Property Income & Wealth Tax.
As you may know, every year any non-resident owning property in Spain is obligated to submit a Property Imputed Income Tax declaration and now again after being reintroduced, the Property Wealth Tax (only for properties which cadastral value is higher than 700.000 Euros).
Perez Legal Group can assist you in this obligation by providing you with the Fiscal Representation Service, consisting on the following:
Calculating the tax due on the basis of the ratable value and the number of days of ownership (if you bought or sold last year), ensuring you do not pay more than strictly required.
Filling out the forms with your personal and property information.
Submitting to the tax office our appointment as your fiscal representatives in Spain, thereby assuming the responsibility of receiving any formal communication and acting timely upon them.
Representing you during the fiscal year in respect of any communications which we may receive from the Tax Office.
We are happy to announce that our fee for this year has been reduced considerably – we are now charging a fee of €120 plus VAT.
In order for us to calculate the total tax liability, we would need to know the following for the properties we have represented you in the purchase/sale etc.
Ratable Value on the last IBI receipt. This is shown on the IBI (Impuesto de Bienes Inmuebles-Council Tax) receipt under the name of “valor catastral” and we require this from you, should you have it, given that this bill is typically paid via bank standing order. Please note that new properties (less than 2 years) might not have a ratable value assigned yet.
In case you rented, number of total days you have rented out the property (if applicable and only if such rental has been declared, an unlikely scenario, in our experience).
First of all, we would need to know if you or any of the people who purchased jointly with you (where applicable) were Spanish residents or not. In such case, these people would not be liable.
Also, for every non-resident tax-payer we would need to know the full details of any other properties they might own in Spain which we are unaware of, together with the ratable value and the number of days the property has been rented (where applicable).
Upon receiving this information you will let you know the total tax liability for the above tax payers. If you don’t have the last council tax receipt but you have a one corresponding to a previous year we can still obtain the updated ratable value. If you don’t have one at all we will get it for you.
In case you are resident, we will be able to prepare your Income Tax Declaration at the fee of 100 Euros plus VAT. This should be filed immediately.
PLEASE NOTE THE FOLLOWING: You should now that until now, if a debt were contracted with the Treasury in Spain by a Spanish foreigner, the Spanish Tax Authorities had to meet many issues before they could act against foreigners residing outside of Spain.
However, a ministerial order of July 31, 2010 has set out within European territory that any foreign debt will allow the Ministry of Finance, electronically, to make reports of foreclosures and repossessions of property situated in other states of the European Union in order to meet debts incurred in Spain.
The European Union tax system agreed that the Tax Authorities will facilitate information and will report about the state of any debtor and guarantors of a debt in order to make feasible the placement of an embargo on Spanish properties or properties located in England and other European Union country, taking the necessary legal measures to enable these debts are paid against the property, Bank accounts will also be considered.
This procedure will not be used to satisfy all different types of debts but those contracted with the IRS for non-payment of Value Added Tax (VAT), Income Tax of Individuals (income tax), Wealth Tax and other excise duties.
To facilitate this process, the Ministry of Finance will have the cooperation of other agencies such as the Labor Inspectorate and the General Treasury of Social Security (TGSS), guaranteeing the confidentiality and security of citizen data information.
IMPORTANT – IF YOUR PROPERTY IS OWNED BY A SPANISH COMPANY, THIS INFORMATON IS NOT APPLICABLE. Please contact us for further information.
Perez Legal Group
MEMBER OF THE BRITISH CHAMBER OF COMMERCE COMMITTEE
REGISTERED WITH Nº 759 IN THE FISCAL ADVISOR ASSOCIATION OF ANDALUCIA
Gestoria Services (Paralegal, Legal, Tax & Accounting Services)
Avenida Ricardo Soriano 1, 3ºA
29601 Marbella Málaga
(T) + 34 952 833 169
(M) + 34 699 45 66 97
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