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I have just read in a local free paper (the Courier) that, following complaints from hotelliers etc, it is to be made illegal for home owners to rent out their homes on a short-term basis or as holiday lets.
This doesn't bother me personally as we never let ours out anyway before we moved here, but as I sat in the sun this morning idly perusing the article, a thought occurred to me: does this mean that they will then scrap the 'imputed income tax' imposed on all non-residents, charged on the basis of what you COULD make, even if you don't?
I wonder....................
Steve
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Steve.
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Hmmm..this is the first time i heard about this news. What I know is that would be illegal to rent out or sell properties in Spain starting June 1 WITHOUT energy performance certificate. I heard it yesterday on ITALK FM . They had an interview with a company called Artica Energy Performance which provides energy certificates here on the coast. If what you have read is true, then i might be needing to live here 100% of the year! :(
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Carlo Luis Helu
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In answer to the question querying imputed income tax, Surely that tax will continue. As I understand it, its only about people advertising their villas privately on line, not about those renting through an estate agent, who should ensure taxes are paid?
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This doesn't bother me personally as we never let ours out anyway before we moved here, but as I sat in the sun this morning idly perusing the article, a thought occurred to me: does this mean that they will then scrap the 'imputed income tax' imposed on all non-residents, charged on the basis of what you COULD make, even if you don't?
I wonder....................
Isn't this EPC thingy tax on long term only rentals with term agreements?, and not the odd fortnight or two holiday lets here and their....."But we are a broke country so lets tax the buggers twice".....Sounds more then fair.
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I think you are on the wrong thread-this one is about Spain clamping down on owners renting out villas privately online-nothing to do with EPCs!
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I think you are on the wrong thread-this one is about Spain clamping down on owners renting out villas privately online-nothing to do with EPCs!
I stand corrected, you are right.....Now where am i ?
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I don't know how they will manage this as most adverts don't actually give the address of the property or the owner's name. Will the organisations be asked for this information? And will they be obliged to give it?
Self catering is a completely different market to hotels. If they do manage to implement this, all it will do will stop people going to Spain as there will be be no freedom of choice.
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Usual misinformation.
It is perfectly legal to rent out properties here in spain as holiday lets
Each autonomous community has their own rules and regulations on this issue
IVA is not charged on private rentals to private individuals, IVA is charged on agents commisions on rentals
If you provide any services what-so-ever you are deemed to operate as a business and IVA must be charged on the rental
You are responsible for paying tax on the income here in Spain regardless of where you get paid, it is up to you to declare you are breaking law if you don't
Tax and deductions vary depending wether you are resident in spain or non resident
INCOME FROM SELF CATERING HOLIDAYS HERE IN SPAIN IS A SUBSTANTIAL PART OF THE TOTAL TOURISM INCOME, THEIR ARE 100 TIMES MORE SPANISH OWNED PROPERTIES RENTED FOR HOLIDAY RENTALS THAN EXPAT OWNERS RENTALS. THE HOTEL TRADE WILL BANG THEIR DRUM BUT THIS IS BUSINESS.
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Shiny happy people - where?
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I believe THIS is what the OP was referring to. An article recently published about the government trying to help the ailing hotel trade!!
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I hope we still have a freedom of choice on renting out villas in Spain. I have stayed in many hotels and had the neighbours from hell in the room next door. There is no space in the rooms, and we never end up with a room with a view. You work hard all year and never get what is promised. For the last couple of years i have rented villas and my family love this., and i hope we continue to do so.
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The non-resident income tax is not, despite hearsay, a tax on "imputed" rental. It is specifically for those who do not rent out their properties and use it as a holiday home. It is classed as deriving benefit and a tax is levied on that benefit. For those who do rent out, there is nothing illegal in it providing necessary permits, if required, are obtained and rents received are declared for tax purposes. It is those who rent it for quite considerable times but don't declare it that they are cracking down on. Hence I believe the EPC is required if the amount of electricity comes to more than 25% of the annual bill when the owner isn't there.
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bobaol-this thread is NOT about EPCs!
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Non resident owners property tax.
Imputed Tax
QUOTE
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.
If you think of it as having a property which you can stay in rent free, thus you have a (potential) financial benefit.
Rather like a school-caretaker in the UK who must pay ‘income tax’ on the school house which he is provide with rent free, albeit as part of his job.
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If you think of it as having a property which you can stay in rent free, thus you have a (potential) financial benefit.
Rather like a school-caretaker in the UK who must pay ‘income tax’ on the school house which he is provide with rent free, albeit as part of his job.
The school caretaker hasn't worked all his life to save the money to buy the house he now uses rent free, quite a difference I think .I know this tax is "The Law" so please don't remind me but be taxed on somehting as a benefit that you have worked hard for and already paid for is just another legalised rip off called tax.
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Poppyseed
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Poppy I was trying to explain to those who may not know, what the tax is.
I was not saying I agreed or disagreed.
I can see a difference between what one has paid for a property, as opposed to what one can enjoy just by owning it. They are not being charged on the asset per se but on the benefit.
If one put the same money in the bank, they would be charged tax on the interest, the financial benefit derived from having the asset
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Camposol, I know it's not about EPC but it was pertinent to show what, or how, they will get you for rental tax.
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Slightly off topic, but just to clarify, whilst imputed tax is known as "non-resident tax", its actually a second home tax and payable if you have two properties here (if you're spanish for example), or a property here and a house in the UK for example (modelo 720 link).
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Poppyseed Is just another legalised ripoff called tax. Hang on a mo. If you are non-res, you will pay your IBI and this non res tax. My IBI in my flat was €102 a year, in my house it is just over €200 a year. Non-res income tax was about €65 a year each so €130 a year. If you buy a holiday home in, say, Taunton, you will pay around £1300 a year in council tax even if you never visit the place. If you buy a holiday home in Florida, you will pay rental tax of up to $250 per month whether you rent it or not on top of local taxes which can be several thousand dollars a year. I think the Spanish system is a bargain without even counting the €42.30 my road tax was this year compared with £260 in UK.
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Slightly off topic, but just to clarify, whilst imputed tax is known as "non-resident tax", its actually a second home tax and payable if you have two properties here (if you're spanish for example), or a property here and a house in the UK for example (modelo 720 link).
Is that correct? because i paid non-resident tax on my house in Spain, and Spain didn't know i had property in the UK, for all Spain knew i could have been homeless, lived with relations or in a hotel, how would they know i had a UK house?.
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Bobaol, my reference to tax referred to tax everywhere, not just Spain.
However my council tax in UK is £1500 pa, in Spain it is 1,000 euro but I feel we get more for it in UK, urbanization fees in Spain are 850 euros a year so in total I pay 1850 euros in Spain, the only difference is in Spain there is a communal pool (and sun but don't think that is taxed yet but sure it will come). Non resident tax is 160 euro pa each so a total of 320 euros pa. So we don't all share the same experiences in this respect.
We had a holiday home in Florida for about 5 years, I can't remember the cost of taxes but that very fact means they can't have seemed so bad at the time. We sold because following 9/11 no-one was going to Florida and it was too expensive to pay the mortgage and maintenance costs without rentals.
I agree the road tax is cheaper, in UK my Volvo is £220 in Spain my Ford Fusion is 55 euros.
But as I say in my opinion tax is a rip off, wasted and misused by governments everywhere.
This message was last edited by Poppyseed on 19/04/2013.
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Poppyseed
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