Illegal to rent out?

Unfortunately, poppyseed, as someone once said, there are only two certainties in life, death and taxes. You can escape neither, however, without them nothing could be provided.
Your community fees, taken by the community and not the government, seems rather high. We thought ours were quite high at 550 a year but they are not a tax.
My personal gripe, both in UK and Spain, are the taxes on tax. Petrol, for instance, which has the basic price plus duty. VAT is then charged on the price and the duty as well. Really annoying.

Still, come the revolution we can all fly the red flags high but I'll bet the new revolutionary brigade will charge us a tax on the flagpole.

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Slightly off topic, but just to clarify, whilst imputed tax is known as "non-resident tax", its actually a second home tax and payable if you have two properties here (if you're spanish for example), or a property here and a house in the UK for example (modelo 720 link).

 

Is that correct? because i paid non-resident tax on my house in Spain,  and Spain didn't know i had property in the UK, for all Spain knew i could have been homeless, lived with relations or in a hotel, how would they know i had a UK house?. 

I think my post is poorly worded. All non-residents have to pay imputed or deemed income tax - Rendimientos del Capital Inmobiliario. The point I was making is that it's not just a non-resident tax, its a second home tax, so applies to spanish tax residents who have another home as well. Its not a 100% clear, but I believe it also applies to a tax resident in Spain who also has a UK house, which will now be declared on the Modelo 720. This is from Blevins Franks

Regardless of your residence position, if you have a Spanish property that is not your main home and you are not renting out (or if you are and are not declaring the income to the Spanish authorities), the Spanish deem a notional income to arise, calculated as around 2% of the official value of the property. This income, even though it is not actual income, is taxable in Spain (at the scale rates for residents and at a flat rate of 24% in the hands of non-residents).

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Kathyslad

Now i can see the 2% on the value of the house in Spain, but 24% of the value if you own a house abroad, not forgetting undervaluing isn't done in the UK.  Take a £250'000 house at 24% in the UK, dont even go down the road on a £500'000 house.

Maybe a point has been left out somewhere ( 2.4%).....But even that not so on my figures....Will let someone else work these strange figures out in case i show myself up........again.

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I think you'll find it's 2% of the catastral value then 24% tax on that value. As a non-res with a flat that was on the registry as 106, 000 euros, I'd have been paying 106, 000 x 2 % = 2120 then 24% of that which is about 508 euros. The fact that I was only paying 65 euros points to the catastral value of around 13, 000 euros being used.

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Actually, it's only 2% if the cadastral value hasn't been revised since 1stJanuary 1994. If is been done since then it's 1.1%, and the tax is currently 24.75% (it used to be 24%).

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 Seems to have got a bit off topic, i.e. what do we think about this proposed new legislation affecting renting out property for holiday lets?

I was wondering what holiday property portals would think of it, since it could impact on their business as well. Then I opened today's e-mail and saw the first two items on the EOS newsletter:

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