Resident or Non-Resident, confusion

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17 Oct 2011 10:19 PM by roberto Star rating in Torremolinos. 4552 posts Send private message

roberto´s avatar
Presumably this happened as a result of her registering as a resident? How else would her bank know she is NOT a non-res? If only she had listened to common sense instead of trying to follow the letter of an unworkable law.

Oh well. I give up. John, with the greatest respect, you are like an EU referendum - you won't give up until you get the answer you want, even though you know nobody agrees with you.

_______________________

 

"Get your facts first, then you can distort them as you please"

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18 Oct 2011 9:18 AM by johnzx Star rating in Spain. 5242 posts Send private message

For the sake of clarity. 

 

Since April 2007  Residencia has ONLY EXISTED FOR NON EUROPEAN UNION CITIZENS

 

(private mesage sent to Roberto)





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18 Oct 2011 9:24 AM by elaineG Star rating in Spain . 409 posts Send private message

Quite right johnzx.  I don't know how many times you need to say it before Roberto etc 'get on the same page' and accept that Residencia no longer exists.

 

 





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18 Oct 2011 9:27 AM by Julianx Star rating in Spain. 61 posts Send private message

You beat me to it Elaine. Well said.

 

Now can anyone do what johnzx asked, give a professionally qualified answer, many of us would like to hear it.





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18 Oct 2011 9:48 AM by guslopez Star rating in Lorca, Murcia.. 745 posts Send private message

So why ,if  'Residencía' no longer exists, am I registered as a Permanent resident  ?

I think you are all splitting hairs. The Tarjeta de Residencía ' no longer exists but the principal that you have tolegally  register as a resident does.

johnzx is not going to get a ' professional qualified ' reply on here as he's not paying , in addition if he was to be given free professional advice on here he's not going to believe it unless the advisor gives his full qualifications ,name address, etc ; etc; etc !

 

 



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18 Oct 2011 10:20 AM by Julianx Star rating in Spain. 61 posts Send private message

johnzx,
 
in a way I agree with guslopez, even though you asked for comments from people who have at least some professional knowledge it would seem that people who have no such knowledge are going to comment, albeit that they are not actually addressing your questions and appera not to even understand it.   Like those who keep referring to residencia. Doh! .    I can only assume, as I am sure they are not being deliberately mischievous, they have been unable to grasp the important point you have raised.
 
'None so blind as they who do not want to see' springs to mind





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18 Oct 2011 12:24 PM by Ensalada Star rating. 3 posts Send private message

Ok guys and gals can I ask a question along the same lines.  I had heard that Spain was being forced to look at the inheritance tax rules for non-res, as, like the former Wealth Tax, it was against EU rules to treat non-res differently to residents/natives, i.e. to have different rates/percentages of Inheritance Tax for them.

Has anyone heard if the govt. have done anything yet?  I read in a mag around Easter that a result was expected in a couple of months - but maybe they meant Spanish months :-)





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18 Oct 2011 12:29 PM by DMS Star rating in Spain. 27 posts Send private message

DMS´s avatar

 

 

 

 

Please note that having a Residence Certificate, and being a Tax Resident in Spain, are 2 separate issues. The Residence Certificate obtained from the local Police Office is purely an administrative document and does not change the tax status of the holder. All citizens that reside in Spain for more than 183 days are considered to be Tax Residents in that country. If this is the case they should submit their declarations as Tax Residents in May/June each year. This declaration is self-assessed and is the responsibility of all residents each year to present to the tax office in their area.
With regards to your further questions please find my comments below.
 
Prior to the abolition (or if prefers the euphemism, replacement) of the Residencia for EU citizens it was easy to know how being resident affected us, but what happens now?
If an EU citizen is living in Spain permanently they are required by law to apply for, and obtain a Residence Certificate from their local Police Station.
 
A property owner stays in Spain for 3 months thus must register on the EU citizen’s registration. However, if they do not spend 183 days or more in any year. Thus I believe they are not tax resident.
If they do not spend more than 183 days per year in Spain then they are NOT considered to be Tax Residents, however if they own a Spanish property, and or have assets in Spain, they are still liable to pay income tax as a non-resident, (Form 210), which is due to be submitted and paid by 31st December each year. Again this is a self assessed tax, and it is the responsibility of each person to present it to the local Tax Office.  
 
Do they have to pay the non-resident property tax?
See previous answer above
 
Do they open a residents or non residents banks account?
If the person does not live in Spain for more than 183 days then they must have a Non-Resident Account and of course there would be no Tax Retention taken on the interest earned on this account.
 
