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we bought in may last year a basic 2b2b apartment for our own holiday use.just received out of the blue from my solicitor welth tax bill for 500e and income tax for170e.
i cannot believe this is right, we have no spanish income. i thought we would have a nominal sum to pay but cannot understand why so high. i have not replied to my solicitor as i would appreciate any information and how to challenge it.
noddy
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If you got your keys in May 2007, you are liable to pay from that date, up to and including 31st Dec 2007, Wealth and La Renta Tax.
These taxes will be payable any time during the 2008 calendar year.
The amount you will pay, will depend on the real declared value on your escritura, plus the value determined by the town Hall for your IBI (Council Tax)
Once you have these 2 values, you will be able to work out both the Wealth and the La Renta tax due.
As for Income Tax that you describe, if you are Non Resident with no earned income in Spain, then you should not be paying Income Tax.
PM me for further details.
Regards,
_______________________
FibbyUK
One off fee to pay your own La Renta tax (210 Form)
Check out my website:
http://www.payingtaxesinspain210form.pwp.blueyonder.co.uk/
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Fibby, we bought a plot on the 6th Feb 2007 does that mean that I must pay 11/12 of a years wealth tax based on the Escritura price paid for my plot before the 31st Dec 2008. Based on a purchase price of €120,000 I have worked this out to be €248 per annum with €227 to pay.
As far as Renta is concerned I understand there is no Renta to pay on a 1000sq m building plot until the house is isued a LFO.
Is my understanding correct?
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I bought my property in October and I had to pay a whole years Wealth tax but part Renta Tax for that year.
noddy - the income tax bill, is it an IBI payment? This is paid yearly in September and is similar to council tax. This is payable by who ever owns the property on 1st Jan, as you moved in May 2007 you are not liable to pay last years IBI but you are liable for this years.
JohnKath - I wouldn't have thought that you would be liable to Renta as without a house you can't let anyone else use it.
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"Once you have these 2 values, you will be able to work out both the Wealth and the La Renta tax due.
As for Income Tax that you describe, if you are Non Resident with no earned income in Spain, then you should not be paying Income Tax".
Sorry Fibs, but
Impuesta de la Renta = Income Tax
If you own a second property in Spain (whether you are resident or not) you are assumed to derive some income from it. Income is taxable. If you are renting it out legally, you can declare the actual income. If you are not renting it, or doing it illegally, you have to pay what the govt. believes you probably earn from it!
Sh*t happens.
_______________________
"Get your facts first, then you can distort them as you please"
Mark Twain
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Roberto,
I should have thought harder!
I was thinking only of "paid work", but yes, of course, rental from a 2nd property IS an income.
Thanks for putting me right!
_______________________
FibbyUK
One off fee to pay your own La Renta tax (210 Form)
Check out my website:
http://www.payingtaxesinspain210form.pwp.blueyonder.co.uk/
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If for arguements sake the renta tax was €200 and the declared rental income was minimal i.e. €1000 total, would you only pay the €180 (18% income tax is that right) or would you still have to pay the €200? I did see a post on the forum earlier this year that now allows non residents to claim some expenses agains the tax allowance now. I shall look for it later.
Mar
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As George Dubbya would say, that's a good question, and one I'll come back to later!
Mark, I ain't got a clue! Every year, Hacienda will provide you (I think free of charge) with a booklet explaining everything you never wanted to know about your tax return. This booklet, if it can be called that, weighs a ton, is about 6 inches thick, and makes an excellent door stopper, but other than that, unless you have a PHD in bureaucracy and legal jargon (in Spanish) is all but useless.
Personally, I prefer to pay my gestor €40 to do the honours. He seems to be a dab hand at ensuring Hacienda pay me, rather than the other way round. I've never fully understood how he does this, but who am I to question it?
Whether you complete your own declaration or have a representative do it for you, you are responsible for ensuring that it is correct, and any errors are your responsibility blah blah blah. Your home may be at risk if you don't keep up payments etc.etc.etc. Always read the small print.
_______________________
"Get your facts first, then you can distort them as you please"
Mark Twain
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Hi roberto could you pm me who you use to pay the tax please thanks irene
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Done! 
