Non resident tax and bank account

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Estrella Azul
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Non resident tax and bank account

Postby Estrella Azul » Wed Oct 17, 2012 7:35 pm

Hi, my husband and I own a property in Andalucia and each year we have been paying an Abogada to complete our non-resident tax form for us. This seems to be getting more expensive each year (300 euros 2011) and we may well try and complete it ourselves next year as we are trying to save some money. We looked at our bank account with Unicaja and were quite amazed at how much their commision charges every few months adds up to . Also, I notice we are paying to them 18.00 euros each for non resident tax each year. Does anyone know if this correct that we should pay this to them when we pay the non resident tax through our Abogada each year?

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Julie
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Re: Non resident tax and bank account

Postby Julie » Wed Oct 17, 2012 8:30 pm

The charge is because you are non residents are they have to do the paperwork for it, normally every 2 years, our bank charges us about 16 euro, but some banks charge much more than yours, as for the non residents tax, there is lots of info on this web site to help you do it yourself if you want too.
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Re: Non resident tax and bank account

Postby Estrella Azul » Wed Oct 17, 2012 11:17 pm

Thank you for the info Julie. I think the NR tax is possibly based on the value of our property? It is considerably higher this year than last which I find strange considering the current housing situation in Spain. I will check the website for information about completing the tax form ourselves next year. I guess it would not be worth switching banks as it seems they all charge similar fees.

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Re: Non resident tax and bank account

Postby carrowcrin » Thu Oct 18, 2012 5:10 am

I am of the opinion that non resident is a decleration of being tax complient in another European country and because of this all tax liabalities have being paid in this country.
I do not think there is a non resident property tax unless there is an income from the said property but this may have changed in the recent past.
I may be wrong about this whole non resident thing and i hope someone will confirm this whole area.
As for the banks it does not seem to be any way of avoiding charges save keeping the money under the bed.

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Re: Non resident tax and bank account

Postby El Cid » Thu Oct 18, 2012 7:31 am

The main reason that banks differentiate between non residents and residents that if there is any interest paid by the bank then if you are resident then tax is deducted by the bank. If you are non resident the interest is paid in full.

As for property tax, all non residents pay tax at 24.75% on the "imputed" rental income of their property, that income is usually based on 2% of the catastral value. If they actually let the property then they also pay tax on the rental income.

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Re: Non resident tax and bank account

Postby oliveview01 » Thu Oct 18, 2012 8:00 am

We queried the non residence tax as we had never let our house out, the abogado said the Government assumed you did so we had no choice. We paid 50€ each to get the paperwork filled out, that was 8 years ago though.

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Re: Non resident tax and bank account

Postby Beachcomber » Thu Oct 18, 2012 1:44 pm

The lawyer gave you duff information. What a surprise! The government does not assume you let your property. If you do that you have to pay tax on the actual rental. The imputed non-resident income tax is a tax on your own use of the property. Paying this tax does not preclude or excuse you from paying tax on the actual rental income.

The tax rate of 24,75 is applicable next year and the year after for declarations for 2012 and 2013. Anyone submitting their tax returns in the remaining few months of this year for 2011 pays at 24%. The 2% of the valor catastral only applies to properties that have not been revised since 1994 otherwise it is 1,1%.

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Re: Non resident tax and bank account

Postby carrowcrin » Thu Oct 18, 2012 2:31 pm

I hope the original poster does not mind me asking
If anyone knows if there is a relationship between the "valor catastral" and the actual value of the property or if it is the actual value of the site the property is on?

thanks

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Re: Non resident tax and bank account

Postby Beachcomber » Thu Oct 18, 2012 2:41 pm

The valor catastral is an arbitrary figure plucked out of the air by Catastro. It bears no relationship to either the market value of the property or the value of the land upon which the property stands.

As other members of this forum have discovered, when the municipal multiplier is applied to the valor catastral to obtain the fiscal value of the property it can often be two or even three time the real market value. It could even get to the stage, in extreme circumstances, where the capital gains tax payable exceeds the sale price of the property meaning that you actually have to pay to 'sell' your property.

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Re: Non resident tax and bank account

Postby Mike.M » Thu Oct 18, 2012 4:02 pm

If it's of interest to anyone, who wants to read the 'official line' as to the process of valuation for the purposes of IBI, then see here -> http://www.catastro.meh.es/ponencias/metodologia.pdf .... it should make the winter nights 'fly by'!

Haven't had a peer myself yet but parked it in my favourites as I 'tripped over it' looking for something else.

Regards,

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Re: Non resident tax and bank account

Postby Free at Last » Thu Oct 18, 2012 4:41 pm

Thanks for posting the link. I've just skimmed through it, and although most of it made my eyes glaze over, I did pick out one interesting fact which might be relevant to me. I've always wondered why my IBI bills were higher than similar sized houses nearby, and I see from this document that if your house has 2 or 3 fachadas bordering the public street, a slightly higher valuation factor is applied. I have 3, so a co-efficient of 1.15 is applied.

