NON RESIDENT TAX

Thank you for the response,

my solicitor is adamant it is 101,10  (Cadastral Value of property is 26.605,70€.)  Stating the non resident tax has to be paid on 1,1% of Cadastral Value and after 10 year on 2% of Cadastral Value.

If this is correct my NRT has gone from 44 euros to 101.10.......Does this sound right? Any help appreciated please.

Diane

"the Cadastral value for your property has been revised by the Town Hall in 2008, and after the revision first ten years  the non resident tax has to be paid on 1,1% of Cadastral Value and after 10 year on 2% of Cadastral Value, that is why 2019 is higher"

Above is the quote from the solicitor, so I assume it is at 2%, because of the year?  My solicitor is right?

If this is correct, such a big jump.  Does it go up again, or does it stop at 10%? 

Diane

Hi thanks for the information; I say solicitor, because it's the firm I used when I bought the house.  Please let me know if I am correct, as from next year I will have to pay between 19 - 24 % of the cadastral  value each year?  24% of 26 000 euros each year? 

Understood better now from 19% to 24%.

Your advice is really appreciated.  A lot to think about when buying a property in Spain as a second home; pity I didn't know all this before I bought.

Diane 

Cheers......nearly had a heart attack how I worked it out!  Still from 16 euros first year (half a year, but I didn't know that at the time) to 44 euros second year to 110 euros 3 year......

Not too bad I suppose, but massive jump.  I was thinking of selling my property and getting something a little bigger,

which means more expensive, more taxes now not too sure....if you are living in Spain or get to go a lot possibly worth it

My IBI in 2006 (when bought) was 98€ and for next few years, then it went up to 126€. It stayed same until 2015 when they posted out notification of new invoice for over 1000€(honestly cant remember without finding paperwork, think 1079?€ but we didnt know. I rang Suma from UK querying the direct debit they took for 349€ and they stated it had been revalued to 349€ earlier in year and the 1079?€ was the differrence between past 4 years new revaluation (they are entitled to go back 4years) and the 126€ I,d been paying by direct debit. I was shocked beyond belief. Then 3months after posting out they took the 349€ for that year in September, first we knew about it. How the hell do they think average person has this amount spare. They even charged interest and late payment too as being non residents we werent in Spain when they posted it and from 30days it accrued extra charges. We didnt even know until we received the direct debit of 349€ from our account and we came over 2 wks later to sort it. However we had to pay it or interest and fines were still accrueing. Our Non resident tax went from 82€ to 240€ too. They do as they please, wouldnt dare do it in UK, there,d be an outcry. No one tells you these things until after they happen. We could be facing another increase in 5 yrs time again as the 4back yrs they billed for count towards the 10years revaluations. Absolutely disgusting.

Regards

Pauline.

I am seriously thinking of selling, as I feel I do not control my finances in Spain.  Like you have received letters to my

Spanish address, but don't live there, as they well know, which is why I have to pay non resident tax, so why do they send letters to your Spanish address and not your English address?  Not only the tax; I opened a Spanish bank account (BANKIA) and have been trying to close it since the beginning of the year, due to the increasing costs, and finding another account which I could manage without having to go to Spain.  I accepted I could not close it until I went to my local branch in Spain (Almoradi), so made an appointment for May, but due to coronavirus wasn't able to close it.  I have tried everything possible to get it closed online, as I have no idea when I will be over, but they will not budge.  They asked me to print off a form and sign, send it back to them along with my bank card (which I suggested, not them, I would cut up), I did this back in May, but still they will not close the account, which is costing me every month!  And I am expecting will charge me the annual renewal of a debit card. Why do they make things so difficult?  Bankia could at least put a hold on the account until I am able to go over, but no, they won't do this.  Why is it so difficult?

Diane

I feel your frustration, I feel the same, I think the word compromise doesnt exist in Spain (unless its to their  benefit). I changed from Sabadell March 2019 after 10+ years and 2000+€ paid in fees to Cajamar bank. Online, free for non residents, but can if necessary go into branch for help, and been very happy with them. Its a Spanish banking rule you must close in branch in person. I would phone your branch, demand to speak to Director, complain about charges, (say will close but not are closing),see if he will put stop or do refund. If you have direct debits then account is still doing its job. We were going to move permanent but feel in our old age everything is a difficulty we prefer not to have.

Regards.

Pauline

Thanks for your response; I have already redirected DDs to my new bank account (STARLING), as I believed we would be going in May and knew we had to change DDs a few weeks before closing down a Spanish bank account.

It's a pity there are so many barriers, if there weren't then perhaps the Spanish economy would benefit.