PROPERTY TAXES FOR NON RESIDENTS

Hi All,

I have just received a bill for Urban Real Estate Tax which was a complete surprise to me. How they can charge a tax on non existant 'income' amazes me. We have just purchased our property last year and knew nothing of this. We dont intend to rent our property at all and only use as a holiday home. From investigating this further it seems that this is to be paid annually is that correct? Also does anyone know if you get taxed on owning a carpark space also as there seems to be a seperate bill for this...ridiculous!!

Any help or information would be much appreciated.

Thankyou.

We bought in Spain last year (Oct) and have received no tax bill yet but I am fully expecting one although I thought you had to complete a form first. As we have an underground parking space we will probably recive a bill for that too as it has a seperate escritura. This tax is calculated on the cadastral value of each property and is charged specifically if you don't rent your property out and aren't permanently resident in Spain.

There is a link to the various taxes here - I cannot insert a link but spanishpropertyinsight   / buff  / tax / non-residents should work it out for you.

About IBI house taxes for non-spanish residents:

Please read my comments in the forum for Mojon Hills.

Regards

top3

Mojon Hills in Cartagena.

Contact 'Leswill' on here, she'll sort you out. http://spain214.com/default.aspx 

Thankyou to all for the helpful information. I am slowly getting to grips with what needs to be done but could someone advise if I need to submit a Modelo 210 form for each person involved in the property. We have three persons who were involved in the purchase, do they all have to be present at the tax office when we go to register and collect the famous 'stickers' or would 1 be sufficient and the NIE numbers provided for the other two?  Our property developers have confirmed that they paid the taxes for the year 2010 so the bill we received is from 2011 and paid by us going forward. Do I wait until early 2012 then to make the Modelo 210 declaration of tax for the year 2011 or can this be done as soon as the taxes are paid?

Much appreciated,

IBI is a local tax - similar to the UK's Council Tax.  This is payable by who ever owns the property on January 1st of  the particular year (developer 2010; you 2011).  You don't need  the 'stickers' to pay this. 

You will need the 'stickers' to pay the Non Resident's Tax.  You become liable for this on the day you purchase your property (3 x forms; 1/3 of the tax each).  It must be paid no later than December 31st of the following year (I believe it's June/July if you own more than 1 property).

Oh no so theres another tax that we have to pay! Jeez they certainly know how to squeeze people! I would have thought that the tax paid on purchase of the property would be enough for them. How is this communicated/billed? Is a carpark space counted as a second property?

There's a new 210 form for this year which apparently does not require "the stickers".  You have to submit the forms - you won't receive a demand, but you will be fined if you do not pay your dues.  You need a form for each person whose name is on the escritura, and a separate form for each separately assessed property.

All property owners regardless of residency status will receive an annual  IBI bill from either their local town hall or the SUMA office, depending where abouts in Spain the property is.  On new properties this can take some time to materialise initially though.

The other tax which is being mentioned here is payable by non resident property owners - it is for a tax which translates as imputed income and is payable by property owners who do not rent out the property.  You will not receive a bill for this as it is deemed to be the property owner's responsibility to submit an annual tax return.  However some solicitors automatically complete this and ask for a fee to do so.  A form needs to be submitted by each person named on the deeds and a small tax will be payable on a garage if it has a separate referencia catastral.  It is possible to save money by submitting your own tax return and payment can be made in the bank.  Have a look at the link below to see more details on this.  The introduction of the new form has been delayed until next year.