House sale tax-refund
Oct 28th 2011, 10:15 am
#16
Joined: Jun 2006
Location: Granada Costa
Posts: 10,898
Re: House sale tax-refund
However there are a very large number of expats who do not pay tax in Spain or submit a tax return because they are not aware that they are obliged to.
There is not a lot this forum can do about the tax evaders but it can do a lot to make sure that those who do not have the intention of evading tax at least know what the rules are.
Oct 28th 2011, 11:52 am
#17
BE Enthusiast
Thread Starter
Joined: May 2009
Posts: 882
Re: House sale tax-refund
You're quite right - there are many expats who deliberately evade paying tax.
However there are a very large number of expats who do not pay tax in Spain or submit a tax return because they are not aware that they are obliged to.
There is not a lot this forum can do about the tax evaders but it can do a lot to make sure that those who do not have the intention of evading tax at least know what the rules are.
However there are a very large number of expats who do not pay tax in Spain or submit a tax return because they are not aware that they are obliged to.
There is not a lot this forum can do about the tax evaders but it can do a lot to make sure that those who do not have the intention of evading tax at least know what the rules are.
It is all those who have no idea about tax here as it is never brought to their attention. This on the whole is down to the Spanish system which appears to be uninterested, leaving to individuals rather than persuing them.
Clearly when expats are buying here they have to register for NIE and pay the taxes related to property etc but the tax office doesn't seem to relate that folk must also have an income here which in theory should be declared.
They have no problem in freezing non resident accounts once you do register here so it's not as if they don't have the data infrastructure.
Once again it comes down to the fact that no one seems to know exactly how the whole thing works.
Oct 28th 2011, 12:18 pm
#18
Joined: Jun 2011
Location: In the middle of 10million Olive Trees
Posts: 12,053
Re: House sale tax-refund
As usual Fred you have hit the nail on the head.
It is all those who have no idea about tax here as it is never brought to their attention. This on the whole is down to the Spanish system which appears to be uninterested, leaving to individuals rather than persuing them.
Clearly when expats are buying here they have to register for NIE and pay the taxes related to property etc but the tax office doesn't seem to relate that folk must also have an income here which in theory should be declared.
They have no problem in freezing non resident accounts once you do register here so it's not as if they don't have the data infrastructure.
Once again it comes down to the fact that no one seems to know exactly how the whole thing works.
It is all those who have no idea about tax here as it is never brought to their attention. This on the whole is down to the Spanish system which appears to be uninterested, leaving to individuals rather than persuing them.
Clearly when expats are buying here they have to register for NIE and pay the taxes related to property etc but the tax office doesn't seem to relate that folk must also have an income here which in theory should be declared.
They have no problem in freezing non resident accounts once you do register here so it's not as if they don't have the data infrastructure.
Once again it comes down to the fact that no one seems to know exactly how the whole thing works.
when we were hit with poll tax at least 20% of adult population suddenly went missing because they hadnt put their names down on the Electoral Roll.
many still do not have a vote.
just watch out what you sign up for, too many organisations have legal access to information from other departments.
Oct 28th 2011, 1:52 pm
#19
Joined: Jun 2006
Location: Granada Costa
Posts: 10,898
Re: House sale tax-refund
Try convincing them that you, as a non resident, are not letting out your property when they can see the monthly usage or that you aren't really living in Spain all the time.
Hacienda is really tightening up on all sorts of tax evasion as the legitimate sources of tax income are drying up due to the recession. Last year they raised about 20% more tax than the previous year just by chasing up tax evasion.
