SueG

As far as I am aware yes!

EsuriJohn

Here's a new twist, a property owned by a family of 5 husband wife and 3 adult children all on the Escritura.

The husband and wife have become Spanish Residents but the children remain UK residents. The husband and wife are pensioners below the Spanish tax threashold fo income but they would still be liable for property taxes the wealth tax has gone and they do not rent out the property so no liability there a nil return on the form is required?

What about the children? they come for holidays with mum and dad but do they have to pay an imputed rental tax as non residents when mum and dad live full time in the property and do not rent it out?

fionamw

On the assumption this is the tax the forms for which have to be submitted May-June time (unless of course all do) which year/months are you being assessed for? eg forms in May/June 2010 apply to ? month 2009 - ?month 2010?....?

Fred James

Residents do not pay any tax on the house (unless it is actually let out).

The non residents tax (imputed rental income) is paid by the 3 children on 20% of the value each.

EsuriJohn

But how can they rent the house out if we are living there permanently. I can understand the calculation but not the need since we would be in occupation!

Fred James

The tax has nothing to do with renting.

It is a tax on houses owned by non residents or on second properties owned by residents and is based on the catastral value.

It is commonly referred to by British home owners as "Imputed Rental Income" but there is nothing in the Spanish description about renting - it may be a confusion caused by the words "Renta Imputada" which just means imputed income.

The only time actual rental comes into the equation is when you actually rent the house - in that case you do not have to pay the tax for those days that it is rented but clearly you have to pay normal income tax on the actual rental income.

Just think of it as a property tax rather like council tax and it becomes clearer.

EsuriJohn

Understood I think as you say it is the mis-translation that confuses.

EsuriJohn

So that would be

20%(24% of 2% of Cad val) each

therefore if the Cad value was €200.000 the individual amount would be €192

I also thought if the Cad value had ben revised recently ie a new house then the 2% was reduced to 1.1% so the €192 would be €106 each

Fred James

That's correct and as you say, it could be a lower % if the CV was revised recently.

patsywhitehair

myself and partner have just received an e mail from our solicitor in Spain to say it is now time to pay our non residents tax, its 368 euros (thats for the two of us).pat

Hillybilly

The tax year of 2009 ie 01 Jan 2009 - 31 Dec 2009.

Fred James

Residents tax declarations have to be submitted by the end of June for the previous year.

Non resident tax returns have to be submitted by 31st December for the previous year.

fionamw

So if we pay now, before 31st Dec, and I then declare May/June having become resident during the course of this year, do I get any element of refund for the portion I shouldn't have paid? (I doubt it but have to ask!)

patsywhitehair

I am in the process of selling in the next week, do I still have to pay or can i get away with it??

Fred James

What you should be paying now is for 2008.

If you become tax resident during 2009 you are classed as tax resident for the whole of the year in which you become tax resident.

The declaration you make next year in May/June will be for your income in 2009.

So, if I understand you correctly, we are talking about two separate tax years, so that simplifies it somewhat.