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Hi more well 1 thing less to sort out thanks irene
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Irene, you STILL need to pay wealth & renta taxes (form 214) THIS year as it's paid a yr in arrears. It's NEXT year when you pay for Jan 1 to Dec 31 2008 when you won't pay wealth tax. Don't get excited. 
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Hi i am still thinking about it not sure if i will do it my self or pay the lawers after service its 300 euros for them to do it i have rang and as they still have some of our money to set up d/d for water as we might be getting off builders water soon thanks, i am reading and wont forget thanks more irene
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When we completed the form 214 last year we mistakenly used the 2% calculation instead of 1.1%-wrong advice. When we complete the forms this year is there any way we can deduct the overpayment / any help appreciated
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really sorry to sound so thick, but can anyone please simply spell out for me whether or not as a brit, who lives in the uk , has a property in Los Alcazares which is rented out for part of the time, I need to pay tax this year? I have a spanish mortgage (if that makes any difference)
I have been told that I do not, and yet all that I have read seems to say that as the tax is paid in arrears I will still owe jan - dec 2007 in wealth tax, and then probably not pay anything thereafter?
I know it won't be easy to explain, (nothing in Spain is) but would be grateful if someone could have a go!
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hi cooberpedy read mores post on 9 august she puts the best posts on this site bye irene
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Simple answer is yes you have to pay tax this year. Why, because tax is paid in arrears so in 2008 you will paying tax that is due for the tax year Jan to Dec 2007.
There are two taxes you have to pay, WEALTH TAX and RENTA. Only the first tax has been abolished so next year 2009 you will have still have to pay RENTA.
RENTA is a tax everyone has to pay whether you rent your property out or not. This was brought in because Spain knew or thought they knew that people were renting their holiday properties out and not declaring the income.
You are renting your property so you will have to also declare the money you are receiving. Your tax affairs won't be simple to sort out and it might be worthwhile paying a gestor to complete your tax forms for you. They will know whether you can offset any expenses against the income you are receiving from the annual rental.
If this still doesn't answer your question then I suggest you buy "You and the Law in Spain" from either W H Smith's or online at Amazon.
One thing to be aware of is that the Spanish government are investigating all rental properties to make sure the tax on the rental income is being paid. Some people try to get out of paying tax by saying that only friends and family are using their property so they are looking at websites and comparing the details to see if the tax affairs of the owner is up todate.
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Hi, how do you work out how much tax (rento and wealth) is due, and who do you pay it to ? Thanks
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You can either read this thread and others on here about Wealth Tax as this has been disscussed numerous times.
Or buy the book You and the Law in Spain.
If you don't understand after reading all this then you get a Gestor to do it for you. They charge around 85e double if the property is in joint names as you each have to submit a return.
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Yet another question on wealth tax.....we have been told by our solicitor that the value of our property he has used for tax calculations for the past two years is the purchase price on the deeds plus transfer tax, notaries, fees, register office etc. I can't say I have ever seen this before and it doesn't seem logical, can anyone confirm please. Glad it is the last year for this tax!
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I've never heard of that, as far as I know it's amounts on your deeds and the rateable value (valor vatastral) shown on last years suma bill.
I've never filled one in myself but when I'm in Spain next month I'm going to use the guide given further down this thread (looking for a fiscal rep 24/7) to see if I arrive at the same figures I've been paying.
You don't say where you have a property, in Torrevieja they decided to bring all houses into line. Older property owners were paying much less by using the original buying price, they gradually raised the prices over a 5 year period.
I think they were looking at all house prices and amending them to bring them all into line with recent house prices.
I don't know if other areas did the same, depends on how healthy the local budgets where.
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Hi all if the house prices go down 20 or 30 % will we pay less next year ?bye irene
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Thanks Semijubilada. We're in Costa del Sol.
We were doing the same thing and we now understand the percentages and tax rates to use but didn't know why the property value used was greater than shown on the deeds for wealth tax. Anyone else shed any light on the 'extras' included by our solicitor?
This message was last edited by crackers on 8/27/2008.
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Irene, the simple answer is no - The reason our council raised the registered deed price was because they needed more funds. They realised that the way the IBI tax was calculated was incorrect due to the rising cost of property.
If you'd owned your property for say 10 years the registered deed price would have been 4 times less than one that had been sold recently. Both houses needed to pay the same as they used the same services so they decided to raise the prices slowly over a 5 to 10 year period. Some would reach the threashold quicker than others depending on how long the property had been owned.
The raising of the deed price would show in the IBI statement, raising the yearly amount in both IBI and Wealth Tax. The actual deed price remains the same and if the price goes down then the amount of Capital Gains will also be less - but that's another story.
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Hi but if someone buys now and the prices are lower like my son he should pay less or i hope so bye irene
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Don't understand what you are trying to say Irene.
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My understanding is that the "Wealth Tax" is based on the highest of :-
The Catastral value as shown on theAyuntamiento IBI tax bill or
The actual price paid on the Escritura (this should not include any fees or taxes) or
A value assigned by the Hacienda if they do not believe what the other two show
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regarding the IBI ( which I presume is the council tax) how long after completion of a development does it take for the first payment to be demanded? we completed feb 2006 and no one on our development has had a council tax bill yet.
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They don't seem to send out bills in Spain but if you pop into your local council tax office with your escritura to identify your property and show that they will find your bill and produce a demand for payment, This will be back to the date when the notary registered you as the new owner at the Land Registry. You will be fined for the unpaid years (€50 per year in Ayamonte) and interest will be added to the outstanding amount. It does take them a long time to register new properties and the change of ownership but they will still go back to the beginning. We signed in Feb 2007 and I asked in May 2007, Oct 2007, Jan 2008, May 2008 an finally got to pay in Juy 2008.
The tax office is next to our favorite Tapas bar so it was not to onerous a tax between tapas!
This message was last edited by JohnKath on 8/27/2008.
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Some people start paying them quickly whilst others start paying 3 or more years later.
Only thing to be aware of is that once your account is activated you must pay it quickly or you will be fined.
See if you can calulate how much it will be and keep the monies in account ready and waiting.
I found this through google, it may be of help
Local Taxes
There are two local property taxes which are both based on the property's theoretical rental value according to the local land registry, and is adjusted in line with inflation. The rates of tax will vary from region to region due to the varying rates of tax imposed by the regional and local governments.
Local property tax (Impuesto Sobre Bienes Inmuebles (IBI))
This is the main local property tax affecting owners of properties in Spain payable yearly to the Town Hall. The amount of the tax is calculated by reference to the valor catastral (official value of the property) registered in respect of all properties in Spain. The percentage charged varies from area to area, and is roughly 0.5% to 1%.
Local mains drainage and refuse collection tax (basura y alcantarillado)
This local tax payable by property owner and a related to rubbish collection and drainage.The amount to pay varies from area to area, and should be paid to the local Town Hall every 3 or 6 months. This tax should be between €200 and €250 per year. Also, if your spanish property has a garage entry you are obliged to pay €18 per year.
I live on Costa Blanca and my drainage and refuse is part of my water bill whereas others pay it as above.
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