Starting 2009, we are preparing new services to you.... Yes, we want to follow Justin´s momentum to build a great 2009 for all EOS friends.
Mar Durio, who is a non resident taxes expert in adding the team to join forces in your favour.
She is offering today to you an old article she posted in our web when she was collaborating with us as an external expert.
Please do not hesitate to contact us if you have any taxes-related doubt. She is eager to help and advise.
Sigamos adelante con nuevo entusiasmo!
Very best from Algeciras!
Maria
-----------------------------------------------------------------------------------------------
Yes, Spain also have a Treasure Departmnet.....
you would like to avoid
. These are the general guidelines of taxes obligations in Spain, anyhow, an expert advise is always recommendable in order to "crafty" minimise or even eliminate your taxes burdens. Hey.. I am not encouraging you to taxes criminal conduct but to just appease the Government passion to collect! 
Moderation is a great virtue accordoing to Aristotles, as he said:
with respect to the enjoyment of pleasures,
temperance is a mean between
the excess of intemperance and the deficiency of insensibility;
This is What MarDurio says ragarding taxes in Spain:
When you buy a property in Spain, and after the payment of all the taxes involved in the proper purchase, having a property create several taxes to be paid annually, as in every other country of the world. In this country, there are four different taxes: Two to be paid to the Town Hall, and other two to the Inland Revenue Offices:
TOWN HALL:
- I.B.I. (Impuestos sobre Bienes Inmuebles): This is the annual contribution for having a house. It appears once or twice a year.
- RUBBISH COLLECTION: It appears twice a year, 1 Semester to be paid around April, and the 2nd Semester that uses to appears around August-September.
INLAND REVENUE OFFICES:
- WEALTH TAX: A tax for having a patrimony in this country, and it is calculated over the Purchase Price shown in the Title Deed, and should be paid every year since January to December. Supressed from January 1st, 2009.
- INCOME TAX: This tax is an average of the possible income takes for having a property in Spain, (it does not matter if you rent it or not, or if you have an income or not, and it was created to avoid tax evasion in general from foreigners who have houses in Spain and rent them). It is calculated on the above Cadastral value, and has to be paid at the same time as the previous one.
- LEASED URBAN PROPERTY
The income to be declared in this case is the total amount collect-ed from the tenant, without deducting any expenses.
This income is chargeable when it is claimable from the tenant or when it is collected (if earlier). Each rent due is taxed separately and, consequently, a return must be filed for each rent due.
Nevertheless, collective returns may be filed which may include various chargeable income of one or more taxpayers falling within a calendar quarter. If the collective return includes the income of several taxpayers, the person filing it must be a representative or one of the persons which the law regulating this tax defines as being jointly and severally liable (payer or administrator).
- Filing period: for ordinary returns (form 210), the deadline is one month after the date on which the rent is due. Collective returns (form 215) relating to a quarter must be filed within the first 20 calendar days of the month of April, July, October or January following the first, second, third or fourth calendar quarter, respectively.
- Tax rate: 24%.
Theses taxes could be deducted in your own country’s tax declaration.
Once all this explained, we inform you as well that either you can declare by yourself, or to use the services of a Fiscal Representative for your comfort, for which reason we offered our service to you.
If you decide not to pay these taxes, it should be under your own decision, but let advise you of what you should have in mind: that, when you decide to sale your property in the future, as foreigners, you will have a legal retention of the 3% over the sale price, which will be given back to you once the Tax Offices checked that all the previous taxes are paid. If they find some unpaid taxes, they will discounted them from the retention previously made for said purposes, with their corresponding penalties for not pay in due time. Therefore, as you can see, taxes are going to be paid in one way or another.
We hope that this matter is now clearer to you, in order to permit you to understand better our tax system, and your obligations with this country for having a property here.
Please, do not hesitate to contact us for any other query.
Yours sincerely
María del Mar Durio
This message was last edited by mariadecastro on 1/7/2009.