patsywhitehair

hi all, I now live in UK and still have my place in spain, now the thing is every year I have to pay 332 euros for my non resident tax, does this seem right????? my solicitor has just sent me my yearly e mail fm him to say its time to pay this and its so much for him too.
surely 332 euros is quite a bit???? pat

betris

yes its right.

Beachcomber

Basically the taxes are based on your escritura value and your rateable value. Presumably this amount also includes you lawyer's fee but even if it doesn't the amount you are paying is not extortionate.

I know some people who are paying an annual amount of well in excess of €1.000 for their non-resident taxes.

G D G Moran

This is by no means excessive. Many clients pay a good deal more than this and others pay less. Whether your property is mortgaged or not will affect the amount that you pay. In addition to this the actual value of your property has a significant bearing on the total tax due.

Beyond this you should ensure that you are not paying excessive annual fees for these returns to be filed. I never cease to be amazed at the figures that some clients say that they have been quoted so for want of a better expression it is worth "shopping" around for this.

G Morán

Beachcomber

The actual (market) value of the property has no bearing whatsoever on the tax due. The patrimonio is based on the highest figure of the escritura value, the valor catstral or any revised value imposed by AEAT and the renta is based on the valor catastral.

In some municipalities on the Costa del Sol the valor catastral has, in fact, overtaken both the escritura value and the market value of some properties.

G D G Moran

My reference to the actual value of the property having a bearing refers to the fact that owners of a large villa will pay more than someone who owns a small apartment.

Ultimately actual tax due is determined by reference to the deed value or valor catastral (depending upon which is higher). That said, again, these will be intrinsically linked to the actual value of a property. A frontline detached villa in Xabia will have a higher market value than a one bedroom apartment in el pueblo. Its catastral value will also be higher and depending upon the date upon which each were purchased the deed value will likely be higher.

That said, the principal prevails that it it is worth significantly more and the tax due will be higher.

Advising cleints in this way is far from misleading but naturally a full detailed calculation can be provided if they so wished.

Hopefully this places my comment in context.

jules63

is it easy to work this out for myself or is it worth paying someone to do it for me?

Beachcomber

The calculations are easy and many people now complete these forms themselves. There is a thread somewhere describing how to do it. It does sound a little complicated but if you obtain a form 214 and follow the instructions in the thread it becomes clear.

Regarding the value, I have a large rural property which is worth probably four times the value of my apartment on the coast. I actually submit my tax returns as a resident but if I did so as a non resident the annual non-resident taxes in respect of my apartment would be far higher than those of my rural property.

Yes, this is because the apartment is in a municipality which has very high valores catastrales but it demonstrates that the market value of the property bears no relationship to the amount of non-resident taxes to be paid.

I have found the thread, it is here:

http://britishexpats.com/forum/showthread.php?t=412285

There have been a couple of changes since I wrote it. The tax payable is now 24% not 25% and the retention referred to on the sale of a property by a non-resident is now 3% not 5% but this has no bearing on the non-resident taxes.

The form 214 is no longer available online as a PDF, you have to buy it from the tax office.

If you can't work out which figures go in which boxes ask again.

G D G Moran

This could degenerate but that is in the interests of no one.

Market value does have a bearing on tax to be paid but anomalies such as you describe will undoubtedly exist and be that much more apparent when one is considering a rural property against a frontline apartment.

Catastral values - as you are no doubt aware - are reviewed on a periodic basis and often sudden large increases will come into force (as took palce in Jávea some years ago). These will then distort figures.

I will always advise clients who are purchasing a large villa in Jávea that there tax liability annually will be greater than the client who is buying apartment in Denia. That said, there is obviously no substitute for a full calculation in each individual case.

If it is of assistance form 214 can still be completed and printed through Abode (which I think is the same as pdf although I may well be corrected) from the aeat website. This is a good deal easier than purchasing it through the Hacienda.

Beachcomber

We shall have to agree to disagree over the question of market values.

Perhaps you would be kind enough to give a link to the PDF version of the form 214 on the AEAT web site. I can find the form for 'presentación telemática' which is supposed to generate a pdf document but not the PDF version which appears to have been removed from the site.

PDF (Portable Document Format) is the generic term for this type of document and Adobe is one of several programs capable of reading it. Foxit Reader is another.

Nige

I would also like to know if Form 214 can be downloaded as a PDF. I hate Adobe and love FOXIT ! Its much slicker.
I was amazed to see that Agencia Tributaria (AEAT) has a PDF brochure in ENGLISH running to 40 pages titled : TAXATION OF NON RESIDENTS ! Never seen it before. Its on this page under Other Services - Information Leaflets !

http://www.aeat.es/wps/portal/Detall...S&menu=0&img=0