Pica

Doh! The OP is renting another property in which she/he has shared access to lounge, kitchen, bathroom whilst the purchased property is being let out.

Loafing Along

Am sure you are right but enjoyed so much reading the thread.

Summary :

1. Buys house - rents it out

2. When rented out moves to a smaller one bed with shared facilities

3. When not rented out lives in main house.

Answer yes quite feasible, around our area on the Costa know a few people who do it and either move to a caravan site during the summer season or rent a smaller place . We had actually this situation, a very pleasant couple arrived at the apartment below us, as we eventually learnt from chatting to them they had a very large house near Marbella which they rented out all summer.

Taxes as mentioned previously .

dhillon

Top of the class Pica !!!

Are the taxes I will have to pay on the rental reasonable? Plus how would they know how much I received on rental - on good faith? I can have rental paid into a PayPal Account.

Thanks - am Looking in Los Alcazares.

Pulaski

So why didn't he just say "renting another property to live in". Full stop. I don't see that it is relevant whether the other rental has its own facilities, shared facilities, or is a tent in the woods.

Loafing Along

On rental tax comes out about 20℅ depending on deducted expenses.
Taxman spends his free time on Home away, Airbnd , in-between checking data with utility companies.

Pica

He/she did, just had to read it carefully

dhillon

Does any one have any experience with the rental tax form - it seems so complicated.

Loafing Along

Get a gestor to do it, probably only charge about Euro 50,-

dhillon

Thank you!

dhillon

Another question - I am allowing for about 12,000 euros for fees on top of property price (looking to buy between 120,000 to 110,000). Is this enough?

Loafing Along

Should do it, allow 8% transmission tax, ( this varies from region to region ) then lawyers, register and other things . A word of warning - some councils have not revised their Cadastral ( rateable ) value since 2008 - the height of the property boom before the collapse. This means they may charge the 8% tax on the cadastral value , which is often higher than the actual purchase price, and then demand more money. You will only find out about this several months after the event. So, for example, you spend Euro 120,000,- on a house that has a "value" of Euro 180,000,- . Your final transmission tax bill will be 8% of Euro 180,000,- not the Euro 120,000,- you paid.

bolton wanderer

Purchase tax in Valencia/Alicante is 10%. I would allow 15% of the property price.

Eric S

It's not that complicated, once you get used to it. You could pay someone to do it for you the first time and then use that as a guide for subsequent times.

If you are going to be non-resident in Spain, you will need to worry about two types of taxes:

1. Tax on the rental income for when the property is rented -- paid quarterly
2. "Imputed" tax for when the property is not rented -- paid yearly.

So if you only rent it out part of the year, you could possibly have to fill out Form 210 five times per year.

Here's a guide to doing the imputed tax:

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

For rental income, it's pretty straightforward, you pay 24% of the income. I have my own notes on the differences, copied here:

For rental income:
type 01
file quarterly - first 20 days after the end of the quarter (1 - 15 for Internet payments)
use Grouping
accrual date blank

For imputed income:
type 02
file annually - before Dec. 31 of the next year
use "valor catastral" (from IBI) -- 1.1 or 2% in box 04
prorate the amount for period of the year when not rented
payer is blank (renter name)
period OA
no Grouping
accrual date 3112nnnn (Dec. 31)

Good luck.
- Eric S.

wilsman77

So if he/she is just bumming around in that 1 bed flat but has income of beetwen €10k & €15k a year is there no earnings limit to apply like in the U.K.? The 23% surely kicks in at a certain amount of income no?

Dondurma

I still don't understand why she's not renting out the kitchen.....