non resident tax
Dec 7th 2006, 9:26 am
#1
barxeta bliss,ohhhh
Thread Starter
Joined: Nov 2005
Location: barxeta
Posts: 308
non resident tax
hi, can anybody tell me if this is right.. we bought our villa 2005, moved out here this february. we sort of live half the time here in spain and half in UK. our solicitor has just sent us an e mail to say we owe (for the 2 of us) 715 euros for the year 2005, none resident income tax. he has said to pay it into his account and his charges are included in this (104 euros)
this sounds quite a lot. Or does it?
this sounds quite a lot. Or does it?
Dec 7th 2006, 10:45 am
#2
BE Forum Addict
Joined: May 2004
Location: Guadalhorce Valley, Málaga
Posts: 1,059
Re: non resident tax
Yes this is correct. You should be paying pro rata for 2005 from the date you signed the escritura. The fee is reasonable compared to what some lawyers charge for this service.
However, it is easy to do it yourself and save his fee.
However, it is easy to do it yourself and save his fee.
Dec 7th 2006, 11:07 am
#3
BE Forum Addict
Joined: May 2004
Location: Guadalhorce Valley, Málaga
Posts: 1,059
Re: non resident tax
This is a copy of a post which I made on this subject in another forum.
The wealth tax (patrimonio) is calculated at 0,2%, up to €167.129,45 and on a sliding scale thereafter, of the highest of the three following values
Valor Catastral (rateable value)
Any revised value imposed by the tax authorities
Escritura value
The income tax (renta) is calculated at 25% of 2% of the valor catastral (1,1% if it has been revised since 1st January 1994).
The simplified 214 form can only be used if just one property is owned and a separate declaration has to be made in respect of each person named in the title deed with the base upon which the taxes are calculated divided by the number of owners. The taxes can be paid at any time during the year following that in which they become due at any bank.
If more than one property with a different referencia catastral is owned (even if it is just a lock-up or a garage) the declarations have to be done on form 714 for the patrimonio and for 210 for the renta and the declaration has to be made from the 1st May to 20th June in the year following that for which the taxes are due. It is still individual declarations for each owner. All of the properties may be listed on one form 714 for the patrimonio but a separate form has to be submitted for each property in respect of the renta.
If you rent out your property you should pay separate taxes on these rentals pro rata according to the number of days that it is rented.
Many non-resident property owners have ignored these taxes up until now but the tax authorities are now cross-checking property ownership with tax declarations so they are ignored at one's peril. Remember, they can claim back taxes for the past four years once you get caught.
Non-payment of these taxes will also prejudice any refund that is due from the 5% retention made on account of the seller's capital gains tax liability when the property is sold.
You can download the forms to pay this tax from here:
http://descargas.aeat.es/formularios...4e/mod214e.pdf
The wealth tax (patrimonio) is calculated at 0,2%, up to €167.129,45 and on a sliding scale thereafter, of the highest of the three following values
Valor Catastral (rateable value)
Any revised value imposed by the tax authorities
Escritura value
The income tax (renta) is calculated at 25% of 2% of the valor catastral (1,1% if it has been revised since 1st January 1994).
The simplified 214 form can only be used if just one property is owned and a separate declaration has to be made in respect of each person named in the title deed with the base upon which the taxes are calculated divided by the number of owners. The taxes can be paid at any time during the year following that in which they become due at any bank.
If more than one property with a different referencia catastral is owned (even if it is just a lock-up or a garage) the declarations have to be done on form 714 for the patrimonio and for 210 for the renta and the declaration has to be made from the 1st May to 20th June in the year following that for which the taxes are due. It is still individual declarations for each owner. All of the properties may be listed on one form 714 for the patrimonio but a separate form has to be submitted for each property in respect of the renta.
If you rent out your property you should pay separate taxes on these rentals pro rata according to the number of days that it is rented.
Many non-resident property owners have ignored these taxes up until now but the tax authorities are now cross-checking property ownership with tax declarations so they are ignored at one's peril. Remember, they can claim back taxes for the past four years once you get caught.
Non-payment of these taxes will also prejudice any refund that is due from the 5% retention made on account of the seller's capital gains tax liability when the property is sold.
You can download the forms to pay this tax from here:
http://descargas.aeat.es/formularios...4e/mod214e.pdf
Dec 7th 2006, 11:14 am
#4
Concierge
Joined: May 2006
Location: ex ex-pat, in Taunton
Posts: 27,203
Re: non resident tax
Originally Posted by patsywhitehair
hi, can anybody tell me if this is right.. we bought our villa 2005, moved out here this february. we sort of live half the time here in spain and half in UK. our solicitor has just sent us an e mail to say we owe (for the 2 of us) 715 euros for the year 2005, none resident income tax. he has said to pay it into his account and his charges are included in this (104 euros)
this sounds quite a lot. Or does it?
this sounds quite a lot. Or does it?
