rental tax

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Old Dec 28th 2010, 4:38 pm
  #16  
 
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Default Re: rental tax

Originally Posted by mikelincs
Please read the OP, there is NO mention of a second property..
I think there is some confusion here.

The OP only has a permanent property in Spain and no tax is due on that.

If a tax resident has a second property then tax is due on that property.

Last edited by Fred James; Dec 28th 2010 at 4:41 pm.
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Old Dec 28th 2010, 6:38 pm
  #17  
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Default Re: rental tax

My Mother was taken to the hacienda to register for tax by the solicitor who dealt with her house purchase. She has a state pension as a single person as her income and this is her 'only' house she doesn't have a second property.

From what has been said am I correct in saying that she still has to make a tax declaration for nil each year as her income will surely be below that requiring tax to be paid? But will not pay the rental tax?
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Old Dec 28th 2010, 8:28 pm
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Smile Re: rental tax

Originally Posted by celestine
My Mother was taken to the hacienda to register for tax by the solicitor who dealt with her house purchase. She has a state pension as a single person as her income and this is her 'only' house she doesn't have a second property.

From what has been said am I correct in saying that she still has to make a tax declaration for nil each year as her income will surely be below that requiring tax to be paid? But will not pay the rental tax?
YES!

Being registered and making a nil return is most important for IHT purposes but also helps in other ways. It has been said that low incomes benefit from a tax refund ie they give you money not take it. Also you can benefit from things such as free holidays.
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Old Dec 28th 2010, 9:18 pm
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Default Re: rental tax

Originally Posted by John & Kath
It has been said that low incomes benefit from a tax refund ie they give you money not take it. .[/COLOR]
Only if you have investment income where tax has already been deducted.
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Old Dec 28th 2010, 10:29 pm
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Default Re: rental tax

Thank you all for your help.
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Old Dec 29th 2010, 3:52 pm
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Default Re: rental tax

Originally Posted by 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.
The original post clearly says it is her only home.
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Old Dec 30th 2010, 11:06 am
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Default Re: rental tax

Is it possible to easily make a nil tax return yourself or would it always be advisable to have a solicitor do this for you?
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Old Dec 30th 2010, 11:51 am
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Default Re: rental tax

Originally Posted by celestine
Is it possible to easily make a nil tax return yourself or would it always be advisable to have a solicitor do this for you?
IMO best to go to a gestor. They are very good and have loads of experience. Costs a bit. but what price peace of mind?
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Old Dec 30th 2010, 1:35 pm
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Default Re: rental tax

Originally Posted by celestine
Is it possible to easily make a nil tax return yourself or would it always be advisable to have a solicitor do this for you?
You can do it yourself but you need to know the ins and outs of the computer program that you have to use.

It's easier and cheaper to go to your local tax office and do it there - for free. They will probably tell you not to bother in future but at least it gets you on the system.

A lot of gestors will just say you don't need to do it! Alternatively they may charge you €200 for something that takes them ten minutes.

Last edited by Fred James; Dec 30th 2010 at 1:37 pm.
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Old Dec 30th 2010, 3:16 pm
  #25  
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Default Re: rental tax

Originally Posted by Fred James
You can do it yourself but you need to know the ins and outs of the computer program that you have to use.

It's easier and cheaper to go to your local tax office and do it there - for free. They will probably tell you not to bother in future but at least it gets you on the system.

A lot of gestors will just say you don't need to do it! Alternatively they may charge you €200 for something that takes them ten minutes.
Our gestor only charges €40 for a joint tax return.

Ask for a quote first though!
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Old Dec 30th 2010, 3:32 pm
  #26  
 
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Default Re: rental tax

Originally Posted by snikpoh
Our gestor only charges €40 for a joint tax return.
That's about all it's worth! I do mine in ten minutes and most of that is printing out the completed forms.

Some people seem to think they need to go to a solicitor to get it done!
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