Wealth Tax

I have an interesting question and would like to hear the opinions of the experts on here.

If you are a non resident and own a property in Spain you have to pay ´wealth tax´ or what I believe is actually known as 2nd property tax. The question is if a non resident who does not own any property in his own country but owns a property in Spain does he have to pay ´wealth tax´?

Answers in a brown envelope please

I think I've read on here that the thinking is that if you aren't a resident then your residence must be in some other country. They don't seem to be interested in whether you own that residence or rent it. Or whether you sleep on the beach. It is your residence, nonetheless, and therefore the Spanish property is your second home. Ha ha ha.

The wealth tax does not apply unless your property is over €700.000,00 so is of no concern to most

Steone:   The question is if a non resident who does not own any property in his own country but owns a property in Spain does he have to pay ´wealth tax´?

I think may be you are confusing Patrimonial Tax (wealth tax) with imputed tax, the so called ‘second home tax’.

As stated the patrimonio tax does not affect the average owner, but if you own a property or properties in Spain when you are not resident in Spain then you must pay the tax on each property you own.

For interest:  My son is non-resident, he has 2 apartments and a separate parking space in a garage.  He pays tax on all three properties.

For interest.  

 Residents in Spain pay the tax, in their annual tax return, on all properties, other than their main home, where ever they are in Spain or the world.  Thus if as a Resident, one owns say one property, their main home,  and a store room and parking space, unless they are included in the same Escritura, they pay tax on the store room and the parking space.  

In addition to my home, I have a lock up garage nearby,  I pay the tax on that.   My wife, resident in Spain, owns a house in Philippines she pays imputed tax on that house ( to Hacienda) here in Spain.

More 'light reading' here:-   http://www.lawbird.com/services/fiscal_representation_faq

If you are non tax resident in Spain but owns a property here, you still need to pay taxes on this, despite you actually make no financial benefit of it as  Tax regulations understand you receive a benefit.

@maria. Very approximately, how is the tax calculated? Thank you.

Guy

I understand you are asking about the Imputed Tax (2^nd home tax) on a property not  (officially)  producing any income, owned by a non-resident.    If so:- 

It is 1.1% (or if not revalued in past 10 years 2%) of the catastral valor, (as shown on the IBI demand).  So say that is amount 'A'

thus:-     A   X   1.1%  x    24.75%.= tax due

It must be paid between !st January and 31st December , for the prevous year,  So this year for property owned in 2014.

The details are available. In English,  at:-

 http://www.agenciatributaria.es/AEAT.internet/en_gb/GF00/informacion.shtml

I understand you are asking about the Imputed Tax (2^nd home tax) which is a property not(officially)  producing any income.  If so:- 

 Just for info.  

 With regard to a resident with a property outside Spain, it is 50% of the price paid, no matter how long ago it was purchased ,     x 1.1%   x   24.75% = tax due.      And as I said, that is declared as part of one’s annual tax declaration made in May/June.

Thanks, John!