Can they drive a non Spanish registered vehicle for up to 6 months a year?
If a vehicle remains in Spain for more than six months it should be registered with Spanish plates
 
If they are over 65 do they still qualify for the capital gains tax exception on their home? If they are over 65 and are NOT Tax Residents in Spain they cannot get the exemption when selling their home.
 
Should they register on the empadron?
The Padron, “Certificado de Empadronamiento”, is the registration with the Town Hall where you are living, it is also required if you wish to vote in the European Elections, so for any one residing permanently in Spain it is advisable to get the “empadronamiento”
 
Can they change their national DL to a Spanish one?
Any EU citizen can change their Driving Licence for a Spanish one.
 
I hope that clarifies your questions for you,
 
 
 


 



This message was last edited by DMS on 18/10/2011.



This message was last edited by DMS on 18/10/2011.

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18 Oct 2011 12:48 PM by mariadecastro Star rating in Algeciras (Cadiz). 9402 posts Send private message

mariadecastro´s avatar

 http://www.eyeonspain.com/spain-magazine/non-resident-taxes.aspx

Resident And Non Resident Taxes In Spain

Published on 15/07/2009 12:53:15 in Taxes in Spain


 

Individuals and Companies that are liable to pay taxes in Spain are classified by the Inland Revenue System in two main categories:

  1. SPANISH RESIDENTS (Individuals and Companies)

    Individuals are to be considered Spanish Residents if:

  • They spend more than 183 days in Spanish territory in a calendar year or,
  • Their main base or centre of economic activities or interests are in Spain or,
  • Their spouse and/or underage dependant children are permanent residents in Spain (unless the individual is legally separated or can prove tax residence elsewhere)

On the other hand an entity or organisation is deemed to be a resident of Spain when it meets any of the following criteria:

  • It was incorporated in Spain.
  • It has its registered office in Spanish Territory.
  • Its effective chief office is located in Spain, i.e. when the management and control of the sum of its activities are performed within the territory.

 

  1. SPANISH NON RESIDENTS (Individuals and Companies)

    If none of the above residents criteria are met by an individual or organisation he/she will be considered as Non-Residents for the whole tax year and will be taxed accordingly.

    A person or entity may prove its tax residence in a specific country by a certificate issued by the Tax Authority in that country. The period of validity of these certificates is one year.

 

 A person or entity may prove its tax residence in a specific country by a certificate issued by the Tax Authority in that country. The period of validity of these certificates is one year.

In turn Spanish Individual Residents are classified into 2 different Working Categories: Autonomos (Self-employed) orTrabajadores por Cuenta Ajena (Employees).

Depending on our residence status and working Category, one is liable to file and/or pay certain tax returns to different state levels; National, Regional autonomous and Local (municipality) taxes. Most individuals and organisations will probably need to comply with one or more Spanish taxes in accordance to his/her economic activities, incomes and/or property ownership within the Spanish territory. 

Figure 1 Individual / Companies Classification for Spanish Taxes 


Spanish taxes Categories according to State Levels


National Regional autonomous Local (municipality) taxes.

  • IRPF Nationals and Residents income tax.

  • Non-Residents Income Tax (IRNR – Impuesto sobre la Renta de No Residentes)

  • Companies Tax – Impuesto Sobre Sociedades

  • VAT Tax (Impuesto sobre el Valor Añadido - IVA)
  • Inheritance and Gift Tax (Impuesto sobre Sucesiones y Donaciones - ISD)

  • Transfer Tax and Stamp Duty (ITP -Impuesto de Transmisiones Patrimoniales y Actos Jurídicos Documentados)
  • Property Tax (IBI – Impuestos sobre Bienes Inmuebles)

  • Municipal Tax (BS -Basura y Alcantarillado)

  • Motor Vehicle Tax (IVM - Impuesto sobre vehículos de motor)

Each of the above tax concepts has its own form (model or Modelo) and time – frame (Deadlines) within which they have to be filed and/or paid. Additionally some taxes are Periodic while others are Non-Periodic, i.e. some ought to be paid on periodic bases: Yearly, half-yearly, quarterly or monthly, while others are only payable when a specific economic event takes place: Property real estate purchase, Vehicle purchase, Inheritances, etc.

Following the above categories and idea we can outline the Spanish Tax System as shown in the following charts.


