HPA Loop hole?

Hi Everyone,

Don't want to worry anyone but I believe that forewarned is forearmed. 

I just found this information on the EOS general forum under "IBI taxes thread" and thought everyone should be aware of it... It effects all of us whether or not you intend to rent out your property.

"Renta is a tax that any one who has a second property has to pay.

I believe this tax came about because lots of people were renting out their properties and not declaring the income,  The government decided that all property owners who had to pay wealth tax because of their second properties should also pay a Renta tax whether they rented it out or not.  They didn't believe that some people would leave their properties empty between visits.

If you do rent out your property then you pay another tax on the income you receive. "

Something that is not available is the amount of "renta" payable but it is interesting that this tax is payable regardless if you rent your property out or not.
the wealth tax mentioned is being abolished from 2009 apparently but not the Renta.

Don't know about anyone else but no one has ever mentioned these taxes to me.
does anyone who already owns in Spain have any more information???

Is this on top of the 25% income tax they take on rental income?

Hi all.

This tax is a new one on me.  Has anyone else heard about this Renta tax.  I have friends who live in Spain so will ask them and will post any info when I find out more.

Hi all,
      We haven't heard of this renta tax that Phil mentions, will have to look into it. Our solicitors asked us to sign a form when we were over in June regarding the wealth tax and explained that this has to be paid every year, they will sort this out for 100 euro's for us, what they didn't tell us was this wealth tax is being abolished end of 2008 (if it's true).  A couple who look after my Brother's place told us that the wealth tax was being abolished and unless we told the solicitors to stop "sorting it out" for us then they would carry on charging 100 euro's every year, so that's another thing to watch out for.

The IBI or property tax is payable to the local town hall, Alhama I presume. We were told you had to register at the town hall within a year of completion.
Found the following information on the web re taxes.

http://www.spanishpropertyinsight.com/tax-and-pensions/non-residents.htm

Hi All - Whilst this is not to do with taxes, because to be honest I thing the Spanish taxes is a minefield and I can't get my head round what there is to be paid and not paid, just wondered if anyone has been told about the non-residence certificate that you have to have now if you are not living in Spain? Apparently all new buyers are supposed to be notified about this certificate, saw something about it a while ago on the general forum and now there's a blog referring to it today ( Britons hit by tax blitz on Spanish homes )

Hi,

If you have a 'non-resident' bank account then the bank will apply for one on your behalf.
I only found this out when my bank, CAM, changed us 15.03euros each back in July for 'Processing the Residence Certificate'

So if you have a bank account check you statement and see if they have applied for them on your behalf.

Phil

Hi folks

Thought you might be interested in the follow extract from a thread on the general Spain Forum just goes to prove that things move slower in Spain. 

"Wealth and Income tax is paid annually each year by all non resident a year in arrears it is calculated from the escritura value of the property and the rateable value of the property.

Local rates ( IBI ) can take up to 5 years to be issued on a new property and then they are backdated. The local rates for your property have not yet been issued.

The Wealth tax portion of the Wealth and Income Tax declaration has been abolished and it is with effect on taxes due for the year 2008. As taxes are paid a year in arrears this year you still have to pay for 2007 however in 2009 this will change."

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