Is non-resident tax is the same as income tax?

stu and maz · by **stu and maz** » Mon Jan 12, 2015 3:14 pm

Hi all. Can anyone tell me if non-resident tax is the same as income tax? My solicitor tells me we only have to pay 2 taxes on our rented out property. Suma and non-resident tax, but I keep hearing about paying income tax whether we rent our property out or not. Any help much appreciated...stu.

scubydoo · by **scubydoo** » Mon Jan 12, 2015 6:41 pm

Non resident tax is nothing to do with income tax however if you rent your property you are liable for tax as it is an incomes in Spain so you would be earning a lot of people do this which is in Spain illegal if you don't declare the income.

jim · by **jim** » Mon Jan 12, 2015 7:45 pm

no resident tax is ...imputed income tax levied on non resident property owners even if you do not rent your property it is a percentage of the catastral value of the property and has to be paid before 31 december each year your lawyer can make the return for you modelo 210

jim · by **jim** » Mon Jan 12, 2015 7:48 pm

ps.... if you receive income from property you have to declare this in your uk tax return

scubydoo · by **scubydoo** » Tue Jan 13, 2015 12:18 am

Please can you explain what Imputed means as it is not an income but an outgoing, do you mean it is an income to the government? sorry for being so thick!

Jan · by **Jan** » Tue Jan 13, 2015 12:47 am

scubydoo wrote:Please can you explain what Imputed means as it is not an income but an outgoing, do you mean it is an income to the government? sorry for being so thick!

Hi,

Apparently, non-residents tax has a small amount added to it (imputed) as if the property is rented out.

We were told by our fiscal rep, even though we don't rent out our property, that everyone who is non-resident has to pay this bit extra which is automatically added onto the Non-Residents tax.

Those that do rent out are supposed to declare their rental profit separately.

It is strange really - Imagine our UK tax having a percentage added just in case we were earning undeclared income!

Jan

stu and maz · by **stu and maz** » Tue Jan 13, 2015 10:10 am

Thanks for all the help on this subject. I will speak to my solicitor again to check all is in order...stu

scubydoo · by **scubydoo** » Tue Jan 13, 2015 10:30 am

Cheers Jan that explains all

jim · by **jim** » Tue Jan 13, 2015 4:33 pm

imputed means attributed.....the tax is not because you are non resident, it is a presumtion that you could rent your property, believe it is similar in the uk for people who own more than one property

Jan · by **Jan** » Tue Jan 13, 2015 5:34 pm

jim wrote:imputed means attributed.....the tax is not because you are non resident, it is a presumtion that you could rent your property, believe it is similar in the uk for people who own more than one property

I thought that was what I, more or less, said.....sort of :text-lol:

It is part of the normal Non-resident tax for Non-Resident home owners in Spain - Never heard of it in the UK, unless you mean for foreign non resident homeowners in the UK, which may be the case - It is only just being implemented in the UK (from April 2015) that foreign non resident homeowners will have to pay capital gains tax on any profit they make on a UK property when they sell......can you believe it that up until now all those people from other countries buying property in the UK can buy then sell at a huge profit and take it back to their own country with no tax to pay in the UK?....Are we a soft touch or what !!! :roll: