| The Comments |
Hi Hobby,
Our lawyer simply requested the amount outstanding on our mortgage and supplied the following as a breakdown of costs ( am awaiting a detailed breakdown explanation of these costs as it seems very confusing as we have not rented our apartment).
"tax due has been calculated and the amount is 450,86€. Please, note that our fiscal representation fees have not been included (250€)."
Therefore, we kindly request you to send us the amount of 700,86€ (450,86 + our fiscal representation fees) to prepare and pay your tax to the account mentioned below:
: 700,86€
As previous year, please find below the detailed calculations:
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110.975,00 €
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71.502,21 €
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39.472,80 €
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39.472,80 €
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78,95 €
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- €
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0,2
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- €
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78,95 €
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78,95 €
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610,36 €
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24
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146,49 €
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225,43 €
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x2
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450,86€
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The payment is slighter higher than 2006 due to the purchase date. Deemed income tax is now calculated for the whole 2007
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Wow, Jackie, 1400 euros IBI for one year. That's just like paying another council tax at home. Well, I suppose that is exactly what it is.
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JohnF wrote:
Our lawyer simply requested the amount outstanding on our mortgage and supplied the following as a breakdown of costs ( am awaiting a detailed breakdown explanation of these costs as it seems very confusing as we have not rented our apartment).
Everyone who is a Non Spanish Resident pays La Renta tax, irrespective of whether you rent your property out or not.
As you are not a resident, it is assumed that when you are not there, you rent it out.
Kind regards,
_______________________
FibbyUK
One off fee to pay your own La Renta tax (210 Form)
Check out my website:
http://www.payingtaxesinspain210form.pwp.blueyonder.co.uk/
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Fibby,
The fiscal reps put great store on the importance of having someone in Spain (them) to receive and respond to communications from the tax office. How important do you think this is?
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Hi Plexx
Of course they will say that, they want your business!
It is an individual choice whether you deal with your own financial affairs or employ someone to do it for you.
It is no different to here in the UK, you can fill in your own tax returns or employ an accountant.
I cannot recommend whether to pay your own taxes or employ a representative.
However, I pay my own taxes and have done for the last 4 years, year number 5 is about to be paid.
I have not had a problem doing this.
However, if anyone is unsure and nervous about "doing it yourself", then the wisest move is to employ someone.
_______________________
FibbyUK
One off fee to pay your own La Renta tax (210 Form)
Check out my website:
http://www.payingtaxesinspain210form.pwp.blueyonder.co.uk/
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Hi Johnf
Looks like your fees are about the same as plexx was charged, we are being charged 174€ activity fee (whatever that is) plus another 406€ representation fee, that was my original query really, if anyone could clarify what the difference is between the two fees, the actual tax itself were ok with!!
Jackie
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Most non residents pay a fiscal fee once a year for preparation of the Wealth tax/Renta form (214)
This amount varies and if the property is jointly owned then it is double the fee as you both have to submit a return.
On the Costa Blanca it averages out to E80 a person.
Once you have your IBI sorted, set up your direct debit and also are paying the utility bills by direct debit then there is nothing else for your Solicitor to do for you. So charging 406e representation fee is extortionate, especially as next year non-residents do not have to pay Wealth Tax just Renta or Income tax as it seems to be called in CDS.
Look at what you are paying for Income Tax/ Renta and possibly think about paying it yourself. My solicitor has been paying mine for 5 years now but I think I'll start dealing with it myself. I've never had any come back from the tax office, if you only have one property then it's not really necessary. You have until the end of December to complete the form.
As you have your figures for each part of the tax form why not download the 214 form to see if you can arrive at the same figure. The amount you save is a big incentive, you might even find that the costs of dealing with these forms will come down as most people will be thinking twice about using a representative.
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Just a note for all that the 250 euros my lawyer charges is for both my wife and myself (we are joint owners), so, whilst more than the standard rate on Costa Blanca (but is that fee from a tax advisor or lawyer ?) - it may not be too bad. And i doubt there is any advantage in using a lawyer over a tax advisor other than that initially the lawyer will have all the pruchase docs in his/her possession.
Fibby, I am quite comfortable doing my own tax returns in UK and the 214 looks straight forward enough. It is definitely the question of other possible communications to be dealt with that leave me a little concerned. I think I may leave it for a second year before I DIY.
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Semijubiliada, thanks for your reply and advice - the apartment is only in my husbands name, although the lawyers have all my details I couldnt get over there when he went over to get his NIE, so its his name on the mortgage, utility bills, taxes etc which means the fiscal rep fee is only for him not both of us!!!
You are right in saying they have nothing else to represent us for, everything is paid by direct debit including IBI now, I wasnt aware that we didnt have to pay Wealth Tax next year, is that applicable to all of non residents with property in Spain or just certain areas ie like yourself being in the Costa Blanca?
As the Company we use are Legal & Tax consultants they have all the original documentation related to the purchase of our apt including my husbands original NIE certificate, they were also given power of attorney back then so they could sign all the legal stuff on our behalf rather than keep on flying back and forth - could this be the reason they are charging such a high fee still?
