Bri and Katee

How do you find out your rateable value? Just when I thought we had overpaid on the wealth tax (358€) I now find we have another type of tax to pay as well based on the rateable value, something called Own Use Tax?

Our solicitor said they would handle all fiscal duties for us, but I like to make sure we are not paying too much or even paying for things we know nothing about!

Mitzyboy

Sorry for not aready knowing this for sure, but are you residents or property owners who live in the UK?

Bri and Katee

We have a villa but are resident in the UK. It is not rented out at all and we have a huge mortgage on it, which the solicitor said would be taken into account when calculating the wealth tax, but that doesn't seem so!

So the fact that we may have yet another tax to pay doesn't help!

mikelincs

Not heard of that tax here in Spain, but then again we are residents. We only pay the wealth tax, urbanisation fees and SUMA, which is the Spainish Council Tax, and is usually peanuts compared with the UK.

Fred James

I think you mean the Catastral value. This should be shown on your receipts for your local taxes (IBI).

The tax you are referring to is the property owner's imputed income tax. It is calculated as being a notional income of 2% (or in some cases 1.1%) of the Catastral value. The tax is 24% of this notional income.

It is paid by all non residents even if they do not let their house. If they do receive rental income this will also be liable for income tax.

Mitzyboy

Obviously I dont know your circumstances, but as a non resident you only pay wealth tax on your Spanish assets, but unfortunately you dont get any of the allowances that residents get .... so you will be paying wealth tax on your Spanish assets less the mortgage deduction, from the first euro of value.

Bri and Katee

Thanks all, the tax is as Fred James said.

I think the best thing I can do is bury my head in the sand and leave it all to the solicitor! Even if I do feel I'm paying over the odds.