23 Jun 2009 9:35 PM:

I just had a look at my valor catastral and it doesn;t seem too bad. If I have understood well enough and I am to take2% of that value, and then 24% of that, I would have to pay around 217 euros.

Does anyone else pay the deemed income amount rather than declaring the actual income amount? I know technically it is not above board but I always seem to go by the book and get stung, then people say to me that they don't bother! For example when we bought the flat we changed all the bills into our name as our lawyer said there was no other way. it cost us around 500euros. Speaking to everyone since they say they have the bills in the previous owners name and just changed the bank account.

I find everything everything in Spain so difficult and such conflicting advice and there is so much which is not above board that it makes me wonder 'if you can't beat them join them'. If I do declare it all properly I somehow have to find 1500euros and not just once but every year!

Thread: Non Resident Tax Returns

--------------------------------------

23 Jun 2009 5:47 PM:

Oh my god! looks like I'm just going to have to move back :)

Can't believe they tax you that much and don't take into account that your mortgage is higher than what you get from tennants!

Thanks to both of you

 

Thread: Non Resident Tax Returns

--------------------------------------

23 Jun 2009 2:19 PM:

I am tempted to do that as if that amount is right, I don't have the money! Does anyone know how much it might be more or less for 525 euros per month??

Would I still have to do the form if I decide not to declare?

Thank you

Thread: Non Resident Tax Returns

--------------------------------------

23 Jun 2009 1:42 PM:

Ah thank you! So I basically have to pay the two taxes no matter what and if I don't rent out the flat I have to pay anyway, but a lesser rate. And I can't deduct anything (mortgage, community fees etc)?

My lawyer is an ex-pupil/friend and we always speak in Spanish - her English isn't great and I don't even understand anything about law in English so I think we tend to confuse each other when talking which is why I thought I would look for some extra advice. I will try to do the form myself next year as I guess it should always be pretty similar if nothing changes.

I hope the amount is wrong. I just understood that I had to pay 24% of what was paid to me for the rent. So as they pay 525euros per month, over a year that is 6300euros, and 24% of that is 1512euros.

Thank you so much!

Thread: Non Resident Tax Returns

--------------------------------------

23 Jun 2009 12:11 PM:

Ok, someone please help! I am so confused! My partner and I bought a flat in Malaga in Jan 08 and planned to live there but we moved back to the UK and have found ourselves still here. Will probably go back at some point to live but at the moment have it rented out to try to cover the mortgage. The rent doesn't cover the mortgage, or the community fees or anything else but I have just been told that I have to pay hacienda 24% of the rental income even though there is no profit. Now having read all the above about the IBI I am even more confused with this 2/1.1%. I have paid my IBI so does this mean I'm covered?

If I'm not covered then I am looking at finding around 1575euros per year!! Can this be right??

Do I have to do tax returns? What will happen if I don't?

I was also advised to register the depostit the tenants gave me but no one in Malaga seemed to have a clue what I was talking about so I didn't do it! Could this have repercussions.

Also I know in England there are usually different kinds of Mortgages if you are going to live in a property or rent it. Is this the same in Spain.

Sorry, so many questions - wish we'd never bought the place it's been more trouble than good!

Thread: Non Resident Tax Returns

--------------------------------------