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Moving to Spain in general Taxes

Posted: Wed Aug 18, 2021 10:58am
13 replies418 views7 members subscribed
Davetheblade

Posts: 20

3 helpful points

Location: Estepona

Joined: 23 May 2021

Hi

We are looking to purchase a property in Spain in November 21

we are going to use the property for a holiday home for between 2 - 5 years may be visiting 5 times a year

the information i am unsure about is paying taxes

we know about communal fees refuse fees etc but nothing with regards to taxation

as a non resident who will own a property will we have to pay a yearly tax eg if we rent the property out then yes i understand we will 

however if we do not rent the property out do we still get taxed as if it was rented out (I find this a very grey area)

the internet is very confusing so i would really appreciate any advice from you guys who live out there, or are in the same situation

Thank you in advance 

Regards

Dave & Liz

Holaitsdavid

Posted: Thu Aug 19, 2021 3:10am

Holaitsdavid

Very helpful member

Posts: 1475

556 helpful points

Location: Mijas Costa

Joined: 30 Mar 2021

Posted: Thu Aug 19, 2021 3:10am

Note you can only stay in Spain for 90 days in any 180, now not in EU, if not a resident you will not have to pay tax, (that means living here for 6 months) but you will have to pay property tax, just like rates in the UK, paid to the local authority. 

Andrew14

Posted: Thu Aug 19, 2021 7:44am

Andrew14

Helpful member

Posts: 189

71 helpful points

Location: Vélez-Málaga

Joined: 26 Mar 2019

Posted: Thu Aug 19, 2021 7:44am

Hi

As a property owner there are 3 taxes to pay

1&2 IBI (property tax) & Garbage . Demand in July, pay by 11 sept (this year)

3 non residents tax (demand October i think) This is due, even if nil Spanish income

https://spanishtaxforms.co.uk/spanish-property.html

Davetheblade

Posted: Thu Aug 19, 2021 9:49am

Davetheblade

Original Poster

Posts: 20

3 helpful points

Location: Estepona

Joined: 23 May 2021

Posted: Thu Aug 19, 2021 9:49am

Andrew14 wrote on Thu Aug 19, 2021 7:44am:

Hi

As a property owner there are 3 taxes to pay

1&2 IBI (property tax) & Garbage . Demand in July, pay by 11 sept (this year)

3 non residents tax (demand October i think) This is due, even if nil Spanish income

https://spanishtaxforms.co.uk/spanish-property.html

Thank you for the link I am evan more confused lol

Seriously if i have a house at 150k euros how close is that to the cadastral value/

reading the link it works out to pay 86 euros for every 40k cadastral value per year

sorry if i am not making sense 

Is it possible to buy a house and the previous tennant has not paid the tax and will i be liable for that

Kind regards

Andrew14

Posted: Thu Aug 19, 2021 11:07am

Andrew14

Helpful member

Posts: 189

71 helpful points

Location: Vélez-Málaga

Joined: 26 Mar 2019

Posted: Thu Aug 19, 2021 11:07am

You'll find the cadastral value on the deeds & also on the IBI tax demand. 

As a guide for a house at €120k cost, IBI was €540

Non Resident Tax was less than €150 each

Can't think you'd be liabile for previous owner debts, but you'd need to checj with your lawyer

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Holaitsdavid

Posted: Thu Aug 19, 2021 8:51pm

Holaitsdavid

Very helpful member

Posts: 1475

556 helpful points

Location: Mijas Costa

Joined: 30 Mar 2021

Posted: Thu Aug 19, 2021 8:51pm

Andrew14 wrote on Thu Aug 19, 2021 11:07am:

You'll find the cadastral value on the deeds & also on the IBI tax demand. 

As a guide for a house at €120k cost, IBI was €540

Non Resident Tax was less than €150 each

Can't think you'd be liabile for previous owner debts, but you'd need to checj with your lawyer

The new owner will be held liable for unpaid utility services and local taxes. This is because these debts in Spain go against the property itself, 'not against the previous owner', so whoever owns the property will be held liable'. Your lawyer or agent doing the legal work for you should ensure prior to buying a resale there are none outstanding. 'Make sure any local taxes levied by the town hall where the property is located are not left outstanding by the previous owner' (i.e. IBI tax and Garbage collection). These will not be lodged either at the Land Registry. You need to make sure there are no outstanding debts whatsoever. (Including to the community, if there is one) 


Gesther

Posted: Sat Aug 21, 2021 5:47pm

Posts: 100

24 helpful points

Location: Estepona

Joined: 18 Apr 2020

Posted: Sat Aug 21, 2021 5:47pm

Hi yes you still pay Non resident tax even if you don’t Rent out your place. We have just paid €320 euros for 2 people for  2/bed/ bathroom flat. Our IBi for this September 2021 Is €529 , we pay this by card going to their office in Estepona Port. ( we have never received a bill or information when/ where or how to pay this so took it upon our selfs to go to the office last year . We said we received no information on what to pay and the reply was “ so we take what ever it is why you need to know  just have the money there “ so you have to chase them every year or you will be paying it all when sell your property. 

