03 Dec 2008 9:42 AM:

So we can work out that for those without residencia the Wealth Tax payable this year for 2007 was .2% of the amount you paid for the property as stated in your escritura and the Renta Tax was based on one half of the escritura amount (as the valor catastral will not be known until we are assessed for IBI which could take a time) X 1.1% X 24% for the period of ownership. Next year calculating the Renta Tax for the complete 2008 year should be straightforward and declaring  by DIY possible saving the fees. Every little helps!!

Eddie 20B

Community thread: wealth tax

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07 Nov 2008 10:27 AM:

It is coloured rendering and very difficult to match. I took a piece of wall that had broken off to the paint shop earlier this year and they matched it but unfortunately it was a much lighter shade when I tried it on a small area. The colour varies even on one property - this may be where the wall has faded in the sun or perhaps the amount of colour put into the rendering varied. In theory we should not need to paint the walls but some of them are badly marked. But if owners start painting either the bottom or top halves even a slightly different shade it will soon look a mess. As Linda says - speak to Rob.
Eddie

Community thread: paint

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26 Aug 2008 8:09 AM:

Hopefully some good news! The book 'You and the law in Spain' after mentioning having 2% of the valor catastral attributed as a sort of imaginary income for the Property Owners Imputed Tax goes on to say 'This is 1.1% if your rated value (valor catastral) has been raised sharply since 1994'.  So perhaps newly rated properties, or properties like ours not yet rated, apply 1.1% not 2%. Certainly 1.1% of 160,000 = 1760 imaginary income  and then 24% of that = 422 euros for a full year. This is much more like the figure I would have expected.
It would help others if those that have paid already using a representative could provide the details of how their payment was calculated.
Eddie 20B

Community thread: wealth tax

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23 Aug 2008 4:57 PM:

I do know that you declare both Imputed Tax and Wealth Tax on Form 214 if you are a non-resident owning one property and this can be at anytime in the year. As you won't have a tax office label in the first year you just fill in your name and address. I believe that this has to be done before the end of 2008 for 2007 tax year but not sure. I don't know where you get the Form 214 from. We have had residencias for four years so it is different for us. 
Eddie 20B

Community thread: wealth tax

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23 Aug 2008 11:53 AM:

Sorry I have come in late to this discussion but I'll try to clarify a few points. Before I start I would be interested in how the amounts have been calculated for those who have already paid using a representative. The amount for 2007 will vary depending on when the purchase was completed and whether an estimate for valor catastral was used.
Now hopefully to clarify!!
First you used to have to appoint a fiscal representative but now if you only own one property in Spain you don't have to.
Property owners in Spain are liable for 3 separate taxes. 
1. Property Owners Imputed Tax. 
2 Wealth Tax and 
3. Annual Real Estate Tax (IBI).
The last, IBI, is paid to the local Council. It is based on the valor catastral and can vary from town to town.  As far as I am aware Los O properties have not yet been assessed by the local Council so we do not have a valor catastral. Hopefully, when we are assessed the annual IBI will be less than 100 euros.
The Property Owners Imputed Tax, is not charged on the owner's principal residence. So if you have residencia and own just one property in Spain you will not have to pay. Non-residents do have to pay.  The calculation for this is based on 2 per cent of the valor catastral. The valor catastral is usually less than the real value, or amount paid. However, as Los O properties have not been valued by the local Council the calculation, I think, will have to be on the amount paid (as the only amount available). If anyone uses a financial representative and finds that the valor catastral can be estimated as less than the amount paid please let readers know.
Anyway having taken 2 per cent of the valor catastral this is then taxed at 24 per cent for non-residents. So if we take 160,000 euros as the valor catastral, multiply by 2 per cent = 3,200. multiply by 24 per cent = 768 euros for a full year. You will pay a proportion of this depending on when you completed the purchase in 2007. This is a total for the property and each owner on the escritura has to pay their share.
The Wealth Tax is simple. Take the value declared in your escritura (probably the amount you paid) and multiply by 0.002. So 160,000 euros multiplied by 0.002 = 320 euros for a full year. 0.002 applies up to 167,129 then the marginal rate is 0.003.  Again each owner has to pay their share separately. Each of those with a Residencia do not pay the first 150,253 euros on their principal residence. So if the property is jointly owned by 2 people the exemption is over 300,000 euros. Apparently the EU has forced Spain to drop the Wealth Tax from this tax year (that is taxes due next year). So this will be the last year Wealth Tax has to be paid.
Hope this helps.
Eddie 20B


This message was last edited by Sueddy on 8/23/2008.
Community thread: wealth tax

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