Jon-Bxl

I understand that there are the normal property taxes (for any property - anywhere) and I pay the eg IBI every year.

I highlighted your comment about 'non-resident tax' as it seemed differently named to what I call 'property tax'.

Thanks for clarifying, I've never heard of my property tax called 'non-resident tax' before - so it rang an alarm bell for me.

Thanks
Jon

Dxf

Hola

The UK have a slightly different approach; as I understand it, there are parts of the West Country, Wales and the Isle of Wight that you are not allowed to buy a property unless you live there. This is to protect against "Ghost villages" where no-one lives permanently and only uses a house as a holiday home.

Spain's answer is to say "By all means buy here - we will simply tax you and turn a blind eye to someone building yet another illegal house (so we can tax that also)

Davexf (with a cynical tongue very firmly in his cheek)

EsuriJohn

Not quite Jon. The property taxes for a property you own are paid to the Ayuntamiento i.e. IBI, Basura FOOTPATH CROSSING TAX and the community charge to your Manzana , Intercommunity and the EUC. The non resident tax is paid to the central government and is a charge as DX says for the privilege of owning a property in Spain based on your Catastral value.

Jon-Bxl

Thanks John & DX

I never heard of the term 'nonresident' tax before, so was confused.

Also in Belgium we have a tax based on the cadastral value, (as we spell it) - and that is paid by everyone, resident or not.

Never heard of the footpath tax either!

Oh well time to put the head back in the sand

Jon

MikeCol

Hi Jon, John is correct in what he says. Non-resident tax has to be paid every year by 31st December. When we first took possession of our apartment we used it as a holiday home for 2 years before moving out permanently. We paid NRT then and now we are back in the UK we have to pay it again. If you own the home jointly you both do a return for half the value each. In our case it works out at €77.10 each. Regards Bryony.

shirley and anthony hide

To clarify , non resident tax for properties that are not rented out is payable by December 31st of the current year for the previous year. Ie 2015 tax is payable by end of 2016. The tax form is Modelo 210
Basically it's 1.1% of the catastral value of your property if the catastral value was revised after 1st Jan 1994. If not it's 2%
The tax rate is then applied to this amount which at the moment is I believe
19.5%

So a catastral value of Euro 50,000 would equate to a tax liability of 107.25
Using 1.1% as the base
Please feel free to correct me if I am wrong.It wouldn't be the first time!

Dxf

Hola,

Correctly it should read "To clarify, non resident tax for properties in Spain owned by people not pay Spanish income tax is payable by 31st December.

It matters not a jot if the property is rented out or not.

Davexf

Jon-Bxl

Thanks everybody for the past few posts.

I feel less bad now for not knowing the term 'non resident tax' it isn't crystal clear. But I appreciate the clarifications.

Ive been paying this every year, but use a local service to handle the paperwork. I did something once - for one of the taxes, and it seemed a hugely administrative process, with certain papers having to be handed in to certain banks, with payment, and then the banks would only handle the paperwork on certain days of the week! Welcome to the 21st century.

Anyway I cant remember what that tax was, and after that I took the easy way out and used this service.

With the warm sands we have in the area, its cosy to have my head stuck in it This is the first time I have heard of the term 'NRT'... probably as its sorted by someone else.

Thanks again and hope your Xmas preparations are going well.

Jon

EsuriJohn

I think the confusion arises because the Spanish use the term "renta" to mean tax. I pay all my income tax in Spain after the HMRC have taken their whack it is still referred to as renta. Any Brit buying a house as a holiday home for himself and his family would probably be told at some stage in the purchase by some Spanish bureaucrat that he would have to pay renta. Back home after all the excitement he thinks to himself "I am not going to rent my property to anybody else so I do not have to worry about that "renta" and forgets about it". Some years later the Hacienda for whatever reason picks up that Joe Blogs owns property X and sends him a bill for back taxes and his neighbors Spanish say ah the renta, English say non resident property tax and old Joe fumes cause he just doesn't get it compared to his English taxes it does not exist.

shirley and anthony hide

I know of someone who told me they used a local Gestoria to prepare and pay his renta tax for them. The Gestoria was charging him almost 300 euros to do basically 10 minutes work! The term "taking the pi** big time " was used in my response.

MikeJ

I'd never heard it called Non-Resident Tax before - although that's what it is in effect.
I thought it was Income Tax based on the imputed income (based on catastral value) if you were to let the property - whether you rent it out or not.

del.Almendro

Forgive me for referring to a rival forum but this is what I consider to be definitive guidance on the subject:

Non-resident imputed income tax - Form 210 - Andalucia.com

Updates are timely and clear, I find. 10 minutes does the job. I pay in cash over the counter in Caja Rural, Ayamonte, even though I no longer have an account there. One of the cashiers speaks quite good English, should you get stuck. I use that bank as they seem to be familiar with the Modelo 210 forms. My local branch in Castillejos has never heard of them but then we are the only Brits in the pueblo.

Feliz Navidad amigos.

Barrie

Jon-Bxl

Gosh I pay a whole lot less than that!

I understand that its a few mins work, but I find the system very antiquated, having to go to eg Caja rural on a certain day, between certain hours (like it was before) carrying a bill one has to get from another office..etc.

I've always got a bill sent in the post, that I can pay from anywhere via online banking. For years now ....... until I bought in Spain.

My contact does a bunch of these at the same time and I am happy she gets payment and I get it done properly. Also saves me getting annoyed whilst following this system!

Also good to hear that Im not the only one who hasnt heard of NRT. Its not crystal clear, and there is obviously some level of confusion here.

Thanks again
Jon

Jon-Bxl

Its crystal clear now, thanks Barrie. And Merry Xmas to you and all, too


Jon

PS Im still sticking with my contact to do this properly for me.

Fred James

You may also find this explanation helpful.

Property taxes for non-residents - Spanish Property Insight

The tax on rental properties is often referred to as "Imputed rental income tax". If you do actually let it for part of the year, normal income tax is payable on the rental income, but for the period that it is being let, you do not pay the "Imputed income tax".