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HernándezMoraAbogados

Hernández Mora is a multidisciplinary law firm with extensive experience, which develops its work in the province of Murcia and Alicante. We guarantee the best quality service and totally personalized advice.

Why do you need an NIE number in Spain?
21 August 2021

NIE is translated as the Foreigner’s Identification Number and it’s the legal number assigned by the Spanish authorities to foreign residents, so that they can carry out legal activities in Spain, such as opening a bank account, purchase a property, registering a business, inheritance, etc.

NIE number in spain

An NIE number is mandatory to do any kind of business in Spain and it’s typically requested at the start of the buying process, or whenever it’s needed. It might take from 2 weeks to a couple of months.

NIE applications can be submitted while living or visiting Spain before the relevant Spanish National Police station or Foreign office. You can also apply for an NIE number at the Spanish embassy located in your country.

In Murcia city you have the foreign office located at Calle Francisco Alfonso Hidalgo Martinez, 38, 30100 El Puntal, where applications can be submitted. There are also a number of police stations where you can request your NIE, such as the one in Cartagena.

The NIE can be requested either by you or with our help, with or without a power of attorney. Don’t hesitate to contact us for any questions you might have.



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The Military Permit
21 August 2021

Military permit for British and non-European citizens who buy in Spain will no longer be necessary.

The Military Permit

The Ministry of Defense has issued a Service Order with instructions for the rationalization of military authorizations, which interprets that it is not necessary to request it in urban properties that are not in border towns.

Most of the notaries and the registrars of the province of Alicante agree not to request military authorization in these cases.



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What taxes do I have to pay in Spain?
16 August 2021

What taxes do I have to pay in Spain?

 

Many clients come to us asking about taxes: what must be paid, why and about the deadlines. With this post we’ll try to give you a brief summary, only applicable to non-resident property owners in Spain.

 

IBI: this is the Council Tax and it’s a yearly tax that every homeowner must pay, even if you don’t use or live in your property. This tax funds local services such as fire and police services, libraries, roads, etc.

 

The amount you’ll pay is based upon your property’s cadastral value and each Town Hall applies a percentage, currently between 0,4% and 1,3%, to calculate the final sum. Since it’s a local tax the deadline to pay varies significantly. For example, in Murcia city it’s from the 1 st of May till the 5 th of July, in Orihuela the deadline was 4 th of October, but it has been extended until the 5 th of November because of the damages caused by the rough weather.

We recommend setting up a direct debit with your Town Hall. This way they’ll take the money automatically from your bank account every year. If you forget to pay, there will be penalties and late interests added to the initial sum. You might even end up with your money seize from your bank account a few months later.

 

Non-Resident Tax:

This tax is paid on second residencies (not on your main residence), when the property is not rented out. The final amount is calculated from the cadastral value, applying a percentage of 1,1% or 2%. The difference between the percentages depends if the cadastral value has been checked during the last 10 years or not. Then another percentage is applied, 19% or 24%, depending if the homeowner is an EU citizen or not.

 

This is tax is submitted yearly but, if you are not sure if you qualify as a non-resident there is a

general rule: if you spend less than 183 days in Spain within a year then you are. Otherwise you are a resident and must submit Income Tax. If you are still not sure contact us with your query.

 

Rental Tax:

If you rent your property then you’ll pay a 19% income tax on the profit, if you are an EU citizen. Non-EU citizens pay 24% income tax as for the time being, they cannot deduct any expenses. EU citizens can deduct expenses such as insurance, maintenance, taxes, etc.

This tax is submitted quarterly and an end-of-the-year summary. If the same property is rented out for part of the year and then used as a second residence for the other part, then both taxes will need to be submitted

 



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