_______________________
"Get your facts first, then you can distort them as you please"
Mark Twain
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Hi Roberto. 40 Euros seem like a bargain, would you please post me the name of your gestor. What is the difference between a solicitor and a gestor? (apart maybe from their charges)
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I'm never too sure what the difference is between a solicitor, lawyer, barrister and attorney - except maybe some of those are UK and some US?
Anyway, a lawyer in Spain is an abogado, (what's an advocat? must be from the same root? Or avocado?  )
A gestor is more like an accountant, but will also deal with certain legal things. For example, you can use a gestor to help with tax documentation, insurance, business licences, vehicle registrations etc.
They're sometimes also referred to as asesorias, just to confuse things further! Perhaps Maria would be kind enough to clarify this, if she sees this thread?
Will send PM with contact info for who I use.
_______________________
"Get your facts first, then you can distort them as you please"
Mark Twain
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Dear All
Please could someone provide a little clarification to our liability for Renta Tax. We are uk residents not spanish and have our main home in the uk, holiday home in Spain which we will be using for ourselves, possibly the occassional rent. However, it would appear the renta tax would be based on income far higher than we would in fact earn as rental income.
Please can someone clarify:-
Will we need to pay the renta tax?
Will we need to declare the income on uk tax form?
If so can the renta tax paid in Spain be offset against UK tax paid for other income?
& Finally how is the renta tax calculated?
Many Thanks for any help/advice provided.
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Hi Roberto,
Would you pm me who you use to pay the tax please.
Thanks,
Amanda
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Amanda
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Fairview, Gosnold, PMs on their way!
Fairview:
Will we need to pay the renta tax? Yes, everyone, whether resident or not, has to pay it on any property(ies) that is not their principal residence
Will we need to declare the income on uk tax form? No idea, but I wouldn't think so if you didn't actually earn any income!
If so can the renta tax paid in Spain be offset against UK tax paid for other income? Again, no idea, but I doubt it. Double taxation treaties exist to avoid you paying tax on the same income or asset twice, but otherwise, I wouldn't have thought you can offset it against your liabilies elsewhere - but not sure!
& Finally how is the renta tax calculated? 24% of (1.1% of the valor catastral).
Since I can't be bothered to do my own tax return, I'm not 100% certain of the above mentioned percentages, so best to check from other sources as well. I have PM'd you with one (pretty reliable) source. Maybe someone else here can confirm?
Based on this calculation, though, I reckon if I was non-resident and paid renta on my 2/2 apartment, it would come to a little over €100 for the year. I think if I rented it out and declared the real income, I would pay substantially more tax than that.
This message was last edited by Roberto on 10/22/2008.
_______________________
"Get your facts first, then you can distort them as you please"
Mark Twain
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I am currently using the gestorial dept at my lawyers and finding them expensive - and also a little elusive in divulging their calculations. I should really appreciate - by posting or PM - contact/address details of an English speaking Gestor within striking distance of Elviria. Roberto, does your guy speak English?
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What calculations? Your tax, or their fee?
Your tax should be worked out using official calculations which can be checked with Hacienda if you have any doubt.
My guy has English speaking staff, but is not very close to you. There must be others on here who can suggest someone nearer to you.
_______________________
"Get your facts first, then you can distort them as you please"
Mark Twain
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Tax calculations. Just give me final figure.
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Ask him for a copy of the tax form submitted on your behalf. Assuming you are non-res, own a property but don't rent it out (or at least don't wish to admit it!) I think it should be form 214, click here to see what it looks like.
The valor catastral can be found on your latest rates bill (IBI). The tax base should be 1.1% of this figure, which should be entered in box no.5 - and I think the tax is now 24%, not 25% as shown on this model.
The wealth tax (patrimonio) has apparently been abolished, but I don't know from when. I think it may still apply for this year's declaration (last year's tax) but not for next year, so the form may change. I don't know how the wealth tax is calculated, but at least if you have a copy of the forms submitted, you may be able to figure out how the final figure has been arrived at.
_______________________
"Get your facts first, then you can distort them as you please"
Mark Twain
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