Yearly tax on house ownership

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Lavanda
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Yearly tax on house ownership

Postby Lavanda » Mon Dec 03, 2018 5:30 pm

I've just had a meeting with my solicitor who informs me that, in addition to the Catastral tax every year that goes directly to Madrid, I am supposed to declare, every year, what properties I own and pay a tax on them. In addition, on the PURCHASE of a property there is a tax to be paid. I know about the tax on the SALE of a property and I've paid that enough times but ... can anyone explain what my lawyer is on about in simple terms, please? I know I should have asked her but time was running out and I was rather shocked at what she had said.

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peteroldracer
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Re: Yearly tax on house ownership

Postby peteroldracer » Mon Dec 03, 2018 5:50 pm

there is a registration fee when you buy.
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Lavanda
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Re: Yearly tax on house ownership

Postby Lavanda » Mon Dec 03, 2018 6:00 pm

Well if that is all it is we’ve done that.

Beachcomber
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Re: Yearly tax on house ownership

Postby Beachcomber » Mon Dec 03, 2018 6:37 pm

You should pay an annual resident's tax on any property you own (other than your habitual residence) which is calculated in the same way as the annual non-resident tax. There is a section for this on your annual tax return.

Transfer tax is payable on the purchase of a property.

wollie
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Re: Yearly tax on house ownership

Postby wollie » Mon Dec 03, 2018 11:34 pm

My understanding of this is we pay a small percentage of the potential income if this property is not our permanent residence.

Lavanda
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Re: Yearly tax on house ownership

Postby Lavanda » Tue Dec 04, 2018 8:33 am

I think that must be what she was talking about. I've checked back on our tax returns and two houses are, indeed, listed. Thanks, everyone. I'm just in panic-overload as I hate all this paperwork stuff.


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