Spanish Wealth Tax for 2007

Has anyone else received info from their Fiscal Representative (i.e. Lawyer) re the amount to be paid for 2007?

We have been told that it is payable for the whole of 2007,  even though we only completed on our property at Hacienda Riquelme on 23rd November.   Seems very harsh!

It's 0.2% on the value of the property,  and so comes to €370.60.

When you add it to the income tax  (which would be €244.59 for the whole year, and is pro-rata'd for the time we owned the property in 2007, i.e. 24.46),  plus the charge of the lawyer to complete the forms etc,  the total comes to around €534!

We weren't expecting anything like this,  and as we don't have a Spanish mortgage, nothing is offset.

What has anyone else to say?    Any way out of this?   All advice and comments gratefully received!
Maggie

Hi Maggie.

 

I beleive you get some exemptions. I am being an armchair lawyer here, but I thought you had an exemption on your first residence of   €150,253.03 of equity plus a general allowance of €108,182.18, meaning wealth tax shouldn't kick in til you have about €260,000 of unemcumbered assets. I would seek a 2nd opinion.

You only get the allowances against the wealth tax if you have residencia in spain. The only thing they will take into account if you are a non resident is a spanish mortgage. The full amount outstanding is offset against your assetts as at 31st December 2007. As you are probably aware the wealth tax was abolished as from 1st jan 2008 so anyone completing on or after this date is not liable for the tax.

Bigdunc where do you get your information from that the wealth tax is abolished as of Jan 08?  My lawyer seems to think it is still extant and opinions seems to differ depending on which way the wind is blowing

If you (or anyone else) has it, I would appreciate your direction to the written legislatory change or official paperwork that outlines the abolishion of this tax.  I like things in writing, it gives you more clout when you are politely telling your lawyer to shove it 

Cheers,

Ken.   

Ken, If you google the phrase "spanish wealth tax abolished" you will find hundreds of pages of info on the subject. My lawyer advised me of this back in summer. Dont forget you are still liable for assets held in spain up to and including 31st Dec 2007.Also you will carry on paying spanish income tax, which is calculated on the escritura value of your property.

Hi

we are from another development, and have had our property for almost 3 years,  our fiscal representative has just paid our 2007 taxes for us and has advised that although "Spanish Wealth Taxes " might be "abolished"  according to news sites etc, the financial sector in Murcia communidad have not been given any official information, and until they are given that, the Wealth Tax remains unchanged and needing to be paid.

We have also been told that we need to visit our town hall to ask about the town hall taxes (IBI and SUMA)  as the certificates showing that they have been paid are required when paying other annual taxes.  It seems that the town halls only make a half hearted attempt to send out these bills, and thereafter they just go on accumulating interest on the unpaid amounts until such time as the person finally turns up to ask, or the property comes to be sold.

 

 

 

Any ideas where our local Town Hall might be?  Surely not up in Murcia town?  Might be a good idea to pay them a visit.

Maggie

Hi Maggie

I would think your town hall would be somewhere like Pilar de Horadada, but your postal address should give you a clue, ie the zip code followed by the town name.