Rubbish tax just paid Aug 2021 is €128 by direct debit 

Sabadell  quartley  charge for as non residences €45 ( €30 charge on top too for activating you card the first time ) 

With Covid and stuck in UK unfortunate we forgot to put funds in bank for Quarterly community fees and the management stuck a note up with our names & address saying unpaid and action would be taken . It was then hung in the notice board in the communal hall way for all too see. Management never contacted us what so ever about this.
bank charged us €30 on top . Just so your aware there’s a lot to learn. sorry if I’ve gone on.

Davetheblade

Posted: Sat Aug 21, 2021 7:08pm

Davetheblade

Original Poster

Posts: 20

3 helpful points

Location: Estepona

Joined: 23 May 2021

Posted: Sat Aug 21, 2021 7:08pm

Gesther wrote on Sat Aug 21, 2021 5:47pm:

Hi yes you still pay Non resident tax even if you don’t Rent out your place. We have just paid €320 euros for 2 people for  2/bed/ bathroom flat. Our IBi for this September 2021 Is €529 , we pay this by card going to their office in Estepona Port. ( we have never received a bill or inf...

...ormation when/ where or how to pay this so took it upon our selfs to go to the office last year . We said we received no information on what to pay and the reply was “ so we take what ever it is why you need to know  just have the money there “ so you have to chase them every year or you will be paying it all when sell your property. 

Rubbish tax just paid Aug 2021 is €128 by direct debit 

Sabadell  quartley  charge for as non residences €45 ( €30 charge on top too for activating you card the first time ) 

With Covid and stuck in UK unfortunate we forgot to put funds in bank for Quarterly community fees and the management stuck a note up with our names & address saying unpaid and action would be taken . It was then hung in the notice board in the communal hall way for all too see. Management never contacted us what so ever about this.
bank charged us €30 on top . Just so your aware there’s a lot to learn. sorry if I’ve gone on.

Wow we got a lot to take into account

If you set up a direct debit for everything is that the way forward with no hassle 

As we only going to be visiting 5 times a year to start with

Regards

TB

Posted: Wed Aug 25, 2021 11:20am

TB

Posts: 145

31 helpful points

Location: Torrox

Joined: 6 Feb 2021

Posted: Wed Aug 25, 2021 11:20am

Davetheblade wrote on Wed Aug 18, 2021 10:58am:

Hi

We are looking to purchase a property in Spain in November 21

we are going to use the property for a holiday home for between 2 - 5 years may be visiting 5 times a year

the information i am unsure about is paying taxes

we know about communal fees refuse fees etc but nothing with regards to taxation

as a non resident who will own a property will we have to pay a yearly tax eg if we rent the property out then yes i understand we will 

however if we do not rent the property out do we still get taxed as if it was rented out (I find this a very grey area)

the internet is very confusing so i would really appreciate any advice from you guys who live out there, or are in the same situation

Thank you in advance 

Regards

Dave & Liz

The non-resident tax ax on property is very small. We used to pay wealth tax but I believe that only kicks in now when you are over 600,000. I do not rent out (I've seen the results on some, not worth it I think!) but if you do rent out that is taxable income.

Sjp1

Posted: Wed Aug 25, 2021 12:03pm

Posts: 37

4 helpful points

Location: Manilva

Joined: 6 Oct 2019

Posted: Wed Aug 25, 2021 12:03pm

TB wrote on Wed Aug 25, 2021 11:20am:

The non-resident tax ax on property is very small. We used to pay wealth tax but I believe that only kicks in now when you are over 600,000. I do not rent out (I've seen the results on some, not worth it I think!) but if you do rent out that is taxable income.

Hi there. I’m in the same situation. Are you able to give me an indication of what non resident tax you pay please because I hadn’t envisaged paying this cos I’m not renting out. I’m buying off plan fir €253k. Thank you. 

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