| The Comments |
Property revaluation
The properties in our community were first revalued in 2006 and since then there have been smaller increases which were assumed to be further revaluation.
A fellow owner has just been advised by his gestoria that his non resident tax should have been increased to 2% as the property had not been revalued for over 10 years... computer error.
If the smaller increases are not a revaluation what are they?
Has anyone got any info/advice please.
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| Spanish name |
Impuesto de la renta de no residentes, declaración ordinaria (IRNR) |
| Description |
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. |
| Tax base and rate |
Tax base: 2% of the cadastral value of the property (found on the IBI receipt), or 1.1% if the cadastral value has been revised since 1st January 1994. Tax rate 2016: Residents of EU, Iceland and Norway 19%, all others 24%. |
| Form |
Use general section 210-A and indicating income type 02. |
| Dates |
Presented before the 30th June each year. For example you have from 1st January to 30th June 2006 to declare tax on income during 2005. |
| Example |
Cadastral value of property = 200,000 Euros
Base = 2,200 Euros
Tax = 19% x 2,200 Euros = 418 Euros |
_______________________
There is enough in the world for everyone, but not enough for the greedy!
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For those who are not aware:
Inputed income tax is payable by Spanish tax residents on all properties they own worldwide which are not producing an income, with the exception of their principal home in spain. So includes say a garage space or storeroom in spain which is not on the escritura of their principal home, or a property say in U.K. It is paid as part of one's annual tax declaration.
"This notional rental income also applies to overseas properties owned by Spanish residents. In this case, it is 50% of the acquisition price that is used to calculate the annual charge, which is 1.1% of the value. The corresponding amount will be then taxable at 19% or 24%, as indicated above.
This message was last edited by johnzx on 11/1/2021.
This message was last edited by johnzx on 11/1/2021.
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Hello John
What is the situation if you already pay imputed tax on a second property to a foreign country and there is no double taxation agreement?
_______________________
There is enough in the world for everyone, but not enough for the greedy!
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I don't know of another country where one pays imputed tax as in spain.
With the DTA with U.K. one pays the imputed income tax to hacienda on unlet property in U.K. If let then tax is paid in U.K. and maybe a top up tax too in spain.
We pay the tax to hacienda on a property we own in the Philippines and on a lock up garage we own in spain
This message was last edited by johnzx on 11/1/2021.
This message was last edited by johnzx on 11/1/2021.
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Thanks for your replies Kavanagh and Johnzx.
We have continued to pay the non resident renta tax at 1.1% since 2006 when our property was first revalued. I was just wondering if anyone was more informed about how you know or find out if a revaluation has occurred in the last 10 years. We presumed it had since the cadastral value on our IBI has increased several times over the years yet a neighbour of ours is now being charged at 2%. We are just about to complete last year's 210 tax form and can't decide what rate it should be.
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The catastral value is shown on the town hall taxes receipts, IBI, basura etc. So you can see if the value has changed
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Hi Johnzx, yes the cadastral value has definitely changed as shown on our IBI. That's why it's difficult to understand why a gestoria is saying otherwise.
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This non-resident tax is defined by the Spanish Tax Authorities as an ‘’imputed tax’’ but that is only a made-up description as it has nothing to do with imputed tax. If you research the definition of ‘’imputed tax’’ you may get different definitions but the most common is a ‘’benefit in kind’’ like having a free company car would be a good example.
Years ago ‘’Holiday Rental Licences’’ did not exist, but the Spanish Tax Authorities assumed many holiday homeowners were receiving income from holiday lets. They had no idea or monitoring system, so they just invented a non-resident’s tax. At that time most holiday homes were owned by foreign non-residents, so Spanish nationals welcomed a foreigner’s tax.
So if you are a non-resident with a holiday home that you do not rent out, you are receiving no ‘’benefit in kind’’ whatsoever, you are just paying a ‘’stealth tax’’ for absolutely nothing.
_______________________
There is enough in the world for everyone, but not enough for the greedy!
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Is there a definitive answer as to whether 1.1% or 2 % is the correct divisor of the CATESTRAL value for the modelo 210 tax. I have tried to obtain answers from tax offices in Mallorca where we have an apartment. Like a previous contributor to this thread I have just filed and paid this tax for last year at 1.1% only to find a neighbour who uses an agent has paid at 2%. The local tax offices keep passing me on to another office all without resolve.
I m now considering just to be safe filing a second set of forms for the difference 0.9%. Any suggestions
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