Change to tax rate for non resident home owners??

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05 Nov 2013 6:53 PM by del007 Star rating. 274 posts Send private message

Right guys,

Hopefully the penny has dropped.  If I understand you correctly the receipt number generated by the Tax Office website is recorded by the Tax Office and this number can only relate to a specific individual.  When payment is made at the Spanish bank they either scan your bar code or enter your receipt number in to their system thus tying both the payment and the online 210 form together.  Simples!!!

 

Thank you for all your help.





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05 Nov 2013 7:08 PM by lijaloo Star rating. 41 posts Send private message

Pretty much but the form isn't submitted to the tax office online it is submitted by the bank.  The form is only generated online.

The instruction on the website and when you print out the forms are pretty clear.

  • In order to effectively submit this self-assessment, you must complete the following steps:
  •  
  • 1. Validate and generate PDF. You can save the document on your computer in PDF format.
  • 2. Print document.
  • 3. Write the NIF [Tax ID Number] on the Deposit or Refund Document and sign it manually.
  • 4. 4. Follow the procedure described in the instructions included in the PDF based on the type of result of the tax return and, where applicable, the chosen payment option.

 


This message was last edited by lijaloo on 05/11/2013.



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05 Nov 2013 10:11 PM by del007 Star rating. 274 posts Send private message

Thanks lijaloo,

Got it!

 





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09 Nov 2013 9:55 AM by del007 Star rating. 274 posts Send private message

Once you have completed your 210 return on the official Spanish Tax website, is it possible to go back in to the system and resurrect you form?





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09 Nov 2013 10:39 AM by lijaloo Star rating. 41 posts Send private message

No, don't think so.  The valdation process just checks that the boxes have been cpmpleted.  If you didn't save it to your computer and haven't printed it out and need to work on the form just start again. Even if you have saved it and notice a mistake you can just start again.  But don't use part of one set of documents and part of another. I know the first time I did the returns I did a couple of dummy runs because I wasn't 100% sure I'd done it right.  It seemed far simpler than I expected and was convinced I'd done something wrong.





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09 Nov 2013 11:10 AM by del007 Star rating. 274 posts Send private message

Cheers Lijaloo,

I am doing three returns, two of which I emailed to a friend in Spain and he successfully paid the tax via the bank.  The third has saved in a different format for some reason and I cannot open the file correctly.  I have printed the third 210 form and scanned it and sent it to my friend as an email attachment.  The form is printing out at his end in a smaller format and the bank cannot scan it properly.  I thought the bank would simply manually insert the receipt number in to their system.  I didn't wish to redo the form in case I generated an additional receipt number causing total confusion.





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09 Nov 2013 11:34 AM by johnzx Star rating in Spain. 5242 posts Send private message

 

I thought the bank would simply manually insert the receipt number in to their system.

That’s what they did with the 4 returns I took in. They were the correct size but the reader could not read the bar code. They put it in manually and I paid the 4 amounts





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11 Nov 2013 6:47 PM by mojito Star rating in Cupar Fife / San Jua.... 268 posts Send private message

Just filling in the Modelo 210.  Can anybody tell me what to put in for

INCOME TYPE in Section 2?  It's for a holiday home I do not let out.



_______________________

Jo and Jim




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11 Nov 2013 7:45 PM by del007 Star rating. 274 posts Send private message

The correct option is:-

02 Income from urban property.

We are all in the same boat.  This is an illegal tax, it is a pay as you earn tax, which by definition means that you pay tax on your earnings.  We do not let out, therefore have no income, however the Spanish athorities assume we do that is why you have to apply the formula to work out your tax liability on non earnings.  According to my lawyer the Spanish government have been advised that this is an unlawful tax by the EU.  Unlike the UK government the Spanish told the EU to get notted.  My lawyer advised that we do not have to pay it, then added if we don't, should we choose to sell the Spanish will give us all sorts of problems.





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11 Nov 2013 8:08 PM by KathysLad Star rating. 329 posts Send private message

I'm not sure I see the basis of it being illegal. As far as I am aware, the EU currently allows member countries to set its own taxes. What thewy cannot do is discriminate against non-residents, which they don't as far as this tax is concerned. Just to be clear, that doesn't mean I think its right to tax people in that way.

 





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11 Nov 2013 10:18 PM by del007 Star rating. 274 posts Send private message

The fact that this is a pay as you earn tax says it all.  You pay tax on what you earn, if you do not lease your apartment you simply do not earn and therefore you have no tax liability.  The fact that the Spanish authorities impose this tax on an assumption that you do rent out has no basis in law. I am no lawyer, simply passing on information given to me by my Spanish lawyer.





