wealth tax abolished from january this year

Of course you can pay your own taxes.

I do and so have many people.

Click on the link below my signture for further info.

Regards,

Hola dealse,

FIBBY does a step by step guide to sorting out your tax yourself...................I know she doesn't charge much for it and also donates a portion to charity..........................she won't tell you herself ( too shy !!! ) but I will....................so send her a PM and save yourself money and worry.

edited because of my terrible spelling !

Can  someone please point me in the right direction re Wealth Tax.  Some people on our development have been down to the local town hall and have been given a piece of paper which tells them they are not liable to pay Wealth Tax.  They have been here since 2007 and gained residency sometime during that period.  today they have been told the Town Hall made a mistake and confused Wealth Tax with Community Tax and, indeed, it is due and must be paid by 31 December, failing which further steps may be taken which may include impounding your property.  Fairly scary.  In our case, we have been here since October 2006 living on a building site until mid 2007 ish.  Our development has still not been formerly adopted by the Council so we are not yet paying Council Tax.  We do not have residency as yet.  Unfortunately, one of those things on our list of things to do!  Can someone tell me, therefore, are we liable to pay Wealth Tax and is the scaremongering mentioned above correct?  Any comments would be welcome.

Thanks.

Hi Teal,

In short, if you are a permanent resident of Spain you are liable to pay Wealth Tax, but it is zero rated.

So in fact tere is nothing to pay.........................

However, if you are a Non Redsident, then you do have to pay Wealth Tax.

This has been abolished from 1st January 2008, it just has to have the "Royal Decree" to be finalised.

So, if you are Non Resident, the tax has to be paid up to 31st December 2007 (Paid in arrears, so to pay during 2008)

Hope this helps,

Hi All

It's great that wealth tax has been abolished - I'm certainly glad of the saving.

But, for non residents don't forget that there's still a deemed income tax liability on a Spanish situated property, and the filing deadline has changed - now due by the end of June as opposed to the end of the year.

I'm an accountant and am sure that the tax office will make up the lost wealth tax in fines levied for late payment of the non resident income tax return!

 www.stalwartwealthmanagement.com

Hi Neil

I have been trying to find confirmation that the law abolishing wealth tax had been finalised ? most sites say that it is still awaiting royal approval ????

Anyway I have owned a property in Spain for 15 years, we are non resident and only use it for family holidays is it safe to advise my fiscal representative to cease doing the wealth tax return ?  I am concerned about your comments regarding income tax but presumably as we have no income in Spain we do not need to do this ?

If you have any further information I would appreciate it

regards

Nick

Hi Nick

There were two parts to the old non resident's tax return. One part related to wealth tax and one part to an income, which is deemed to arise from all 2nd homes situated in Spain. This income is assessed for income tax (the non resident's income tax rate is 24%). Note that the income is a notional income, so it will arise whether or not you let your property.

The wealth tax element is, for the time being at least, no longer an issue. This is on the basis that all taxpayers currently benefit from a 100% wealth tax credit.

The income tax element of the return is still required. Hence you will still need to file a return so don't sack your fiscal just yet.

Now brace yourselves for the posts offering to prepare a cheap non res return......my advice is to save yourself the headache and stick with your fiscal.

Thanks

Neil

Quote:

Now brace yourselves for the posts offering to prepare a cheap non res return......my advice is to save yourself the headache and stick with your fiscal.

 Now that wasn't very nice NeilinElche!!

Thought we were a friendly lot here on EOS?!

Has anyone challenged this ' non - resident ' income tax at the EU as it has got to be discriminatory.   How do they calcuate this  tax when you have no income in Spain - it has got to be illegal and serioulsy has to be challenged .  When I hear  a bit  more about it I shall be contactiing my MEP as this is blatant discrimination on non - residents .

My sister - in - law is resident in Gib but has an apartment in Spain and she has never heard of this tax but I will discuss it with her next week when we visit.

How do you find out who your MEP is and seriously everyone this has got to be challenged . Spain cannot and should not be allowed to discriminate against  foreign owners bacause that is what they are doing . 

Hi Nick, it is perfectly safe to cancel your fiscal.   See details of the service we offer and save yourself money - headache free!  Many happy, wealthier customers to back  this up.

Hi Tamsin

The tax is payable by anybody who owns more than one property, so a Spaniard  who owns 2 properties is liable for the tax in the same way that a foreign owner of a holiday home is.

I hear what you're saying, but the Spanish aren't disriminating against foreigners.

Thanks

Neil

But they do discriminate in a way that Spaniards can claim allowances against the income side of the tax but foreigners can't. (Different tax maybe, but same principle!)

Mark