Taxes in Spain

Hi all
Sorry if this has been asked before, but I am confused re what taxes I need to pay in Spain , I am a non Resident. Do I have to pay Sumo and non resident taxes?? Do I need to use a solicter do pay both of these taxes???

We have our property since May 2008

I would be very grateful for your advise.

Thanks

Geraldine

 As far as I know you'll need to pay

1: IBI tax (council tax)

2: Basura  (rubbish collection fee)

3: La Renta Tax.

You may pay a year in arrears on La Renta the other 2 I'm not sure Maybe some else can answer you better.

Sumo tax only applicable in Japan (sorry, couldn't resist it!);

SUMA applies to Costa Blanca, but is same thing as IBI. You will be liable for 2009 onwards. 2008 should have been paid by previous owner, since they owned it on Jan 1st of that year. Bills aren't usually sent out until second half of the year - which makes it difficult for the previous owner to pay 2008 if you bought it in May. If it's a new build, you may have to wait a couple of years for the council to sort themselves out - and then bill you for several years at once!

You can do your own renta (income) tax, and there are people on here who will explain how, or you may prefer to pay a professional asesoria fiscal to do it on your behalf. 2008 payment due by either end of June or end of December 2009 - can't remember which for non-residents?

Roberto, I loved the Sumo tax bit!!

gerkinsella

Yes, you can pay your own taxes, many people do and save loads, year in year out on Lawyer's fees.

PM me for further info

Regards,

You can set up a direct debit to pay  the SUMA IBI tax through your Spanish bank.  The non resident 'renta' tax is paid using a modelo 210 tax form.  You can either pay a fiscal rep to do this for you, complete your own form if your Spanish is up to it, or obtain the modelo 210 ready completed and take it to your own bank to make payment.  For details of the modelo 210 completion at a cost of just 35 euros please see link to my website.  I can also let you have the SUMA direct debit form if you are interested.

Did I mention there are people on here who will tell you how to do your own renta?

Did we ever agree on the deadline for non-res. returns, folk?

Did I mention there are people on here who will tell you how to do your own renta?

Hi Rob, you did & bingo, two appeared almost at the same time, rather like our local buses.

If you submit yourself it's end of Dec, if a fiscal/lawyer submits on your behalf it's end June. (Do try & keep up, dear. )

Sorry I took my eye off the ball - too busy working out how long I can postpone filing my own tax return in order to maximise the interest I will earn before coughing up. How much is 0% of nothing, by the way?

It's Zilch, zero, nada Roberto!!!

Hi all

Thank you very much for all your helpful replies. I think it is all a bit clearer now.

Fibby - I will send you a pm for more information.

Thanks again

Geraldine

All fine information for new non resident property owner. But heres a point that everyone should be aware of.

For Owners in Estepona

The owners that have registered  Estepona as their main residence are given a subsidy from the Town Hall  towards the IBI bill.

Why should non resident property owners have to pay more than others?

Is it because we do not have a vote?

I am suprised that people do not complain about this discrimination.

Hi The Doc

I have read this in another thread I think.

If you sign on the Padron, would you get the disount then?

I don't think this discount applies in my area Costa Blanca.

If it is just local to Estapona, then i agree, Non Residents are being dicriminated against.

Start  a petition!

Hello Fibby Uk,

A petition would be a good idea, watch this space! Have you any suggestions on how to set one up?

This system of subsidising empadronmientos is not uncommon . There have been a few articles  on websites and newspapers.

But the difference in Estepona is that there was 2 increases in 08 .The catastral value  and the perecentage from 0.85 to 1.1  

Resulting in a 60 % increase for non residents and believe it or not only 2.1% for empadronmientos.It would appear that the EU is the only answer to force the Spain Government to implement their own  laws .

My understanding is that many councils encouraged property owners, both resident and non-resident, to sign on the padrón, in order to boost the apparent population figures, which would then bring more funding from regional and/or central govt. To encourage people, they offered discounts on IBI, and in some cases (such as Torremolinos) basura and water rates. In the case of Estepona in particular, it seems someone didn't do their sums right, because the town is effectively bankrupt!

I also understand that only those actually registered as resident in Spain are supposed to sign on the padrón, so town halls that encouraged non resident property owners to do so  were probably in breach of some law or other. No doubt it will all come out in the wash sooner or later, and the apparent discrimination will have to be resolved. Again, in the case of Estepona, it will most likely mean residents have to pay 60% more, rather than non residents getting the discount!

Hi the doc,

Not being a "doc" myself, I don't have a "cure" for your petition problem.

But if things works the same as in the UK, find out who is in power locally, go and talk.

Get the local press involved, Spanish & English.............

If you can, get the empowered political party and the local press on your side.

They can help set up some sort of protest/petition, they will have the knowledge.

This whole situation sounds ludicrous to me, go sort it out!

You could end up the local hero!

Good luck,,,,,,,,,,,,

The "empowered political party" are the bozos in the town hall calling the shots. Conflict of interests, methinks!

Hi Rob  Good to 'see' you again. (Don't mention we were off the air, for Gawd's sake, will you ? Bit of a nightmare all round).

Ooh, those lips sent a shiver down me spine!

Since we're on this thread, do you think maybe Justin hasn't paid his taxes?

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