Annual Spanish Tax

No worries Sue Amos,

I have your e-mail and will reply privately.

Regards,

Hello Gunnerfitzy,

I stand corrected and rightly so.

After a sleepness night pondering the percentages on the Renta Tax, I have to agree with your calculations.

I was thining about the figure that is inputted on the 214 Tax form, I had forgotten the fact that once you get to the form, then you will only pay 25% of the figure you have calculated from the Valor Catastral.

So, to clarify:

Take the Valor Catastral, multiply it by 2%, then multiply it by 25%, this gives you the Renta Tax payable.

My apologies to one and all and I hope this concludes this query!!!

But it does mean that you all pay less than what you thought!

Good job Hacienda do the calculation for you Fibs - otherwise you would have been paying more tax than necessary - try getting that back from Hacienda worse than a Rotweiler with a bone! You must have been at the Absolut again! 

Hi Everyone

Wow, you have given me so much to think about on reading these threads. I knew this tax business was complicated but never imagined by this much. I was originally planning paying someone to deal with Tax for me but am now pondering on whether I will manage it mysef. We are completing on a 2bedroom apartment in Mar Menor in the summer sometime, so have a bit of time on our side to start trying to suss the system out for ourselves. Fibby and Smiley your posts are so interesting, you are both doing a great job to help us novices - keep up the good work!

Fibby I sent you a PM regarding some of your info before reading all of this thread and now discovered some of the answers here. I will still be interested in your detailed instructions on tax though.

Thanx

June

1st guide to paying your own taxes in Spain with £4 going to Emma's fund has been sold!
Thank you to Sam & Keith for helping to swell Emma's fund!
As soon as their credit hits my bank a/c, the £4 will be winging it's way to Emma's fund account.
Let's hope for many many more £4's
Great news!!!

Hi Fibby

Could you give me details on sending you money for your document - I will be thrilled to help little Emma!

June

Watch the Overseas Property News at 6.30pm on Sky channel 287, the Overseas  property channel. There is a report on it regarding the Spanish revenue clamping down on people that are not declaring rental income on second properties. There is also an update on the illegal builds. The  programme is repeated every night, but a new update is shown every Wednesday.

Westport

 Should I pay for Fiscal Representation as my lawyer is suggesting to file documents?

 Please advice  

Have a look at my website Oscar 1, it may help you.

www.payingtaxesinspain.pwp.blueyonder.co.uk

rgds,

Is the wealth tax calculated on equity held in a property, or on the value of the whole?

Hi Plexx

Wealth Tax is payable on the amount you own outright in the property, excluding any mortgage.

Mt guide  gives you full details, check out my website to find out how to obtain the guide.

Kind regards,

Hi Fibby / Smiley,

We completed on our property mid 2006, and was advised that we probably wouldn't get our IBI Tax bills for about 18 months, ie Jan 2008. Does this mean we don't have to pay the Wealth and Renta taxes until we receive this or am i being optomistic / naive?

IBI (Impuesto Bienes Inmuebles - literally Real Estate Tax) is the equivalent of Rates, Council Tax or whatever it's called in UK these days. Nothing to do with Renta or wealth tax.

It will be at least 18 months before you receive the first request, maybe more, depends on your town hall, and it will be back-dated to the time you purchased. You probably won't be expected to pay it all at once, however. There will be a time allowed to pay the first year's IBI, then the next etc. Strictly speaking, whoever owns the property on 1st Jan is liable for that same year's IBI, so your developer should pay it for 2006, but in reality the bill will probably come to you. You can try to get the developer to pay 2006, but if he doesn't, you could face problems in the future when trying to sell. If that bill was never paid, it may have to be paid, plus interest and fines, before you can sell. You may decide for the sake of €??? you may as well pay it and have the peace of mind that your property has no debts on it.

Hello Montegolf,

Just want to echo what Roberto & Jesnsis have said.

They are both 100% correct and the most important point Roberto said is not to have any outstanding debts on your property.

Kind regards,

From what I have read on this thread regarding wealth tax, it sounds as if I may be better off taking out a mortgage on my property rather than buying outright? Does anyone know how this balances out? Would appreciate any views.

Alan

Thanks Janice I'll do that.

Alan