Taxes- Income Tax

[marchamona]

Been paying non-resident tax on my house for the past ten years. Each year about now, I receive a letter from my Fiscal Representative. this consists of a bill for their work, plus non-resident tax for two people. This of course has risen slowly over the years but last year was €195 total.

Imagine my surprise this year to see an added amount under separate heading of Income Tax, charged at €132. When I queried this, I was informed by a new member of their staff, that things had been calculated wrongly over the last ten years, but this was now correct.

They gave me a paper which states that this tax is calculated on:
'the hypothetical rental income your property would generate'!
As my house is never rented out, I find this a ridiculous tax.

Of course I could apply for residence which would then make this tax redundant. However as no one can yet decide on the matter of what papers are required for residence (each area seems to have its own rules), then I'll stay non-resident.

[safeashouses]

I have always believed that the tax was 'the hypothetical rental income your property would generate'!

We have always paid about the same amount as you but we haven't had this year's bill yet. We don't rent our property either, well not for financial gain, it usually costs us money for friends and family to have their cheap holiday.

Although our property has always been in joint names, from the time of the 'invention' of the tax, we have always just paid one bill. However we now both have NIE numbers so presumably this year we will have two bills and therefore an increased charge.

[hillybilly]

There are 2 "property" taxes for non residents...wealth tax and imputed (and/or actual) income tax...yes, regardless of whether or not you actually rent out your property.
http://www.andalucia.com/forums/viewtopic.php?t=7998

[Anonymous]

The non-resident income tax was introduced around 1990. Prior to that the only non-resident tax was patrimonio (wealth tax).

The non-resident income tax has nothing whatsoever to do with whether or not you let out your property but is a notional tax on your own use of it and is payable even if you never stay in it.

Both taxes are paid on the same form (214) so it is difficult to see how your fiscal representative could have missed it. Do you not have the copies of the tax returns they submit for you. If not ask for them.

It is easy to fill in the forms and pay these taxes yourself and save yourself some money.

There are comprehensive instructions elsewhere in this forum.

Hillybilly, Sorry for the duplication, we posted at the same time.

[katy]

Marchamona if you become resident to avoid these taxes you will then be liable to pay tax on your world-wide income in spain...and the rates are not as generous as the UK!

[marchamona]

That's no problem as have no income except a rather miserable pension and my savings.

[marchamona]

The non-resident income tax was introduced around 1990. Prior to that the only non-resident tax was patrimonio (wealth tax).

The non-resident income tax has nothing whatsoever to do with whether or not you let out your property but is a notional tax on your own use of it and is payable even if you never stay in it.

Both taxes are paid on the same form (214) so it is difficult to see how your fiscal representative could have missed it. Do you not have the copies of the tax returns they submit for you. If not ask for them.

It is easy to fill in the forms and pay these taxes yourself and save yourself some money.

There are comprehensive instructions elsewhere in this forum.

yes very strange. For six years my taxes were handled by one firm, then it changed to someone else four years ago. no- one picked up on this till this year.

[Beachcomber]

I think you should definitely ask for copies of the tax returns and find out what is going on.