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  • Confused about Tax?

    I was just looking at the Legal, Fiscal and Real Estate Advice part of the forum - which does not appear to receive any professional replies - so if you are confused these might help

    Non residents Tax - see my article here
    December 2011
    (Pg 32)
    or
    Residents Tax
    T.I.M Spain April 2012 Edition
    (Pg

    Main points - Even if you are paying UK Tax you still have Non Residents tax payments to make (to answer the point on the other forum) these are not on your income but on your Spanish property (as well as SUMA)

    If you register to pay tax in Spain as a resident you do not also have to pay in the UK (ie you don't pay twice)

    If you are registered as a resident and on the padron then you should be paying residents tax in Spain and not the UK. And you may receive a letter asking why you are not declaring here.

    Now the financial climate is bad all governments are taking action to try and collect as much tax as is due - so now is a good time to sort out your affairs, especially is now the time for residents to be making their Spanish tax declaration. The tax office is checking with the land registry and other organisations (like Iberdrola) to see who owns property and when it is in use.

  • #2
    Hi Rob.

    What advice would you give to a non-resident who has never paid "Renta" yet has owned property in Spain for the past seven years? A colleague at work in the UK is in this position, and while she wants to pay the tax she is worried that she will be faced with a huge bill if she comes clean.

    Questions to be answered are:
    How far back do the Spanish authorities go with regard to Renta?
    Will she have to submit the relevant tax declarations for each of the missed years?
    Will she be obliged to pay Wealth Tax for the earlier years when this was still applicable,and if so is the Modelo 214 form still available for this purpose?
    What level of fines / outstanding interest is she likely to face?

    I have advised her to seek financial advice from a Gestor in Spain when she next visits, but she wants an idea of what to expect.

    Any help or advice you can offer would be appreciated.

    Chris.

    Comentario


    • #3
      Hi Chris,

      I am not an expert – I base my articles on information supplied by Pellicer and Heredia (Tax advisors) but the non resident tax on property is in fact very low – probably no more than a few hundred Euros (unless the property is huge!)

      I think I have heard they are only going back a few years (perhaps that’s if you come clean)

      Again the Wealth Tax is also very low and has large allowances even for non residents (NRs) so is nothing to worry about.

      Yes it is a Modelo 214 for NRs – and there is now also an online system so that if the NRs are not in Spain a lot they can use the internet to sort out their tax affairs.

      I think we Brits tend to have this culture of a huge fear of the tax man – but in my experience of the Spanish version they are actually very fair and reasonable – but of course now times are hard they are looking at ways of collecting all the tax revenue due and NRs (and some residents) have been very lax either through ignorance or deliberate avoidance.
      NRs are being sent letters (I’ve seen a copy) by the Spanish tax man making enquiries if your friend has not received one it is probably a post office problem (or the tax man has the wrong address) but I would urge everyone to sort out their affairs because the problem will only be getting worse and will end with fines or bank account and maybe even property embargoes.

      To make it crystal clear – Everyone who owns a Spanish property has annual Spanish tax obligations whatever their status or country of residence.
      (This is on top of SUMA which is the council tax) and anyone who rents and lives in Spain as a full time resident should make a tax return on their income, unless they are employed and paying tax on wages.

      Comentario


      • #4
        My sister whom owns a property in North CB was in the same situation, did not realise she had to pay here until we moved here, she had then owned property for 11 yrs, to cut a long story short, she now pays, it wasn't a huge amount to catch up & I think she said they went back 5 yrs.

        More importantly Fiscal Resident's who pay their Tax in the UK should also fill in a nil return here,neighbours of mine don't even know if they are filing a nil return even though they payan annual fee to a solicitor to do that. You need to check everything
        Editado por última vez por GAL; https://torrevieja.com/forums/member/2530-gal en , 09:58:52.

        Comentario


        • #5
          Thanks GAL for adding to the debate - and yes it is very worthwhile everyone doing a Spanish tax return, this could provide benefits later when you come to Capitol Gains Tax and/or Inheritance Tax see this article for more

          TIM April Edition 2011

          pg 18

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          • #6
            Thanks to Rob and Gal for your responses.

            Gal, was your sister fined or did she just pay the outstanding amount?

            I will suggest that my colleague finds a decent gestor. Any recommendations in the La Zenia area?

            Cheers,

            Chris.

            Comentario


            • #7
              All I would say is beware of the outfits that used to sell property and are now 'tax experts'.

              The Spanish tax office (with good intent) offers a computer system called PADRE which anyone can download and thereby set themselves up as
              'experts' and of course it all looks good and very impressive.

              So try and use gestorias that come recommended. In the good old days the banks use to offer a tax service and so it is worth enquiring - as I am sure some still do,
              if your affairs are complicated then make sure you get good professional up todate advice.

              Just found another of my tax articles here:
              http://issuu.com/timadmin/docs/tim-mar-11
              pg 14
              Editado por última vez por Rob1305; https://torrevieja.com/forums/member/3326-rob1305 en , 15:24:28.

              Comentario


              • #8
                Given the large amount of viewings on this thread I thought the follolwing might also be interesting - P&H provide the main information for my articles

                Pellicer and Heredia, (P&H) solicitors based in Alicante, have now opened another office in Quesada, Rojales in Avda. las Naciones, 36 L6, located opposite the Caja Murcia bank.

                This new office will be open Monday to Friday 09:00 to 14:00 and other hours by arrangement.

                Following extensive refurbishment this new modern facility adds to their existing branch network in Hondon, Petrer, Pinoso and Alicante and offers their full range of services including legal, gestoria, tax, wills, and accountancy etc.

                Please contact the Quesada office on 965 480 737, the staff speak English.

                and these other links might also be interesting

                Expat retired:
                TIM September 2010
                Pg 14

                Expat early retirees:
                The Inland Magazine October 2010
                Pg 42

                But please take professional expert advice before making any decisions.

                Comentario


                • #9
                  Yes she was fined but not a great amount, I thik it is general over here if you don't pay on time you are penalized

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                  • #10
                    Same as the UK.

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                    • #11
                      I think if you are paying the soliciting fees to a solicitor than you get a better advice that what to do and how to do according to your state law.Because he better know the laws and also have experienced that how to deal with a situation under certain circumstances.
                      lawyers in gold coast
                      Editado por última vez por hellan; https://torrevieja.com/forums/member/7300-hellan en , 11:03:41.

                      Comentario


                      • #12
                        I hear what you are saying hellan, but all solicitors in Spain and the UK need input from the client, one of my friends is a solicitor in the UK and tells me she wishes all her clients were like me, when we had major problems here with a house purchase and the company San Jose went into administration, owing millions of euros to clients, I visited regularly and told my solicitor exactly what I wanted him to do, it worked cos I got all my money back, it took 18 months,but they cant do things if they are not told what you want them to do.

                        Comentario


                        • #13
                          I would be always suggest to stay away from these kind of penalties and make clear your all kind of dues that you will not face any kind of inconveniences.

                          Comentario

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