wealth and income tax

I have just received my non resident tax bill for 2007. I bought  my place for 120,000 € in Sept 2007. My solicitor reckons my bill  is 264.24 €. and, their charges are 240.00 € (VAT included). So a total of 500 €.

While I have read about how the make up of the tax bill is worked out, I have no idea whether 240 € is a reasonable fee or not. Someone mentioned the 214 form was only a few pages or so and if thats the case it seems mighty expensive.

Just wondering if anyone is paying at the moment and what sort of fee is reasonable. I am over in Cadiz province although my solicitor is in Marbella so is there anybody else I could use and would it be that much cheaper. I have seen earlier posts mentioning 250 € as a fee charge

Any advice would be much appreciated

I pay 250 euros, but this is not just for one form. It is for my lawyers to deal with any fiscal matter or communication during the year. And it is for myself and my wife as we are joint owners. I am told that this is a fairly standard fee for Marbella lawyers, but may be found cheaper in other areas.  I have no idea what other work may be involved during the year and feel that irt may be zero if the 214 is submitted correctly.

But beware - most lawyers will charge one year ahead. The 240 euros you are being asked for may be for 2008 tax representation, to be dealt with in 2009. It may be that you were charged for your 2007 fiscal representation along with your other legal fees upon purchase.

If I live in Spain and rent out my UK property I have to pay  UK income tax on the rent I receive.(after allowances) I assume I would not have to pay income tax in Spain on this but could I choose where to pay ?

If you are resident in Spain (i.e. more than 183 days per year) then you shouldn't have to pay any tax in the UK. You should, of course, declare any UK derived income when you submit your annual impuesto de la renta in Spain, though, and pay tax accordingly.

But surely the double taxation treaty works both ways? If I am a UK resident, why must I pay tax on rental income to the Spanish and reclaim it from the UK taxman if someone resident in Spain doesn't have to pay tax to the UK taxman and reclaim from the Spanish?

Mark

Good question, and I don't know. Except that, you are supposed to pay tax on any income somewhere, so I don't know what you mean by paying tax to Spain and reclaiming it from the UK - unless you are somehow exempt from all taxes?

As a Spanish resident, any income I earn from the UK, such as savings interest, I pay no tax on in the UK, but I declare it in Spain and am taxed on it. I don't know if the UK taxes non-resident property owners on rental income the same way as Spain does, but if so, then presumably you would not then have to declare that income again for tax - since it has already been taxed.

I think

When I started paying my Non Resident taxes in Spain, I checked with the UK tax office.

They said if you pay them in Spain, you do not have to declare them in the UK.

There is a "double taxation" system within the European Community and you should pay the taxes due in the relevant country.

I do not declare anything to do with my Spanish property to the UK tax office (on their advice)

Hope this helps..........................

Well the IR have put me on self assessment and told me I have to declare in the UK any income generated from rentals. I am also able to set against any UK tax due monies that have been paid to Spain, but I have allowances in the UK which I don't in Spain. I can offset some mortgage payments, some community fees, keyholding and cleaning fees, plus advertising and anyting else I pay to advertise the place. I can do all of this so long as the property is avilable for rental.

I'll find out soon as my forms arrived on Friday (less the important overseas income sheet!!)

Mark

Oh gawd Mark, self assessment?

I don't know about that, in the UK, I just get my tax code each year assessed by the tax man............

So I can't help further, sorreeeeeeeee!!

Yes, i've always been PAYE until this year. My fault for asking the question to them I suppose .

Mark

i got a very useful guide from Sue Chester on wealth tax, one problem i have come up on is that i have an NIE number(my bank paid the property purchase tax) but its not registered on line for me to get the stickers to go on form 214, i think i will have to go to Huercal Overa tomorrow to the tax office, does anyone know if i will be wasting my time.

thanks

simon

Hi Simon

Have you got the NIE certificate, the official stamped one?

If so, there is a chance you are entering the number incorrectly on the 214 form.

If you haven't got it, ask your bank for it.

If they say they haven't got it, then insist they register you and give you the certificate.

After all, they were responsible for your purchase, they have to give you the correct paperwork.

Hope this helps for you.

yep, i have the original and the numbe is correct, i went to an official office and they said its not registered localy....oh well looks like i will have to pay the accountant to do it, i feel like i failed...my bank say they employed an agent to pay the tax as they are not registered.

Don't give up!

Send a PM to Maria, EOs resident Lawyer.

She will be able to tell you how to get the NIE number registered properly.

Or, buy a blank 214 form and envelope from your local tax office.

Fill it in manually, pay it at your bank, then let the tax office worry about the NIE number

Not everyone fills it in online, not everyone has a computer!

Let me know how you get on, maybe e-mail me?

I can't  locate my original post I made a little while ago in which I said that our solicitor was calculating our wealth tax based on the value of our property shown on our deeds plus related expenses.  As no one else appeared to be charged in this way  I have  queried it  with them and have received the following reply :-

The Law of the Wealth Tax, indicates in the article 19/1991 of 6th of June, that it must use for this tax

the higher of the three values, these are, the purchase value, the value indicated by the Tax office or the Cadastral

value.  The purchase value according to this law is the value paid for the property plus all the costs necessary for the purchase, this

is, Notaries fees, register Office, taxes.

Can anyone confirm this for me please.

Crackers.,      I  am also checking with my  solicitor on how the calculations are done . in previous correspondence from them they  explained  how they  calculate the taxes.

purchased in 2001 and the cadastral value was only  issued this year.

Renta Tax

 1)     If no CV issued ;       purchase price in title deeds divided by  2 and then multiply  by  1.1%

2)      if CV is issued     CV  X 2% X 24%

I have further questioned  the second calculation  and awaiting reply

with information from this site  I believe the 2% multplierthat they  have used should be  only for properties with VC  issued before 1994. It should be

CV X 1.1% X24%

i am awaiting a reply  to confirm the calculation

We have an apartment and a garage registered seperately so a Form 210 is required instead of form 214.

will let you know what solicitor says about calculations

PS   RE: Marbella Tax office

Forgot  to  refer to wealthtax in last post the reply from solicitor re wealth tax was;

The calculations done for payment of annual taxes paid to the Spanish Tax Department are :

General Property Tax ( Patrimonio ) : based on purchase price in title deed x 0,2 % . If there is a mortgage then the pending capital at 31^st December can be deducted.

Doc.  I presume that you are sorting out your 2007 taxes like the rest of us. If you are saying that your Renta tax is calculated at x 2% x 24% that could be because your VC was only issued this year.