19 Jun 2012 8:12 PM:
Taxation on Urban Buildings Owned by Non-resident Individuals
GENERAL CONSIDERATIONS
If you are classified as a non-resident in Spain for tax purposes but you own urban real estate in this country then you are obliged to pay non-resident income tax and a local property tax.
Furthermore, Wealth Tax has been temporarily re-established for the 2011 and 2012 financial years.
REPRESENTATIVE
Except in cases of residents in countries or territories with which an effective exchange of tax information does not exist, there is no obligation to appoint an agent to act before the Tax Authorities. Nevertheless, should you choose to do so, you may appoint whoever you wish, and should communicate this appointment to the Branch or Administration of the Tax Agency corresponding to the location of the property.
TAX IDENTIFICATION NUMBER (NUMERO DE IDENTIFICACIÓN FISCAL - NIF)
In Spain everybody is assigned a Tax Identification Number, which must appear on all tax returns and in all communications with the Tax Authorities.
In general, for people with Spanish nationality, the NIF is the number of their National Identity Card (DNI) and, in the case of foreign nationals, the NIF is the Foreign Nationals' Identification Number (NIE). This identification is processed by the Police General Directorate. However, those foreign citizens who do not have a NIE, either temporarily or permanently, since they are not required to have one, should request a NIF be assigned to them by the tax authorities in order to complete tax operations.
NON-RESIDENT INCOME TAX
When the property belongs to a married couple, or to more than one person, each person is an independent taxpayer, and must file an individual tax return.
Depending on the use of the property, the taxes to which it is liable are:
INCOME CALCULATED ON URBAN PROPERTY FOR PERSONAL USE.
The amount to declare will be that resulting from applying the following percentages to the assessed value of the property as shown on the Property Tax bill (IBI):
In general, 2%.
In the case of properties where the assessed value has been revised or modified since 1 January 1994, the percentage will be 1.1%.
This yield is calculated once per year, on 31 December.
If you have not been the owner of the property during the whole year, or if it has been rented for any period, only the proportional part of this amount is declared.
Tax rate:
Year income accrued 2011 2012-2013
Tax rate 24% 24,75%
Form: form 210, recording income type 02.
Means of filing:
- on paper, generated by printing a form completed on the Tax Agency website.
Electronically, via the Internet.
Filing deadline: during the whole calendar year following the accrual date.
Direct debit payment of the tax debt: In the case of electronic filing, payment can be made by direct debit until 23 December.
WEALTH TAX
This tax has been temporarily re-established for the 2011 and 2012 financial years and is due on 31 December of each of these years.
Net tax base: The net tax base will be reduced, in concept of exemption, in €700,000.
Obligation to file: All taxpayers with a tax charge to pay are obliged to file a return. Also, those with assets and rights valued at over €2,000,000 are obliged to file a return, even if they have no tax charge to pay.
Although the layout of the online forms are in different format, and require additional information the basic sums are has previously been used in the old modelo 210.
"Etiquetas" (Self- adhesive labels) will not be required as the bar code is generated by the computer but the ‘anagrama’ is not produced, this is made up of the first three letters of your surname and a control letter and is required if the bar code on the form can not be read, this is on the old "stickers"
Community thread:
Wealth Tax / Income Tax for Spanish Non-Residents
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