This is a copy of information on another part of EOS.
Wealth tax HAS been abolished for non residents, according to THIS ! You should submit form 210 rather than the 214 & submit no later than 30th June, 2009 for 2008 (6 months earlier than before).
Saturday, January 17, 2009 @ 11:56 PM
Seen in another forum, email just sent to member by his lawyer.
CHANGES IN WEALTH TAX LAW
MESSAGE ONLY FOR CLIENTS WITH A PROPERTY IN SPAIN PURCHASED PRIOR TO 31-12-2008.
Over the course of this year, we have received numerous queries from our clients asking about the abolition of Wealth Tax (Impuesto del Patrimonio) in Spain. We promised to send further information to everyone as soon as this law was published.
This year, the Spanish government indeed studied the possibility of withdrawing its Wealth Tax. Subsequently and by means of Law 4/2008 of December 23, published in the OSG of 25/12/2008, the Spanish Wealth Tax was finally abolished.
Until now, non-residents have been required to present the Form 214, the so-called "wealth tax return". The official name of this Form 214 is "Impuesto sobre el Patrimonio y sobre la Renta de No Residentes" ("Wealth and Income Tax Return for Non-Residents").
As its name suggests, this form was used to tax non-residents in regards to Wealth Tax and Income Tax. The form itself is divided into two clearly separate sections.
Following approval of this law, those non-resident individuals who have one or more properties in Spain are no longer required to pay Wealth Tax. However, they are still required to pay the Income Tax for Non-Residents.
Therefore, the publication of this law means the following for non-residents with property in Spain:
1) They are no longer required to present Form 214 as of 01 January 2009.
2) They are required to present a new form: Form 210 regarding Income Tax for Non-Residents.
3) A reduction to taxes due: the amount to be paid to the Spanish Tax Authorities (Hacienda) by means of the new form will be less than the amount resulting from the previous Form 214 given that only the Income Tax for Non-Residents is now applicable and the Wealth Tax has been abolished.
4) Deadlines for presentation: the period for filing this tax return runs from 01 January to 30 June of the following year . In other words, the deadline for paying taxes corresponding to 2008 is 30 June 2009 (6 months prior to the previously applicable deadline).
-----Original Message-----
From: Spainsolicitors.com [mailto:enquiries@spainsolicitors.com]
Info according to Mark Stucklin of Spanish Property Insight .. read...
http://www.spanishpropertyinsight.com/buff/tax/non-residents/
Income tax for non-residents who do not rent out their property (standard declaration)
Spanish name: Impuesto de la renta de no residentes, declaración ordinaria (IRNR)
Description: You pay this version of income tax in Spain if the following conditions apply: 1) You do not reside in Spain, 2) You own property in Spain, 3) The property is exclusively for personal use and you do not rent it out, 4) You have no other source of taxable income in Spain. Although you do not earn an income from the property, in the eyes of the Spanish tax authorities you still derive a benefit from owning a property in Spain and therefore have to pay an imputed income tax.
Tax base and rate: Tax base: 2% of the cadastral value of the property (found on the IBI receipt), or 1.1% if the cadastral value has been revised since 1st January 1994. Tax rate: 24% (25% for 2006 and before)
Form: Use general section 210-A and indicating income type 02.
Dates: Presented before the 30th June each year. For example you have from 1st January to 30th June to declare tax on income during previous year.
Example: Cadastral value of property = 200,000 Euros. Base = 2,200 Euros. Tax = 24% x 2,200 Euros = 528 Euros
This message was last edited by gericom99 on 1/20/2009.