tax

We gifted our apt to our 2 sons paid all the taxes,made Spanish wills, got the NIE numbers back in 2006.we done this because we was told if we died the children would have to pay IHT before they could even step into the apt. Well our boys are not financially well off so we choose to pay upfront.but now the bag of worms has opened,we told our solicter that we would continue to pay all taxes as we are still living in the house under the usufruto rule.we requested from the land registry proof of owners on the deeds last week.the boys are the owners bearing in mind they are non residents.we r fiscal residents and there is no debt on the property.but the thing being the boys as owners should be paying non residents tax.they have no bank account , and no income in Spain .does anyone have advice as to how I should go about fixing this

‘The boys’ must have NIE numbers as they have acquired the property, so you can complete the forms on line for them and then pay at your bank.. 

My son owns a couple of apartments, one with his wife, he is non-resident, does not have a bank account. For ten years I have done his returns and paid at my bank.

No problem.

Just a word of warning for others.

I  knew of a gay couple. The odder one owned a property. He ‘transferred’ it to his partner who was a lot younger.  Tragically, the younger one died and IHT of course had then to be paid when the older one re-inherited the property.

Yes the boys have NIE numbers but the IBI bill is paid direct debit from our account and addressed to my husband what I am worried about is we want to continue paying IBI etc, the boys havnt paid any taxes because we r paying property taxes. And if we wanted to sell the apt we can't because boys are named owners they wouldn't mind if we did there would be no probs.we owned the house for 2 yrs then gifted it over.

As I said, my son does not have a bank account so all his standing orders (IBI, Electric,water,  community charges, insurance etc)  for 10 years have been paid from my account.  You could do the same.

I did have a problem with the water contract, after almost 10 years of no problems,  as they said they could only debit  an account which included the name of the person named in the water contract. That is in my son.  . I just added him, as a name,  to our joint account. Thus he does not actaully have a bank account so does not need to produce non-resident's certs., every two years,  from the police, but the water company are happy.

This message was last edited by johnzx on 20/08/2015.

Mere ownership of property in Spain is estimated by the Tax office as an income so your kids need to pay the Non resident Income tax, regardless you are the usufruct rights holders.

For the avoidance of future problems I would change taxes to your sons name. Just deal with repayments  privately between you and them.