Non Resident Tax

Can anyone explain to me exactly what Non Resident Tax, how much it is and how we go about paying it if we are liable? Thanks

Non-residents owning real estate located in Spain are liable to the following taxes:
a) Non-Resident Income Tax (Impuesto sobre la Renta de No Residentes; “IRNR”); and
b) Wealth Tax (Impuesto sobre el Patrimonio; “IP”).
The Wealth Tax (IP) has been set at zero from 01/01/2008, which means it no longer has to be declared.

So I think you're probably refering to IRNR - commonly known as “La Renta”.

It is a tax payable by all non-residents. But don't be confused by the term RENTA (it measn Rent or Income) - you pay it whether you rent your apartment out or not. If you own a property and are non-resident (ie spend less than 183 days per year in Spain) it is “deemed” that you must be renting it and so therefore have to pay a tax.

You asked if you are liable. The answer is a resounding YES. All property owners are liable.
Non-Residents pay IRNR - Residents pay Income Tax = Impuesto sobre la Renta de las Personas Físicas (IRPF).
Your tax return must be submitted by 31st December for taxes due the previous year. So you need to submit your 2013 tax return by 31st December 2104. There is a large fine if you dont 'submit your return on time.

You pay a percentage of the cadastral value of the property.  It is about 2% but the percentage depends on when the cadastral value was last set. The cadastral value is the amount the Spanish Government deem your property is worth - and does not reflect resale value. It was reduced this year for most properties on Roda. Your IBI bill will show your cadastral value or you can look it up on the cadastral website.

Have a look at this page http://www.spanishpropertyinsight.com/tax-and-pensions/tax-for-non-residents/

You should have been getting emails from Resortalia. The last 3 weeks have explained the FOUR bills that you have to pay each year on your property in Spain.

You can calculate, declare it, and pay it yourself - download the appropriate forms from the Goevernment website.

BUT - they are all in Spanish and not easy to understand so I would advise using the services of a fiscal rep (or gestor) - they will do your full tax return and submit and pay for you. On the last weekly report, Resortalia have offered the services of Abad Associates for just €36 for the first year for 2 people - don't know what it will be after that though. This is a reasably good deal. We pay €40 per year each - as all owners have to pay, so if the property is jointly owned (or the mortgage is in joint names) then 2 returns and payments are required.

So you need to get a move on if you haven't presented your 2013 return yet!

Most comprehensive explanation I've seen on Non Residents Tax yet.

A number of people have recently been caught out and fined.

What surprises me is the obvious lack of information re fees and tax implication advice given to property buyers in Spain by their solicitors/gestores/financial representatives when they buy.

What do they get paid for?

Updates on Non Resident Taxes

http://www.eyeonspain.com/blogs/lawinspain/14132/Spain-to-reduce-the-Non-resident-Income-Tax-Rate-with-effect-from-2015-.aspx

• http://murciatoday.com/even-non_resident-owners-of-spanish-properties-must-file-tax-returns_23632-a.html?Banner=20

Does anyone know how to get your cadastral value?  Should this be the same as last year?

Thanks

Paul

It should be on your initial IBI claim invoice or any original documentation from San Javier or try

sanjavier@recauda.net    they just sent me copy of IBI invoice to pass on to my new bank.

They should be able to supply you with the estimated Catastral value plus the % rate that is charged on the Catastral value.

Effectively Catastral was decided at time of build and is similar to UK council tax valuation.

It bears little relation to actual value.

Your Cadastral value is shown each year on your IBI bill.
There is no argument about it and I wouldn't appeal - as they usually will put it up on appeal!

Our Cadastral value - dated 2006, has been constant since we bought the property but with various reductions.
However, it was changed this year - heaven knows why, as It should stay the same until a revaluation takes place and these are supposedly only every 10 years. But they seem to have revalued in 2014 - and it went down slightly but with no reduction so we paid a fair bit more than the last 2 years.