MPORTANT NOTICE: The Tax Rates shown in the tables below may vary in accordance to personal situations, economic activity or property ownership. Please do not hesitate to contactweb@costaluzlawyers.es for further explanations or personal tax returns assessments.


RESIDENTS



INDIVIDUAL SPANISH RESIDENTS TAXES (PERSONAS FÍSICAS – RESIDENTES)

SELF EMPLOYED - AUTÓNOMO

PERIODIC TAXES
TAX LEVEL TAX NAME TAXABLE EVENT TAX RATE TAX SUBMISSION WHERE? MODEL / FORM
National IRPF Incomes in general 18% - 40 % From May to June Bank or AEAT 100
National IVA VAT 4%-16% Quarterly Bank or AEAT (1) 303
National IVA VAT 4%-16% Annual summary AEAT 390
National Retención IRPF Income tax withholdings 7%-18% Quarterly Bank or AEAT (1) 110
National Retención IRPF Income tax withholdings 7%-18% Annual summary AEAT 190
National Retención IRPF sobre arrendamientos de bienes inmuebles Rent income tax withholdings 18% Quarterly Bank or AEAT (1) 115
National Retención IRPF sobre arrendamientos de bienes inmuebles Rent income tax withholdings 18% Annual summary AEAT 180
National Social Security contribution Self Employed Social Security Variable Monthly Direct debit or Bank Handed by the Social Security office
Local IBI(2) Property tax Variable.

Based on the cadastral value

 Half yearly or

Yearly

 Bank or local gov´nt office Handed by the town council
Local Basura y Alcantarillado (BS) (2) Municipal maintenance and rubbish tax Variable.

Depends on the Town Council

 Half yearly or quarterly Bank or local gov´nt office Handed by the town council
Local IVM Motor Vehicle tax Variable.

Depends on the Town Council

 Yearly Bank or local gov´nt office Handed by the town council





INDIVIDUAL SPANISH RESIDENTS TAXES

NON PERIODIC TAXES
TAX LEVEL TAX NAME TAXABLE EVENT TAX RATE TAX SUBMISSION WHERE? MODEL / FORM
Autonomous Community ITP/AJD (2) Premises purchase taxes 0%-7%

of the Purchase price

 Up to 1 months after the Title Deed signature Bank 600
Autonomous Community ISD Inheritance and Donations tax Variable Up to 6 months after the taxable event takes place Bank or autonomous regional office 650 (Inheritance)

651 (donations)
    1. Bank if payment is due and AEAT if there is a tax refund
    2. If owner of a real estate property



EMPLOYEES - INDIVIDUALS IN GENERAL

PERIODIC TAXES
TAX LEVEL TAX NAME TAXABLE EVENT TAX RATE TAX SUBMISSION DEADLINE WHERE? MODEL / FORM
National IRPF Incomes in general 18% - 40 % From May to June Bank or AEAT 100




EMPLOYEES - INDIVIDUALS IN GENERAL

NON PERIODIC TAXES
TAX LEVEL TAX NAME TAXABLE EVENT TAX RATE TAX SUBMISSION DEADLINE WHERE? MODEL / FORM
Autonomous Community ITP/AJD (2) Premises purchase taxes 0%-7%

of the Purchase price

 Up to 1 months after the Title Deed signature Bank 600
Autonomous Community ISD Inheritance and Donations tax Variable Up to 6 months after the taxable event takes place Bank or autonomous regional office 650 (Inheritance)

651 (donations)
Local IBI(2) Property tax Variable.

Based on the cadastral value

 Half yearly or

Yearly

 Bank or local gov´nt office Handed by the town council
Local Basura y Alcantarillado (BS) (2) Municipal maintenance and rubbish tax Variable.

Depends on the Town Council

 Half yearly or quarterly Bank or local gov´nt office Handed by the town council
Local IVM Motor Vehicle tax Variable.

Depends on the Town Council

 Yearly Bank or local gov´nt office Handed by the town council




SPANISH RESIDENT COMPANIES

PERIODIC TAXES
TAX LEVEL TAX NAME TAXABLE EVENT TAX RATE TAX SUBMISSION WHERE? MODEL / FORM
National IRPF Incomes in general 18% - 40 % From May to June Bank or AEAT 100
National IVA VAT 4%-16% Quarterly Bank or AEAT (1) 303
National IVA VAT 4%-16% Annual summary AEAT 390
National Retención IRPF Income tax withholdings 7%-18% Quarterly Bank or AEAT (1) 110
National Retención IRPF Income tax withholdings 7%-18% Annual summary AEAT 190
National Retención IRPF sobre arrendamientos de bienes inmuebles Rent income tax withholdings 18% Quarterly Bank or AEAT (1) 115
National Retención IRPF sobre arrendamientos de bienes inmuebles Rent income tax withholdings 18% Annual summary AEAT 180
National Social Security contribution Self Employed Social Security Variable Monthly Direct debit or Bank Handed by the Social Security office




