14 Apr 2009 11:18 PM:

Good evening and many thanks Neil,

With the economic malaise facing all countries, I gather that the Spanish fiscal authorities are looking to boost revenue by paying closer attention to the many non residents who have a Spanish property and receive rental income from it but (through ignorance or otherwise) do not pay the income tax on the gross rentals and do not have an official license to rent (I understand that getting the license is nigh on impossible as very few applications are successful).

What is your understanding of the policy the Spanish authorities are taking - for example, are they not really interested in non residents who say have just the single property and who let it infrequently (say, 6 times in the year) and whose gross rent received is considered to be too low to bother about. Seems to be a bit of a catch 22 - you can't get the license but you need to get some income from the property (perhaps to help pay a mortgage secured on it) so you find yourself (and I guess unknowingly for many) doing the holiday lets illegally (ie because you do not have the license).

I'm not sure what its worth in extra revenue to the Spanish fiscal authorities but it must potentially be a very significant amount for not much effort in tracing offenders. Presumably many Spanish people who let second homes etc are in the same boat but I guess they (in the main?) at least pay income tax on the receipts.

Many thanks

CAG

 

Thread: can we submit the Tax form 214 ourselves?

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14 Apr 2009 5:52 PM:

Mar Durio,

Good afternoon - very interesting forum.

I hope you have the time and can help with the following few questions. Assuming 4 owners of a villa (husband and wife and husband's mother and father):

1. do each of them fill in and submit modelo form 210? 

2. is the tax is effectively split equally between them as each of them presumably cites their 1/4 interest on the modelo 210?

3. I gather that many non resident Spanish property owners let their Spanish property regularly but may not be aware that they should be paying Spanish income tax on the gross rents and in addition (but taking into account any Spansih tax paid) UK income tax on foreign income from property (although unlike Spain, HMRC do allow a number of allowable deductions and allowances). Like the UK, the Spanish have a tax allowance - if your share of gross rentals from the one Spanish property you have and own with 3 other owners, is less than the personal allowance, as a non resident, do you have to pay income tax on your share of the gross rentals? 

4. following on from 3. above, would you have to complete a tax return (I think not given the income is below the personal allowance) ?

5. do you use modelo 210 to also set out your share of the rental income?

6. do you have the link to the Spanish tax office database?

7. if one of the 4 owners does not yet have an NIE, will they still be able to complete modelo 210 and if not, does that mean the tax is split 3 ways instead of 4?

Very many thanks

Chris

 

 

Thread: can we submit the Tax form 214 ourselves?

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