elgestor

A brief reminder for Non-Residents.

If you purchased a property in Spain any time before the 1st of January 2007 you will need to present a tax return by December 2007.

If you only own one property in Spain the return is done on Tax form 214 from the Spanish tax office http://www.aeat.es. The form goes by the name of 'Impuesto Sobre el Patrimonio y la Renta de No Residentes'.

The presentation and return of this tax can be done any time during the following year. Therefore if you purchased a house in June 2006 you would have from the 1 January 2007 to 23 December to present your return.

This tax is often overlooked by Non-Residents, however failure to present the returns and pay your taxes in time could result in having to pay back taxes and fines. It could also be registered against your property as a debt and appear on the Nota Simple which could make things difficult when you come to sell the property or apply for a loan.

This is a yearly tax which must be declared every year by non residents who own property in Spain.

Regards

David

linda Coyle

What about residents? Is there a similar tax to be paid?

Bri and Katee

Like us then! We completed on 14th December last year so will be liable for 2 weeks worth of tax!

Left it all to our solicitor, whcih is a timely reminder to contact her, the office reckoned we had over 500€ of tax to pay when they last contacted us

How is this paid by the way? I just thought they would take it from our bank account on a direct debit once notified of how much was due, is this correct?

Jeanie27

I have had a house in Spain for 4 years and this is the first I have heard about the tax! How do you get the paperwork for it? How is it paid, and how easy is it to work out? We don't earn any money in Spain so could someone tell me how the tax is worked out.

Sorry to sound like a simpleton but, as I say, I've not known of this before.

Thanks

lmj50

Here you go:-

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.

LMJ

big wheels

The easiest way to pay none resident weath/income tax is to download

Modelo 214
IMPUESTO SOBRE EL PATRIMONIO Y SOBRE LA RENTA DE NO RESIDENTES.

from here
http://www.aeat.es/aeat/aeat.jsp?pg=camp/noReside/es_ES

If you own the property in joint names, you will both need one.
Take the form(s) to a gestoria together with your escritura showing the cadastral value of your property. He/she will then be able to fill in the form for you for a nominal fee. (ours charged us €30 if I remember correctly)
You will then need to take the completed form(s) to your local hacienda (tax office) where they will issue and stick a bar-code sticky lable at the top. Then you just take the form(s) to your bank and cough up the amount shown.

Mitzyboy

If you are a resident you pay your local taxes, but of course you also pay wealth tax on your worldwide assets (as well as income tax on your income) ... there are allowances for residents.

Beachcomber

LJM, I don't mind you plagiarising one of my posts made on other web sites:

http://www.viva-almeria.com/modules....ewtopic&t=3317

http://www.andalucia.com/forums/viewtopic.php?t=6068

but you might at least have given me a mention.

Just to correct a few other points:

The escritura does not show the valor catastral. This is obtained from your IBI receipt. You do, however, need the declared value shown in the escritura.

You must register with the tax office before they will issue the self adhesive labels. You only do this once then you use the labels each year on your tax return. You do not need to take the forms to the tax office.

The form 214 is no longer available from the AEAT web site. The one shown on the link is not downloadable. It is for making a submission online.

elgestor

Hello Beachcomber,

I was going to write a similar response to the fact that you can no longer download the form 214.

Beachcomber is correct the online form is called 'Aportacion de Datos Para el Borrador'.

The online form can be found here: https://www5.aeat.es/es13/h/ie52140a.html

You or your gestor need to complete this form, from which you will be able to prepare your tax return. You then take these forms to your bank for processing and to make payment.

It is almost impossible to receive a negative return or a zero payment return because it is based on the catastral value of your property which usually increases in value.

Best regards

David

EsuriJohn

Hi Beachcomber,

I managed to get through the form and fill in the right boxes for me but what do you do next? I have not registered so do not have sticky labels. If I "send" the form they will not know me and if you print it out it does not look anything like a modelo 214.

What do I do next since this is my first submission?

Also since I have only bought a 1000 sq m plot do I have to pay imputed income tax when there is no possibility of rental!

Regards,

John.

Beachcomber

You would probably find it easier to buy some forms from your local tax office. I don't know why they have discontinued the downloadable form.

The taxes are payable whether or not there is a property on the land. However, if there is no building on it the valor catastral is likely to be very low so the tax will be negligible.

lmj50

Hi Beachcomber
LJM, I don't mind you plagiarising one of my posts made on other web sites:


Sorry mate.
But I always pinch good info!
And its LMJ not LJM!
LMJ

Elly May

Our local tax office is Orihuela, does anyone please know the opening hours for this office in January? Many thanks

elgestor

Hello Elly May

January is going to be too late. You need to have your returns in by 31st December 2007 to avoid receiving any fines.

Regards

David

Elly May

Dear David,
Thank you for your reply. Unfortunately we are not back out to Spain until the beginning of January so it looks likely that we will have to pay the fines. Any idea of the opening times??
Many thanks
Elly May