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-   -   Non Payment of Non-Residents Taxes Letter (https://britishexpats.com/forum/spain-75/non-payment-non-residents-taxes-letter-779136/)

Chiclanagir Nov 29th 2012 8:52 am

Non Payment of Non-Residents Taxes Letter
 
I have received an email from Eye on Spain with screaming headlines that the Tax Authorities are going to freeze non-residents bank accounts for non-payment of taxes. This is part of the email. Is this happening or scaremongering? I am not a non-resident so doesn´t apply.

If any of these letters have been sent to you then it is essential that you act now.

The Tax Authority will freeze your bank account and remove what you owe directly from it. This can then lead to problems with payment for utilities. Electricity and water will be cut off in Spain if bills are not paid.

snikpoh Nov 29th 2012 9:17 am

Re: Non Payment of Non-Residents Taxes Letter
 

Originally Posted by Chiclanagir (Post 10407292)
I have received an email from Eye on Spain with screaming headlines that the Tax Authorities are going to freeze non-residents bank accounts for non-payment of taxes. This is part of the email. Is this happening or scaremongering? I am not a non-resident so doesn´t apply.

If any of these letters have been sent to you then it is essential that you act now.

The Tax Authority will freeze your bank account and remove what you owe directly from it. This can then lead to problems with payment for utilities. Electricity and water will be cut off in Spain if bills are not paid.

.... it doesn't seem unreasonable, so I suspect that it could be true.

Lynn R Nov 29th 2012 10:05 am

Re: Non Payment of Non-Residents Taxes Letter
 
I know someone who received one of these letters (he asked me to translate it for him!). He has since sold his house and closed his Spanish bank account, I wonder if Hacienda will try to take steps to pursue people in this situation in their home countries for the debt?

Pocaloca Nov 29th 2012 1:04 pm

Re: Non Payment of Non-Residents Taxes Letter
 
How long do they give you to pay, in the initial letter? Some non-resident owners only visit their properties once or twice a year and might not see the letter.

Countryboy1 Nov 29th 2012 1:39 pm

Re: Non Payment of Non-Residents Taxes Letter
 

Originally Posted by Chiclanagir (Post 10407292)
I have received an email from Eye on Spain with screaming headlines that the Tax Authorities are going to freeze non-residents bank accounts for non-payment of taxes. This is part of the email. Is this happening or scaremongering? I am not a non-resident so doesn´t apply.

Thanks for the post, but non-payment of what taxes? If these are/were taxes that should have been paid, what's wrong with the authorities asking for the money?
Finally you say it's regarding freezing 'non-residents' accounts, but end by saying you are non-resident, so it doesn't apply. ???

snikpoh Nov 29th 2012 1:53 pm

Re: Non Payment of Non-Residents Taxes Letter
 

Originally Posted by Biffta (Post 10407706)
Thanks for the post, but non-payment of what taxes? If these are/were taxes that should have been paid, what's wrong with the authorities asking for the money?
Finally you say it's regarding freezing 'non-residents' accounts, but end by saying you are non-resident, so it doesn't apply. ???

Firstly, the OP said that she was NOT non-resident - so it does NOT apply to her.


The taxes are those that non-residents have to pay on bank accounts and on properties they might own (I presume).

These are taxes that should have been being paid so it doesn't matter that they might only come over once or twice a year. As they say, "ignorance is not an excuse!"

Chiclanagir Nov 29th 2012 2:20 pm

Re: Non Payment of Non-Residents Taxes Letter
 

Originally Posted by Biffta (Post 10407706)
Thanks for the post, but non-payment of what taxes? If these are/were taxes that should have been paid, what's wrong with the authorities asking for the money?
Finally you say it's regarding freezing 'non-residents' accounts, but end by saying you are non-resident, so it doesn't apply. ???



HomeAnti Fiscal Fraud Plan
Non-resident bank accounts frozen
The Spanish Tax Authority is now taking unpaid taxes directly from non-resident bank accounts
Who does it apply to?

Non-residents with a house in Spain who have not presented their imputed income tax.

Every non-resident must pay two annual property taxes:

Council tax (IBI)
Income tax (La Renta) payable even if you don’t rent out your property


I suggest you have a look at the Eye on Spain website.

