HappyGoLucky

After speaking with a Costa Blanca South Tax Assessor recently to finally try to get our tax situation sorted here is a something to share with you guys... (if you don't already know)

The Spanish Government have to collect (quite annoyingly correctly) taxes at all times - and even more vehemently in it's suffering economy. I keep hearing 'rumours' that they are very pro-active now with both residents / non-resident property owners who still refuse to submit the annual tax return and payments.

My expert tells me the Spanish Tax Authority has linked with the Land Registry system and so now know who owns every property - including me and you !!!

Non-Residents beware... If you don't know, aside from the local annual SUMA IBI bill there is a 'income tax' on the property ownership (even if you don't rent it out) !!! It seems a lot of Expats don't know this.

As usual ignorance and late declarations are no defence and last year's tax return deadline is this 31st Dec 2009.. in worse case senarios the Tax Man can freeze your assets (bank accounts) until taxes are paid.

... is it a case of when, not if they catch up with you? ... the good news it's only about €200 for a 150K house !!

(BTW. don't ask me questions, get advice - cos I am not the expert)

snikpoh

I had thought that this was common knowledge - it's been mentioned on here many times before over the last few years.

HappyGoLucky

Good Point.. if you are a regular reader on here for the last few years... I'm new !! (sorry about 'sucking eggs')

Hillybilly

TBH I'll be very surprised if they ever "catch up" with homeowners, resident or non-resident, who don't submit tax returns/pay taxes. I know dozens of homeowners just in my surrounding area who have owned property for 5, 6 years and never submit returns. I have "advised· them all on & off over the years that they should be doing so, but they look at me as if I'm mad, even when I quote them the letter of the law, point them in the direction of AEAT's website, lend them books etc.
None of them has been "caught up with" and probably never will be (until maybe they come to sell but even then they will only be liable for the last 4 years taxes... )
Irritates me that I pay (in effect for others) every year and they "get away with it"...esp when most of these people are all too happy to complain about system-dodgers back in the UK...

Dxf

Hi

Well I am not "new" and I don't recollect it being mention so clarly and precisely.

Also the connection of databases - but how does an expat living in England actually pay this tax?

Davexf

fionamw

I think it has been, and in relatively recent weeks. However that's by the by if it's caught your attention and possibly others..... (I emailed my abogado yesterday having forgotten to get back to them for the past x weeks!)
nb Welcome HappyGoLucky, you can't know what's been posted and what's not unless you do some kind of mega trawl of the search facility!

mikelincs

when we owned a house in Spain, and were living in it, we mentioned about tax returns, having just done ours, to several friends there, some had been there for up to 10 years, and NEVER done any sort of tax return. They were just hoping no-one noticed.

sanrod

I'm confused now. We own an apartment in Torremolinos and have done for 2 years now. We pay the yearly amount of around 125 euros, is this the 'tax' you are talking about, or should we be paying something else too? We went through a very reputable estage agent when we purchased our property who really helped us. We couldn't speak a word of spanish and she took us around to ALL the people we needed to see to get everything sorted, from electric and water to the bank. This has got me worried now, is there another tax?

mikelincs

That will be you SUMA or council tax, what is being talked about is the fact that ALL non-resident owners should be paying an 'income' tax. They assume that, as you don't live there you rent your property out, and you SHOULD be paying a tax based on the putative income from the property. You need a gestor or lawyer to sort this out for you.

sanrod

We do pay 'council taxes'/maintenance charges etc through direct debit. We also pay this 125 euros per year which we have to pay through the unicaja, is this the tax?

We don't let our property out to ANYONE, it is closed up once we have finished our holiday which is about 6 weeks a year.

I've just found our receipt, its got 'torremolinos constitution' stamped on it, its hard to see what its actually for.
Its got different boxes at the top with.......

recobo no.
d.n.i./pas/c.i.f
valor suelo
valor constr
valor catastral
base liquid
ano revision
uso/destino
tipo impositivo
numero fijo

and it gives us 4 months in which to pay.
Does anyone know if this is the tax ?

fionamw

As I understand it, if you don't live there, there's an assumption that you rent it out, even if you don't. Ref which you're paying you need to check.

Dxf

Hi

I have a question - My children own my home - and I have a usufruct (a right to live here until I die) - therefore no one can rent out the house.

Is tax still payable?

Davexf

Hillybilly

That'll be your IBI (Impuestos sobre Bienes Inmuebles). Nothing to do with income tax on imputed rental income etc.
In Spain, the onus is on you to submit an annual tax return, it's self-assessment, you don't receive a tax bill in the mail or owt

sanrod

So how do we actually go about getting forms or whatever, to enable us to pay?

Hillybilly

You can DIY, info and forms in English from the AEAT website here
http://www.agenciatributaria.es/wps/...S&menu=0&img=0
or appoint a gestor to do it for you maybe if it's your first time. You need to be quick...deadline for non residents is 31st December.
Edit...don't forget if a property is jointly owned, both owners must submit.
Edit 2 ...you can make an appt at your Hacienda office, take along all the relevant info and they will complete the forms for you.
Of course, if you're not in Spain, you'll prob need to appoint someone to do it for you.