wilsman77

Hi just for clarification (holiday home not a resident) I pay two taxes 1. Equivalent of council 2. A tax where Spain assumes you are renting the property out is that correct?

Thanks

Fred James

That's correct. In the past there was a third tax - wealth tax, but that no longer applies.

wilsman77

Thanks once again Fred.

johnnyone

What about rubbish collection and recycling taxes?

Fred James

They would be included in Council Taxes.

snikpoh

We don't have a recycling tax - yet.

wilsman77

Snikpoh,Ha Ha its coming soon watch this space. All I bang on about is how cheap it is to own a property and and live in Spain, but give it a year or two.........

davidinspain

Bocairente have implemented it,but it isn't expensive........yet.

Porth

We are renting just until we move back to the UK. Thus should the owner be declaring a not insignificant monthly amount to the tax guys. He is not resident in Spain so I am presuming that he does not have to declare?

snikpoh

When you say "he's not resident in Spain", what do you mean exactly? How long, each calendar year, is he here in total?

Porth

thanks and the answer is days and nowhere near 183. Just out of interest for as against renting we are going back to the UK and our home in France. Collecting our thoughts and early days but wondered what the taxation would be if we bought an apartment in Spain just for the odd weeks for us and the family but then rent it out.

We would not be resident in Spain maybe France yes but not Spain

As an aside and having returned recently to France it was frightening to view the cost of living. One's euro goes further in Spain.

Spain may catch up but there is a huge margin in its favour.

Menus of the day in France can hit 24 euros! However can recommend the true tapas bar in Collioure run by the ex hooker for Montpellier Rugby he was wonderful

thanks again

Fred James

It doesn't matter whether he is resident or not. Rental income from a Spanish property is taxed in Spain, irrespective of residency.

What is more important is whether the tenant is tax resident as if so, he will declare the details of the property he is renting on his tax return. That means that the tax office can cross check the details to see if the landlord is declaring the rental income.

This was introduced a few years ago and it identified loads of undeclared rental income.

Porth

Thanks Fred I am not tax resident. Neither is the owner so I am not sure how he will be identified?

Fred you were absolutely right as to lilies - I will not grow them again. So if anyone is living near Javea they are welcome to some terracotta pots containing lilly bulbs!!!

Those who have cats please do not respond lilies are dangerous to cats and can kill.

thanks again Fred

Fred James

No, under those circumstances, there is no link between the two which makes it more difficult.. However, it is getting increasingly difficult to hide unregistered lets from the taxman.

In many areas all non holiday lets have to be registered and comply to certain standards before they will receive registration. I understand that sites like AirBnB will eventually be insisting on details of the registration before allowing you to advertise. One you register it, it would be assumed that you receive income from it and it is easy to check to see if it is being decalred.

The tax office also has access to electricity usage figures which makes it pretty simple to see if a property is being let should they suspect that it is not being declared.

That said, the Spanish taxman is not renowned for chasing obvious sources of tax evasion - think about all the foreign cars that could be forced to pay the registration tax but get away with it for years.

Porth

thanks Fred just musing and believe perhaps complying is the better way foward? However I am not an angel but if someone feels your collar then it could be unpleasant.

I know someone who has had a company here and dormant for ten years. He populated it with 20k of funds. However never submitted returns despite the fact it was a dormant company.

He know has a heck of a fight to get his money out!