The authorities assume that if you are not resident then you are renting your property out and as such you are liable for xxxx amount of tax.

spainrico Nov 29th 2012 2:48 pm

Re: Non Payment of Non-Residents Taxes Letter
 
Even if non residents are not renting out their property they still have the annual tax to pay to AEAT. Just had a recent thread on this - http://britishexpats.com/forum/showthread.php?t=778570

Pocaloca Nov 29th 2012 2:55 pm

Re: Non Payment of Non-Residents Taxes Letter
 

Originally Posted by snikpoh (Post 10407739)
These are taxes that should have been being paid so it doesn't matter that they might only come over once or twice a year. As they say, "ignorance is not an excuse!"

Sure, I agree, but this non-resident property tax is quite new (2010??) - they might not have known about it when they bought their holiday homes.

I know a few people in that position and would be grateful if someone who has actually received the letter could confirm how long they give you to make the payment.

spainrico Nov 29th 2012 2:57 pm

Re: Non Payment of Non-Residents Taxes Letter
 
As I understand it (I am a resident) there has always been non resident property taxes due - the letter is chasing people who have never paid it for whatever reason. I don't think there is any 'new' tax involved.

Lynn R Nov 29th 2012 3:04 pm

Re: Non Payment of Non-Residents Taxes Letter
 

Originally Posted by Pocaloca (Post 10407847)
Sure, I agree, but this non-resident property tax is quite new (2010??) - they might not have known about it when they bought their holiday homes.

I know a few people in that position and would be grateful if someone who has actually received the letter could confirm how long they give you to make the payment.

No, the non-resident property tax was certainly in existence when I bought my house in 2003 and nothing has changed in that respect. Non-residents used to have to pay a Wealth Tax as well but that was abolished a few years ago.

I remember having the tax situation explained to me by my lawyer so I think many people try to use ignorance as an excuse when they did actually know about it but assumed those inefficient Spanish funcionarios (as they see it) would never catch up with them. The guy I knew who got the letter certainly lived here full time for several years anyway, so had obviously never bothered to become officially resident either. His face when I told him what the letter said was a picture.

Sorry, I can't remember now what date was quoted in the letter as a deadline for when the returns had to be submitted and the tax paid.

Pocaloca Nov 29th 2012 3:11 pm

Re: Non Payment of Non-Residents Taxes Letter
 

Originally Posted by spainrico (Post 10407856)
As I understand it (I am a resident) there has always been non resident property taxes due - the letter is chasing people who have never paid it for whatever reason. I don't think there is any 'new' tax involved.

OK, I thought it was new if you don't actually rent out the property, but I could be wrong (I often am!! :o)

snikpoh Nov 29th 2012 3:14 pm

Re: Non Payment of Non-Residents Taxes Letter
 
Firstly, let me say that I am a pedant!

Wealth tax has not been abolished at all and never has been. Until this year, the rate of tax was simply 0% - so no one paid anything.

Now the tax has been re-instated but you need to have a fairly high wealth to have to pay any tax.

So it certainly exists and people should be careful if they are in the fortunate position of reaching the level and which it 'kicks in'.

Countryboy1 Nov 29th 2012 3:14 pm

Re: Non Payment of Non-Residents Taxes Letter
 

Originally Posted by snikpoh (Post 10407739)
Firstly, the OP said that she was NOT non-resident - so it does NOT apply to her.


Ooops! Yes, sorry mis-read the double negative.

:o

Lynn R Nov 29th 2012 3:18 pm

Re: Non Payment of Non-Residents Taxes Letter
 

Originally Posted by snikpoh (Post 10407899)
Firstly, let me say that I am a pedant!

Wealth tax has not been abolished at all and never has been. Until this year, the rate of tax was simply 0% - so no one paid anything.

Now the tax has been re-instated but you need to have a fairly high wealth to have to pay any tax.

So it certainly exists and people should be careful if they are in the fortunate position of reaching the level and which it 'kicks in'.

Thanks - I'll bear it in mind if I hit the Euro Millions jackpot, otherwise it's effectively abolished as far as I'm concerned!:D


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