was absolutely ripped off in solicitors charges, this year I used the solicitor on the resort in the resort management offices.  Absolutely brilliant no messing about, I think they work out slightly more than spanishtaxforms mentioned previously but we were charged 30 euros per person for completion of the paperwork which was sigificantly less than the previous year.  I will used them again no problem

we havent bought yet but we have friends who have had a villa in cabo roig that have advised they have never paid none resident tax so what will happen if you dont pay it

I know a few people who have had property in Spain for many years and never paid any tax and seem to have got away with it. In the past the Spanish authorities have not been efficient enough to follow this up, however, in the new world of austerity and the threat of re introducing property taxes to the high value properties, I think that has now changed, and a lot depends on where you live  too.

In any case, non payment of any tax or indeed any bill related to a  property really comes to the fore when someone comes to sell or transfer ownership of the property as a simple search by the authorities will disclose all the debt against the property and that will stop any sale or transfer in its tracks - it can even result in the property being siezed.

For what the non resident tax costs 70 euros a head per year, it really is not worth evading it. In essence you have three payments to consider with a property in spain, your maintenance or service charge, your local Council tax and the non resident tax.Taking all three together for a typical property on CDA, it is a lot less tax than you will pay in the UK.

Jon Faulkner

 if you rent your apartment you are also required to declare rental income quarterly in arrears    - quarters where no rental is accrued will just be charged as non resident, quarters where rental is earned  is taxed as income with offset for IBI mortgage and community charges.  Tax authorities are now telling utility companies that they need information on usuage  to cross reference tax statements to.

This came up last year when the authorities started to send out bills in other parts of Spain.

I wonder how it works if you have just let family or friends use the apartment with no rental being paid. Obviously your usage will have increased for those weeks but you'd have no income- or maybe they just give you £50 or so to cover electritcy and water use. I'm wondering how you prove this? You can prove what weeks you use your own apartment by flight details but not that other people didnt pay you any money.

Neighbours many thanks for your advice regarding tax return. Much appreciated.

John.