We've had our non resident taxes calculated for us for a couple of years.  Our wealth tax seems to have been calculated at 0.2% of purchase price and rental at 25% of a figure that appears to be approx 2.8% of the valor catastral shown on our IBI bill.  Most of the posts seem to relate to the Costa Blanca area and I know  that taxes can differ throughout Spain, is there anyone in CDS that can confirm these amounts? 

If you want to do your own taxes, where can we get hold of the necessary forms & labels and how do we find out where to pay.  Despite having already paid taxes we have not been sent any paperwork from a tax office.

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If the CDS is same as the CB look here... it does relate to Orihuela office but the working outs are as we on the CB use. (Please be aware it is 1.1% as explained here in the IMPUTED RENT SECTION & not 2% as some say, if your valor catastral has been revised since 1994) Makes a difference if you have a villa.  

You can download the 214 forms from here if you are not earning from rentals. Handy to draft it out then transfer onto bought forms. http://www.propertiescostablanca.org/images/mod214e.pdf

Info was posted free of charge on http://www.heddon.co.uk/dhills/things/wealth.htm

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WEALTH TAX

As a non Resident you are liable to pay a Wealth Tax, every year, non payment is subject to penalties and interest charges. The tax is in two parts, one part is on the amount you paid for your house and the second part is on the rateable value, on the assumption that you receive some rental income from it) The tax is paid between the 1st of January and the 31st of December of the following year and must be paid to the Agencia Tributaria (Tax Office). I used Orihuela (Avenido Obispo Rocamora)

The payment is made using a triplicate form, know as Form 214, which is suposedly available from Tabac shops, but I could not find one that sold them, only the form that is used by Residents for paying their tax

You must go to the Agencia Tributaria anyway, to obtain identity stickers (Tarjetas), so the Form 214 can be bought there at the same time. The forms cost 50 cents each and come in an envelope, that is used to post one copy to the Agencia Tributaria. The identity stickers contain your name, your NIF number and a bar code to identify you and your form

When you have completed the Form 214, you stick an identity sticker on the top. You then take it to a bank and pay the money there. They give you one copy, keep one for themselves and send the third in the envelope, with another identity sticker on, to the Agencia Tributaria

To complete the Form 214 you will need:

1. Your NIF number. Mine begins with an X, followed by about 6 numbers and ends with another letter. Your solicitor should have your NIF number, as it is required to buy a property. I did not know mine, but as our wealth tax had been paid the previous year by our solicitor, we were already on the tax office computer system and when we asked for identity stickers (Tajetas) they quickly found our number for us

2. The amount that you paid for your house on the Escritura (Deeds)

3. The rateable value (Valor Catastral) that is shown on the rates bill that you get/pay to SUMA. In the first year when you may not have a Valor Catastral you can calculate this part of the tax by also using the Escritura, but the amount comes to much more

You can download a copy of the Form 214 to look at, in pdf format. Print it out and fill it in, it will make it easier for you to follow the calculations. The Form 214 will print out as THREE pages, you only complete the FIRST page as the others are completed as they are carbonised

I am going to assume an Escritura value of 100,000 Euros and a Rateable Value of 20,000 Euros

Delegacion de = Alicante

Administracion de = Orihuela

Ejercicio = Year that the Tax Return is for eg 2004

NIF = your NIF number

Apellidos y Nombre = your surname and first name in that order

Direccion a efectos de notificiones……. Urb Dream hills, Lago Sol

Numero = house number

Codigo postal = post code - 03189

Municipo = Orihuela

Provincia = Alicante

WEALTH TAX SECTION

Valor - 01 = 100,000 (Escritura Value)

Duedas - 02 = 0.00 (This figure would be any outstanding mortgage or debts on the property, which would reduce your tax burden)

Base imponible y liquidable - 03 = Figure 01 minus 02, with no debts this would be 100,000

Resto - al % = 0,20 (This is the tax rate of 0.2%) Then 200.00 in next box on right, also 200.00 underneath for Suma – figure reached by 100,000 x 0.2%

Cuota Integra. Impuesto Patrimonio - 04 = 200.00 (This is 200 Euros wealth tax on the value of your property)

IMPUTED RENT SECTION

Base imponible – 05 = 220 this figure is reached by 20,000 x 1.1% (The tax`rate)

Tipe de Gravamen = 25% of the above amount, so in the box at 06 this would be 55– this
is 25% of the 220 figure above

Total a ingresar = 255.00 – which is amount in 04 + 06

Next section your address details again

Referencia Catastral – this reference number is on your IBI form

Next section would be filled in by your representative if you were using one

Fecha = date

Firma = signature

Place a Cross in the forma de pago box

Importe = the amount eg 255.00

REMEMBER

1. If your property is in joint names then the two figures above Escritura (100,000) and Rateable Value (20,000) must be halved and you must fill in TWO Form 214's - one each

