Payment of taxes

[witt543]

Having purchased a house in mijas in march 2007 , and being a non resident ,do i have payments now for patrimonio and renta taxes, or not required till 2008 and when do i pay them.

[El Cid]

You have until the end of 2008 to pay the taxes.

Sid

[mary b]

The bill usually comes in Augusr ,probably in the old owners name .You should change this on the catastral

[palmtrees]

You pay your council tax - IBI - by September (in our area anyway) of the same year, ie 2007 - avoid fines.

As a non-resident, you should separately pay wealth tax by the end of December, but in the following year. Does that make sense?

ie you pay wealth tax (not too much) on your house by end Dec 2008.
A&K

[tjtops]

Probably a silly question but is it too much to hope that having authorised direct debits at my bank for the ayuntamiento (which seem to be working OK) to collect whatever taxes and charges I owe, anything I do owe them will automatically be taken out?? (ie I don;t have to worry about inadvertently clocking up unpaid stuff and therefore attracting fines?) I should add that this was set up in the summer of 2005.

[palmtrees]

Sorry can't help on direct debits - we've always paid cash because we've been around.

If your ayuntamiento (town hall/council) bill is being paid for IBI that sounds ok.

But wealth tax - assuming you have declared it - is not local council. It is the Hacienda (tax office). We tend to fill it out every year in December and pay at the nearest bank.

If you haven't set up a DD for it, then it won't get paid. That's if it applies to you.

[tjtops]

another silly question....who exactly DOES wealth tax apply to and on what is it based?

[palmtrees]

Wealth tax applies to Spanish residents with more than one property and non-Spanish residents with a property in Spain.

Hereis a link to some info on this site.

It is based on the catastral (ie rateable) value of your property. You need to supply your hacienda office with your NIE, address, probably passport as far as I can remember, and you get a set of sticky labels to stick on the form. Ours isn't much, about 100€ a year.

If you have any other assets in Spain you should include those. We don't. (have any other assets I mean).

The staff at the tax office are quite helpful (ours didn't speak English) although I pointed out her sums were wrong You are meant to be able to get the forms and the info from the hacienda web site but the last time I checked it didn't work very well.

You may be aware that lots of people do not pay this. Just like they do not pay lots of other taxes, dues, blah blah. For the sake of approx 100€ a year it gives us peace of mind rather than risking it. Horses for courses.

As I remember, Spanish residents pay tax at the end of June, including their wealth tax, non-spanish residents pay at end December. Watch out for early New Year finishes though.

This is not meant to be an authoritative comment, rather based on our experience and people we have met. Please check out any queries on wealth tax with the Hacienda. (tax office)