Shell1965
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Re: Non resident tax and bank account

Postby Shell1965 » Thu Aug 21, 2014 8:54 pm

Hi all
I'm new to this website and wonder if anyone can help.
We were paying a solicitor to do all our tax work for a number of years and were then advised to do it ourselves. I thought we had covered everything but now find that we need to pay the non resident tax. There is a company that will do it for us for 25.00 euros for the current and last year but I am worried we may have missed the year before that.
Has anybody had this problem, and if so, what is the best thing to do, as we want to be on top of everything, and not be fined!!!!!

All help gratefully received!!

Thanks

Shell

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Enrique
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Re: Non resident tax and bank account

Postby Enrique » Thu Aug 21, 2014 9:44 pm

Hi Shell1965,
I take it you're talking about the Non-Resident Tax on Form 210, just straight no rental income , just the fact you own a property in Spain...... and come over as a tourist on holiday.

I would just pay this years due...see FAQ on the subject.

From experience if they have you on the Radar then you would have heard from them about the other years........if they do come back then you can pay the back years if they are owed .

If you're not happy with the above, paying someone 25 euro to do it is a modest sum, BUT get copies if you go this route. If joint owned then split the amount and submit two copies one for each person.

What happened to the Solicitors copies from previous years........... :?:
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Re: Non resident tax and bank account

Postby Beachcomber » Thu Aug 21, 2014 10:21 pm

If you are, as Enrique suggests, talking about non-resident tax returns bear in mind that these taxes are paid a year in arrears so now, in 2014, submissions are being made for 2013 and in 2013 the tax was paid for 2012 so you may not be as for behind as you think.

If AEAT does catch up with you they can only go back four years anyway which, in this case, will be 2009 until the end of this year then 2010 and so on.

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Re: Non resident tax and bank account

Postby Shell1965 » Sat Aug 23, 2014 1:12 pm

Hi Enrique and Beachcomber
Thanks so much for your help, and what you have told me has made me feel very relieved! I had been told that any unpaid years (with no time limit) would be added to the property as a debt along with a fine, so I am glad to know it only goes back 4 years.
It was the Form 210 that I was talking about, and I know it has to be paid even if you don't receive any rental income!
I have got the Suma bill for last year and there seems to be 2 values that need to be added together to get the valor catastral, so I'm a bit confused there. I also have the solicitors copies for previous years and they look terrifying!!!!! That's why I'm considering using this company for 25 euros this once, and then try to do it myself next time......wish me luck!!
Thanks again

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fyfin
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Re: Non resident tax and bank account

Postby fyfin » Sat Aug 23, 2014 3:24 pm

We used a company initially for around the same fee and I would say that is reasonable if you don't want to do it yourself. Actually prior to becoming residents here I did the last return myself. We actually have 2 catastral references one for the apartment and another one for the garage space and everything is joint. I ended up doing 4 returns although I believe it is common practice to just add the 2 bits together, so just doing 2 returns, one for me and one for my wife.
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Enrique
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Re: Non resident tax and bank account

Postby Enrique » Sat Aug 23, 2014 3:43 pm

Hi Shell1965,
Following on from fyfin's post..........Please read the FAQ on the subject.........

http://andalucia.com/forums/viewtopic.php?f=42&t=27897

As you have copies of previous years Form 210 (Modelo 210)............

You're good to go and fill in the boxes.

When you have completed the Form , Export the data and you can then use this next year by Importing it into the Form, change the Date and any Values that have changed , update these and you could be completed in five minutes............ 8)

" I also have the solicitors copies for previous years and they look terrifying!!!!!"......
The only thing that is terrifying is the amount they want to charge for this amount of effort..... :evil:
UNIX is basically a simple operating system, but you have to be a genius to understand the simplicity.

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fyfin
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Re: Non resident tax and bank account

Postby fyfin » Sat Aug 23, 2014 3:53 pm

Totally agree - solicitor's tend to rip off unsuspecting Brits who think the process is too complicated to do themselves. Also I have found some Gestors or Solicitors are actually giving out incorrect advice.
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Re: Non resident tax and bank account

Postby Beachcomber » Sat Aug 23, 2014 5:04 pm

Shell1965 wrote:...I have got the Suma bill for last year and there seems to be 2 values that need to be added together to get the valor catastral, so I'm a bit confused there...
If the two amounts are made up of one valor catastral for the land and one for the building you need only do one tax return (for each owner) but if they are for two or more individual properties, ie an apartment and a garage space and/or a store cupboard you need to do one return each for each property. It is not common practice to add the amounts together in these circumstances.

If you think the completed forms look terrifying you will be even more terrified by the formula you have to fill in to reach that stage but there are comprehensive step by step instructions in the FAQ on how to fill in the forms for yourself and a dedicated thread to answer questions arising from it.

Remember that any mistakes made by a third party in the completion of the forms will be your responsibility not theirs so it is worth making the effort to understand the procedure and carry it out for yourself not just to save some money but also for your own peace of mind.

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Enrique
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Re: Non resident tax and bank account

Postby Enrique » Sat Aug 23, 2014 5:47 pm

Hi Shell1965,
As Beachcomber points out any queries you have regarding filling in the Form 210 please post on.........This thread.......... :D

http://andalucia.com/forums/viewtopic.p ... 10#p323253
UNIX is basically a simple operating system, but you have to be a genius to understand the simplicity.


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