2. You recieve about 20 sticky identity labels, so buy several Form 214's, and next year the Rateable Value will have increased slightly, and you can fill the forms in, stick on the labels and take it to the bank without visiting Orihuela. So while the first time may be a bit traumatic you will be able to DIY for years to come

3. You should use the Rateable Value for the year that you are making the tax submisson for

4. The Tax Office in Orihuela is easy to find. As you enter the town you go under bridge and approach a roundabout. At the roundabout take the third exit to the left. The fourth and last exit is no entry. The tax office is about 200 yards down the street on the right hand side. Drive past and you come to some traffic light, go straight over and past a small square on your left. Turn in to the underground car park on your right, which is next to the river. When you come out of the car park, walk back to the traffic lights, straight over and the Tax Office is about 100 yards down the street, now on your left. Avoid going on Market day

When you enter the office there is a large open area with tables and chairs for completing your forms. To your right is an information desk where you can buy the Form 214. In front of you is a corridor and just to the left of the entrance to the corridor is the desk where you ask for the sticky labels (Tarjetas) to be printed

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Thank you so much for the information.  Wasn't sure if Fibby's info pack would apply to Costa del Sol as well as Costa Blanca

We have a copy of last year's Form 214 calculated by a solicitor and I can now follow it more clearly.  The Wealth tax has been calculated on our purchase price but he has also calculated the rental tax  on the purchase price x 1% x 25% instead of on the IBI amount which would work out much less.

Does anyone know if there would be any reason to use the purchase price if the IBI bill was  availabe. 

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As you have been able to pay your IBI rates, your catastral value is listed on the payment form & that now is what you use. As you commented, it works out cheaper.

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Our IBI shows Valor Cat .Suelo  +  Valor Cat. Const. =  Valor Catastral Total

Valor Catastral Total  -  Calor Base Reduccion (Arts 67 a 69 TRLRHL)  -  Coef./Reduc  (ARTS 67 a 69 TRLRHL)  x  0.90%  =  amount charged.  

Can anyone confirm if it is the higher or lower figure used for renta tax calculation.

Update:   When questioned, our solicitor agreed they had calculated our renta tax  incorrectly and have now adjusted it so thank you to all who helped.  They have used the higher figure but I just thought I would get this confirmed.

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Crackers,

I am sending you a PM

Morerosada,

Where do people "buy" their 214 forms?

No-one pays for them, they are free from the tax office.

I know you have a copy of my Guide, so you know you don't "buy" them!

Why are givng wrong information out on the forum.

I can only assume the websites you have copied the information from, have not tried and tested their method.

Or have copied it wrongly from elsewhere, which is worrying.

Earlier this year, you would have answered this question differently.

You would have mentioned my Guide, but you don't any more.

Can you explain why that is please?

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First time I have heard of this!

I think you have been misled somewhere.

Your bank balance has no bearing at all on paying Non Resident taxes (214 Form)

Regards,

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I read the link, and if my bank account is anything to go by, or any other Non Resident for that matter, I don't think anyone holds 1,000's of Euros in them.

Personally, we only have enough in any one year to cover our utility bills here.

Yes, I agree, if you have a large average balance then it should be declared, but there is no provision for this on the 214 form.

So, I am stumped!

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This is what that link says................................

Provided that taxpayers' principal wealth is normally their home, most of resident taxpayers do not pay this tax as the first € 108,182.18 is exempted. However, non-resident property owners are always taxed on their assets located in Spain (car, houses, bank accounts etc…)

AND on the NON-RESIDENT TAX LIABILITY it states............

2. Non-residents income tax liability

Non-residents are liable for this tax on any income arising in Spain, such as a money deposit with a Spanish bank, a property in Spain, or income derived of any business in Spain.

Property owners are taxed on their property income. The tax base is the property cadastral value (valor catastral), which can be found on any I.B.I receipt. Tax base rate is 25% of a 2% of the cadastral value.

I take that to mean any income arising ............................there is also a list of stuff which can be deductable. So you need to read the whole thing BEFORE you panic !!

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  ' Do unto others as you would be done by'

   

    Don't give me grief, I can find it by myself

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I can only suggest you use the services of a lawyer.

That way, you will be sure that you pay the correct taxes.

Kind regards

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I would suggest you PM Maria , EOS Lawyer, in fact I will be surprised if she doesn't post a reply to you .

_______________________

  ' Do unto others as you would be done by'

   

    Don't give me grief, I can find it by myself

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_______________________
 Jeff

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Am very confused! I have read that some people use Accountants for paying their taxes and doing their non-residency returns, but you guys are saying use Lawyers. My Lawyers are about as much use as a chocolate teapot and I refuse to use them anymore. 

Who is best to use please? What should the costs be and does anyone know anyone around Benalmadena who is english speaking, honest and fair?

Or, is there anyone around Bristol / South West (or elsewhere really) that deals with this for non-residents, who would like a client?

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