SPANISH RESIDENT COMPANIES TAXES

NON PERIODIC TAXES
TAX LEVEL TAX NAME TAXABLE EVENT TAX RATE TAX SUBMISSION WHERE? MODEL / FORM
Autonomous Community ITP/AJD (2) Premises purchase taxes 0%-7%

of the Purchase price

 Up to 1 months after the Title Deed signature Bank 600
Autonomous Community ISD Inheritance and Donations tax Variable Up to 6 months after the taxable event takes place Bank or autonomous regional office 650 (Inheritance)

651 (donations)
Local IBI(2) Property tax Variable.

Based on the cadastral value

 Half yearly or

Yearly

 Bank or local gov´nt office Handed by the town council
Local Basura y Alcantarillado (BS) (2) Municipal maintenance and rubbish tax Variable.

Depends on the Town Council

 Half yearly or quarterly Bank or local gov´nt office Handed by the town council
Local IVM Motor Vehicle tax Variable.

Depends on the Town Council

 Yearly Bank or local gov´nt office Handed by the town council


NON RESIDENTS


INDIVIDUAL SPANISH NON-RESIDENTS TAXES (PERSONAS FÍSICAS – NO RESIDENTES)

PERIODIC TAXES
TAX LEVEL TAX NAME TAXABLE EVENT TAX RATE TAX SUBMISSION WHERE? MODEL / FORM
National IRNR Real Estate Properties 

Property Rents (Owners)

 24% From January to December (1 Property) 

From May to June

(More than 1 Property)

 Bank 210
Local IBI(2) Property tax Variable.

Based on the cadastral value

 Half yearly or

Yearly

 Bank or local gov´nt office Handed by the town council
Local Basura y Alcantarillado (BS) (2) Municipal maintenance and rubbish tax Variable.

Depends on the Town Council

 Half yearly or quarterly Bank or local gov´nt office Handed by the town council
Local IVM Motor Vehicle tax Variable.

Depends on the Town Council

 Yearly Bank or local gov´nt office Handed by the town council






INDIVIDUAL SPANISH NON-RESIDENTS TAXES

NON PERIODIC TAXES
TAX LEVEL TAX NAME TAXABLE EVENT TAX RATE TAX SUBMISSION WHERE? MODEL / FORM
National IRNR Capital Gain Taxes 18% Up to 4 months after the property selling deeds signature Bank or AEAT 212
Autonomous Community ITP/AJD (2) Premises purchase taxes 0%-7%

of the Purchase price

 Up to 1 months after the Title Deed signature Bank 600
Autonomous Community ISD Inheritance and Donations tax Variable Up to 6 months after the taxable event takes place Bank or autonomous regional office 650 (Inheritance)

651 (donations)
    1. Bank if payment is due and AEAT if there is a tax refund
    2. If owner of a real estate property


NON RESIDENT COMPANIES

PERIODIC TAXES
TAX LEVEL TAX NAME TAXABLE EVENT TAX RATE TAX SUBMISSION DEADLINE WHERE? MODEL / FORM
National IRNR Real Estate Properties 

Property Rents (Owners)

 0% - 3 % January Bank or AEAT 213
Local IBI(2) Property tax Variable.

Based on the cadastral value

 Half yearly or

Yearly

 Bank or local gov´nt office Handed by the town council
Local Basura y Alcantarillado (BS) (2) Municipal maintenance and rubbish tax Variable.

Depends on the Town Council

 Half yearly or quarterly Bank or local gov´nt office Handed by the town council
Local IVM Motor Vehicle tax Variable.

Depends on the Town Council

 Yearly Bank or local gov´nt office Handed by the town council





NON RESIDENT COMPANIES

NON PERIODIC TAXES
Autonomous Community ITP/AJD (2) Premises purchase taxes 0%-7%

of the Purchase price

 Up to 1 months after the Title Deed signature Bank 600
Autonomous Community ISD Inheritance and Donations tax Variable Up to 6 months after the taxable event takes place Bank or autonomous regional office 650 (Inheritance)

651 (donations)



Some tax exceptions and tax liabilities exceptions may apply on certain incomes and/or due to tax agreements with other countries.


