Registering in Spain,
Sep 29th 2007, 2:49 pm
#1
BE Enthusiast
Thread Starter
Joined: Dec 2004
Location: Newcastle Upon Tyne
Posts: 364
Registering in Spain,
Hi Guys,
I am after some info for my parents, they have had a place in Murcia for about 4 years but never lived there permanently yet.
Now that they do they have been advised they will need to register out there for residencia (spelling). However they have also been advised that they will need to pay a tax for the last 4 years that they have had that house.
The house has never been let out, they simply pay any bills that come in etc etc as you would ere in the UK.
I am not sure if this person knows what they are talking about, my parents hav been told the fees would come to about $5000 which they simply do not have.
Any advice wuld be good, thanks guys,
Phil
I am after some info for my parents, they have had a place in Murcia for about 4 years but never lived there permanently yet.
Now that they do they have been advised they will need to register out there for residencia (spelling). However they have also been advised that they will need to pay a tax for the last 4 years that they have had that house.
The house has never been let out, they simply pay any bills that come in etc etc as you would ere in the UK.
I am not sure if this person knows what they are talking about, my parents hav been told the fees would come to about $5000 which they simply do not have.
Any advice wuld be good, thanks guys,
Phil
Sep 29th 2007, 3:03 pm
#2
luna~sea..its a lifestyle
Joined: Feb 2007
Location: Getting In Touch With My Dysfunctional Side...
Posts: 1,926
Re: Registering in Spain,
Hi Phil and welcome to the forum.
There's loads of info in the "Free beer..." thread here
A link regarding taxes that is mentioned in that thread:
http://www.expatica.com/actual/artic...id=1900#wealth
Read the heading under "wealth tax"
There's loads of info in the "Free beer..." thread here
A link regarding taxes that is mentioned in that thread:
http://www.expatica.com/actual/artic...id=1900#wealth
Read the heading under "wealth tax"
Sep 29th 2007, 3:09 pm
#3
RETIRED ;-))
Joined: Jul 2003
Location: Benalmadena Pueblo,Spain
Posts: 20,156
Re: Registering in Spain,
Hi Guys,
I am after some info for my parents, they have had a place in Murcia for about 4 years but never lived there permanently yet.
Now that they do they have been advised they will need to register out there for residencia (spelling). However they have also been advised that they will need to pay a tax for the last 4 years that they have had that house.
The house has never been let out, they simply pay any bills that come in etc etc as you would ere in the UK.
I am not sure if this person knows what they are talking about, my parents hav been told the fees would come to about $5000 which they simply do not have.
Any advice wuld be good, thanks guys,
Phil
I am after some info for my parents, they have had a place in Murcia for about 4 years but never lived there permanently yet.
Now that they do they have been advised they will need to register out there for residencia (spelling). However they have also been advised that they will need to pay a tax for the last 4 years that they have had that house.
The house has never been let out, they simply pay any bills that come in etc etc as you would ere in the UK.
I am not sure if this person knows what they are talking about, my parents hav been told the fees would come to about $5000 which they simply do not have.
Any advice wuld be good, thanks guys,
Phil
I believe if it is not your main abode you get taxed as if you are renting it out anyway.
The law now says if you are in Spain for more than 3 months you have to apply for a residence certificate.
Have a look here ( a link in the free beer thread ) while you are waiting for more help.
Sep 29th 2007, 3:53 pm
#4
Joined: Jun 2006
Location: Granada Costa
Posts: 10,898
Re: Registering in Spain,
There are two taxes that non residents have to pay on their property in Spain.
The first is an "imputed" income tax based on the theoretical rental value of the property and applies even if you do not actually let it out.
The "value" of the income is based on 2% of the Catastral value of the property (This figure is shown on your local IBI tax receipts).
The tax due is 24% of this value.
If your house has a Catastral value of say, 100,000 then the income is deemed to be 2% of that - ie. 2000. The tax at 24% would be 480.
If the Catastral values have been raised significantly since 1994 due to revaluations then the income is assessed at 1.1% rather then 2%.
The other tax is wealth tax. This is a variable percentage of the value of the house. The value is usually based on what you paid for it (ie the escritura value which is probably more than the Catastral value).
It is 0.2% up to a value of 167,129 and 0.3% on the next chunk up to 334,253.
That means that a house costing 334,253 would pay 836.
If you do not pay these taxes then they will be applied retrospectively when you sell the house and fines for late payment will be added.
The first is an "imputed" income tax based on the theoretical rental value of the property and applies even if you do not actually let it out.
The "value" of the income is based on 2% of the Catastral value of the property (This figure is shown on your local IBI tax receipts).
The tax due is 24% of this value.
If your house has a Catastral value of say, 100,000 then the income is deemed to be 2% of that - ie. 2000. The tax at 24% would be 480.
If the Catastral values have been raised significantly since 1994 due to revaluations then the income is assessed at 1.1% rather then 2%.
The other tax is wealth tax. This is a variable percentage of the value of the house. The value is usually based on what you paid for it (ie the escritura value which is probably more than the Catastral value).
It is 0.2% up to a value of 167,129 and 0.3% on the next chunk up to 334,253.
That means that a house costing 334,253 would pay 836.
If you do not pay these taxes then they will be applied retrospectively when you sell the house and fines for late payment will be added.
