ANNUAL LOCAL RATES AND REFUSE COLLECTION CHARGE RECEIPTS.

ANNUAL LOCAL RATES AND REFUSE COLLECTION CHARGE RECEIPTS.

If you are the owner of a property in Spain you have to pay annually local rates and refuse collection charge receipts. In those locations   of the Malaga area where the receipts are paid through the “ Patronato de  Recaudación Provincial “,  payment should be effected  in general between 1^st of July and 12^th of September 2014, although    this may not be applicable to all locations.

For those of you who have arranged for a direct debit for the payment of the receipts just make sure that there is enough money in the account to arrange for payment of the receipts in this period as otherwise not only the receipts are returned but also the direct debit cancelled for future payments.     

If you do not have any direct debit you will have to obtain the receipts from the “Patronato de Recaudación Provincial” and arrange for payment at your bank. Please note that you may have received  notification of the receipts at your house which can be used to arrange for payment but this is not mandatory.                                                                                                                                                                   

You can always contact the Local Council of your location or Patronato de Recaudación Provincial  Tel 902152000                                                                                                                                                                        

For more information or an appointment please contact us on (0034) 952 822 321 or admin@nonresidenttaxesinspain.com. 

Web: www.nonresidenttaxesinspain.com

WEALTH TAX FOR NON RESIDENTS.

This is the time of the year when you have to check if you  have to present before 30.6.2014 a wealth tax declaration in Spain.

The assessment has to be presented by any owner whose assets exceed the net value of 700.000 Euros. If the property is owned by more than one person, i.e. married couple or co-owners, each owner will have to present an individual tax assessment and will have this tax exemption of 700.000 Euros.

Also the assessment has to be presented by any person whose assets exceed a gross value of 2.000.000 Euros, although no tax may be due taken into account the charges on the property.

For more information or an appointment please contact us on (0034) 952 822 321 or admin@nonresidenttaxesinspain.com. 

Web: www.nonresidenttaxesinspain.com

NEW DOUBLE TAXATION TREATY BETWEEN SPAIN AND UK.

There is a new double taxation between both countries which will be applicable from 12.6.2014.

For those of you resident in the UK , this may have consequences if you own shares in Spanish companies where the value is based more than 50 % on Real Estate . If you decide to sell the shares you will have to pay in Spain non resident income tax for the capital gains incurred in this transfer. Formerly this would have only been taxable in the UK .

Also the ownership of these shares should be declared in the Annual Wealth Tax Declaration . This was not applicable previously, when only direct ownership , i.e. property owned by UK non resident physical persons was taxable in Spain. However, a wealth tax declaration has to be presented only if you own assets which exceed the net value of 700.000 Euros or with a gross value exceeding 2.000.000 Euros , both per person.

For more information or an appointment please contact us on (0034) 952 822 321 or admin@nonresidenttaxesinspain.com. Web: www.nonresidenttaxesinspain.com

Spanish resident income tax assessment 2012 with only 5 % surcharge.

Until 31^st of March 2014 you can still pay  your  non resident 2012 income tax assessment for the use of the own property with only a 5% surcharge on the tax due. From 1^st of April 2014 the surcharge goes up to 10 %. This tax should have been paid by any non resident owner of non rented property in Spain  before the 31^st of December 2013.

Not facing the matter is  not  an advisable option as if  payments  are demanded afterwards by the tax office you will have to face an unexpected  and  more  expensive  debt  as surcharges can go up to 20 % and there could be additional fines and legal interest to be paid.

Our welcome package is still available.

For more information or an appointment please contact us on (0034) 952 822 321 or admin@nonresidenttaxesinspain.com. 

Web: www.nonresidenttaxesinspain.com

ANNUAL ROAD TAX in Spain. Payment due shortly.

If you are the owner of a vehicle , i.e. car , motorbike, motorcycle, caravans, vans etc.   registered in Spain you must pay annually  your road tax known in Spain as Impuesto Sobre Vehículos de Tracción Mecánica or IVTM.

The tax to be paid depends on the vehicle, fuel type and municipality in which it is registered. This tax should be paid normally between the beginning of March and May of each year but  this varies from one region to another.

You can contact the town hall office for more information . We always advise that  when arranging the first payment you set up a direct debit for  the payment of the receipts for future years so you don’t have to worry about this item annually.  Normally no notifications are issued  and sent to the   tax payer unless applied for by the vehicle owner, thus if you do not pay this  you can find yourself at  some stage with an outstanding debt for road tax for various years  and  the debt resulting much higher than if paid  on time due to surcharges , legal costs and interest.

For more information or an appointment please contact us on (0034) 952 822 321 or admin@nonresidenttaxesinspain.com. 

Web: www.nonresidenttaxesinspain.com

Spanish Inheritance Tax.

Irrespective of the present existence of a discrimination between  resident and non residents as to the payment of the inheritance tax, mention to  this was made previously on this bloq, we would like to give you certain clues to minimise the tax taken the  present regulations.

At this stage in the case of real estate in Spain owned by a non-Spanish resident, the State rules will always apply on the death of the non-resident owner.  The tax will be calculated on the  market value of the property at the time of the death and the rate ranges between 7,65 % and 34 %. Depending on the relationship with the deceased there is a certain  amount on which no tax is due, which is approximately 16.000 Euros in case of spouses and descendants.

Therefore it may convenient to leave your property to more than one heir, because apart from the amount tax exempt,   the  tax scale is applied to each heir individually  starting alsways at 7,65 % for the first  part of the   value of their estate to be received.

Also  taken into account that the value of the property can be divided between the value of the life interest ( which will depend on the age of the user )  and the mere ownership, you could also  consider leaving the life interest of the property to  a person ( for example spouse ) and the mere ownership to  the  descendants. This normally will reduce the inheritance  tax  to be paid for the surviving spouse  and  the  descendants (final heirs ) will be paying the tax in two phases.

For more information or an appointment please contact us on (0034) 952 822 321 or admin@nonresidenttaxesinspain.com. 

Web: www.nonresidenttaxesinspain.com

No luck when renting out your property in Spain

The always increasing expenses of the property abroad (community, local rates, income tax ) has made a lot of non residents decide to  rent out the property and receive an income to reduce their costs. If a property is let the non resident  will be  liable to the payment of income tax on the rent received ( 24,75 %) . For property owners from the UE certain expenses can be deducted when working out the tax to be paid.

However, before renting out it is very important to  make  certain enquiries and about, the agency handling the agreement,  the terms of the letting contract and the circumstances of the tenants as otherwise this may turn into a great problem and unexpected costs,  if finally the tenant does not pay the rent.

If  you are in this particular case and you are not receiving the  agreed rent , you should react quickly and not wait until circumstances may improve, as this normally does not occur. If after having claimed by recorded delivery  the payment of  the unpaid rent to the tenant, there is no reaction  , you should instruct the presentation of a lawsuit to claim the payment of the rent due  and eviction of the tenant. The court will give the tenant 10 days for payment and simultaneously set a date for eviction. The tenant  will be only able to avoid the eviction if he pays  the outstanding rent or   opposes to the  claim presenting valid arguments.

In principle this should be a straight forward process and the  landlord can even claim the legal fees  paid in connection with the lawsuit from the tenant. However,  we should admit  that if  no rent was received,   the possibility to be reimbursed the legal costs will not be very  high.

For more information or an appointment please contact us on (0034) 952 822 321 or admin@nonresidenttaxesinspain.com. 

Web: www.nonresidenttaxesinspain.com