taxes who responsible - question

We will be completing on our property very shortly.
But just wondering about property tax and wealth tax (non resident)
I know taxes are due next year however how will we be charged?
We will not have had the property all of previous year do previous owners pay
What exactly happens?

Hello, I think you do not need to pay the SUMA for the next year, but need to pay non resident tax.

We purchased last year and pay our SUMA by direct debit. I had not done anything about Non-Resident Taxation until I saw a link posted by Guapa at the weekend. I contacted them on Sunday, got a reply same day, and today after a short exchange of e-mails in which I sent scans of the relevant documents I have paid the tax for the proportion of last year for which we are responsible.

So 72 hours to get all sorted at a cost of Euro 20 per name on the property in our case my wife and I, plus the actual tax which was Euro 37.64 for the year (or part thereof).

Thanks Guapa for the original link.

This is the organisation that I used:
Andy R García
ANGAR TAXATION SERVICE S.L.
C.I.F. B-54082029
Website: http://www.nonresidenttaxes.com

Thanks to all of you we will get some one to help with it all
It's a minefield!
Before our purchase I thought I had read up on it all
And knew there was going to be tax to pay but didn't realise
That it was going to be so messy!
Getting worried as round every corner we are getting
Asked for more monies first they put up property purchase tax just the week after putting deposit down
Then we find out we had to pay large amount for bankers draft.
Hope that's it now . I am banking on it all being worth it in the end.
Thanks again for replies

blackvelvet wrote:We will be completing on our property very shortly.
But just wondering about property tax and wealth tax (non resident)
I know taxes are due next year however how will we be charged?
We will not have had the property all of previous year do previous owners pay
What exactly happens?

Hello blackvelvet,

I'm sorry if I am repeating some of the good advice that has already been written on this topic, as there is quite a lot so far, but I would just like to add a few things in answer to your question:

If you have a good solicitor (Abagado), during the conveyance they should make sure that there are no debts on a property you are buying ie. Suma, community fees and utilities. It's a good idea to double check that the property is definitely debt-free before you complete the buying process.

You will not be responsible for any of the previous owners personal taxes - All personal taxes are the responsibility of the individual resident or non-resident. The previous property owner will be responsible for any non-paid personal taxes that may have mounted up while they owned the property.

However, when you become a non-resident in Spain you are responsible for your own Non-Resident tax.

Wealth tax, which is separate from Non-resident tax, has changed over the years and is, at present, only payable on properties over 700,000 euros for non-residents and residents (which luckily rules a lot of us out of paying it!) with a 300,000€ allowance against the home for residents as it is classed as their main home and not a second-home.

You can pay a relatively small yearly fee to a Fiscal representative to take all the worry about any taxes payable. They will calculate it and pay it by direct debit from your bank account. Once you have employed a Fiscal rep. they should sort everything out for you and you will just get notifications that the taxes are paid. They should tell you the months of the year that payments are made, to give you time to keep the bank account topped up in readiness.

Our representative even sorts out our Suma Council Tax (although we had to make one trip to the Suma office to set it up) but with a re-sale property it may be that you will just take over the payments from the previous owner, when you move in. I'm sure any good Fiscal rep. would advise you on this and anything else you need to be sure of.

We use Abaco Advisers for our Fiscal dealings and I have copied some information below for you, from their website, that may explain it better:

Council tax
Council tax must be paid by every home owner whether they are resident or non-resident. It is a local tax and goes by the name of IBI (Impuesto Sobre Bienes Inmuebles). It is payable directly to the town hall or via the SUMA offices in some regions.
This is the tax that goes towards paying for local services such as the maintenance of facilities, parks and leisure areas and all kinds of infrastructure provided by the Town Hall. It is collected annually and the period during which it is collected depends on where your house is located.
How much you pay is based upon the rateable value of your property or valor catastral. Rubbish collection is charged for separately either as part of your water bill or as a separate service charge issued by the Town Hall or SUMA.

Government taxes (Income tax)
Income tax is an additional government tax that is payable by non-residents if you do not rent out your property. The idea is that even though you don’t rent it out you could if you wished. In a way you are paying a tax for the privilege of keeping a second home for your own use.
Although it might sound a little formidable, people used to paying council tax in their own countries should not to be too dismayed at the prospect of two property taxes. In most cases the total bill will be much less than you would expect to pay in your own country. For example the council tax on an average 100,000€ property would be around 240€ and the imputed income tax 110€. A total that is usually still below what you would pay in one tax elsewhere.
You should also be reassured that if you only rent out your property for short periods of time an adjustment will be made to the total imputed income tax you pay across the year. You don’t have to pay the tax twice.
How do I pay?

The system here is different from what happens in most other countries. The Spanish Tax Authority (Agencia Tributaria) will not necessarily remind you that a tax hasn’t been paid. Instead you are expected to make your own enquiries and arrangements. This doesn’t mean that they have forgotten that you haven’t paid the tax.
There is an annual tax declaration in Spain (deadline December 31st) that non-residents must make. This is the means by which any income of interest to Spain, such as rental income, is declared and your imputed income tax is calculated.
Many people choose to use a fiscal representative to ensure that their property taxes are paid and to follow up any problems on their behalf.

To read more, go to website link here :
http://www.abacoadvisers.com/spain_explained/taxes/news/all-you-need-know-about-non-resident-property-taxes-spain


Hope this helps.

Jan.

Thank you Jan as always very informative just a bit daunted by it all
We will take your advise and get a fiscal rep it will be worth it for peace of mind.
Had already since last posting checked out your recommendation.
Thank you so much for taking the time to post this in depth information,
And also to one and all who have sent replys. This forum is brilliant!

Hello All (Who is all?!)

I have just used these people and from start to finish it took a week of email exchanges only.

They were very reasonable charging 40 euro's per year for the two of us.

Avery well known estate agent wanted to charge 150 euro's per year!! Now I can afford again!!!!

Would thoroughly recommend them and they do insurance as well.

Andy R García
ANGAR TAXATION SERVICE S.L.
C.I.F. B-54082029
Website: http://www.nonresidenttaxes.com

Paul

Hi

I must say as a new member the information and recomendations are absolutely brilliant , all of these topics are going to be so useful for when my husband and I make the move.