celestine

Hi all, hope your festive season so far has been filled with fun. A question for those with more knowledge than I. My Mum lives in Spain and is a British pensioner, she has a house here in Spain which is her only property she doesn't own a house in the UK and she has full residency here in Spain.

She has been told by a solicitor that 'for the privilege of owning a house here in Spain' she must pay a rental tax despite the fact that she doesn't rent out her property as it is her only home and irrelevant of her having residency. She was initially told by the same solicitor that when she had residency it wouldn't apply however now she has residency she is told that 'the rules have changed'.

Is this true? or Is she being led up a garden path?

many thanks.

Fred James

Residents do not pay the "Imputed Rental" tax.

They must be tax resident and submitting a tax declaration to be classed as tax resident.

They do pay the tax on a second property though.

snikpoh

Are you sure Fred?

We have (Spanish) friends who have a flat in town for the winter and a house in the campo for the summer and they don't pay any "Imputed Rental" tax.

Also, we have a number of properties some of which we try and rent out. One of these has been empty for a while but our tax accountant has never mentioned that we should be paying this tax on it.

Fred James

Yes, Article 85 of the tax law.

http://noticias.juridicas.com/base_d...6.t10.html#a85

Incidentally if a resident lets a property you used to be able to ignore half the net income for tax - that has now been increased to 60% - it's probably the only tax reduction in the recent budget!

snikpoh

Thanks Fred - just goes to show. I'll mention it to my tax accountant (NOT)

I wonder how many Spanish with second homes 'forget' to pay this tax?

mikelincs

If she is not a 'tax resident' then it's true, but she just needs to file a tax return each year, she won't have any tax to pay, but it will ensure she doesn't pay the rental tax

EsuriJohn

She should start by registering with the Hacienda on Modelo 030.

snikpoh

But that's not what Fred said!

johnnyone

This thread made me realise I should be paying the rental tax.
My understanding is that it is due on properties owned by non residents where there is no rental income.

I immediately contacted my Spanish lawyer to clarify my position and do need to pay the tax. It works out at 48.75 euros for the year but has cost me an additional 100 euros in lawyer fees! Mind you he is filling the forms in for me.

johnnyone

I have just noticed a similar thread on the Ayamonte section of this forum, that may be helpful.
It's titled income tax and the last post was on 22 December

Fred James

What sort of nonsense is this?

If she is not tax resident she WILL have to pay the tax,

If she is tax resident she WILL NOT have to pay any tax.

It's pretty simple really!

mikelincs

That's what I said, but she needs to make a tax declaration each year to ensure that she doesn't pay any rental tax, which is what my post said..

snikpoh

Mike - I think you need to reread your post. Both Fred and I understood you to be saying something that was clearly wrong!

If you make tax returns here then (as I understand it) you are considered tax resident here! Then, as a tax resident, there is tax to pay on her SECOND property!

mikelincs

Please read the OP, there is NO mention of a second property..

snikpoh

I believe that because she does not live in it as her main residence, it is then considered her SECOND property - I may be wrong of course.