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Resident/non resident tax

Posted: Mon Nov 30, 2020 4:10pm
11 replies525 views6 members subscribed
Maggie

Posts: 10

1 helpful points

Location: Torrox

Joined: 23 May 2019

As an owner of a property in Torrox Pueblo do we need to lodge and pay personal tax each year?

We have no correspondence through to notify us of this - how do we know how much to pay -

Has this to be paid before 31 December - do we go through a lawyer or can we just go into the town hall and pay - is it a different amount for non resident /residents ?

We do not know if the Spanish tax authorities have sent notifications to our property due to not being able to get back to Torrox.

Sorry for all these questions just finding out about the taxes now ....

Andrew14

Posted: Tue Dec 1, 2020 8:39am

Andrew14

Helpful member

Posts: 185

71 helpful points

Location: Vélez-Málaga

Joined: 26 Mar 2019

Posted: Tue Dec 1, 2020 8:39am

Yes you do, just gone through this process, due by year end

I found https://www.spanishtaxforms.co.uk/ explains. I used them to calculate the tax for us.

Maggie

Posted: Tue Dec 1, 2020 11:14am

Maggie

Original Poster

Posts: 10

1 helpful points

Location: Torrox

Joined: 23 May 2019

Posted: Tue Dec 1, 2020 11:14am

Andrew14 wrote on Tue Dec 1, 2020 8:39am:

Yes you do, just gone through this process, due by year end

I found https://www.spanishtaxforms.co.uk/ explains. I used them to calculate the tax for us.

Thanks Andrew ... did you go through a solicitor or a gestor  ?

Andrew14

Posted: Tue Dec 1, 2020 11:57am

Andrew14

Helpful member

Posts: 185

71 helpful points

Location: Vélez-Málaga

Joined: 26 Mar 2019

Posted: Tue Dec 1, 2020 11:57am

Hi Maggie, Neither, the people at Spanish Tax Forms calculate the tax/prepare the forms for £35.00. They'll pay it for a further £12 pp

No doubt some will say you can get it done cheaper, or even DIY for free, but seemed to me to be simpler to pay to get it done, particularly as I won't be in Spain until after the tax is due

Darlojo

Posted: Wed Dec 2, 2020 10:12am

Posts: 60

7 helpful points

Joined: 19 May 2018

Posted: Wed Dec 2, 2020 10:12am

Hi Maggie, I also use the same Company who the other person mentioned. The first year they prepared the forms and I just popped into my bank in Spain and paid it. This year with not being over there, I had them prepare them and I paid the extra €12 and they paid it for me. 😀

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Phil83

Posted: Wed Dec 2, 2020 10:41am

Posts: 14

4 helpful points

Location: Campillos

Joined: 17 Dec 2018

Posted: Wed Dec 2, 2020 10:41am

Hi Maggie 

I agree Spanish Forms are great for calculating and paying IBI, the Spanish equivalent of council tax/rates but this relates to taxes for owning your property not 'personal' taxes. If you spend more than 183 days in Spain in a 365 day period then the Spanish tax authorities consider you to be tax resident and you need to register to pay tax in Spain on your income from any source or country. I'm just going through this process now and I'm using a British accountant based in Spain to do it for me. 

Kerri

Posted: Thu Dec 3, 2020 3:38pm

Kerri

Helpful member

Posts: 539

237 helpful points

Location: Estepona

Joined: 5 Sep 2018

Posted: Thu Dec 3, 2020 3:38pm

Maggie wrote on Mon Nov 30, 2020 4:10pm:

As an owner of a property in Torrox Pueblo do we need to lodge and pay personal tax each year?

We have no correspondence through to notify us of this - how do we know how much to pay -

Has this to be paid before 31 December - do we go through a lawyer or can we just go into the town hall and pay - is it a different amount for non resident /residents ?

We do not know if the Spanish tax authorities have sent notifications to our property due to not being able to get back to Torrox.

Sorry for all these questions just finding out about the taxes now ....

Hello Maggie,

To be absolutely clear I think you meant to say "property tax for a non resident" and not "personal tax".   In the case of your not being a Resident of Spain then you must pay the "Non Resident’s annual tax”  as those above have said.  Of course you still pay your other "annual property tax as well"  (!!!) You can find out more information from the link below on how this particularly tax is calculated so you know for future.  Guide to Spanish Property Taxes For Non-Residents (spainmadesimple.com)

This company (link below) specializes in Property Tax Submission for Non Residents and are amazingly inexpensive.  You may want to check both options before deciding if you have not moved forward with the other referral yet.  :)

http://www.nonresidenttaxes.com/ 

Good luck!

Rick7591

Posted: Sun Jun 27, 2021 11:54am

Posts: 23

1 helpful points

Location: Estepona

Joined: 27 Jun 2021

Posted: Sun Jun 27, 2021 11:54am

Andrew14 wrote on Tue Dec 1, 2020 8:39am:

Yes you do, just gone through this process, due by year end

I found https://www.spanishtaxforms.co.uk/ explains. I used them to calculate the tax for us.

Hi Andrew, 

My wife and I are looking to jointly buy a holiday home next year.

Do you know if the non resident tax will be owed by both and is split 50/50? Or is it doubled? or does only one of you pay the tax?

Kind regards 

Rick

Kerri

Posted: Sun Jun 27, 2021 2:45pm

Kerri

Helpful member

Posts: 539

237 helpful points

Location: Estepona

Joined: 5 Sep 2018

Posted: Sun Jun 27, 2021 2:45pm

Rick7591 wrote on Sun Jun 27, 2021 11:54am:

Hi Andrew, 

My wife and I are looking to jointly buy a holiday home next year.

Do you know if the non resident tax will be owed by both and is split 50/50? Or is it doubled? or does only one of you pay the tax?

Kind regards 

Rick

My understanding is that its all about the property and not you as individuals if you are not residents of Spain.  So for the property you pay a 'Council tax" and you pay a tax called "Non  Resident Tax" which really means you pay a small percentage of the value of the home as if you rented it out even if you don't.  It doesn't amount to that much.  You pay personal income tax only if you are residents.

You can learn more if you care to here:  Non-resident tax in Spain: The complete guide - Spain Explained (abacoadvisers.com)

Rick7591

Posted: Sun Jun 27, 2021 4:06pm

Posts: 23

1 helpful points

Location: Estepona

Joined: 27 Jun 2021

Posted: Sun Jun 27, 2021 4:06pm

Kerri wrote on Sun Jun 27, 2021 2:45pm:

My understanding is that its all about the property and not you as individuals if you are not residents of Spain.  So for the property you pay a 'Council tax" and you pay a tax called "Non  Resident Tax" which really means you pay a small percentage of the value of the home as if you re...

...nted it out even if you don't.  It doesn't amount to that much.  You pay personal income tax only if you are residents.

You can learn more if you care to here:  Non-resident tax in Spain: The complete guide - Spain Explained (abacoadvisers.com)

Thank you for that, I understand the taxes now, on a slightly different note, if we were to purchase a property I assume that if you were to rent your home out for part of the year you would need to obtain a license of some sort is that correct?

Thanks in advance Rick

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