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11 Nov 2013 11:20 PM by Kathyslad Star rating. 329 posts Send private message

I think you're getting confused. Pay as You Earn is a methodology for collecting tax. You pay tax on all sorts of things including income, interest and capital gains. As far as a basis in law is concerned, its set out in the Tax laws of Spain, and effectively its just a form of wealth tax. As us aid before, the EU doesn't regulate tax laws in the EU, with the exception of discrimination against EU citizens.





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12 Nov 2013 1:00 AM by del007 Star rating. 274 posts Send private message

" You pay tax on all sorts of things including INCOME"  My lawyers point is, if you have no income, you have no tax.    On the 210 form you are charged tax under section 2 Income from urban property.  The point is we have no income, therefore no tax liability.  They can't just invent an income for you, but they do.  Where is the legality or suggested confusion in that?





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12 Nov 2013 6:55 AM by Kathyslad Star rating. 329 posts Send private message

As I said before, its just a form of tax on assets. I still don't see that it is unlawful. It be might be unfair or immoral, but to be unlawful, it has to be against the law, either in the country or the EU. Its clearly not against the law in Spain, because its set out in the tax law. Nor can I see that it is against EU law, unless it is discriminatory or disproportional.

This is EU policy

The Commission reiterated its belief that there is no need for an across the board harmonisation of Member States' tax systems. Provided that they respect EU rules, Member States are free to choose the tax systems that they consider most appropriate and according to their preferences. In addition, any proposal for EU action in the tax field needs to take account of the principles of subsidiarity and proportionality.



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12 Nov 2013 7:38 AM by johnzx Star rating in Spain. 5242 posts Send private message

 

We pay tax (second home tax) as part of our annual (income) tax returns on a property my wife owns in the Philippines.  There is no income on that house.  Residents in Spain who own property in another country (say UK) also should declare it  and pay tax on it, in Spain.

 

In UK when my ex-wife died in UK, she had been paying Council Tax for one person. I believe after 3 months (maybe 6) of the flat being unoccupied, whilst my sons were trying to sell it, they had to pay Council Tax for 2 people.   Unfair, no just the law in UK.


This message was last edited by johnzx on 12/11/2013.



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12 Nov 2013 9:35 AM by baz1946 Star rating. 2327 posts Send private message

In UK when my ex-wife died in UK, she had been paying Council Tax for one person. I believe after 3 months (maybe 6) of the flat being unoccupied, whilst my sons were trying to sell it, they had to pay Council Tax for 2 people.   Unfair, no just the law in UK.

Yes John correct, that law was brought in some years ago because when a property, house or commercial become empty you could keep it this way for basically, almost ever, not paying council tax, until you got the right buyer / tenant, then the government said "Hang on,  the owner makes no attempt to sell or rent the property out, so we lose out on council tax income" the government and council's said it was only done this way to make sure these areas didn't become known as "Empty property areas"...Very caring of them.





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12 Nov 2013 4:19 PM by johnzx Star rating in Spain. 5242 posts Send private message

Thanks Baz, but I did not need nor want an explanation for the system in UK, Having experienced it, I knew all about it.

I was trying to indicate that each country has laws which some might think are unfair,  but just because that might be their opinion, it is not necessarily correct.

 





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12 Nov 2013 4:47 PM by baz1946 Star rating. 2327 posts Send private message

Thanks Baz, but I did not need nor want an explanation for the system in UK, Having experienced it, I knew all about it.

Thats quite alright John, i know you didn't want or need any explanations because you had experienced it, but seeing as your not the only one reading this forum i thought in some kind of foolish way some other readers might have found it enlightening as to how drastic and far our governments and councils will go to pinch that extra pound from us..Tax payers that is. But enlightening others is not to be.

Oh well all is not lost.





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13 Nov 2013 12:48 AM by Patty_1 Star rating in Hertfordshire. UK. .... 1062 posts Send private message

Actually I did find that bit of information about council tax interesting. Did not know that!

I might need that soon thank you.

Patricia



_______________________

  




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13 Nov 2013 10:36 AM by norm de plume Star rating in North Tenerife and L.... 162 posts Send private message

I did complain to Brussels about the imputed income tax payable by non-residents some time ago.  They said it was not discriminatory as it applied equally to non-resident Spaniards (oh yes - how many?).  I did however succeed in getting letting expenses allowed against income for non-residents.  I also complained about discriminatory Inheritance Taxes. Spain was told to put its house in order, but has not yet done so, and the case is due to go before the European Court very soon.  I was also responsible for the abolition of the requirement for a resident fiscal representative.

In order to get anything done, it is necessary to complain to the appropriate authorities, not just whinge about it.

The imputed Income Tax is doubly iniquitous as being taxation without representation as well as being a fiction, but unless people complain to their MEPs and anyone else who will listen, nothing will get done.  The Foreign Office is not prepared to do anything for us.  I really do not know what we pay them for.





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