jurdyr

Was holiday let , you must charge IVA ..... on holiday lets
has has his moblie phone number and Email address .... , the landloard was reported for not payying IVA

Has anyone EVER been caught? that i dont know off but think there going after few i head off but that all i heard ....

frigilianafreddy

All my customers are from the UK and pay in the UK. They are not subject to IVA. They would be subject to VAT if my sales were high enough.

I am still amazed no one has heard of any apartment owning Brits pursued by the spanish taxman for rental tax.

What about 'black money' then. Does anyone ever get done for that - or is that also a risk free offence?

Econ

I have had a couple of tax returns from the Spanish IR over the last couple of years for different things and to be honest they have both been paid within a couple of months. I do remember several years ago when I had one it took nearly a year but at that time this was the norm from what I can remember my economist telling me, so they have actually got faster since then.

What gets me is they clamp down on small businesses and the general working class like a hammer while it is very well know that a lot of certain large companies rip the a** out of it and get away with it, probably because of the number of people they employ.

Econ

Just as a matter of interest... there is not VAT (IVA) threshold in Spain as there is in the UK, generally if you bill someone for something in Spain or buy something from within Spain then as far as the law is concerned you are in, like it or not. You can purchase something without paying the IVA at the time of purchase but then you need to declare and pay it in your tax returns here.

About 5 years ago I bought a computer fan from a German company... on line. The part was shipped and that was that... I thought. 1 year later I got a letter from hacienda asking why I had not declared the IVA on a payment to an EU company that did not charge it...? Long story about what I went through but.... anyway I eventually wrote them a letter explaining that I didn't give the purchase or if it had or hadn't IVA a second thought, the IVA was something like 32 euros. It never even dawned on me that I hadn't paid IVA on the amount, it was also in my name so a personal purchase... it must have cost hacienda 30 times 32 euros to pursue this and at the end of the day they never charged or fined me.

snikpoh

That's irrelevant (surely), the business is in Spain so is subject to (Spanish) income tax declaration AND IVA!

noelrosie

We rent our villa and are non-resident. We pay tax on it under form 214 'Impuesto sobre el Patrimonio y sobre la Renta de no Residentes'
On this form we have to declare the Catastral Value of the Property and that is offset against the mortgage on it. Tax is paid at a percentage of the difference, regardless of whether it is rented out or not - the Tax Authorities automatically assume that it is for at least part of the year ...
On the other hand, it keeps the Inland Revenue off our backs!

EsuriJohn

But you are supposed to pay the 214 tax for periods when the villa is not rented and a different and I guess higher tax for the periods when the villa is rented.

noelrosie

they assume for tax purposes the villa is rented all year ... we took the advice of our gestor

Cats-R-Us

May not be of much help as we stopped renting out our holiday home in the Alicante area over 8 years ago when we moved out permanently (have since moved from there too) but I do remember that some years before that the company looking after the cleaning and maintenance of it spoke to us during one visit about how they had been going to ask us to register to pay tax on the rental income. We said OK as we wanted to be legal but they then said it was no longer necessary as a few months had passed and it had then been announced that as so few had registered to say they did rent out their properties that all non-residents would have their patrimonio tripled. This way if you rented out your property you were paying extra and if you didn't - tough.

EsuriJohn

Yes but you are supposed to declare the actual income from real lets on a different form and pay tax accordingly every quarter or more often and no doubt at a higher rate!

Beachcomber

The tax rate is the same for actual rentals at 24% but this is on the actual amount of rental income received.

You are supposed to calculate the number of days of actual rental and then pay the notional income tax pro rata.