Non Resident Taxes HELP/ADVICE NEEDED

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30 Dec 2012 17:03 by avensis20 Star rating. 8 posts Send private message

Hi can anybody please help out with advice.  I have been getting emails from eye on spain regarding Non Resident taxes in Spain.  I am very worried as this is a tax I was not aware of in Spain.  I am extremely angry as I have never been advised of this tax by the Solicitor I used when I purchased my property or by Parador.

I pay my SUMA Taxes and Community Fees every year.  I never rent out the property and only use it 2 or 3 times a year.  I purhased the property in January 2006 along with my Sister as an investment.  When purchased the property we paid €199,000.  The property is now worth less than half what we paid.  I will not be able to afford the last 6 years of non resident taxes.  I have never received any letters or demands regarding this.  I don't know who to turn to for advice or who to pay to sort out this mess.  Would just love to get rid of this property that has turned into a totally nightmare.  Nothing but taxes and fees.  The list is endless.  Any advice on who to contact or who would be the cheapest to sort this out.  Also anybody know roughly how much these taxes will cost me?  Totally scared to find out and just wondering would it be best to just give the property back to the bank?  Thanks.





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30 Dec 2012 17:13 by johnzx Star rating in Spain. 5247 posts Send private message

In you case I would forget about this year, as you don’t have time to pay it now,  and hope Hacienda don’t pick it up, if they do you will have a fine to pay. Then pay next year for year 2012 as early as you can.
 
The tax is 1.1% of the catastral value multiplied by 24%
 
So for example 150,000 cat valour x 1.1% =  1    X 24 %  =   156 euros.

 

(And ingorance of the law is no defence).





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30 Dec 2012 17:17 by camposol Star rating in Camposol. 1408 posts Send private message

Surely you must have researched the tax situation-there are so many sites for infornmation.You have to pay tax on your property even if you do not rent it out-you pay a proportion of the villas value. Also you have to pay yearly IBI, equivalent of council tax.





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30 Dec 2012 17:22 by johnzx Star rating in Spain. 5247 posts Send private message

Yes, as Campo says, if you had derived an actual income from the property then you would  have had to pay  24% tax on that income, plus the Foreign Owners Property Tax.





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30 Dec 2012 17:32 by avensis20 Star rating. 8 posts Send private message

Thanks for the reply Johnzx.  You say forget about this year as it is too late.  So how do I pay these outstanding years?  Do you know of any reputable companies to do my tax returns for me?  Thanks.





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30 Dec 2012 17:36 by avensis20 Star rating. 8 posts Send private message

No Camposol, I actually didn't research.  I guess I am just stupid and presumed community fees and IBI which I do pay every year, were the only taxes I would have to pay.





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30 Dec 2012 18:13 by henryreed Star rating in Berkhamsted Herts an.... 154 posts Send private message

I am not sure about what to do about previous years tax, but would suggest you complete  the forms for 2011 (2012 not due til end of 2013. contact  spanishtaxforms.co.uk  and give them the information they need: property address, names of owners on deed, catastral value etc, . they will prepare forms (2 owners) for you and calculate tax for £25. They may be able to advise on what to do about earlier years, if you are unable to pay in spain yourself (at your bank), for a small extra charge they can do it for you.

My guess is that your annual  tax ( based on what you said you paid 6 years ago) will be about €200 split between the owners per year. It is calculated on Catastral valor which will be given on your IBI bill. This does however assume that you have not had any rental income.

Hope this helps and good luck





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30 Dec 2012 19:43 by avensis20 Star rating. 8 posts Send private message

Thank you Henryreed for your advice. Is that 200 euros per person or both. I have checked my last SUMA BILL. And the cadastral valor is 24931,15. Surely it can't be more than the purchase price I paid of 199,000. The property is now worth around 99,000. Any ideas please?



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30 Dec 2012 20:45 by johnzx Star rating in Spain. 5247 posts Send private message

Avensis
 
I think you have made an error.   
 
The Cat Value cannot be 24,931,15. 
 
That would mean  24,931.15  x 1.1% x 24 % = 65.82 euros to pay in total
 
 It must be more than tha
 
Look again for the Catastral Value, it should somewhere in the region of what you paid,  say 199.000

240,000 would mean tax to be paid 633.66 euros





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30 Dec 2012 21:01 by avensis20 Star rating. 8 posts Send private message

No John

it says on my SUMA BILL 24931,15. I presume that is 249, 31.15. Would this be correct. My property us selling now for 99,000 Seems a bit unfair with property valuations being so low.



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30 Dec 2012 21:05 by johnzx Star rating in Spain. 5247 posts Send private message

Avensis

That is 249 euros and 31 cent.  (the amount of tax you paid, not the cat value)

In Spain a comma is used  where in UK we use a dceimal point.  i.e 249.31 euros

 

 


This message was last edited by johnzx on 30/12/2012.



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30 Dec 2012 21:07 by juansheetisplenty Star rating in Cartagena. 278 posts Send private message

juansheetisplenty´s avatar

 24931 for a catastral value is entirely normal. Ours is around 34000 on a 4 year old 3 bed property. Catestral values are often much lower.

Juan





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30 Dec 2012 21:26 by johnzx Star rating in Spain. 5247 posts Send private message

Avensis

I have sent you a private message which contains  a bank extract which shows where the total Cat Val is shown.

 

It is made up of the ground value plus the building.





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30 Dec 2012 21:36 by henryreed Star rating in Berkhamsted Herts an.... 154 posts Send private message

Hi,

I doubt if catastral value is 240,000.

If you go to Fusters-Associates.com you will find a non resident tax calculater. You can either put in catastral value or purchase price. Usually useing catastral will give you a lower tax liability, but if no catastral is available ( as on new properties) it is possible to put reg price in to the calculater. If you put 199000 in the tax comes out at 260 or 130 per person, so I would expect your liability to be a little less than this. Have another look on your IBI bill from the town hall and look for valor catastral

 





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