For further information regarding income, income tax withholdings, tax liabilities, tax agreements and tax exceptions, please do not hesitate to contact us for free advice and consultation to web@costaluzlawyers.es

 

Written by: Maria de Castro

About the author:

Maria de Castro is a Spanish Lawyer and the Director of the Law Firm www.costaluzlawyers.es.

Costa Luz Lawyers are contract and consumer real estate law specialists covering all parts of Spain. You can contact Maria atmldecastro@costaluzlawyers.es

 

 



_______________________

Maria L. de Castro, JD, MA

Lawyer

Director www.costaluzlawyers.es

El blog de Maria


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18 Oct 2011 12:57 PM by johnzx Star rating in Spain. 5242 posts Send private message

mariadecastro

 
I wish you had started a new thread, with the important information which you have posted, instead of hijacking my thread,  which specifically did not relate to  TAX RESIDENCIA.





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18 Oct 2011 2:55 PM by johnzx Star rating in Spain. 5242 posts Send private message

I have spoken to Mijas Foreign Resident Dept;  they called the Agencia Tributaria (Hacienda) who said, that whilst they accept that the rules which define who is tax resident may not apply (i.e. the 183 day rule etc)  if an EU citizen registers on the Foreign Citizens Register then the tax office consider that they are from then on tax resident, thus they do not pay the non-resident foreign property owners tax,  but must make an income tax return (regardless of the amount of income, i.e. below the amount on which they would pay tax, unless they are employed, in which case they may be exempt).

 

To cancel a registration: -
 
Go to the office where it was issued, take the green cert., original of passport plus a copy, complete the solicitud (request form), photocpy the solitude and then present the papers. Immediately it will be cancelled, and you will have the copy form to prove it. There is at present no charge.

I think this is the last word on this thread.

 

 



This message was last edited by johnzx on 18/10/2011.



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18 Oct 2011 3:57 PM by Faro Star rating in London. 1139 posts Send private message

ok - but are we still saying that if you initially obtained an NIE as a non-resident then on becoming resident  it is necessary to go to the police station and complete Form EX-18 - "Solicitud de certificado de registro de residencia comunitaria (Real Decreto 240/2007) and pay the official fee of EUR10.20 thus applying for "Residencia Permanente"





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18 Oct 2011 4:06 PM by johnzx Star rating in Spain. 5242 posts Send private message

Faro,
 
Yes.
 
 For example a person gets an NIE (it's a tax office number by which they can trace all your financial transactions, bank accounts etc, (where you used the number).
 
If that person (who is an EU citizen) subsequently comes to live in Spain then they must register on the Foreigners Register.
 
At present the registration has no expiry date, however, I undestand that some agencies are insisting that the cert showing the NIE number must have been issued no more than three months before it is used / accepted.  This may not apply everywhere.
 





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18 Oct 2011 7:41 PM by Roberto Star rating in Torremolinos. 4552 posts Send private message

Roberto´s avatar

 "I think this is the last word on this thread"

Oh no it isn't!

You do realise, don't you, that you have just completely destroyed your own argument?

By the way, if you ask Hacienda again tomorrow, you will almost certainly get a different answer.



_______________________

 

"Get your facts first, then you can distort them as you please"

Mark Twain

 

 

 




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18 Oct 2011 7:52 PM by johnzx Star rating in Spain. 5242 posts Send private message

Roberto, 

I was not here to argue but to assist someone who had asked me some questions.  Despite the lack of help by some, I was sucessful.

 

Thanks to you guys to assisted.

 



This message was last edited by johnzx on 18/10/2011.



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01 Feb 2012 4:47 PM by camposol Star rating in Camposol. 1406 posts Send private message

Xetog- are you aware that if you are out of the uk for more than three months, you are no longer eligible for NHS care, as it is residence based?  perhaps you should check your status with the DWP. . another thing for those thinking of moving  permanently to spain to consider- some ex pats here do not tell their GP that they have moved to spain and continue to fly back at intervals for prescriptions and treatment-this is regarded as fraud.





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01 Feb 2012 6:49 PM by xetog Star rating in Wiltshire/holiday ap.... 514 posts Send private message

We are never away for more than 60 days at any one time as our house insurers won't allow it.  However, I have to say that as with everything else in this cockeyed nation, the native population are treated as 2nd class citizens.  Come from any other EU nation and you get the full works from the day you enter.

M.





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