Tax obligations for non-resident property owners in Spain

Although there have been many articles discussing the implications of the recently reintroduced Property Wealth Tax, there still seems to be confusion as to who will be affected.

In simplistic terms, all non-resident property owners in Spain are legally obliged to pay income tax on all rental income earned in Spain and to calculate the amount of tax payable it is necessary to submit an annual Property Income Tax return.  So far, so good, however, it is the reintroduction of the Property Wealth Tax that seems to be muddying the waters.

Yes, the Property Wealth Tax applies to non-resident owners but only if the property has a rateable value of 700,000€ or above.

Although a relatively straightforward concept; everyone who owns Spanish property pays tax on the income earned and those with a property worth more than a certain amount also pay a wealth tax, completing a tax return can be a complicated endeavour, particularly if it is in a foreign language.

The Perez Legal Group has expertise in this area of law and can provide up to the minute information about the legal and fiscal obligations for non-resident property owners in Spain. They also offer a Fiscal Representative Service, designed to save you the hassle of remembering deadlines and completing laborious paperwork.

Fiscal representative services will include:

  • Completing the appropriate forms on your behalf and submitting before the deadlines
  • Liaising with the tax authorities
  • Ensuring you don’t overpay by calculating your tax liability using the following information:
    • Rateable value
    • The number of days you have owned the property (if purchased within the last 12 months)
    • The number of days the property has been rented throughout the year
    • If you purchased jointly with a Spanish resident you will be liable for a different tax.

Paying the appropriate taxes in good time is vital if you are to avoid falling foul of the Spanish authorities. Since 2010, it is no longer possible to leave your debts behind in Spain as the Spanish authorities have the power to embargo your overseas bank accounts and property until the debt has been discharged.

Visit www.perezlegalgroup.com for more information or call +34 952 833 169 to arrange a free initial consultation.

November 14th, 2013|Uncategorized|0 Comments

Tax obligations for non-resident property owners in Spain

Although there have been many articles discussing the implications of the recently reintroduced Property Wealth Tax, there still seems to be confusion as to who will be affected.

In simplistic terms, all non-resident property owners in Spain are legally obliged to pay income tax on all rental income earned in Spain and to calculate the amount of tax payable it is necessary to submit an annual Property Income Tax return.  So far, so good, however, it is the reintroduction of the Property Wealth Tax that seems to be muddying the waters.

Yes, the Property Wealth Tax applies to non-resident owners but only if the property has a rateable value of 700,000€ or above.

Although a relatively straightforward concept; everyone who owns Spanish property pays tax on the income earned and those with a property worth more than a certain amount also pay a wealth tax, completing a tax return can be a complicated endeavour, particularly if it is in a foreign language.

The Perez Legal Group has expertise in this area of law and can provide up to the minute information about the legal and fiscal obligations for non-resident property owners in Spain. They also offer a Fiscal Representative Service, designed to save you the hassle of remembering deadlines and completing laborious paperwork.

Fiscal representative services will include:

  • Completing the appropriate forms on your behalf and submitting before the deadlines
  • Liaising with the tax authorities
  • Ensuring you don’t overpay by calculating your tax liability using the following information:
    • Rateable value
    • The number of days you have owned the property (if purchased within the last 12 months)
    • The number of days the property has been rented throughout the year
    • If you purchased jointly with a Spanish resident you will be liable for a different tax.

Paying the appropriate taxes in good time is vital if you are to avoid falling foul of the Spanish authorities. Since 2010, it is no longer possible to leave your debts behind in Spain as the Spanish authorities have the power to embargo your overseas bank accounts and property until the debt has been discharged.

Visit www.perezlegalgroup.com for more information or call +34 952 833 169 to arrange a free initial consultation.

November 14th, 2013|Tax|0 Comments
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