Can I also be a pain and ask - do we have to take the form personally to the tax office or can it be posted and how do they accept payment? (Sorry if this has already been asked, I know it can be annoying when it is probably covered on another thread but Im a bit short on time to go 'surfing'!
Jackie This message was last edited by hobby on 11/4/2008.
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".....Renta or Income tax as it seems to be called in CDS....."
Don't know if you got that from me, Semi, but just to clarify, it's not a CDS / CB thing; renta is Spanish for income; impuesto is Spanish for tax.
_______________________
"Get your facts first, then you can distort them as you please"
Mark Twain
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For those who not only want to complete their own 214, but also practice their Spanish, instructions can be found here Why on earth it's not available in English, Arabic, urdu etc. etc, I don't know. Sorry.
_______________________
"Get your facts first, then you can distort them as you please"
Mark Twain
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Hi Fibby,
Thanks for clarifying the renta tax - Everyone who is a Non Spanish Resident pays La Renta tax, irrespective of whether you rent your property out or not. Although this does'nt seem fair we have to accept the system. I did not fully understand the system - another lesson learnt.
Regards
John
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I am following the discussion on the wealth tax and the Income Tax (renta) and I would like to check my situation. I puchased an apartment in 2002 but it took until this year to receive a valor catastral.
My solicitor outlined the calculations that they use.
If Valor Catastral not issued L: PRICE IN TITLE DEED divided by 2 then multiplied by 1.1% and then charged at 24% tax
If Valor Catastral is issued; : VALOR CATASTRAL multiplied by 2% then charged at 24% tax
The above formula differs from the information in the forum. Can anyone confirm the correct formula.
Thanks
Andrew
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We were given the following calculation by our Fiscal Representative:
Wealth Tax - 0.2% x (purchase price - outstanding debt)
or for example 0.2% x (179,000 - 145000)
which equals 0.2% x 35,000 = 70
Income Tax - 2% of rated value (which appears as VC Total on our IBI Bill) x 24%
so for example ours is 2% x 19931 = 398.62 x 24% = 95.66
Therefore the information in your post is correct if the Valor Catastral figure is available but you then also need to calculate your wealth tax.
Noreen
_______________________
www.alandaluscarhire.com
www.vera-apartment.com
www.verathalassa.es
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Porcentaje aplicable:
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Inmuebles cuyo valor catastral haya sido revisado o modificado con efectos desde el 1 de enero de 1994 . . . . . 1,1%
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Restantes inmuebles . . . . . . . . . . . . . . . . . . . .. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2%
This is from the linked page I gave earlier, which is direct from Agencia Tributaria. It basically says, properties whose valor catastral has been revised since 1st January 1994, percentage applicable is 1.1%; all others: 2%
You will be able to see when the valor catastral was last revised by looking at your IBI bill. In your case, since it is presumably a new property, the former applies.
Hope this helps.
_______________________
"Get your facts first, then you can distort them as you please"
Mark Twain
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I'm confused now!
Our IBI Bill states Ano Valor: 2008 - Ano ultima revision: 1995
Ours is a new property which was completed last year. The Fiscal Rep told us in August that it was 2%
So from what you are saying I should pay 1.1% but the FR is telling 2% - Help!
Noreen
_______________________
www.alandaluscarhire.com
www.vera-apartment.com
www.verathalassa.es
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Well, I'm not a tax expert, but I'm getting my info direct from the Agencia Tributaria website, specifically this page, which is the help notes for completing form 214.
The year of the last revision, in your case '95, refers to the last time your local council revised the valor catastrales in your area, so although it's a new property, that would still make sense.
If you have an e-mail contact for your rep, why not send him this link and ask him to explain. Tell him Roberto wants to know!
The wealth tax figures I think are correct.
_______________________
"Get your facts first, then you can distort them as you please"
Mark Twain
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Hi Roberto
I will do exactly that now that I know that I have got you confused as well.
I was going to say in my previous post that I would query it but I wasn't sure if I was misunderstanding what you were saying (which I wasn't!)
Thanks for the response.
I will email him tomorrow & will post again with his response.
Regards
Noreen
_______________________
www.alandaluscarhire.com
www.vera-apartment.com
www.verathalassa.es
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I'm not confused, I'm just curious! 
_______________________
"Get your facts first, then you can distort them as you please"
Mark Twain
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JohnF wrote - Thanks for clarifying the renta tax - Everyone who is a Non Spanish Resident pays La Renta tax, irrespective of whether you rent your property out or not. Although this does'nt seem fair we have to accept the system. I did not fully understand the system - another lesson learnt.
This tax along with Wealth Tax is aimed at anyone who owns a second property.
Where I live most of the properties are owned by people who live in Madrid or Leon. They are empty for most of the year until Easter and August. The owners would also have to pay Wealth and La Renta tax.
Still waiting for confirmation that Wealth Tax has officially been abolished, last I heard it was awaiting the Royal Decree. Most people pay their Solicitors their fiscal fees at the beginning of the year, I'd imagine a lot of the staff who deal with the 214 forms are on tenterhooks as to whether they will still have enough clients to warrant their jobs.
When I went into my office to sort out my IBI in September I was told that they couldn't confirm what was happening and fully expected another tax to take it's place. I gathered I wasn't the only one who was asking the question.
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